Flexport 2025 Profit From Convoy Sale

The key point is that Flexport still had not made freight forwarding and fulfillment reliably profitable by 2025. The year looked profitable because selling the Convoy Platform to DAT for about $250 million, after buying Convoy’s assets for roughly $16 million, created a large accounting gain. Underneath that, the core business was still working through thin forwarding margins, uneven warehouse utilization, and a cost base built for much higher volume.

• Flexport’s core model is still a services business. It buys shipping capacity from carriers, resells it to importers with software and operations layered on top, and usually lives on net margins in the low single digits. That means one asset sale can overwhelm a year of operating performance.
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• The operating picture did improve, but not enough to carry 2025 on its own. Revenue rebounded to an estimated $2.1 billion in 2024 from $1.6 billion in 2023, and fulfillment utilization in San Bernardino rose from under 50% in December 2024 to about 75% by March 2025, yet organic profitability was still pushed to 2026.
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• This also shows why Flexport wants to shift toward software like economics. Convoy’s platform, which served about 30,000 carriers, sold for far more than the original asset purchase price, while pure logistics peers like ShipBob still compete largely on warehouse throughput and merchant volume rather than high margin software revenue.
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Going forward, the test is whether Flexport can turn better warehouse fill rates, customs automation, and a larger fulfillment footprint into recurring operating profit, not just cleaner adjusted results. If 2026 organic profitability arrives, it will mark the point where Flexport starts behaving less like a cyclical broker and more like a scaled logistics platform.