Freight Technologies Reports Revenue Decline and Improved Net Income in Q2 2025

Freight Technologies, Inc. (Fr8Tech) reported a decrease in revenue for the second quarter of 2025, with total revenue reaching $2.99 million, down from $3.84 million in the same period last year. For the first half of 2025, revenue was $7.09 million, a decline of 13% compared to $8.13 million in the first half of 2024. The decrease in revenue was attributed to reduced dedicated capacity revenue, particularly due to the company's decision to limit credit exposure with its largest customer, alongside the strengthening of the U.S. dollar against the Mexican peso. The company also reported a net income of $649,238 for the second quarter, a significant improvement from a net loss of $1.95 million in the prior year.

In terms of operational performance, Fr8Tech's total expenses for the second quarter were $4.46 million, down from $5.54 million in the same quarter of 2024. The cost of revenue decreased to $2.53 million from $3.11 million, reflecting the company's focus on higher-margin customers and routes. Compensation and employee benefits expenses also fell to $1.11 million from $1.36 million, primarily due to a reduction in headcount. The company’s accumulated deficit stood at $45.87 million as of June 30, 2025, while stockholders' equity improved to $8.78 million from a deficit of $654,760 at the end of 2024.

Strategically, Fr8Tech has made significant moves to enhance its product offerings and financial position. The company launched Fleet Rocket, a new service aimed at improving transportation management for brokers and shippers. Additionally, Fr8Tech raised $3 million through the issuance of Series A4 preferred shares in February 2025 and converted $1.5 million of convertible notes into preferred shares in May 2025. The company also reported holding $8.38 million in cryptocurrencies, which contributed to its financial performance through unrealized gains.

Operationally, Fr8Tech has seen an increase in its accounts receivable and unbilled receivables, which rose to $6.5 million, a 60% increase from $4.1 million at the end of 2024. This increase was primarily due to lower collections compared to the previous year. The company’s short-term borrowings also increased to $4.85 million from $3.34 million, reflecting its reliance on debt to support operations. As of June 30, 2025, Fr8Tech had a negative working capital of $179,851, raising concerns about its liquidity and ability to continue operations without additional capital.

Looking ahead, Fr8Tech's management has expressed concerns regarding its liquidity, indicating that the company may need to raise additional capital to sustain operations. The company has historically funded its operations through a mix of equity and debt, and it continues to explore options for financing. The outlook remains cautious, with management noting that the ability to operate effectively may be impacted if additional capital cannot be secured.