Flexport misses profitability target but grows revenue to $2.1B; Ryan Petersen expects profit by end of 2025
Mar 27, 2025
Key Points
- Flexport grew revenue to $2.1 billion in 2024 but missed profitability targets due to underutilized warehouse capacity across its 5.2 million square feet of space.
- CEO Ryan Petersen returned to the helm after stepping back and now expects the company to reach profitability by end of 2025.
- Flexport must balance pursuing profitability while avoiding additional strain on customers navigating trade wars, tariffs, and rising costs.
Summary
Flexport reached $2.1 billion in revenue last year, up from $1.6 billion in 2023, but missed its profitability target. CEO Ryan Petersen attributes the shortfall to underutilized warehouse capacity. The company's 5.2 million square feet of space across five buildings sat largely empty throughout 2024.
Petersen returned to the CEO role after stepping back to hire someone else to run the company, bringing Flexport back to founder-led operations. He is now traveling heavily—taking four or five flights a day—to drive the turnaround. He expects the company to reach profitability by the end of 2025.
Flexport's timing is difficult. Its customers have spent the last six months navigating trade wars, tariffs, and rising costs. The company needs to push for profitability without adding pressure to customers already stretched thin. Building momentum without overloading a stressed customer base is the immediate challenge.