Freight Technologies Reports $4.1M Revenue and $1.6M Net Loss in Q1 2025

Freight Technologies, Inc. (Fr8Tech) reported a revenue of $4.1 million for the first quarter of 2025, a decrease of 4.4% from $4.3 million in the same period of 2024. The company's net loss narrowed to $1.6 million, compared to a loss of $2.3 million in the prior year. This improvement in profitability was attributed to a reduction in total costs and expenses, which fell to $5.6 million from $6.4 million year-over-year. The decrease in costs was primarily driven by lower revenue, a focus on higher-margin customers, and a stronger U.S. dollar against the Mexican peso.

In terms of operational metrics, Fr8Tech's accounts receivable and unbilled receivables increased significantly, totaling $5.9 million as of March 31, 2025, up 45.1% from $4.1 million at the end of 2024. The company also reported a net working capital of $349,251, indicating a slight improvement in liquidity. However, the accumulated deficit rose to approximately $46.5 million, raising concerns about the company's long-term financial health. The company continues to rely on capital raises and debt financing to support its operations, with short-term borrowings increasing to $3.8 million from $3.3 million.

Strategically, Fr8Tech has made significant changes, including the issuance of Series A4 preferred shares, which raised approximately $3 million in February 2025. Additionally, the company entered into a Securities Purchase Agreement on March 31, 2025, selling Series A4 preferred shares for $5.2 million, payable in cryptocurrencies. These moves are part of Fr8Tech's strategy to enhance its capital structure and support ongoing operations. The company has also streamlined its workforce, reducing headcount by approximately 20 positions to cut costs.

Looking ahead, Fr8Tech's management has expressed concerns regarding its liquidity, indicating that the company may need to raise additional capital to continue operations. The company has projected that it will require further funding to achieve cash self-sufficiency. The ongoing economic conditions, including fluctuations in international trade and the demand for freight services, will significantly impact the company's performance. Management has acknowledged that if it fails to secure additional funding, it may need to scale back operations or divest assets, which could adversely affect its business continuity.