[10-Q] RADIANT LOGISTICS, INC Quarterly Earnings Report
Radiant Logistics (RLGT) reported higher revenue but lower profit for the quarter. Revenue rose to $226.7 million from $203.6 million as both U.S. ($198.1 million) and Canada ($28.6 million) improved, including more value‑added services. However, operating income fell to $2.1 million from $3.8 million, and net income attributable to the company declined to $1.3 million from $3.4 million, with diluted EPS of $0.03 versus $0.07 a year ago.
Costs increased across transportation, commissions, personnel, and SG&A, while interest expense also rose. Segment adjusted EBITDA was $9.6 million, down from $12.3 million. Cash and cash equivalents increased to $28.1 million from $22.9 million, aided by $2.5 million in operating cash flow; borrowings on the revolver were $30.0 million, up from $20.0 million.
The company acquired 80% of Weport, S.A. de C.V., adding Mexico-focused forwarding and customs capabilities. It repurchased 140,000 shares for $0.8 million during the quarter and subsequently bought 341,466 shares for $2.0 million. Shares outstanding were 46,886,380 as of November 7, 2025.
- Revenue increased 11% year over year to $226.7 million, with growth in both U.S. and Canada.
- Net income declined to $1.3 million from $3.4 million as margins compressed and interest expense rose.
Insights
Revenue grew, margins compressed, earnings declined.
Radiant Logistics delivered higher sales to
Below the line, higher interest expense weighed on results, contributing to net income of
The durability of margin trends will be key. Subsequent disclosures may clarify integration effects from Weport and any pricing/cost actions reflected in future quarters.
Leverage stable under covenants; liquidity improved.
The company’s revolver balance increased to
Contingent consideration increased to
Upcoming periods will show how cash generation tracks against earn-out schedules and ongoing buybacks.
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended
Or
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from to
Commission File Number:
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
(Address of principal executive offices) (Zip Code) |
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(Registrant’s telephone number, including area code) |
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(Former name, former address, and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act: |
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Non-accelerated filer |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
There were
Table of Contents
RADIANT LOGISTICS, INC.
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION |
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Item 1. |
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Financial Statements (Unaudited) |
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Condensed Consolidated Balance Sheets as of September 30, 2025 and June 30, 2025 |
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Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended September 30, 2025 and 2024 |
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Condensed Consolidated Statements of Changes in Equity for the Three Months Ended September 30, 2025 and 2024 |
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Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 30, 2025 and 2024 |
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Notes to the Condensed Consolidated Financial Statements |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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Quantitative and Qualitative Disclosures about Market Risk |
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Item 4. |
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Controls and Procedures |
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PART II. OTHER INFORMATION |
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Legal Proceedings |
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Item 1A. |
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Risk Factors |
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Item 2. |
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Unregistered Sales of Equity Securities and Use of Proceeds |
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Other Information |
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Item 6. |
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Exhibits |
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Signatures |
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Table of Contents
RADIANT LOGISTICS, INC.
Condensed Consolidated Balance Sheets
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September 30, |
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June 30, |
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(In thousands, except share and per share data) |
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2025 |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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Accounts receivable, net of allowance of $ |
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Contract assets |
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Income tax receivable |
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Prepaid expenses and other current assets |
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Total current assets |
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Property, technology, and equipment, net |
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Goodwill |
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Intangible assets, net |
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Operating lease right-of-use assets |
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Deposits and other assets |
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Total other long-term assets |
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Total assets |
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$ |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Accounts payable |
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Operating partner commissions payable |
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Accrued expenses |
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Current portion of operating lease liabilities |
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Current portion of finance lease liabilities |
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Current portion of contingent consideration |
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Other current liabilities |
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Total current liabilities |
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Notes payable |
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Operating lease liabilities, net of current portion |
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Finance lease liabilities, net of current portion |
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Contingent consideration, net of current portion |
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Deferred tax liabilities |
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Other long-term liabilities |
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Total long-term liabilities |
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Total liabilities |
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Commitments and contingencies (Note 15) |
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Equity: |
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Common stock, $ |
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Additional paid-in capital |
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Treasury stock, at cost, |
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Retained earnings |
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Accumulated other comprehensive loss |
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Total Radiant Logistics, Inc. stockholders’ equity |
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Noncontrolling interest |
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Total equity |
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Total liabilities and equity |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
Table of Contents
RADIANT LOGISTICS, INC.
Condensed Consolidated Statements of Comprehensive Income
(unaudited)
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Three Months Ended September 30, |
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(In thousands, except share and per share data) |
2025 |
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2024 |
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Revenues |
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$ |
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Operating expenses: |
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Cost of transportation and other services |
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Operating partner commissions |
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Personnel costs |
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Selling, general and administrative expenses |
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Depreciation and amortization |
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Change in fair value of contingent consideration |
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Total operating expenses |
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Income from operations |
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Other income (expense): |
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Interest income |
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Interest expense |
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Foreign currency transaction gain (loss) |
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Change in fair value of interest rate swap contracts |
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Other |
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Total other income (expense) |
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Income before income taxes |
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Income tax expense |
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Net income |
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Net loss (income) attributable to noncontrolling interest |
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Net income attributable to Radiant Logistics, Inc. |
$ |
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$ |
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Other Comprehensive income attributable to Radiant Logistics, Inc.: |
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Foreign currency translation gain (loss) |
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Comprehensive loss attributable to noncontrolling interest |
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Comprehensive income attributable to Radiant Logistics, Inc. |
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$ |
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Income per share: |
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Basic and Diluted |
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$ |
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Weighted average common shares outstanding: |
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Basic |
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Diluted |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
4
Table of Contents
RADIANT LOGISTICS, INC.
Condensed Consolidated Statements of Changes in Equity
Three Months Ended September 30, 2025
(unaudited)
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RADIANT LOGISTICS, INC. STOCKHOLDERS’ EQUITY |
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Common Stock |
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Additional |
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Treasury |
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Retained |
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Accumulated |
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Total Radiant |
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Non- |
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Total |
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(In thousands, except share and per share data) |
Shares |
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Amount |
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Capital |
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Stock |
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Earnings |
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Loss |
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Equity |
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Interest |
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Equity |
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Balance as of June 30, 2025 |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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Repurchase of common stock |
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Issuance of common stock upon vesting of |
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Issuance of common stock upon exercise of stock |
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— |
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— |
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Acquisition of Weport |
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— |
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— |
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— |
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— |
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— |
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Distribution to noncontrolling interest |
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— |
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Share-based compensation |
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Net income (loss) |
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Other comprehensive income (loss) |
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Balance as of September 30, 2025 |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
5
Table of Contents
RADIANT LOGISTICS, INC.
Condensed Consolidated Statements of Changes in Equity (continued)
Three Months Ended September 30, 2024
(unaudited)
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RADIANT LOGISTICS, INC. STOCKHOLDERS’ EQUITY |
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Common Stock |
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Additional |
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Treasury |
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Retained |
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Accumulated |
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Total Radiant |
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Non- |
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Total |
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(In thousands, except share and per share data) |
Shares |
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Amount |
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Capital |
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Stock |
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Earnings |
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Loss |
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Equity |
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Interest |
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Equity |
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Balance as of June 30, 2024 |
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Repurchase of common stock |
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Issuance of common stock upon vesting of |
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Issuance of common stock upon exercise of stock |
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Distribution to noncontrolling interest |
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Share-based compensation |
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Net income |
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Other comprehensive loss |
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Balance as of September 30, 2024 |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements
6
Table of Contents
RADIANT LOGISTICS, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
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Three Months Ended September 30, |
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(In thousands) |
2025 |
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2024 |
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OPERATING ACTIVITIES: |
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Net income |
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ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES |
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Share-based compensation |
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Amortization of intangible assets |
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Depreciation and amortization of property, technology, and equipment |
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Deferred income tax expense |
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Amortization of debt issuance costs |
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Change in fair value of contingent consideration |
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Change in fair value of interest rate swap contracts |
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Other |
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CHANGES IN OPERATING ASSETS AND LIABILITIES: |
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Accounts receivable |
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Contract assets |
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Income tax receivable |
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Prepaid expenses, deposits, and other assets |
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Operating lease right-of-use assets |
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Accounts payable |
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Operating partner commissions payable |
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Accrued expenses and other liabilities |
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Operating lease liabilities |
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( |
) |
Net cash provided by operating activities |
|
|
|
|
|
||
|
|
|
|
|
|
||
INVESTING ACTIVITIES: |
|
|
|
|
|
||
Acquisitions, net of cash acquired |
|
( |
) |
|
|
( |
) |
Purchases of property, technology, and equipment |
|
( |
) |
|
|
( |
) |
Proceeds from sale of property, technology, and equipment |
|
|
|
|
|
||
Net cash used for investing activities |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
FINANCING ACTIVITIES: |
|
|
|
|
|
||
Proceeds from revolving credit facility |
|
|
|
|
|
||
Repayments of revolving credit facility |
|
|
|
|
( |
) |
|
Repayments of notes payable and finance lease liabilities |
|
( |
) |
|
|
( |
) |
Repurchases of common stock |
|
( |
) |
|
|
( |
) |
Distributions to noncontrolling interest |
|
( |
) |
|
|
( |
) |
Proceeds from exercise of stock options |
|
|
|
|
|
||
Payments of employee tax withholdings related to restricted stock units and stock options |
|
( |
) |
|
|
( |
) |
Net cash provided by (used for) financing activities |
|
|
|
|
( |
) |
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
( |
) |
|
|
|
|
|
|
|
|
|
|
||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
|
|
( |
) |
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
|
|
|
|
||
|
|
|
|
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
|
|
$ |
|
||
|
|
|
|
|
|
||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
||
Income taxes paid |
$ |
|
|
$ |
|
||
Interest paid |
$ |
|
|
$ |
|
||
The accompanying notes are an integral part of these condensed consolidated financial statements.
7
Table of Contents
RADIANT LOGISTICS, INC.
Notes to the Condensed Consolidated Financial Statements
(unaudited)
(Dollars in thousands, except share and per share data)
NOTE 1 – THE COMPANY AND BASIS OF PRESENTATION
The Company
Radiant Logistics, Inc., and its consolidated subsidiaries (the “Company”), operates as a leading third-party logistics company, providing technology-enabled global transportation and value-added logistics services primarily in the United States, Canada, and Mexico. The Company services a large, broad and diversified account base across a range of industries and geographies, which is supported by an extensive network of operating locations across North America as well as an integrated international service partner network located in other key markets around the globe. The Company provides these services through a multi-brand network, which includes over
Through its operating locations across North America, the Company offers domestic and international freight forwarding and freight brokerage services, including air, ocean, truckload, less-than-truckload (“LTL”), and intermodal, which is the movement of freight in trailers or containers by combination of truck and rail. The Company’s primary transportation services involve arranging shipments, on behalf of its customers, of materials, products, equipment, and other goods that are generally larger than shipments handled by integrated carriers of primarily small parcels, such as FedEx, DHL and UPS, including arranging and monitoring all aspects of material flow activity utilizing advanced information technology systems. The Company also provides other value-added logistics services including materials management and distribution services (collectively, “materials management and distribution” or “MM&D” services), and customs house brokerage (“CHB”) services to complement its core transportation service offering.
Basis of Presentation
The condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The Company’s management believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025.
The interim period information included in this Quarterly Report on Form 10-Q reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of the Company’s management, necessary for a fair statement of the results of the respective interim periods. Results of operations for interim periods are not necessarily indicative of results to be expected for an entire year.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a) Principles of Consolidation
The condensed consolidated financial statements include the accounts of Radiant Logistics, Inc., and its wholly-owned and majority-owned subsidiaries, and a variable interest entity, Radiant Logistics Partners, LLC (“RLP”). RLP is
Noncontrolling interest in the condensed consolidated financial statements represents the proportionate share of equity and earnings in subsidiaries not wholly-owned by the Company. Net income (loss) of these subsidiaries or variable interest entities is allocated between the Company and the noncontrolling interest holders based on their respective ownership percentages.
b) Use of Estimates
The preparation of condensed consolidated financial statements and related disclosures in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that could differ from these estimates.
8
Table of Contents
c) Cash and Cash Equivalents
The Company maintains its cash in bank deposit accounts that may, at times, exceed federally insured limits. The Company has not experienced any losses in such accounts. Cash equivalents consist of highly liquid investments with original maturities of three months or less.
d) Accounts Receivable
Accounts receivable, which include billed and unbilled amounts, are stated net of the allowance for expected credit losses and represents the net amount expected to be collected. The Company measures the expected credit losses on a collective (pool) basis based on the levels of delinquency (i.e., aging analysis) and applying an expected loss percentage rate to each pool when similar risk characteristics exist. The Company determines the allowance for expected credit losses by computing an expected loss percentage rate to each pool based upon its historical write-off experience, adjusted as appropriate to reflect current conditions and estimates of future economic conditions. When specific customers are identified as no longer sharing the same risk profile as their current pool, they are removed from the pool and evaluated separately. Amounts for shipments delivered but unbilled were $
Through a contractual arrangement, the Company records trade accounts receivable from revenue generated from independently owned strategic operating partners operating under various Company brands. Under these contracts, each strategic operating partner is responsible for some or all of the collection of its customer accounts receivable. To facilitate this arrangement, certain strategic operating partners are required to maintain a deposit with the Company for these receivables. The Company charges the respective strategic operating partner’s deposit account for any accounts receivable aged beyond 90 days along with any other amounts owed to the Company by strategic operating partners. If a deficit balance occurs in the strategic operating partners’ deposit account, these amounts are included as accounts receivable in the Company’s condensed consolidated financial statements. For those strategic operating partners not required to maintain a deposit, the Company may withhold all or a portion of future commissions payable to the strategic operating partner to satisfy any deficit balance. The Company expects to replenish any deficit balance through the future business operations of these strategic operating partners, or as these amounts are ultimately collected from these customers. However, to the extent that any of these strategic operating partners were to cease operations or otherwise be unable to replenish these deficit amounts, the Company would be at risk of loss for any such amounts. Due to the nature and specific risk characteristics of these accounts, the Company evaluates these accounts separately in determining an allowance for expected credit losses.
The activity in the allowance for expected credit losses is as follows:
(In thousands) |
|
|
|
Balance as of June 30, 2025 |
$ |
|
|
Provision for expected credit losses |
|
|
|
Write-offs, less recoveries and other adjustments |
|
( |
) |
|
|
|
|
Balance as of September 30, 2025 |
$ |
|
|
e) Property, Technology, and Equipment
Property, technology, and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the related assets. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation and amortization are removed from the accounts and the resulting gain or loss, if any, is reflected in other income (expense). Expenditures for maintenance, repairs and renewals of minor items are expensed as incurred. Major renewals and improvements are capitalized.
f) Goodwill
Goodwill represents the excess acquisition cost of an acquired entity over the estimated fair values assigned to the net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but rather is reviewed for impairment as of April 1 of each year or more frequently if facts or circumstances indicate that its carrying amount may not be recoverable.
The Company has determined that there are
9
Table of Contents
If a quantitative assessment is performed, a reporting unit’s fair value is compared to its carrying amount. A reporting unit’s fair value is determined based upon consideration of various valuation methodologies, including the income approach, which utilizes projected future cash flows discounted at rates commensurate with the risks involved and the market approach, which utilizes multiples of current and future earnings based on a selection of guideline public companies. If the fair value of a reporting unit is less than its carrying amount, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit.
As of September 30, 2025, management believes no impairment exists.
g) Long-Lived Assets
Long-lived assets, such as property, technology, and equipment, and definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company compares the undiscounted expected future cash flows to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent the carrying amount of the asset or asset group exceeds the fair value. Fair values of long-lived assets are determined through various techniques, such as applying probability weighted, expected present value calculations to the estimated future cash flows using assumptions a market participant would utilize or through the use of a third-party independent appraiser or valuation specialist.
Definite-lived intangible assets consist of customer-related intangible assets, trade names and trademarks, licenses, developed technology, and non-compete agreements arising from the Company’s acquisitions. Customer-related intangible assets and trademarks and trade names are amortized using the straight-line method over periods of up to up to
h) Business Combinations
The Company accounts for business acquisitions using the acquisition method. The assets acquired and liabilities assumed in business combinations, including identifiable intangible assets, are recorded based upon their estimated fair values as of the acquisition date. The excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired is recorded as goodwill. Acquisition expenses are expensed as incurred. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed as of the acquisition date, the estimates are inherently uncertain and subject to refinement.
The fair values of intangible assets are generally estimated using a discounted cash flow approach with Level 3 inputs. The estimate of fair value of an intangible asset is equal to the present value of the incremental after-tax cash flows (excess earnings) attributable solely to the intangible asset over its remaining useful life. To estimate fair value, the Company generally uses risk-adjusted cash flows discounted at rates considered appropriate given the inherent risks associated with each type of asset. The Company believes the level and timing of cash flows appropriately reflects market participant assumptions.
For acquisitions that involve contingent consideration, the Company records a liability equal to the fair value of the contingent consideration obligation as of the acquisition date. The Company determines the acquisition date fair value of the contingent consideration based on the likelihood of paying the additional consideration. The fair value is generally estimated using projected future operating results and the corresponding future earn-out payments that can be earned upon the achievement of specified operating results and financial objectives by acquired companies using Level 3 inputs discounted to present value. These liabilities are measured quarterly at fair value, and any change in the fair value of the contingent consideration liability is recognized in the condensed consolidated statements of comprehensive income.
During the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding adjustment to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in the condensed consolidated statements of comprehensive income.
i) Revenue Recognition
The Company recognizes revenue to depict the transfer of promised goods or services to its customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods and services. The Company’s revenues are primarily from transportation services, which include providing for the arrangement of freight, both domestically and internationally, through modes of transportation, such as air, ocean, truckload, LTL, and intermodal. The Company generates its transportation services revenue by purchasing transportation from carriers and reselling those services to its customers.
10
Table of Contents
In general, each shipment transaction or service order constitutes a separate contract with the customer. A performance obligation is created once a customer agreement with an agreed upon transaction price exists. The transaction price is typically fixed and not contingent upon the occurrence or non-occurrence of any other event. The transaction price is generally due 30 to 45 days from the date of invoice. The Company’s transportation transactions provide for the arrangement of the movement of freight to a customer’s agreed upon destination. The transportation services, including certain ancillary services, such as loading/unloading, freight insurance and customs clearance, that are provided to the customer represent a single performance obligation as the ancillary services are not distinct in the context of the contract and therefore combined with the performance obligation for transportation services. This performance obligation is satisfied over time and recognized in revenue upon the transfer of control of the services over the requisite transit period as the customer’s goods move from point of origin to point of destination. The Company determines the period to recognize revenue based upon the actual departure date and delivery date, if available, or estimated delivery date if delivery has not occurred as of the reporting date. Certain shipments may require the Company to estimate revenue, in which case the average revenue per shipment, per mode of transportation is used. Determination of the estimated revenue, transit period and the percentage of completion of the shipment as of the reporting date requires management to make judgments that affect the timing and amount of revenue recognition. The Company has determined that revenue recognition over the transit period provides a reasonable estimate of the transfer of services to its customers as it depicts the pattern of the Company’s performance under the contracts with its customers. The timing of revenue recognition, billings, cash collections, and allowance for expected credit losses results in billed and unbilled receivables. The Company receives the unconditional right to bill when shipments are delivered to their destination. The Company has elected to
The Company also provides MM&D services for its customers under contracts generally ranging from a few months to five years and include renewal provisions. These MM&D service contracts provide for inventory management, order fulfillment and warehousing of the customer’s product and arrangement of transportation of the customer’s product. The Company’s performance obligations are satisfied over time as the customers simultaneously receive and consume the services provided by the Company as it performs. Revenue is recognized in the amount for which the Company has the right to invoice the customer, as this amount corresponds directly with the value provided to the customer for the Company’s performance completed to date. The transaction price is based on the consideration specified in the contract with the customer and contains fixed and variable consideration. In general, the fixed consideration component of a contract represents reimbursement for facility and equipment costs incurred to satisfy the performance obligation and is recognized on a straight-line basis over the term of the contract. The variable consideration component is comprised of cost reimbursement per unit pricing for time and pricing for materials used and is determined based on cost plus a mark-up for hours of services provided and materials used and is recognized over time based on the level of activity volume.
Other services include primarily CHB services sold separately as a single performance obligation. The Company recognizes revenue from this performance obligation at a point in time, which is the completion of the services. Duties and taxes collected from the customer and paid to the customs agent on behalf of the customers are excluded from revenue.
The Company uses independent contractors and third-party carriers in the performance of its transportation services. The Company evaluates who controls the transportation services to determine whether its performance obligation is to transfer services to the customer or to arrange for services to be provided by another party. The Company determined it acts as the principal for its transportation services performance obligation since it is in control of establishing the prices for the specified services, managing all aspects of the shipments process and assuming the risk of loss for delivery and collection. Such transportation services revenue is presented on a gross basis in the condensed consolidated statements of comprehensive income.
Contract Assets
Contract assets represent estimated amounts for which the Company has the right to consideration for transportation services related to the completed portion of in-transit shipments at period end, but for which it has not yet completed the performance obligations. Upon completion of the performance obligations, which can vary in duration based upon the mode of transportation, the balance is included in accounts receivable.
Operating Partner and Other Commissions
The Company enters into contractual arrangements with strategic operating partners that operate, on behalf of the Company, an office in a specific location that engages primarily in arranging domestic and international transportation services. In return, the strategic operating partner is compensated through the payment of sales commissions, which are based on individual shipments. The Company accrues the strategic operating partners’ commission obligation ratably as the goods are transferred to the customer.
The Company records employee sales commissions related to transportation services as an expense when incurred since the amortization period of such costs is less than one year.
11
Table of Contents
j) Defined Contribution Savings Plan
The Company has an employee savings plan under which the Company provides safe harbor matching contributions. The Company’s contributions under the plan were $
k) Income Taxes
Income taxes are accounted for using the asset and liability method. Deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
The Company records a liability for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Interest and penalties, if any, are recorded as a component of interest expense or other expense, respectively. Currently, the Company does not have any accruals for uncertain tax positions.
l) Share-Based Compensation
The Company grants restricted stock units and stock options to certain directors, officers, and employees. The fair value of restricted stock units is the market price of the Company’s common stock as of the grant date, and the fair value of each stock option grant is estimated as of the grant date using the Black-Scholes option pricing model. Determining the fair value of stock option awards at the grant date requires judgment about, among other things, stock volatility, the expected life of the award, and other inputs.
Share-based compensation is recorded over the requisite service period, generally defined as the vesting period. The Company records share-based compensation for service-based restricted stock units and stock options on a straight-line basis over the requisite service period of the entire award. Certain restricted stock units also have performance-based conditions (“PSUs”) and will vest upon achievement of pre-established individual and Company performance goals as measured after a
m) Basic and Diluted Income per Share Allocable to Common Stockholders
Basic income per common share is computed by dividing net income allocable to common stockholders by the weighted average number of common shares outstanding. Diluted income per common share is computed by dividing net income allocable to common stockholders by the weighted average number of common shares outstanding, plus the number of additional common shares that would have been outstanding after giving effect to all potential dilutive securities, such as restricted stock units and stock options.
n) Foreign Currency
For the Company’s foreign subsidiaries that prepare financial statements in currencies other than U.S. dollars, the local currency is the functional currency. All assets and liabilities are translated at period end exchange rates and all revenue and expenses are translated at the weighted average rates for the period. Translation adjustments are recorded in foreign currency translation in other comprehensive income.
Gains and losses on transactions of monetary items denominated in a foreign currency are recognized within other income (expense) on the condensed consolidated statements of comprehensive income.
o) Leases
The Company determines if an arrangement is a lease at inception. Assets and obligations related to operating leases are included in operating lease right-of-use (“ROU”) assets; current portion of operating lease liabilities; and operating lease liabilities, net of current portion in the condensed consolidated balance sheets. Assets and obligations related to finance leases are included in property, technology, and equipment, net; current portion of finance lease liabilities; and finance lease liabilities, net of current portion in the condensed consolidated balance sheets.
12
Table of Contents
ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the incremental borrowing rate based on the information available at commencement date is used in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. Lease terms may include options to extend or terminate the lease, which the Company has generally not included in its calculation of ROU assets or lease liabilities as it is not reasonably certain that the option will be exercised in the normal course of business.
For the Company’s lease agreements containing fixed payments for both lease and non-lease components, the Company accounts for the components as a single lease component, as permitted. For leases with an initial term of twelve months or less, the Company elected the exemption from recording ROU assets and lease liabilities for all leases that qualify, and records rent expense on a straight-line basis over the lease term. Expenses for these short-term leases for the three months ended September 30, 2025 and 2024 are insignificant.
Certain leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. Variable payments, to the extent they are not considered fixed, are expensed as incurred. Variable lease costs for the three months ended September 30, 2025 and 2024 are insignificant.
For finance leases, interest expense on the lease liability is recognized using the effective interest method and amortization of the ROU asset is recognized on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term.
p) Derivatives
Derivative instruments are recognized as either assets or liabilities and measured at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation.
For derivative instruments designated as cash flow hedges, gains and losses are initially reported as a component of other comprehensive income and subsequently recognized in earnings with the corresponding hedged item. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in earnings. As of September 30, 2025 and June 30, 2025, the Company does
For derivative instruments that are not designated as hedges, gains and losses from changes in fair value of interest rate swap contracts are recognized in the condensed consolidated statements of comprehensive income.
q) Treasury Stock
The Company accounts for treasury stock under the cost method, and repurchases are reflected as reductions of stockholders’ equity at cost (see Note 10). As of September 30, 2025, there have been
r) Reclassification of Previously Issued Financial Statements
Certain amounts in the prior period have been reclassified in the condensed consolidated financial statements to conform to the current year presentation. There has been no impact on previously reported net income or stockholders’ equity from such reclassification.
s) Recently Adopted Accounting Guidance
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires more disaggregated expense information about a public entity’s reportable segments if the significant segment expenses are regularly provided to the chief operating decision maker and included in each reported measure of segment profit or loss. Additionally, ASU 2023-07 allows public entities to disclose more than one measure of segment profit or loss used by the chief operating decision maker. ASU 2023-07 did not change the definition of a segment, the method of determining segments, or the criteria for aggregating operating segments into reportable segments. The Company retrospectively
t) Recent Accounting Guidance Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires greater disaggregation of information in a reporting entity’s effective tax rate reconciliation as well as disaggregation of income taxes paid by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The guidance should be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-09 on its income tax disclosures.
13
Table of Contents
NOTE 3 – REVENUE
A summary of the Company’s gross revenues disaggregated by major service lines and geographic markets (reportable segments), and timing of revenue recognition are as follows:
|
Three Months Ended September 30, 2025 |
|
|||||||||||||
(In thousands) |
United States |
|
|
Canada |
|
|
Corporate/ Eliminations |
|
|
Total |
|
||||
Major service lines: |
|
|
|
|
|
|
|
|
|
|
|
||||
Transportation services |
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
Value-added services (1) |
|
|
|
|
|
|
|
|
|
|
|
||||
Total |
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Timing of revenue recognition: |
|
|
|
|
|
|
|
|
|
|
|
||||
Services transferred over time |
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
Services transferred at a point in time |
|
|
|
|
|
|
|
|
|
|
|
||||
Total |
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
|
Three Months Ended September 30, 2024 |
|
|||||||||||||
(In thousands) |
United States |
|
|
Canada |
|
|
Corporate/ Eliminations |
|
|
Total |
|
||||
Major service lines: |
|
|
|
|
|
|
|
|
|
|
|
||||
Transportation services |
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
Value-added services (1) |
|
|
|
|
|
|
|
|
|
|
|
||||
Total |
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Timing of revenue recognition: |
|
|
|
|
|
|
|
|
|
|
|
||||
Services transferred over time |
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
Services transferred at a point in time |
|
|
|
|
|
|
|
|
|
|
|
||||
Total |
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
NOTE 4 – EARNINGS PER SHARE
The computations of the numerator and denominator of basic and diluted income per share are as follows:
|
Three Months Ended September 30, |
|
|||||
(In thousands, except share data) |
2025 |
|
|
2024 |
|
||
Numerator: |
|
|
|
|
|
||
Net income attributable to Radiant Logistics, Inc. |
$ |
|
|
$ |
|
||
|
|
|
|
|
|
||
Denominator: |
|
|
|
|
|
||
Weighted average common shares outstanding, basic |
|
|
|
|
|
||
Dilutive effect of share-based awards |
|
|
|
|
|
||
|
|
|
|
|
|
||
Weighted average common shares outstanding, diluted |
|
|
|
|
|
||
|
|
|
|
|
|
||
Potentially dilutive common shares excluded |
|
|
|
|
|
||
14
Table of Contents
NOTE 5 – LEASES
The Company has finance leases for equipment, and operating leases for office space, warehouse space, and other equipment with lease terms expiring at various dates through
The components of lease expense are as follows:
|
Three Months Ended September 30, |
|
|||||
(In thousands) |
2025 |
|
|
2024 |
|
||
Operating lease cost |
$ |
|
|
$ |
|
||
|
|
|
|
|
|
||
Finance leases: |
|
|
|
|
|
||
Amortization of leased assets |
|
|
|
|
|
||
Interest on lease liabilities |
|
|
|
|
|
||
|
|
|
|
|
|
||
Total finance lease cost |
$ |
|
|
$ |
|
||
Supplemental cash flow information related to leases are as follows:
|
Three Months Ended September 30, |
|
|||||
(In thousands) |
2025 |
|
|
2024 |
|
||
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
||
Operating cash flows paid for operating leases |
$ |
|
|
$ |
|
||
Operating cash flows paid for interest portion of finance leases |
|
|
|
|
|
||
Financing cash flows paid for principal portion of finance leases |
|
|
|
|
|
||
|
|
|
|
|
|
||
Right-of-use assets obtained in exchange for lease liabilities: |
|
|
|
|
|
||
Operating leases |
$ |
|
|
$ |
|
||
Supplemental balance sheet information related to leases are as follows:
|
September 30, |
|
|
June 30, |
|
||
(In thousands) |
2025 |
|
|
2025 |
|
||
Operating leases: |
|
|
|
|
|
||
Operating lease right-of-use assets |
$ |
|
|
$ |
|
||
|
|
|
|
|
|
||
Current portion of operating lease liabilities |
|
|
|
|
|
||
Operating lease liabilities, net of current portion |
|
|
|
|
|
||
|
|
|
|
|
|
||
Total operating lease liabilities |
$ |
|
|
$ |
|
||
|
|
|
|
|
|
||
Finance leases: |
|
|
|
|
|
||
Property, technology, and equipment, net |
$ |
|
|
$ |
|
||
|
|
|
|
|
|
||
Current portion of finance lease liabilities |
|
|
|
|
|
||
Finance lease liabilities, net of current portion |
|
|
|
|
|
||
|
|
|
|
|
|
||
Total finance lease liabilities |
$ |
|
|
$ |
|
||
|
|
|
|
|
|
||
Weighted average remaining lease term: |
|
|
|
|
|
||
Operating leases |
|
|
|
||||
Finance leases |
|
|
|
||||
|
|
|
|
|
|
||
Weighted average discount rate: |
|
|
|
|
|
||
Operating leases |
|
% |
|
|
% |
||
Finance leases |
|
% |
|
|
% |
||
15
Table of Contents
As of September 30, 2025, maturities of lease liabilities for each of the next five fiscal years ending June 30 and thereafter are as follows:
(In thousands) |
Operating |
|
|
Finance |
|
||
2026 (Remaining) |
$ |
|
|
$ |
|
||
2027 |
|
|
|
|
|
||
2028 |
|
|
|
|
|
||
2029 |
|
|
|
|
|
||
2030 |
|
|
|
|
|
||
Thereafter |
|
|
|
|
|
||
|
|
|
|
|
|
||
Total lease payments |
|
|
|
|
|
||
|
|
|
|
|
|
||
Less imputed interest |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Total lease liabilities |
$ |
|
|
$ |
|
||
NOTE 6 – PROPERTY, TECHNOLOGY, AND EQUIPMENT
|
|
|
September 30, |
|
|
June 30, |
|
||
(In thousands) |
Useful Life |
|
2025 |
|
|
2025 |
|
||
Computer software |
|
$ |
|
|
$ |
|
|||
Office and warehouse equipment |
|
|
|
|
|
|
|||
Leasehold improvements |
(1) |
|
|
|
|
|
|
||
Trailers and related equipment |
|
|
|
|
|
|
|||
Computer equipment |
|
|
|
|
|
|
|||
Furniture and fixtures |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
||
Property, technology, and equipment |
|
|
|
|
|
|
|
||
Less: accumulated depreciation and amortization |
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
||
Property, technology, and equipment, net |
|
|
$ |
|
|
$ |
|
||
Depreciation and amortization expenses related to property, technology, and equipment were $
NOTE 7 – GOODWILL AND INTANGIBLE ASSETS
Goodwill
Changes in the carrying amount of goodwill by reporting segment is as follows:
(In thousands) |
United States |
|
|
Canada |
|
|
Total |
|
|||
Balance as of June 30, 2025 |
$ |
|
|
$ |
|
|
$ |
|
|||
Acquisitions |
|
|
|
|
|
|
|
|
|||
Foreign currency translation |
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|||
Balance as of September 30, 2025 |
$ |
|
|
$ |
|
|
$ |
|
|||
16
Table of Contents
Intangible Assets
Intangible assets consist of the following:
|
September 30, 2025 |
|
|||||||||||
(In thousands) |
Weighted |
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|||
Customer related |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
Trade names and trademarks |
|
|
|
|
|
( |
) |
|
|
|
|||
Developed technology |
|
|
|
|
|
( |
) |
|
|
|
|||
Licenses |
|
|
|
|
|
( |
) |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
|
June 30, 2025 |
|
|||||||||||
(In thousands) |
Weighted |
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|||
Customer related |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
Trade names and trademarks |
|
|
|
|
|
( |
) |
|
|
|
|||
Developed technology |
|
|
|
|
|
( |
) |
|
|
|
|||
Licenses |
|
|
|
|
|
( |
) |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Amortization expense amounted to $
(In thousands) |
|
|
|
2026 (Remaining) |
$ |
|
|
2027 |
|
|
|
2028 |
|
|
|
2029 |
|
|
|
2030 |
|
|
|
NOTE 8 – NOTES PAYABLE
Revolving Credit Facility
The Company entered into a $
17
Table of Contents
For borrowings under the Revolving Credit Facility, the Company is subject to the maximum consolidated net leverage ratio of
Borrowings outstanding on the Revolving Credit Facility were $
NOTE 9 – DERIVATIVES
In 2020, the Company entered into interest rate swap contracts with Bank of America to trade variable interest cash inflows at one-month LIBOR for a total notional amount of $
The interest rate swap contracts were not designated as hedges, and gains and losses from changes in fair value were recognized in the condensed consolidated statements of comprehensive income.
NOTE 10 – STOCKHOLDERS’ EQUITY
The Company is authorized to issue
Common Stock
In December 2023, the Company’s board of directors authorized the repurchase of up to
NOTE 11 – VARIABLE INTEREST ENTITY AND RELATED PARTY TRANSACTIONS
RLP is owned
Certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties are considered variable interest entities. The Company has power over significant activities of RLP including the fulfillment of its contracts and financing its operations. Additionally, the Company also pays expenses and collects receivables on behalf of RLP. Thus, the Company is the primary beneficiary, RLP qualifies as a variable interest entity, and RLP is consolidated in these condensed consolidated financial statements.
RLP recorded $
18
Table of Contents
NOTE 12 – FAIR VALUE MEASUREMENT
The accounting guidance for fair value, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants as of the reporting date. The framework for measuring fair value consists of a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. The fair value measurement level within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques:
Items Measured at Fair Value on a Recurring Basis
The following table sets forth the Company’s financial liabilities measured at fair value on a recurring basis:
|
|
Fair Value Measurements as of September 30, 2025 |
|
|||||
(In thousands) |
|
Level 3 |
|
|
Total |
|
||
Contingent consideration |
|
$ |
( |
) |
|
$ |
( |
) |
|
|
|
|
|
|
|
||
|
|
Fair Value Measurements as of June 30, 2025 |
|
|||||
(In thousands) |
|
Level 3 |
|
|
Total |
|
||
Contingent consideration |
|
$ |
( |
) |
|
$ |
( |
) |
The following table provides a reconciliation of the financial liabilities measured at fair value using significant unobservable inputs (Level 3):
(In thousands) |
|
Contingent |
|
|
Balance as of June 30, 2025 |
|
$ |
( |
) |
Increase related to acquisitions |
|
|
( |
) |
Change in fair value |
|
|
( |
) |
|
|
|
|
|
Balance as of September 30, 2025 |
|
$ |
( |
) |
The Company has contingent obligations to transfer cash payments to former shareholders of acquired operations in conjunction with certain acquisitions if specified operating results and financial objectives are met over their stated earn-out period. Contingent consideration is measured quarterly at fair value, and any change in the fair value of the contingent liability is included in the condensed consolidated statements of comprehensive income. The change in fair value in each period is principally attributable to a change in management’s estimates of future earn-out payments through the remainder of the earn-out periods.
The Company uses projected future financial results based on recent and historical data to value the anticipated future earn-out payments. To calculate fair value, the future earn-out payments were then discounted using Level 3 inputs. The Company has classified the contingent consideration as Level 3 due to the lack of relevant observable market data over fair value inputs. The Company believes the discount rate used to discount the earn-out payments reflects market participant assumptions. Changes in assumptions and operating results could have a significant impact on the earn-out amount up to a maximum of $
19
Table of Contents
Fair Value of Financial Instruments
The carrying amounts of the Company’s cash equivalents, receivables, contract assets, accounts payable, commissions payable, accrued expenses, and the income tax receivable approximate the fair values due to the relatively short maturities of these instruments. The carrying amounts of the Company’s Revolving Credit Facility would not differ significantly from fair value (based on Level 2 inputs) if recalculated based on current interest rates. During the three months ended September 30, 2025, there were
NOTE 13 – INCOME TAXES
The components of income tax expense are as follows:
|
Three Months Ended September 30, |
|
|||||
(In thousands) |
2025 |
|
|
2024 |
|
||
Current income tax expense (benefit) |
$ |
( |
) |
|
$ |
|
|
Deferred income tax expense |
|
|
|
|
|
||
|
|
|
|
|
|
||
Income tax expense |
$ |
|
|
$ |
|
||
The Company’s effective tax rate is
NOTE 14 – SHARE-BASED COMPENSATION
The Radiant Logistics, Inc. 2021 Omnibus Incentive Plan (the “2021 plan”) permits the Company’s Audit and Executive Committee to grant share-based awards to eligible employees, non-employee directors, and consultants of the Company. The 2021 plan became effective immediately upon approval by the Company’s stockholders and will expire on
Restricted Stock Units
The Company recognized share-based compensation expense related to restricted stock units of $
The following table summarizes restricted stock unit activity:
|
Number of |
|
|
Weighted Average |
|
||
Unvested balance as of June 30, 2025 |
|
|
|
$ |
|
||
Vested |
|
( |
) |
|
|
|
|
Granted |
|
|
|
|
|
||
Forfeited |
|
( |
) |
|
|
|
|
|
|
|
|
|
|
||
Unvested balance as of September 30, 2025 |
|
|
|
$ |
|
||
The table above includes
20
Table of Contents
Stock Options
Stock options are granted at exercise prices equal to the fair value of the common stock at the date of the grant and have a term of
The following table summarizes stock option activity:
|
Number of |
|
|
Weighted |
|
|
Weighted |
|
|
Aggregate |
|
||||
Outstanding as of June 30, 2025 |
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Exercised |
|
( |
) |
|
|
|
|
|
— |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Outstanding as of September 30, 2025 |
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exercisable as of September 30, 2025 |
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
NOTE 15 – COMMITMENTS AND CONTINGENCIES
Legal Proceedings
The Company and its subsidiaries may be subject to legal actions and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened legal proceedings that are considered other than routine legal proceedings. The Company believes that the ultimate disposition or resolution of its routine legal proceedings, in the aggregate, are not material to its financial position, results of operations and liquidity.
Contingent Consideration and Earn-out Payments
The Company’s agreements with respect to previous acquisitions contain future consideration provisions, which provide for the selling equity owners to receive additional consideration if specified operating results and financial objectives are achieved in future periods.
The following table represents the estimated discounted earn-out payments to be paid in each of the following fiscal years ended June 30:
(In thousands) |
|
|
|
2026 (remaining) |
$ |
|
|
2027 |
|
|
|
2028 |
|
|
|
2029 |
|
|
|
2030 |
|
|
|
|
|
|
|
Total |
$ |
|
|
21
Table of Contents
NOTE 16 – OPERATING AND GEOGRAPHIC SEGMENT INFORMATION
In conjunction with the adoption of ASU 2023-07, the Company reevaluated its measure of segment profit or loss and determined that adjusted EBITDA provides a more meaningful representation of segment performance and aligns with how
The Company is organized in
The CEO, who is the CODM, uses adjusted EBITDA to assess performance and allocate resources to each segment, primarily through performance reviews of the operating segment results and periodic reviews of the segment’s budget versus actual comparisons. The segment profit measure excludes the effects of interest, income taxes, depreciation and amortization, and further adjust for such items as share-based compensation, costs unrelated to our core operations, and other non-cash charges. The accounting policies of the reportable segments are the same as those described in Note 2. The Company does not report total assets by segment as its CODM does not assess performance, make strategic decisions, or allocate resources based on assets.
The following tables summarize key financial information by segment:
|
|
Three Months Ended September 30, 2025 |
|
|||||||||
(In thousands) |
|
United States |
|
|
Canada |
|
|
Total |
|
|||
Revenues |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Elimination from intersegment revenues |
|
|
|
|
|
|
|
|
( |
) |
||
Total consolidated revenues |
|
|
|
|
|
|
|
$ |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Less segment expenses: |
|
|
|
|
|
|
|
|
|
|||
Cost of transportation and other services |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
Operating partner commissions |
|
|
( |
) |
|
|
|
|
|
|
||
Personnel costs |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
Other segment expenses |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Segment adjusted EBITDA |
|
$ |
|
|
$ |
|
|
$ |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended September 30, 2024 |
|
|||||||||
(In thousands) |
|
United States |
|
|
Canada |
|
|
Total |
|
|||
Revenues |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Elimination from intersegment revenues |
|
|
|
|
|
|
|
|
( |
) |
||
Total consolidated revenues |
|
|
|
|
|
|
|
$ |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Less segment expenses: |
|
|
|
|
|
|
|
|
|
|||
Cost of transportation and other services |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
Operating partner commissions |
|
|
( |
) |
|
|
|
|
|
|
||
Personnel costs |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
Other segment expenses |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Segment adjusted EBITDA |
|
$ |
|
|
$ |
|
|
$ |
|
|||
22
Table of Contents
The following table presents a reconciliation of Segment adjusted EBITDA to income before income taxes:
|
|
Three Months Ended September 30, |
|
|||||
(In thousands) |
|
2025 |
|
|
2024 |
|
||
Segment adjusted EBITDA |
|
$ |
|
|
$ |
|
||
Depreciation and amortization |
|
|
( |
) |
|
|
( |
) |
Share-based compensation |
|
|
( |
) |
|
|
( |
) |
Change in fair value of contingent consideration |
|
|
( |
) |
|
|
( |
) |
Change in fair value of interest rate swap contracts |
|
|
|
|
|
( |
) |
|
Interest income (expense), net |
|
|
( |
) |
|
|
|
|
Other |
|
|
( |
) |
|
|
( |
) |
Unallocated corporate costs |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
||
Income before income taxes |
|
$ |
|
|
$ |
|
||
The following table presents depreciation and amortization expense by segment:
|
|
Three Months Ended September 30, |
|
|||||
(In thousands) |
|
2025 |
|
|
2024 |
|
||
United States |
|
$ |
|
|
$ |
|
||
Canada |
|
|
|
|
|
|
||
Corporate/Eliminations |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Total |
|
$ |
|
|
$ |
|
||
Long-lived tangible assets outside of the United States, including right-of-use assets, are primarily located in Canada and were $
NOTE 17 – BUSINESS COMBINATION
Fiscal Year 2026 Acquisitions
Effective
The preliminary fair value estimates for the assets acquired and liabilities assumed are based upon preliminary calculations and valuations. The estimates and assumptions are subject to change as additional information is obtained for the estimates during the measurement period (up to one year from the acquisition date). The primary estimates not yet finalized relate to net assets acquired, identifiable intangible assets, working capital and contingent consideration.
NOTE 18 – SUBSEQUENT EVENTS
Repurchase of Common Stock
Pursuant to the stock repurchase program described in Note 10, the Company purchased
23
Table of Contents
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
This report contains “forward-looking statements” within the meaning set forth in United States securities laws and regulations – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as “anticipate,” “believe,” “estimates,” “expect,” “future,” “intend,” “may,” “plan,” “see,” “seek,” “strategy,” or “will” or the negative thereof or any variation thereon or similar terminology or expressions. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. We have developed our forward-looking statements based on management’s beliefs and assumptions, which in turn rely upon information available to them at the time such statements were made. Such forward-looking statements reflect our current perspectives on our business, future performance, existing trends and information as of the date of this report. These include, but are not limited to, our beliefs about future revenue and expense levels, growth rates, prospects related to our strategic initiatives and business strategies, along with express or implied assumptions about, among other things: our continued relationships with our strategic operating partners; the performance of our historic business, as well as the businesses we have recently acquired, at levels consistent with recent trends and reflective of the synergies we believe will be available to us as a result of such acquisitions; our ability to successfully integrate our recently acquired businesses; our ability to locate suitable acquisition opportunities and secure the financing necessary to complete such acquisitions; transportation costs remaining in line with recent levels and expected trends; our ability to mitigate, to the best extent possible, our dependence on current management and certain larger strategic operating partners; our compliance with financial and other covenants under our indebtedness; the absence of any adverse laws or governmental regulations affecting the transportation industry in general, and our operations in particular; our ability to continue to respond to macroeconomic factors that have recently had a negative effect on worldwide freight markets; the impact of any health pandemic or environmental event on our operations and financial results; continued disruptions in the global supply chain; higher inflationary pressures particularly surrounding the costs of fuel, labor, and other components of our operations; potential adverse legal, reputational and financial effects on the Company resulting from prior or future cyber incidents and the effectiveness of the Company’s business continuity plans in response to cyber incidents; the commercial, reputational and regulatory risks to our business that may arise as a consequence of our prior inability to remediate a material weakness in our internal control over financial reporting, and the further risks that may arise should we be unable to maintain an effective system of disclosure controls and internal control over financial reporting in the future; and such other factors that may be identified from time to time in our U.S Securities and Exchange Commission (“SEC”) filings and other public announcements including those set forth under the caption “Risk Factors” in Part 1 Item 1A of our Form 10-K for the year ended June 30, 2025. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the foregoing. Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. We disclaim any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
24
Table of Contents
The following discussion and analysis of our financial condition and result of operations should be read in conjunction with the condensed consolidated financial statements and the related notes and other information included elsewhere in this report.
Overview
Radiant Logistics, Inc., and its consolidated subsidiaries (the “Company,” “we” or “us”), operates as a leading third-party logistics company, providing technology-enabled global transportation and value-added logistics services primarily in the United States and Canada. We service a large, broad, and diversified account base consisting of consumer goods, food and beverage, electronics and high-tech, aviation and automotive, military and government, and manufacturing and retail customers, which is supported by an extensive network of operating locations across North America as well as an integrated international service partner network located in other key markets around the globe. The Company provides these services through a multi-brand network, which includes over 100 operating locations. Included in these operating locations are a number of independent agents, who are also referred to as “strategic operating partners,” that operate exclusively on the Company's behalf, and approximately 30 Company-owned locations. As the operator of a third-party logistics business, the Company has a vast carrier network of asset-based transportation companies, including motor carriers, railroads, airlines and ocean lines in its carrier network. We believe shippers value our services because we are able to objectively arrange the most efficient and cost-effective means, type and provider of transportation service without undue influence caused by the ownership of transportation assets. In addition, our minimal investment in physical assets affords us the opportunity for a higher return on invested capital and generally stronger net cash flows than our asset-based competitors.
Through our operating locations across North America, we offer domestic and international freight forwarding and freight brokerage services, including air, ocean, truckload, less than truckload ("LTL"), and intermodal, which is the movement of freight in trailers or containers by combination of truck and rail. Our primary business operations involve arranging shipments, on behalf of our customers, of materials, products, equipment and other goods that are generally larger than shipments handled by integrated carriers of primarily small parcels, such as FedEx, DHL and UPS. Our services include arranging and monitoring all aspects of material flow activity utilizing advanced information technology systems. We also provide other value-added logistics services, including materials management and distributions ("MM&D"), customs house brokerage ("CHB") and global trade management ("GTM") solutions which complement our core transportation service offering.
The Company expects to grow its business organically and by completing acquisitions of other companies with complementary geographical and logistics service offerings. The Company’s organic growth strategy will continue to focus on strengthening existing and expanding new customer relationships leveraging the benefit of the Company’s technology platform, while continuing its efforts on the organic build-out of the Company’s network of strategic operating partner locations. In addition, as the Company continues to grow and scale its business, the Company believes that it is creating density in its trade lanes, enhances our ability to efficiently source and manage its transportation capacity.
In addition to its focus on organic growth, the Company will continue to search for acquisition candidates that bring critical mass from a geographic and purchasing power standpoint, along with providing complementary service offerings to the current platform. As the Company continues to grow and scale its business, it also remains focused on leveraging its back-office infrastructure and technology systems to drive productivity improvement across the organization.
Impact of Notable External Conditions
The global economic and trade environments remain uncertain, due to factors including inflation, tariff uncertainties, geopolitical tensions, and changes in consumer behavior, any or all of which could adversely affect our business and financial results.
Performance Metrics
Our principal source of income is derived from freight forwarding and freight brokerage services we provide to our customers. As a third-party logistics provider, we arrange for the shipment of our customers’ freight from point of origin to point of destination. Generally, we quote our customers a turnkey cost for the movement of their freight. Our price quote will often depend upon the customer’s time-definite needs (first day through fifth day delivery), special handling needs (heavy equipment, delicate items, environmentally sensitive goods, electronic components, etc.), and the means of transport (motor carrier, air, ocean or rail). In turn, we assume the responsibility for arranging and paying for the underlying means of transportation.
Our transportation revenue represents the total dollar value of services we sell to our customers. Our cost of transportation includes direct costs of transportation, including motor carrier, air, ocean, and rail services. Our adjusted gross profit, a non-GAAP financial measure, is gross revenue less the direct cost of transportation and other services (excluding depreciation and amortization, which are reported separately), and is used as an indicator of our ability to source, add value, and resell services provided by third-parties, and is considered by management to be a key performance measure. Adjusted gross profit percentage is adjusted gross profit as a percentage of our total revenue. In addition, management believes measuring its operating costs as a function of adjusted gross profit provides a useful metric, as our ability to control costs as a function of adjusted gross profit directly impacts operating results. We believe that these metrics provide investors with meaningful information to understand our results of operations and the ability to analyze financial and business trends on a period-to-period basis.
25
Table of Contents
Our operating results will be affected as acquisitions occur. Since acquisitions are recorded using the acquisition method of accounting for business combinations, our financial statements will only include the results of operations and cash flows of acquired companies for periods subsequent to the date of acquisition.
Our GAAP-based net income will be affected by non-cash charges relating to the amortization of customer-related intangible assets and other intangible assets attributable to completed acquisitions. Under applicable accounting standards, purchasers are required to allocate the total consideration in a business combination to the identified assets acquired and liabilities assumed based on their fair values at the time of acquisition. The excess of the consideration paid over the fair value of the identifiable net assets acquired is to be allocated to goodwill, which is tested at least annually for impairment. Applicable accounting standards require that we separately account for and value certain identifiable intangible assets based on the unique facts and circumstances of each acquisition. As a result of our acquisition strategy, our net income will include material non-cash charges relating to the amortization of customer-related intangible assets and other intangible assets acquired in our acquisitions. Although these charges may increase as we complete more acquisitions, we believe we will be growing the value of our intangible assets (e.g., customer relationships). Thus, we believe that earnings before interest, income taxes, depreciation and amortization, or EBITDA, is a useful financial measure for investors because it eliminates the effect of these non-cash charges and provides an important metric for our business.
EBITDA is a non-GAAP financial measure of income and does not include the effects of interest, income taxes, and the “non-cash” effects of depreciation and amortization on long-term assets. Companies have some discretion as to which elements of depreciation and amortization are excluded in the EBITDA calculation. We exclude all depreciation charges related to property, technology, and equipment and all amortization charges (including amortization of leasehold improvements). We then further adjust EBITDA to exclude share-based compensation, costs unrelated to our core operations (primarily acquisition and litigation costs), allocation of earnings attributable to noncontrolling interests in subsidiaries, and other non-cash charges. While management considers EBITDA and adjusted EBITDA useful in analyzing our results, it is not intended to replace any presentation included in our condensed consolidated financial statements. The Company’s financial covenants with its lenders define an adjusted EBITDA as a key component of its covenant calculations. The Company’s ability to grow adjusted EBITDA is closely monitored by management as it’s directly tied to financial borrowing capacity and is a frequent point of discussion with its investors as well as the Company’s earnings calls.
Our operating results are also subject to seasonal trends when measured on a quarterly basis. The impact of seasonality on our business will depend on numerous factors, including the markets in which we operate, holiday seasons, consumer demand, and economic conditions. Since our revenue is largely derived from customers whose shipments are dependent upon consumer demand and just-in-time production schedules, the timing of our revenue is often beyond our control. Factors such as shifting demand for retail goods and/or manufacturing production delays could unexpectedly affect the timing of our revenue. As we increase the scale of our operations, seasonal trends in one area of our business may be offset to an extent by opposite trends in another area. We cannot accurately predict the timing of these factors, nor can we accurately estimate the impact of any particular factor, and thus we can give no assurance any historical seasonal patterns will continue in future periods.
26
Table of Contents
Results of Operations
Three months ended September 30, 2025 and 2024 (unaudited)
The following table summarizes revenues, cost of transportation and other services, and adjusted gross profit by reportable operating segments for the three months ended September 30, 2025 and 2024:
|
Three Months Ended September 30, 2025 |
|
|
Three Months Ended September 30, 2024 |
|
||||||||||||||||||||||||||
(In thousands) |
United |
|
|
Canada |
|
|
Corporate/ |
|
|
Total |
|
|
United |
|
|
Canada |
|
|
Corporate/ |
|
|
Total |
|
||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Transportation |
$ |
193,903 |
|
|
$ |
19,234 |
|
|
$ |
(97 |
) |
|
$ |
213,040 |
|
|
$ |
172,878 |
|
|
$ |
19,003 |
|
|
$ |
(62 |
) |
|
$ |
191,819 |
|
Value-added services |
|
4,211 |
|
|
|
9,404 |
|
|
|
— |
|
|
|
13,615 |
|
|
|
3,937 |
|
|
|
7,809 |
|
|
|
— |
|
|
|
11,746 |
|
|
|
198,114 |
|
|
|
28,638 |
|
|
|
(97 |
) |
|
|
226,655 |
|
|
|
176,815 |
|
|
|
26,812 |
|
|
|
(62 |
) |
|
|
203,565 |
|
Cost of transportation and other services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Transportation |
|
147,081 |
|
|
|
15,123 |
|
|
|
(97 |
) |
|
|
162,107 |
|
|
|
126,499 |
|
|
|
14,599 |
|
|
|
(62 |
) |
|
|
141,036 |
|
Value-added services |
|
1,432 |
|
|
|
3,663 |
|
|
|
— |
|
|
|
5,095 |
|
|
|
1,553 |
|
|
|
3,422 |
|
|
|
— |
|
|
|
4,975 |
|
|
|
148,513 |
|
|
|
18,786 |
|
|
|
(97 |
) |
|
|
167,202 |
|
|
|
128,052 |
|
|
|
18,021 |
|
|
|
(62 |
) |
|
|
146,011 |
|
Adjusted gross profit (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Transportation |
|
46,822 |
|
|
|
4,111 |
|
|
|
— |
|
|
|
50,933 |
|
|
|
46,379 |
|
|
|
4,404 |
|
|
|
— |
|
|
|
50,783 |
|
Value-added services |
|
2,779 |
|
|
|
5,741 |
|
|
|
— |
|
|
|
8,520 |
|
|
|
2,384 |
|
|
|
4,387 |
|
|
|
— |
|
|
|
6,771 |
|
|
$ |
49,601 |
|
|
$ |
9,852 |
|
|
$ |
— |
|
|
$ |
59,453 |
|
|
$ |
48,763 |
|
|
$ |
8,791 |
|
|
$ |
— |
|
|
$ |
57,554 |
|
Adjusted gross profit percentage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Transportation |
|
24.1 |
% |
|
|
21.4 |
% |
|
N/A |
|
|
|
23.9 |
% |
|
|
26.8 |
% |
|
|
23.2 |
% |
|
N/A |
|
|
|
26.5 |
% |
||
Value-added services |
|
66.0 |
% |
|
|
61.0 |
% |
|
N/A |
|
|
|
62.6 |
% |
|
|
60.6 |
% |
|
|
56.2 |
% |
|
N/A |
|
|
|
57.6 |
% |
||
(1) Adjusted gross profit is revenues less the cost of transportation and other services.
Transportation revenue was $213.0 million and $191.8 million for the three months ended September 30, 2025 and 2024, respectively. The increase of $21.2 million, or 11.1%, is primarily attributable to incremental revenues generated from prior year acquisitions. Adjusted transportation gross profit was $50.9 million and $50.8 million for the three months ended September 30, 2025 and 2024, respectively. Net transportation margins decreased from 26.5% to 23.9%, primarily due to increases in ocean revenues, which have lower gross profit margin characteristics than other service levels.
Value-added services revenue was $13.6 million and $11.7 million for the three months ended September 30, 2025 and 2024, respectively. Adjusted value-added services gross profit was $8.5 million for the three months ended September 30, 2025, compared to $6.8 million for the comparable prior year period. Adjusted value-added services gross profit percentage increased from 57.6% to 62.6%.
The following table provides a reconciliation for the three months ended September 30, 2025 and 2024 of adjusted gross profit to gross profit, the most directly comparable GAAP measure:
(In thousands) |
Three Months Ended September 30, |
|
|||||
Reconciliation of adjusted gross profit to GAAP gross profit |
2025 |
|
|
2024 |
|
||
Revenues |
$ |
226,655 |
|
|
$ |
203,565 |
|
Cost of transportation and other services (exclusive of |
|
(167,202 |
) |
|
|
(146,011 |
) |
Depreciation and amortization |
|
(2,339 |
) |
|
|
(3,488 |
) |
GAAP gross profit |
$ |
57,114 |
|
|
$ |
54,066 |
|
Depreciation and amortization |
|
2,339 |
|
|
|
3,488 |
|
Adjusted gross profit |
$ |
59,453 |
|
|
$ |
57,554 |
|
|
|
|
|
|
|
||
GAAP gross profit percentage |
|
25.2 |
% |
|
|
26.6 |
% |
Adjusted gross profit percentage |
|
26.2 |
% |
|
|
28.3 |
% |
27
Table of Contents
The following table compares condensed consolidated statements of comprehensive income data by reportable operating segments for the three months ended September 30, 2025 and 2024:
|
Three Months Ended September 30, 2025 |
|
|
Three Months Ended September 30, 2024 |
|
||||||||||||||||||||||||||
(In thousands) |
United |
|
|
Canada |
|
|
Corporate/ |
|
|
Total |
|
|
United |
|
|
Canada |
|
|
Corporate/ |
|
|
Total |
|
||||||||
Adjusted gross profit (1) |
$ |
49,601 |
|
|
$ |
9,852 |
|
|
$ |
— |
|
|
$ |
59,453 |
|
|
$ |
48,763 |
|
|
$ |
8,791 |
|
|
$ |
— |
|
|
$ |
57,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating partner commissions |
|
19,996 |
|
|
|
— |
|
|
|
— |
|
|
|
19,996 |
|
|
|
18,801 |
|
|
|
— |
|
|
|
— |
|
|
|
18,801 |
|
Personnel costs |
|
15,184 |
|
|
|
4,718 |
|
|
|
1,669 |
|
|
|
21,571 |
|
|
|
13,554 |
|
|
|
4,757 |
|
|
|
1,312 |
|
|
|
19,623 |
|
Selling, general and administrative |
|
8,258 |
|
|
|
2,125 |
|
|
|
1,691 |
|
|
|
12,074 |
|
|
|
6,250 |
|
|
|
2,170 |
|
|
|
1,901 |
|
|
|
10,321 |
|
Depreciation and amortization |
|
756 |
|
|
|
1,023 |
|
|
|
1,747 |
|
|
|
3,526 |
|
|
|
960 |
|
|
|
1,031 |
|
|
|
2,814 |
|
|
|
4,805 |
|
Change in fair value of contingent |
|
— |
|
|
|
— |
|
|
|
200 |
|
|
|
200 |
|
|
|
— |
|
|
|
— |
|
|
|
200 |
|
|
|
200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total operating expenses |
|
44,194 |
|
|
|
7,866 |
|
|
|
5,307 |
|
|
|
57,367 |
|
|
|
39,565 |
|
|
|
7,958 |
|
|
|
6,227 |
|
|
|
53,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
5,407 |
|
|
|
1,986 |
|
|
|
(5,307 |
) |
|
|
2,086 |
|
|
|
9,198 |
|
|
|
833 |
|
|
|
(6,227 |
) |
|
|
3,804 |
|
Other income (expense) |
|
26 |
|
|
|
63 |
|
|
|
(561 |
) |
|
|
(472 |
) |
|
|
16 |
|
|
|
(39 |
) |
|
|
788 |
|
|
|
765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes |
|
5,433 |
|
|
|
2,049 |
|
|
|
(5,868 |
) |
|
|
1,614 |
|
|
|
9,214 |
|
|
|
794 |
|
|
|
(5,439 |
) |
|
|
4,569 |
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
(339 |
) |
|
|
(339 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,145 |
) |
|
|
(1,145 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
5,433 |
|
|
|
2,049 |
|
|
|
(6,207 |
) |
|
|
1,275 |
|
|
|
9,214 |
|
|
|
794 |
|
|
|
(6,584 |
) |
|
|
3,424 |
|
Less: Net income (loss) attributable to non- |
|
18 |
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
(48 |
) |
|
|
— |
|
|
|
— |
|
|
|
(48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to |
$ |
5,451 |
|
|
$ |
2,049 |
|
|
$ |
(6,207 |
) |
|
$ |
1,293 |
|
|
$ |
9,166 |
|
|
$ |
794 |
|
|
$ |
(6,584 |
) |
|
$ |
3,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended September 30, 2025 |
|
|
Three Months Ended September 30, 2024 |
|
||||||||||||||||||||||
Operating expenses as a percent of |
United |
|
|
Canada |
|
|
Corporate/ |
|
Total |
|
|
United |
|
|
Canada |
|
|
Corporate/ |
|
Total |
|
||||||
Operating partner commissions |
|
40.3 |
% |
|
|
0.0 |
% |
|
N/A |
|
|
33.6 |
% |
|
|
38.6 |
% |
|
|
0.0 |
% |
|
N/A |
|
|
32.7 |
% |
Personnel costs |
|
30.6 |
% |
|
|
47.9 |
% |
|
N/A |
|
|
36.3 |
% |
|
|
27.8 |
% |
|
|
54.1 |
% |
|
N/A |
|
|
34.1 |
% |
Selling, general and administrative |
|
16.6 |
% |
|
|
21.6 |
% |
|
N/A |
|
|
20.3 |
% |
|
|
12.8 |
% |
|
|
24.7 |
% |
|
N/A |
|
|
17.9 |
% |
(1) Adjusted gross profit is revenues less the cost of transportation and other services.
Operating partner commissions increased $1.2 million, or 6.4%, to $20.0 million for the three months ended September 30, 2025. The increase is primarily due to an increase of adjusted gross profit generated from our strategic operating partners, partially offset by the conversions of strategic operating partners to Company-owned locations who earned commissions in the prior year. As a percentage of adjusted gross profit, operating partner commissions increased 97 basis points to 33.6% from 32.7% for the three months ended September 30, 2025 and 2024, respectively, as a result of a higher percentage of gross margin generated from Company-owned locations.
Personnel costs increased $2.0 million, or 9.9%, to $21.6 million for the three months ended September 30, 2025. The increase is primarily due to an increase in headcount from recent acquisitions and the share-based compensation expense in the period. As a percentage of adjusted gross profit, personnel costs increased 219 basis points to 36.3% from 34.1% for the three months ended September 30, 2025 and 2024, respectively.
Selling, general and administrative (“SG&A”) expenses increased $1.8 million, or 17.0%, to $12.1 million for the three months ended September 30, 2025. The increase is primarily due to increased allowance for credit losses and technology spending, partially offset by lower professional service fees. As a percentage of adjusted gross profit, SG&A increased 238 basis points to 20.3% from 17.9% for the three months ended September 30, 2025 and 2024, respectively.
Depreciation and amortization costs decreased $1.3 million, or 26.6%, to $3.5 million for the three months ended September 30, 2025. The decrease is primarily attributable to amortization of intangible assets from acquisitions that are now fully amortized, partially offset by amortization of intangible assets from acquisitions that have occurred since the prior year period. As a percentage of adjusted gross profit, depreciation and amortization costs decreased 242 basis points to 5.9% from 8.3% for the three months ended September 30, 2025 and 2024, respectively.
28
Table of Contents
Change in fair value of contingent consideration was a loss of $0.2 million for each of the three months ended September 30, 2025 and 2024. The change in each fiscal year is principally attributable to a change in management’s estimates of future earn-out payments through the remainder of the respective earn-out periods.
Our decrease in net income is driven by increased personnel costs, SG&A, offset by decreases to depreciation and amortization.
Our future financial results may be impacted by amortization of intangible assets resulting from acquisitions, and gains or losses from changes in fair value of contingent consideration, which are difficult to predict.
The following table provides a reconciliation for the three months ended September 30, 2025 and 2024 of adjusted EBITDA to net income (loss), the most directly comparable GAAP measure:
|
Three Months Ended September 30, 2025 |
|
|
Three Months Ended September 30, 2024 |
|
||||||||||||||||||||||||||
(In thousands) |
United |
|
|
Canada |
|
|
Corporate/ |
|
|
Total |
|
|
United |
|
|
Canada |
|
|
Corporate/ |
|
|
Total |
|
||||||||
Net income (loss) attributable to |
$ |
5,451 |
|
|
$ |
2,049 |
|
|
$ |
(6,207 |
) |
|
$ |
1,293 |
|
|
$ |
9,166 |
|
|
$ |
794 |
|
|
$ |
(6,584 |
) |
|
$ |
3,376 |
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
339 |
|
|
|
339 |
|
|
|
— |
|
|
|
— |
|
|
|
1,145 |
|
|
|
1,145 |
|
Depreciation and amortization (1) |
|
756 |
|
|
|
1,023 |
|
|
|
1,747 |
|
|
|
3,526 |
|
|
|
1,074 |
|
|
|
1,031 |
|
|
|
2,814 |
|
|
|
4,919 |
|
Net interest expense |
|
— |
|
|
|
— |
|
|
|
561 |
|
|
|
561 |
|
|
|
— |
|
|
|
— |
|
|
|
(228 |
) |
|
|
(228 |
) |
Share-based compensation |
|
193 |
|
|
|
16 |
|
|
|
215 |
|
|
|
424 |
|
|
|
91 |
|
|
|
42 |
|
|
|
30 |
|
|
|
163 |
|
Change in fair value of contingent consideration |
|
— |
|
|
|
— |
|
|
|
200 |
|
|
|
200 |
|
|
|
— |
|
|
|
— |
|
|
|
200 |
|
|
|
200 |
|
Lease termination costs |
|
16 |
|
|
|
92 |
|
|
|
— |
|
|
|
108 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Change in fair value of interest rate swap contracts |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
440 |
|
|
|
440 |
|
Other (2) |
|
109 |
|
|
|
(104 |
) |
|
|
341 |
|
|
|
346 |
|
|
|
22 |
|
|
|
40 |
|
|
|
(625 |
) |
|
|
(563 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA |
$ |
6,525 |
|
|
$ |
3,076 |
|
|
$ |
(2,804 |
) |
|
$ |
6,797 |
|
|
$ |
10,353 |
|
|
$ |
1,907 |
|
|
$ |
(2,808 |
) |
|
$ |
9,452 |
|
Adjusted EBITDA as a % of adjusted gross profit (3) |
|
13.2 |
% |
|
|
31.2 |
% |
|
N/A |
|
|
|
11.4 |
% |
|
|
21.2 |
% |
|
|
21.7 |
% |
|
N/A |
|
|
|
16.4 |
% |
||
(1) Depreciation and amortization for the purposes of calculating adjusted EBITDA, a non-GAAP financial measure, includes depreciation expense recognized on certain computer software as a service.
(2) Other includes costs unrelated to our core operations (primarily acquisition and litigation costs), and other non-cash charges.
(3) Adjusted gross profit is revenues less the cost of transportation and other services.
29
Table of Contents
Liquidity and Capital Resources
Generally, our primary sources of liquidity are cash generated from operating activities and borrowings under our Revolving Credit Facility, as described below. These sources also fund a portion of our capital expenditures and contractual contingent consideration obligations. Our level of cash and financing capabilities along with cash flows from operations have historically been sufficient to meet our operating and capital needs. As of September 30, 2025, we have $28.1 million in unrestricted cash and cash equivalents on hand to serve as adequate working capital.
Net cash provided by operating activities was $2.5 million and $0.2 million for the three months ended September 30, 2025 and 2024, respectively. The cash provided primarily consisted of net income adjusted for depreciation and amortization and changes in accounts receivable, prepaid expenses, accounts payable, operating partner commissions payable, and accrued expenses and other liabilities. Cash flow from operating activities for the three months ended September 30, 2025 increased by $2.3 million, compared with the same period in fiscal year 2025, primarily due to net changes in operating assets and liabilities offset by increased net income.
Net cash used for investing activities was $6.0 million and $13.5 million for the three months ended September 30, 2025 and 2024, respectively. Cash paid for acquisitions were $5.0 million and $11.4 million for the three months ended September 30, 2025 and 2024, respectively. Cash paid for purchases of property, technology, and equipment were $1.5 million and $2.1 million for the three months ended September 30, 2025 and 2024, respectively. Proceeds from sale of property, technology, and equipment were $0.4 million and less than $0.1 million for the three months ended September 30, 2025 and 2024, respectively.
Net cash provided by financing activities was $8.8 million and net cash used for financing activities was $1.2 million for the three months ended September 30, 2025 and 2024, respectively. Net proceeds from the Revolving Credit Facility were $10.0 million and $0.2 million for the three months ended September 30, 2025 and 2024, respectively. Repayments of notes payable and finance lease liabilities were $0.1 million and $0.2 million for the three months ended September 30, 2025 and 2024, respectively. Repurchases of common stock were $0.8 million and $0.7 million for the three months ended September 30, 2025 and 2024, respectively. Distributions to noncontrolling interest were less than $0.1 million for each of the three months ended September 30, 2025 and 2024, respectively. Proceeds from exercise of stock options were $0.2 million and less than $0.1 million for the three months ended September 30, 2025 and 2024, respectively. Payments of employee tax withholdings related to restricted stock units and stock options were $0.5 million for each of the three months ended September 30, 2025 and 2024, respectively.
Revolving Credit Facility
The Company entered into a $200 million syndicated, revolving credit facility (the “Revolving Credit Facility”) pursuant to a Credit Agreement dated as of August 5, 2022, and amended as of September 27, 2023. The Revolving Credit Facility is segregated into two tranches, a $150 million tranche that may be loaned in U.S. Dollars and a $50 million tranche that may be loaned in either U.S. Dollars or Canadian Dollars. The Revolving Credit Facility includes a $75 million accordion feature to support future acquisition opportunities. The Revolving Credit Facility was entered into with Bank of America, N.A. and BMO Capital Markets Corp. as joint book runners and joint lead arrangers, Bank of America, N.A. as Administrative Agent, Swingline Lender and Letter of Credit Issuer, Bank of Montreal as syndication agent, KeyBank National Association and MUFG Union Bank, N.A. as co-documentation agents and Bank of America, N.A., Bank of Montreal, KeyBank National Association, MUFG Union Bank, N.A. and Washington Federal Bank, National Association as lenders (such named lenders are collectively referred to herein as “Lenders”).
The Revolving Credit Facility matures on August 5, 2027 and is collateralized by a first-priority security interest in the accounts receivable and other assets of the Company and our subsidiaries, including, without limitation, all of the capital stock of our subsidiaries. Borrowings in U.S. Dollars accrue interest (at the Company’s option) at a) the Lenders’ base rate plus 0.50% to 1.50%; b) Term Secured Overnight Financing Rate (“SOFR”) plus 1.40% to 2.40%; or c) Term SOFR Daily Floating Rate plus 1.40% to 2.40%. Borrowings in Canadian Dollars accrue interest (at the Company’s option) at a) Term Canadian Overnight Repo Rate Average (“CORRA”) plus 0.29547% to 0.32138% depending on the term, plus 1.40% to 2.40%; or b) Daily Simple CORRA plus 0.29547% plus 1.40% to 2.40%. Rates are adjusted based on the Company’s consolidated net leverage ratio. The Company’s U.S. and Canadian subsidiaries are guarantors of the Revolving Credit Facility.
For borrowings under the Revolving Credit Facility, the Company is subject to the maximum consolidated net leverage ratio of 3.00 and minimum consolidated interest coverage ratio of 3.00. Additional minimum availability requirements and financial covenants apply in the event the Company seeks to use advances under the Revolving Credit Facility to pursue acquisitions or repurchase its common stock.
As of September 30, 2025, borrowings outstanding on the Revolving Credit Facility were $30.0 million. The Company was in compliance with its covenants.
30
Table of Contents
Item 3. Quantitative and Qualitative Disclosure about Market Risk
We are exposed to market risks in the ordinary course of business. These risks are primarily related to foreign exchange risk. We have currency exposure arising from both sales and purchases denominated in foreign currencies, as well as intercompany transactions. Significant changes in exchange rates between foreign currencies in which we transact business and the U.S. dollar may adversely affect our results of operations and financial condition. Historically, we have not entered into any hedging activities, and, to the extent that we continue not to do so in the future, we may be vulnerable to the effects of currency exchange rate fluctuations. A portion of our business is conducted in Canada and Mexico. If foreign exchange rates were 1.0% higher or lower, our net income for the three months ended September 30, 2025 would have changed by approximately $0.1 million. A fluctuation in foreign exchange rates could have a modest impact on the contingent consideration payments that could be due under our acquisition of Weport, S.A. de C.V.
We are also subject to risks related to an increase in interest rates. For every $1.0 million outstanding on our Revolving Credit Facility, we will incur approximately $0.06 million of interest expense. For every 1.0% increase in interest rates, our interest expense per $1.0 million in borrowings will increase by approximately $0.01 million.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosure.
An evaluation of the effectiveness of our “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) or 15d-15(e) of the Exchange Act) as of September 30, 2025 was carried out by our management under the supervision and with the participation of our CEO and CFO. Based on this evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of September 30, 2025.
Management believes that the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial position, results of operations, and cash flows as of and for the periods presented, in accordance with U.S. GAAP.
Changes in Internal Control over Financial Reporting
There have not been any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the three months ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company and its subsidiaries may be subject to legal actions and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened legal proceedings that are considered other than routine legal proceedings. The Company believes that the ultimate disposition or resolution of its routine legal proceedings, in the aggregate, are not material to its financial position, results of operations and liquidity.
Item 1A. Risk Factors
There have been no material changes in the risk factors disclosed by us under Part I, Item 1A. Risk Factors contained in the Annual Report on Form 10-K for the fiscal year ended June 30, 2025.
31
Table of Contents
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
In December 2023, the Company’s board of directors authorized the repurchase of up to 5,000,000 shares of the Company’s common stock through December 31, 2025. Under the repurchase program, the Company purchased the following shares of Common Stock during the three months ended September 30, 2025:
Period |
Total Number of Shares Purchased |
|
|
Average Price Paid per Share |
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
|
|
Maximum Number of Shares that May Yet Be Purchased under the Plans or Programs |
|
||||
July 1 − 31, 2025 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,660,235 |
|
August 1 − 31, 2025 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,660,235 |
|
September 1 − 30, 2025 |
|
139,992 |
|
|
$ |
5.96 |
|
|
|
139,992 |
|
|
|
4,520,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total |
|
139,992 |
|
|
$ |
5.96 |
|
|
|
139,992 |
|
|
|
4,520,243 |
|
Item 5. Other Information
(a) None
(b) None
(c) During the three months ended September 30, 2025,
32
Table of Contents
ITEM 6. EXHIBITS
|
|
|
|
|
|
Incorporated by Reference |
||||||
Exhibit Number |
|
Description |
|
Filed/Furnished Herewith |
|
Form |
|
Period Ending |
|
Exhibit Number |
|
Filing Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1 |
|
Certification by Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.2 |
|
Certification by Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1 |
|
Certification by the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.INS |
|
Inline XBRL Instance |
|
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.SCH |
|
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
|
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
104 |
|
Cover Page Interactive Data (embedded within the Inline XBRL document) |
|
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
RADIANT LOGISTICS, INC. |
|
|
|
Date: November 10, 2025 |
/s/ Bohn H. Crain |
|
|
|
Bohn H. Crain |
|
|
Chief Executive Officer |
|
|
(Principal Executive Officer) |
|
|
|
Date: November 10, 2025 |
/s/ Todd E. Macomber |
|
|
|
Todd E. Macomber |
|
|
Senior Vice President and Chief Financial Officer |
|
|
(Principal Financial Officer and Principal Accounting Officer) |
34
FAQ
How did RLGT perform this quarter on revenue and earnings?
What were RLGT’s segment results for the quarter?
What is RLGT’s cash and debt position?
Did RLGT make acquisitions?
What were operating cash flows this quarter?
Did RLGT repurchase shares?
How many RLGT shares are outstanding?
