Flexport Targets Profitability by End of 2025
From Yahoo Finance: 2025-03-27 16:58:00
Flexport’s path to profitability extends to 2025, missing targets in 2024 due to weak demand for e-commerce services. Founder Ryan Petersen anticipates profitability by year-end 2025, planning to hire hundreds overseas. Policy changes in Mexico led to increased business for Flexport, doubling e-commerce segment revenue in early 2025.
Flexport’s revenue grew over 30% in 2024 to $2.1 billion, while Shopify took a $22 million net loss on its investment in Flexport in Q4 2024. Losses narrowed throughout the year, but Flexport’s valuation declined. The rebound in fulfillment demand may boost the company’s valuation.
Flexport’s busy San Bernardino warehouse is nearly 75% full, prompting considerations for robotic systems and mezzanines. The company operates five warehouses in the U.S. and acquired Shopify’s logistics business, consolidating fulfillment operations. Flexport aims to enhance profitability and efficiency for future growth.