Freight Technologies Announces Second Quarter 2025 Results
HOUSTON, Aug. 21, 2025 (GLOBE NEWSWIRE) -- Freight Technologies, Inc. (NASDAQ:FRGT, "Fr8Tech" or the "Company")), a logistics management innovation company, offering a diverse portfolio of technology-driven solutions, released its results for the second quarter ended June 30, 2025, on August 18, 2025.
"In the second quarter of 2025, we made further progress on the technological elements of our offerings and continued our transition to a SaaS provider in the logistics space. Fr8Tech completed initial sales of Fleet Rocket, a Transportation Management System (TMS) software solution, released several new features to Fr8App, and improved the operating margins on its brokerage business. Although higher tariffs and trade policy uncertainty impacted the brokerage business in the second quarter, we achieved profitability during the quarter through our crypto investments and through ongoing operational improvements. We remain as focused as ever on our mission and commitment to leading digital logistics innovation," said Javier Selgas, CEO of Fr8Tech.
Business Highlights
Completed initial enterprise sales of Fleet Rocket, our cost-effective Transportation Management System (TMS) software solution to optimize freight brokerage and shipping operations.
Released several new features and capabilities to Fr8App and Fr8Fleet most prominently with deeper integration and electronic data interchange (EDI) connections and cross-functionality with customer platforms.
Created initial prototypes of AI Logistics Worker agents that interact with dispatchers to enhance day-to-day coordination and efficiency. Our Fr8Tech AI Lab, a collaboration with the University of Monterrey, created the agents with the ASI1-Fast model of our development partner Fetch.ai.
Expanded cryptocurrency treasury with the purchase of Official Trump coins, building on the initial acquisition of FET tokens.
Financial Highlights
Achieved a net profit of $649 thousand, a 21.7% net profit margin, for the three months ended June 30, 2025, demonstrating initial value of our cryptocurrency treasury.
Operating loss improved year-over-year from -$1.7 million in Q2 2024 to -$1.5 million in Q2 2025 on higher margin brokerage business and lower operating expenses.
For the six months ended June 30, 2025, increased cash position, lowered interest expense and increased the Company's equity position.
2025 Annual Outlook
As a result of: (1) the Company's transition to focus on higher margin software sales and AI innovations; (2) selective customer engagement with our freight brokerage services, (3) and, potential economic impact of higher tariffs on US-Mexico cross border trade, the Company is lowering its revenue and operating margin outlook for 2025. Our revised outlook for the full year 2025 is:
Revenue: $13 million to $16 million
Operating Loss: -$4.5 million to -$6.3 million
About Freight Technologies Inc.
Freight Technologies (NASDAQ:FRGT) ("Fr8Tech") is a technology company offering a diverse portfolio of proprietary platform solutions powered by AI and machine learning to optimize and automate the supply chain process. Focused on addressing the distinct challenges within the supply chain ecosystem, the Company's portfolio of solutions includes the Fr8App platform for seamless Over-the-Road (OTR) B2B cross-border shipping across the USMCA region; Fr8Now, a specialized service for less-than-truckload (LTL) shipping; Fr8Fleet, a dedicated capacity service for enterprise clients in Mexico; Waavely, a digital platform for efficient ocean freight booking and management of container shipments between North America and ports worldwide and Fleet Rocket a nimble, scalable and cost-effective Transportation Management System (TMS) for brokers, shippers, and other logistics operator. Together, each product is interconnected within a unified platform to connect carriers and shippers and significantly improve matching and operation efficiency via innovative technologies such as live pricing and real-time tracking, digital freight marketplace, brokerage support, transportation management, fleet management, and committed capacity solutions. For more information, please visit fr8technologies.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Fr8Tech's and Fr8App Inc.'s actual results may differ from their expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue" and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside Fr8Tech's and Fr8App Inc.'s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability to obtain or maintain the listing of Fr8Tech's ordinary shares on Nasdaq; (2) changes in applicable laws or regulations; (3) the possibility that Fr8Tech or Fr8App Inc. may be adversely affected by other economic, business and/or competitive factors; (4) risks relating to the uncertainty of the projected financial information with respect to Fr8App Inc.; (5) risks related to the organic and inorganic growth of Fr8App Inc.'s business and the timing of expected business milestones; and (6) other risks and uncertainties identified, including those under "Risk Factors," to be filed in Fr8Tech other filings with the Securities Exchange Commission.
Fr8Tech cautions that the foregoing list of factors is not exclusive. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Fr8Tech and Fr8App Inc. caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Fr8Tech and Fr8App Inc. do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based.
Schedule I
FREIGHT TECHNOLOGIES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)(UNAUDITED)
Three Months Ended June 30
Six Months Ended June 30
2025
2024
2025
2024
Revenue
$
2,989,910
$
3,837,842
$
7,090,550
$
8,125,602
Cost and expenses
Cost of revenue
2,534,689
3,113,444
6,127,989
7,170,071
Compensation and employee benefits
1,109,141
1,363,395
2,363,930
2,817,736
General and administrative
663,272
940,390
1,260,025
1,671,927
Sales and marketing
46,844
15,525
62,889
34,319
Depreciation and amortization
106,935
110,039
210,789
220,246
Total cost and expenses
4,460,881
5,542,793
10,025,622
11,914,299
Operating loss
(1,470,971
)
(1,704,951
)
(2,935,072
)
(3,788,697
)
Other income and expenses
Interest expense, net
(208,245
)
(231,828
)
(343,109
)
(404,532
)
Change in fair value of convertible note
-
22,602
-
22,602
Realized gain (loss) in value of sold cryptocurrency
(80,057
)
-
(80,057
)
-
Unrealized gain (loss) in fair value of cryptocurrency
2,427,754
-
2,427,754
-
Income (loss) before provision for income taxes
668,481
(1,914,177
)
(930,484
)
(4,170,627
)
Income tax expense
