Hello and welcome to FREDOS Q2 2026 Earnings Conference Call. A press release with detailed financial results was released earlier today and is available on the investor relations section of our website, fredos.com slash investors. My name is Anati Ron Heilborn and I'm joined today by Pablo Pinillos, FREDOS CEO and Interim CFO and Ian Arroyo, Chief Strategy Officer. Following the prepared remarks, we'll open the call for questions. We are sharing slides during the call and using video, so we recommend using Zoom on a computer rather than dialing in by phone. The slides as well as a recording of this earnings call will be available on our website shortly after the call. Please be aware that today's discussion contains forward-looking statements which are subject to a number of risks and uncertainties Actual results may differ materially due to various risk factors Please refer to today's press release and our SEC filings for more information on risk factors and other factors which could impact forward-looking statements Copies of these reports are available online In discussing the results of our operations, we'll be providing and referring to certain non-IFRS financial measures. You can find reconciliations to the most directly comparable IFRS financial measures along with additional information regarding those non-IFRS financial measures in the press release on our website at fredos.com slash investors. The company undertakes no obligation to update any information discussed in this call at any time. Before we begin, I'd like to note our upcoming investor events. This week, Freightos will participate virtually in the CIDOTI Microcap Conference. In September, management will attend the HC Wainwright Annual Investment Conference in New York. Links to webcasts when applicable and other event updates can be found on our website. Today's earnings call will begin with a business and financial overview by Pablo, followed by Ian, who will discuss our product strategy in more detail. Next, Pablo will present the guidance for Q3 and full year 2026. We will conclude with Q&A. Questions can be submitted in writing during the call by using the Q&A feature in Zoom. With that, I will hand it over to Pablo.

Thank you, Anat, and thank you everyone for joining us today. Thank you very much. With the discipline changes and sharper prioritization now in place, we expect results to begin showing in H2. The quarter demonstrated that our global offering remains resilient and increasingly vital to customers navigating industry headwinds, while our operating discipline continues to improve. Thank you very much. Second, we continue to execute against the plan we outlined earlier this year. In Q1, we focused the organization on alignment and prioritization. In Q2, that execution is increasingly reflected in the evolution of our product offering. While our updated full-year outlook reflects areas where execution needs to accelerate, we expect the crossover to adjust a bit at breakeven to occur at some point during the fourth quarter. We see the business exiting 2026 at a breakeven run rate, and from there, becoming cash generative by mid-2027, ensuring our financial stability and ability to fund future growth. Before turning to the quarter, I would like to briefly note the appointment of Jaron Eldad as FREITO's new Chief Financial Officer, effective September 1st. Jaron brings more than 25 years of senior financial leadership experience, including significant public company and international operating experience. His appointment is an important step in our management transition and strengthens the leadership team as we remain focused on delivering against our goals. We are very pleased to have him joining Freitas. Now, let's discuss the results of the quarter. Total revenue for the second quarter was above our expectations and up 3% from Q2 last year. The outperformance was driven by platform revenue of $2.9 million, increasing 90% compared to last year, whereas solutions revenue of $4.8 million was down 4% from last year. The platform outperforms this quarter reflects the breadth of our platform revenue base. While the Middle East conflict continued to wait on booking volumes in affected corridors, tariff-driven reimbursement activity through ClearIt provided a meaningful offsetting tailwind, with one source of platform revenue under pressure and another exceeding plan. The net result was platform revenue above expectations. What we have seen in the Middle East routes were still disrupted through the second quarter, but recovery was stronger than what we had previously anticipated. So our platform facilitates 458,000 transactions, up 15% from Q2 last year. Excluding routes involving Middle East origin, destination, or airspace, transactions grew year on year at a rate well in line with the company's long-term model of 20% to 30% transactions growth. The gross booking value of these transactions reached a record of $422 million, up 33% from Q2 last year. This reflects both the transaction volume and the fact that the average air freight rates remain high, about 25% above their pre-conflict levels. Prathram Revenue benefit from higher than expected contribution from Clearit, our custom transactions business line. Clearit processes many refund claims following tariff policy changes. This activity carries higher revenue per transaction and typical customs transactions and was a meaningful, largely temporary contributor to Q2 outperformance. We expect a moderate contribution in Q3 and a smaller contribution in Q4. Nevertheless, it is a reminder of the importance of having a broad platform revenue base. We announced the addition of Korean Air to the Freightos network. This is the major Asian cargo airline whose addition we referred on our Q1 quarter call. We have said for some time that expanding airline participation in Asia is a strategic priority for us, so confirming Korean Air as part of the network is an important milestone. As we continue adding leading carriers across key geographies, we strengthen network connectivity, increase the depth of the network, and create more opportunities for better procurement and decision-making across the platform. Every leading carrier we add also increase the data flow through the network. And that cumulative effect of building a larger, more connected network over time is really the bigger story here. Active carrier count, active meaning that they received more than five transactions each in the quarter, was 75, compared with 79 in Q1 and 75 a year ago. The quarter-on-quarter decrease reflects some carriers failing down below the threshold, partially offset by the addition of other carriers. So the active carrier count can fluctuate quarter on quarter as individual carriers move above or below the threshold. But we are focused on the long-term trajectory and customer value, adding leading carriers, expanding geographic coverage, deepening the network, increasing available capacity. Turning to solutions, revenue for the second quarter was down year on year, reflecting the execution gap identified during 2025. New bookings were not sufficient to cover for the shortfall, and we are seeing some pricing pressure on renewals. We are not satisfied with this performance, and we are being direct about that. We continue to build a strong pipeline, up 30% quarter-and-quarter. that is progressing correctly through the sales cycle. But the pipeline is not the outcome. Bookings and revenue are. We're measuring progress through conversion rates, sales cycle duration, renewals, and customer goal lives. We will judge ourselves on those outcomes and we expect it to start converting during H2. Thank you very much. That reinforcing dynamic is intact, but for it to work, we need to convert more effectively. On deal velocity, on demonstrating clear ROI to customers in a market where procurement budgets are under scrutiny, and on closing the gap between pipeline strength and bookings. Part of what we have done to sharpen that customer value is to bring our product portfolio together under a single Freightos identity. And Ian will walk through the product implications in a moment. But at the strategic level, here's why it matters. Thank you very much. It became important that our brand reflects that reality. Our ambition is not simply to offer great logistics software. Our ambition is to build a connected platform where procurement, pricing, booking, payment, data, and decision intelligence work together to help customers move freight more efficiently. A unified identity makes it easier for customers to understand the breadth of the Freightos platform and how our solutions work together. We received positive customer feedback on the move and believe that clarity will support solutions adoption over time. Before I hand it over to Ian, let's discuss our profitability and cash position. Non-IFRS gross margin was 74.1%, up from 73.5% in Q2 last year, demonstrating efficiency gains. Adjusted EBITDA was negative $2 million, reflecting primarily the disciplined cost management and focused investment approach we outlined at the beginning of the year. The cost optimization actions we announced in March are on track. We are beginning to see the operational benefit of those actions that will continue during Q3 to get full benefit on the financial impact in Q4, as we indicated. We ended the quarter with $21.4 million in cash and short-term deposits. We are on track to cross the adjusted EBITDA break-even point by the end of the year. Once we reach breakeven, we expect to begin generating positive cash flow within one or two quarters after that. So we are not only well capitalized to execute our strategy through breakeven, we have the resources to continue investing in the business beyond it. And with that, I will pass it over to Ian.

Thanks, Pablo. As Pablo mentioned, one of our priorities this year has been disciplined execution, focusing our product investments on the areas where we can create the greatest value for our customers while strengthening the long-term value of the Freightos platform. During the second quarter, our work centered around three main areas. The first is building deeper workflow solutions. During Q2, we continued making progress across both our shipper and freight forwarder solutions. For enterprise shippers, we enhanced the experience within Freightos Procure by bringing key stages of the tender process into a more intuitive end-to-end environment. For example, we worked with a major UK enterprise shipper whose global procurement team was manually consolidating lane requirements from regional logistics leaders across emails and spreadsheets before uploading them into our platform. By enabling those regional teams to enter requirements directly into Freightos Procure, the entire tender process from lane collection through carrier ranking to final award now takes place within a single platform. For freight forwarders, we continue developing the next generation of our air, pricing, quoting, and booking experience. With these initiatives, while these initiatives serve different customer segments, they're driven by the same philosophy. helping customers manage more of their freight procurement and execution within Freightos rather than solving individual isolated tasks. Ocean Freight is a great example of why that matters. Ocean procurement remains highly fragmented with a wide variety of contract formats, pricing structures, and data standards that still require significant manual effort. Our objective isn't simply to digitize those processes. It's to standardize the underlying data that powers them. That makes it easier for customers to generate accurate quotes, compare alternatives, and manage freight more efficiently. Ultimately, by replacing fragmented manual processes With standardized digital ones, we help customers reduce the time and effort required to manage freight while giving them better data and broader market visibility to make smarter procurement decisions and lower their transportation costs. The second area is the product dimension of One Freightos. As Pablo said, One Freightos is much more than a branding initiative. From a product perspective, it reflects our portfolio and how it's evolving. Historically, many of our products were developed independently, reflecting both the different customer groups they serve and the way Freightos has grown over time. Today, we're increasingly connecting those capabilities into a more unified platform while still tailoring the experience for freight forwarders, enterprise shippers, and SMB customers. Our customers don't think in terms of individual applications. They think about getting work done. Whether that's moving from market intelligence into procurement, procurement into booking, booking into shipment management, our goal is to make those transitions increasingly seamless for the customer. A critical part of that vision is multimodality, the ability to manage ocean, air, and land freight within a single platform. We believe that's one of Freightos' most important long-term differentiators, and in the second half of the year, we expect to bring more of those capabilities into the market. Over time, we believe this will make Freightos easier to adopt, easier to expand across customer organizations, and ultimately more valuable as customers rely on us for a broader portion of their freight operations. For Freightos, this is much more than a product strategy. As we become embedded across more of the freight workflows, we increase the number of customer interactions we support around every shipment. That creates more opportunities to deliver value, to deepen customer relationships, and over time monetize a larger portion of the freight journey. The third area is accelerating how we build products. Alongside the evaluation of our portfolio, we're also modernizing the underlying architecture that supports it. As part of our long-term platform strategy, we're migrating products onto a common technology foundation designed to accelerate innovation and AI-assisted development. This common foundation is an important enabler of One Freightos. allowing us to deliver a more unified customer experience while accelerating the pace of innovation. During Q2, we continued building customer capabilities on that foundation while expanding the use of AI across our product development process from product design and prototyping through to software development. In the second half of the year, customers will begin benefiting from capabilities built on this new foundation Much of this work happens behind the scenes, but it's important because it supports faster innovation, AI-assisted development, and intelligent customer workflows. We also believe AI is most valuable when it's connected to trusted freight data and embedded directly into customer operations. That's the approach we're taking. Using AI not simply to automate a task, but to help customers make better decisions across their procurement, pricing, booking, and execution life cycles. Together, these efforts reflect continued execution against the priorities we laid out earlier this year. We're building deeper workflow solution, bringing more of our platform together through One Freightos, and creating a technical foundation that allows us to innovate faster We believe these investments will strengthen customer adoption today while creating a larger platform for expansion, monetization and transaction growth over time. With that, I'll turn it back to Pablo to walk through our guidance.

Thanks, Ian. And now turning to our outlook. On transactions, our outlook assumes that the Middle East recovery continues at roughly the pace we saw in Q2, without a further step up. We are not assuming a full normalization of those routes. We are reflecting what we have actually observed. Excluding Middle East affected routes, our underlying transaction growth remains in the 20 to 30% range, which is consistent with our long-term model. But in total, we assume lower teens growth and revise our full year expectation slightly upwards to 12 to 14% growth year on year. GVB guidance reflects both those transactions volumes and our assumption that the air freight rates remain at approximately current levels. We are also improving our yearly guidance to 19 to 21% growth year on year. On revenue, we expect $7.7 to $7.8 million in Q3 and narrowed the range for the full year expectations to $30.4 to $31.0 million. The Q2 platform revenue outperformance, driven primarily by the cleared refund claims activity that I described earlier, was mostly one-time dynamic. We don't expect that to repeat at the same level. At the same time, the SaaS execution challenges we discussed are real. Middle East roots are still at risk, and our updated revenue guidance reflects that reality. Thank you very much. We expect adjusted EBITDA of negative $1.3 to $1.2 million in Q3 and a loss lower than a million in Q4. This trajectory reflects crossing breakeven at some point during Q4 and reaching a meaningful milestone we have repeatedly committed to. Before we open up for questions, let me bring it back to the three things I outlined at the top of the goal. First, we continue to strengthen freight exposition as the infrastructure layer for global freight seamlessly connected the freight industry. Let me highlight that the addition of Korean Air, 75 active carriers on the platform, 15% transactions growth year on year, and a record of GBP of $422 million. All of these reflect our strategic approach to create a network that is deeper, more connected, shares interoperability standards and increasingly central to how the industry operates. Seconds, we're executing against the plan we lay out at the beginning of the year. In Q1, that work was largely organizational. In Q2, it's showing up in the product, in the workflow improvements Ian described, in the unification of our portfolio under Juan Freitas, and in the architectural foundation that will allow us to move faster. On the solution side, execution is not yet where it needs to be. Our priority for the second half is converting customer demand into bookings, implementations, and recurring revenue. The pipeline is healthy, the product is evolving, and we need to close the gap between those inputs and bookings. That's our focus for the second half. Third, our financial execution is improving. We expect to exit the year at an adjusted beta break-even run rate and to become cash generative during the first half of 2027. With 21.4 million in cash, we have the resources to reach that milestone and to continue investing beyond it. Freightos has the network, data, and customer relationships to become increasingly important infrastructure for global trade. Our responsibility now is to turn that position into more predictable growth and sustainable cash generation. Thank you for joining us today and sharing your time.

Okay, we will now move to the Q&A. First question was from the line of George Sutton. George, you can unmute.

Thank you. So I wanted to make sure I understood on the solutions go-to-market changes that you might be making. It seems like a market where there's a lot of volatility in prices, which would seem to be a great scenario for you to sell solutions. What do you see changing here? You mentioned you need to improve the execution in the back half of the year.

Well, we're seeing as changes that first with our unified approach from a product perspective workflow, the value that we are giving to the customers and the value that they are perceiving from us is increasing. That is helping us to improve our pipeline. at the beginning of the year. In the previous call, I said that we have generated two times pipeline versus last year, and we are continuing to grow that in this quarter by 30%. We need to be closer in the sales cycles, achieving the right milestones, the right conversations to be able to close it. We see from a market perspective that there is a lot of uncertainty in the market still, so that makes the customers to... Rethink and think the value how to spend the budget that they have so with some budget constraints and we also see some competition from a pricing perspective that are trying to get the prices down you know that's that's the things that we need to be on top of we need to be focusing on executing and we need to focus on making that shorten that gap.

So you specifically referenced pressure on renewals. I'm just curious, how are you? So you're handling that basically by bringing people into the one platform which would give them dramatically more views and capabilities?

Is that the- We're bringing it into one platform where we continue developing new features and new product capabilities, as Ian mentioned, and provided a broader value proposition to the customers.

Gotcha. And then just one other question on the carriers that fall below the threshold. These are not carriers that leave the platform. They just simply didn't execute enough transactions. I'm curious, how do you reach out to them and work with those types of carriers? And can you confirm they're not falling off the platform? They're just not executing?

And you're totally right on that. They didn't fall off the platform. They are still on the platform. And we still see that they continue to do some bookings. We reach out directly to them to see how can we help them and how can we maximize the value of the platform with them. That's our strategy with those type of carriers. Okay, thank you very much. Thank you.

Okay, so we have a few questions on the chat. First question is about cash. First part is what was the change in cash this quarter? I believe we answered that.

I can answer that. We went from 23.5 million dollars in cash at the end of Q1 to 21.4 million in cash at the end of Q2. So that's a 2.1 million change.

And the second part is what do you expect cash burn to be in the next four quarters until reaching cash flow positive?

As I said several times, our cash burn is very similar to our adjusted EBITDA numbers. And for Q2, you have seen that our adjusted EBITDA numbers was negative 2 million and our cash burn was 2.1 million. So we expect to burn for the rest of the year what we are guiding the market at. And probably for the beginning of next year, adding no more than 500k on top of that until we become cash positive.

Next question is transaction grew 15% while unique buyer users increased only 4% indicating higher usage among existing customers. What is driving that increase?

We believe that mainly what is driving that increase is two things. The value that the existing users see in our platform, and we have the data to prove that When we add new carriers into the platform and new capacity into the platform, our freight forwarder community increases the number of transactions in an average of five times in three quarters and close to seven times in four quarters and so on. So that's what we usually see. And this is confirming the trend, you know. It's independent of the number of users using the platform, the times that they use the platform.

And the last question is, despite better than expected platform KPIs and a Q2 revenue beat, the midpoint of full year revenue guidance is essentially unchanged. Is the main offset weaker solutions expectations for the second half?

Well, I said it during the call today that one of the things that brought the better than expected Q2 results was cleared, which we expect that not to continue over the year. And we also came out with a 4% decline year on year from a solutions perspective. So we are adjusting our full year guidance in light of those numbers.

Okay, that concludes also the Q&A session.