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    We Think Freightos (NASDAQ:CRGO) Needs To Drive Business Growth Carefully

    Simply Wall St·10/10/2026 12:21:14
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    Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.

    Given this risk, we thought we'd take a look at whether Freightos (NASDAQ:CRGO) shareholders should be worried about its cash burn. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'.

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    Does Freightos Have A Long Cash Runway?

    A company's cash runway is calculated by dividing its cash hoard by its cash burn. As at June 2026, Freightos had cash of US$21m and no debt. Looking at the last year, the company burnt through US$12m. Therefore, from June 2026 it had roughly 21 months of cash runway. While that cash runway isn't too concerning, sensible holders would be peering into the distance, and considering what happens if the company runs out of cash. Depicted below, you can see how its cash holdings have changed over time.

    debt-equity-history-analysis
    NasdaqCM:CRGO Debt to Equity History October 10th 2026

    Check out our latest analysis for Freightos

    How Well Is Freightos Growing?

    At first glance it's a bit worrying to see that Freightos actually boosted its cash burn by 21%, year on year. At least the revenue was up 10% during the period, even if it wasn't up by much. Considering both these factors, we're not particularly excited by its growth profile. While the past is always worth studying, it is the future that matters most of all. So you might want to take a peek at how much the company is expected to grow in the next few years.

    Can Freightos Raise More Cash Easily?

    While Freightos seems to be in a fairly good position, it's still worth considering how easily it could raise more cash, even just to fuel faster growth. Companies can raise capital through either debt or equity. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.

    Since it has a market capitalisation of US$43m, Freightos' US$12m in cash burn equates to about 29% of its market value. That's fairly notable cash burn, so if the company had to sell shares to cover the cost of another year's operations, shareholders would suffer some costly dilution.

    Is Freightos' Cash Burn A Worry?

    On this analysis of Freightos' cash burn, we think its cash runway was reassuring, while its cash burn relative to its market cap has us a bit worried. We don't think its cash burn is particularly problematic, but after considering the range of factors in this article, we do think shareholders should be monitoring how it changes over time. Readers need to have a sound understanding of business risks before investing in a stock, and we've spotted 3 warning signs for Freightos that potential shareholders should take into account before putting money into a stock.

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