Freight Technologies Inc. Reports Q1 2025 Results: Revenue Down, Net Loss Narrows to $1.6M, Gross Margin Rises to 12.4%

Reuters
05/20
Freight Technologies Inc. Reports Q1 2025 Results: Revenue Down, Net Loss Narrows to $1.6M, Gross Margin Rises to 12.4%

Freight Technologies Inc. reported its first-quarter 2025 financial results, highlighting several improvements and strategic advancements. The company recorded a year-over-year increase in its gross margin percentage, rising to 12.4% in Q1 2025 from 5.4% in Q1 2024. This improvement was attributed to a focus on profitable routes in the cross-border and domestic spot markets and efficiencies in dedicated services. Additionally, cash flow from operations improved by $0.2 million to ($3.1) million in Q1 2025 from ($3.3) million in Q1 2024, primarily driven by improved margins. The company's net loss also showed a year-over-year improvement, decreasing by $0.7 million to ($1.6) million in Q1 2025 from ($2.3) million in Q1 2024, supported by higher gross margins and lower operating expenses. In terms of business operations, Freight Technologies launched Fleet Rocket, a cost-effective Transportation Management System $(TMS.AU)$ software solution designed to optimize freight brokerage and shipping operations. The company also introduced several new features and capabilities for Fr8App and Fr8Fleet, including an AI-powered Tendering Bot, a mobile app for dispatchers, and updated tracking integrations. Freight Technologies has started the Fr8Tech AI Lab in partnership with the University of Monterrey to further develop AI-based technologies for logistics operations. Additionally, the company purchased $5.2 million of FET tokens to establish a cryptocurrency treasury and collaborate with the Fetch Foundation on AI-driven product developments. Looking ahead to the 2025 annual outlook, the company has adjusted its revenue and margin expectations due to the anticipated economic impact of higher tariffs on US-Mexico cross-border trade. The revised outlook projects revenue between $20 million and $23 million, gross profit between $2 million and $2.8 million, and an operating loss ranging from -$4.2 million to -$5.5 million. Despite these challenges, the company aims to recover cross-border volume with domestic shipments across its platforms.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Freight Technologies Inc. published the original content used to generate this news brief on May 20, 2025, and is solely responsible for the information contained therein.

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