Freight Technologies to streamline operations with layoffs

HOUSTON - Freight Technologies Inc. (NASDAQ:FRGT), known as Fr8Tech, a logistics management innovation firm with a market capitalization of $6.05 million, is set to formally launch its Transportation Management System (TMS) software later this month. According to InvestingPro data, the company faces significant financial challenges, with its stock down nearly 98% over the past year. The company announced that as part of its strategic shift towards technology, it has reduced its workforce by 20% to align resources with its technological goals and improve operational efficiencies.

Fr8Tech’s TMS is designed to serve as a digital command center for logistics teams, enabling them to manage the movement of goods more effectively. The system promises real-time shipment tracking, carrier selection, route administration, driver communication, and integration with inventory and billing systems. By automating these processes, the TMS aims to reduce costs and risks, enhance decision-making, and elevate supply chain management performance.

Javier Selgas, CEO of Freight Technologies, emphasized the company’s commitment to technological advancement, stating that the launch of the TMS represents a significant step in Fr8Tech’s evolution into a leading technology company. He highlighted the benefits of automation in enhancing service offerings and driving the company toward sustainable profitability.

The workforce reduction, which affects 20% of the company’s employees, is part of Fr8Tech’s broader strategy to streamline its operations. CFO Don Quinby remarked on the difficulty of such decisions and assured that the company is supporting the affected employees during their transition.

Financially, Fr8Tech expects these measures to strengthen its financial results throughout 2025 and aims to reach profitability on an adjusted EBITDA basis by year’s end, a crucial goal given its current EBITDA of -$8.53 million. The company also recently completed a $3 million private placement offering of convertible preferred stock, which will support ongoing software development. InvestingPro analysis reveals the company’s overall financial health score is weak at 1.17, with concerning cash burn rates. Subscribers can access 15 additional ProTips about FRGT’s financial position.

Further demonstrating its strategic focus, Fr8Tech has renewed a multi-year logistics services agreement with Kimberly-Clark (NYSE:KMB) de México and other large enterprise customers, indicating continued expansion and adoption of its innovative solutions.

Based on a press release statement, Fr8Tech’s portfolio includes AI-powered solutions such as Fr8App for cross-border shipping, Fr8Now for less-than-truckload shipping, Fr8Fleet for dedicated capacity service, and Waavely for ocean freight management. The company is headquartered in Monterrey, Mexico, and its suite of products aims to improve efficiency in the supply chain ecosystem. With current revenue of $17.57 million and trading near its 52-week low, InvestingPro analysis indicates the stock is currently undervalued based on its Fair Value model.

In other recent news, Freight Technologies, Inc. has seen significant developments. The logistics technology firm successfully raised $3 million through a private placement of Series A4 preferred shares, with net proceeds of approximately $2.9 million intended for working capital and corporate purposes. In addition, Freight Technologies announced a contract extension with Kimberly-Clark de México for two years, further solidifying an ongoing relationship that began in 2025.

The company also secured a new contract with a leading global toy industry brand to provide logistics services in Mexico, expanding upon their existing services. In terms of corporate governance, Freight Technologies has amended its quorum requirement for shareholder meetings, lowering it from not less than 50% to one-third of the votes of the ordinary shares entitled to vote.

However, the company faces a risk of being delisted from the NASDAQ Capital Market due to failure to meet the minimum stockholders’ equity requirement of $2.5 million. Freight Technologies has 45 calendar days from the notice date to submit a compliance plan to NASDAQ. These are the recent developments with Freight Technologies, Inc.

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