Core Insights - Radiant Logistics, Inc. (AMEX:RLGT) is focusing on both acquisition and organic growth while advancing its digital transformation through the Navegate platform [1] - The company recently launched its first AI Agent, "Ray," to enhance international operations, indicating a commitment to innovation in a competitive industry [1] Financial Performance - On February 9, 2026, RLGT reported an EPS of $0.11, surpassing the estimated $0.054, reflecting effective strategic positioning [2][6] - The company's revenue reached approximately $232.13 million, exceeding the estimated $223.63 million, showcasing its growth strategy [3][6] - RLGT achieved an adjusted EBITDA of $11.8 million, demonstrating efficient earnings generation [2] Shareholder Value and Financial Ratios - The company repurchased 445,058 shares at an average price of $5.97 per share, totaling $2.7 million, which can enhance shareholder value [4][6] - The debt-to-equity ratio of 0.41 indicates a moderate level of debt, supporting financial stability [4][6] - A current ratio of 1.61 suggests a strong ability to cover short-term liabilities with short-term assets [5][6] - The enterprise value to sales ratio of 0.43 and enterprise value to operating cash flow ratio of 25.39 provide insights into the company's valuation [5]

Core Insights - Radiant Logistics exceeded quarterly expectations, with management noting that customers are becoming increasingly optimistic despite soft international ocean volumes [1] - The company is successfully rolling out Navegate, a proprietary global trade management platform, which is expected to drive organic growth [2] Financial Performance - Radiant reported revenue of $232 million for the fiscal second quarter, a decrease of $32 million year-over-year, and $3 million below consensus estimates [3] - Adjusted net income was $8.1 million, or 17 cents per share, which was 9 cents above consensus but 5 cents lower year-over-year [4] - The adjusted EBITDA was $11.8 million, down 2% year-over-year, impacted by a $5.9 million headwind from the previous year's hurricane project [4] Cash Position and Future Plans - The company ended the quarter with $32 million in cash, exceeding its debt and finance lease obligations by nearly $1 million [5] - Radiant has a $200 million credit facility to support stock buybacks, acquisitions, and converting third-party agent stations into company-owned operations [5] - Shares of RLGT rose 7.4% in after-hours trading following the earnings report [5]

Financial Data and Key Metrics Changes - The company generated $11.8 million in Adjusted EBITDA for the second fiscal quarter ended December 31, 2025, reflecting a year-over-year increase of 93.4% when excluding $5.9 million from Project Milton in the prior year [3][4] - Adjusted gross profit margin improved by 340 basis points to 27.3% compared to 23.9% in the year-ago period [4] - Net income attributable to Radiant Logistics decreased by approximately 18% to $5.3 million on revenues of $232.1 million for the three months ended December 31, 2025 [9][10] Business Line Data and Key Metrics Changes - Same-store growth contributed $3.6 million in U.S. operations, $1.4 million in Canadian operations, and $0.7 million from acquisitions [4] - Adjusted EBITDA margin expanded by 780 basis points to 18.6% when excluding the impact of Project Milton [4] Market Data and Key Metrics Changes - The demand environment is showing signs of improvement, with a tightening of capacity observed, although international and ocean imports remain relatively soft [16][17] - The tender rejection rate has started to increase, indicating potential benefits for the company in the upcoming quarters [17] Company Strategy and Development Direction - The company is focusing on its proprietary global trade management platform, Navigate, which is expected to enhance visibility and decision-making for customers [5] - The launch of Ray, an AI-powered agent, aims to streamline quote requests and improve operational efficiencies [6] - The company remains virtually debt-free and is committed to a balanced approach to capital allocation, including stock buybacks and strategic acquisitions [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the prospects for growth, particularly with the ongoing development of the Navigate platform and the positive feedback from customers [19][20] - There are currently no immediate project opportunities from severe weather events, but the company is prepared to respond as needed [18] Other Important Information - For the six months ended December 31, 2025, net income decreased by approximately 33% to $6.6 million on revenues of $458.8 million [12] - Adjusted EBITDA for the six months ended December 31, 2025, was reported at $18.6 million, a decrease of 13.5% compared to the prior year [13] Q&A Session Summary Question: Can you discuss the current demand environment and any project work from severe weather? - Management noted a generally bullish sentiment with some improvement in demand, although international imports remain soft. They are monitoring the impact of tightening capacity on margins [16][17] Question: Should we expect any project work from severe weather? - Currently, there are no projects on the books, but the company is prepared to respond to natural disasters as they occur [18] Question: How much revenue is expected from Navigate this year? - Management refrained from providing specific revenue numbers but highlighted the growing interest from vendors as they onboard onto the platform, indicating a compounding effect on growth [19][20]

Financial Data and Key Metrics Changes - The company generated $11.8 million in Adjusted EBITDA for the second fiscal quarter ended December 31, 2025, reflecting a year-over-year increase of $5.7 million, or 93.4%, when excluding $5.9 million from Project Milton in the prior year [3][4] - Adjusted gross profit margin improved by 340 basis points to 27.3% compared to 23.9% in the year-ago period [4] - Net income attributable to Radiant Logistics decreased by approximately $1.162 million, or 18%, to $5.305 million on revenues of $232.1 million for the three months ended December 31, 2025 [9][10] - For the six months ended December 31, 2025, net income decreased by approximately $3.245 million, or 33%, to $6.598 million on revenues of $458.8 million [12] Business Line Data and Key Metrics Changes - Same-store growth contributed $3.6 million in U.S. operations, $1.4 million in Canadian operations, and $0.7 million from acquisitions [4] - Adjusted EBITDA margin expanded by 780 basis points to 18.6% when excluding the impact of Project Milton from the prior year [4] Market Data and Key Metrics Changes - The international and ocean imports market remains relatively soft, but there is a tightening of capacity with increasing tender rejection rates [17][18] - The company anticipates that the tightening capacity environment will positively affect overall margin characteristics in the upcoming quarter [18] Company Strategy and Development Direction - The company is focused on leveraging its proprietary global trade management platform, Navegate, to enhance visibility and decision-making in supply chain management [5] - The launch of Ray, an AI-powered agent, aims to streamline quote request administration and improve operational efficiencies [6] - The company plans to maintain a balanced approach to capital allocation through agent station conversions, acquisitions, and stock buybacks while investing in sales resources [8][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, noting a general bullish sentiment and improvement in growth excluding project cargo [17] - There are no immediate project opportunities from recent severe weather, but the company remains prepared for potential natural disaster-related work [19] - The company is experiencing positive feedback and interest in Navegate, indicating a compounding effect as more vendors are onboarded [20][21] Other Important Information - The company remains virtually debt-free with no net debt as of December 31, 2025, and has a $200 million credit facility [7] - The stock buyback program resulted in the acquisition of $2.7 million of the company's stock during the quarter [7] Q&A Session Summary Question: Current demand environment and project work from severe weather - Management noted a generally bullish sentiment in the market, with some improvement in growth excluding project cargo, while international imports remain soft [17] - No project work is currently on the books from severe weather, but the company is monitoring the situation [19] Question: Expected revenue from Navegate this year - Management refrained from providing specific revenue numbers but highlighted positive feedback and increasing interest from vendors as they onboard onto the platform [20][21]

Financial Data and Key Metrics Changes - For Q2 2026, the company reported $11.8 million in Adjusted EBITDA, a 93.4% increase compared to $6.1 million in Q2 2025 when excluding $5.9 million from Project Milton [3][4] - Adjusted gross profit margin improved by 340 basis points to 27.3% from 23.9% in the prior year [4] - Net income for Q2 2026 was $5.3 million on revenues of $232.1 million, down from $6.5 million on $264.5 million in Q2 2025, representing an 18% decrease [9][10] - Adjusted net income decreased by approximately 24.5% to $8.1 million from $10.7 million in the prior year [10] - For the six months ended December 31, 2025, net income was $6.6 million on revenues of $458.8 million, down from $9.8 million on $468.1 million in the prior year [12] Business Line Data and Key Metrics Changes - Same-store growth contributed $3.6 million in U.S. operations, $1.4 million in Canadian operations, and $0.7 million from acquisitions [4] - Adjusted EBITDA margin expanded by 780 basis points to 18.6% when excluding Project Milton from the prior year [4] Market Data and Key Metrics Changes - The demand environment is showing signs of improvement, with a tightening of capacity noted, although international and ocean imports remain soft [17] - The tender rejection rate has started to increase, indicating potential benefits for the company in the upcoming quarters [18] Company Strategy and Development Direction - The company is focusing on its proprietary global trade management platform, Navigate, which is expected to drive organic growth by enhancing supply chain visibility and decision-making [5] - The launch of Ray, an AI-powered agent, aims to streamline quote requests and improve operational efficiencies [6] - The company plans to maintain a balanced approach to capital allocation, including stock buybacks and strategic acquisitions [7] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about leveraging technology and a robust global network to create value [26] - The company is monitoring the impact of severe weather on potential project work but currently has no projects in the pipeline [19] Other Important Information - The company remains virtually debt-free with no net debt as of December 31, 2025, and has a $200 million credit facility available [7] Q&A Session Summary Question: Demand environment and project work from severe weather - Management noted a generally bullish sentiment in the demand environment, with some growth observed, but international imports remain soft [17] - No current project work is on the books related to severe weather, but the company is prepared to respond to such events [19] Question: Revenue expectations from Navigate - Management refrained from providing specific revenue numbers but highlighted positive feedback and growing interest from vendors as they onboard onto the Navigate platform [20]

Financial Performance - For the three months ended December 31, 2025, total revenues were $232.13 million, a decrease from $264.54 million in the same period of 2024, representing a decline of approximately 12.2%[126] - Adjusted gross profit for the three months ended December 31, 2025, was $63.46 million, slightly up from $63.31 million in 2024, indicating a stable performance despite revenue decline[126] - Transportation revenue for the three months ended December 31, 2025, was $217.84 million, down from $252.06 million in the same period of 2024, marking a decrease of approximately 13.5%[126] - Total revenues for the three months ended December 31, 2025, were $232.1 million, down from $264.5 million in 2024[129] - Net income attributable to Radiant Logistics, Inc. was $9.8 million for the three months ended December 31, 2025, compared to $12.1 million in 2024[137] - For the six months ended December 31, 2025, adjusted EBITDA was $18.6 million, compared to $21.5 million for the same period in 2024, reflecting a decrease of approximately 13.5%[152] - Net income attributable to Radiant Logistics, Inc. for the six months ended December 31, 2025, was $15.3 million, compared to $9.8 million for the same period in 2024, representing an increase of approximately 55.5%[152] Revenue Breakdown - Transportation revenue decreased by $34.3 million, or 13.6%, to $217.8 million for the three months ended December 31, 2025, compared to $252.1 million in 2024[127] - Adjusted transportation gross profit was $54.2 million for the three months ended December 31, 2025, with net transportation margins increasing from 22.4% to 24.9%[127] - Value-added services revenue increased by $1.8 million, or 14.4%, to $14.3 million for the three months ended December 31, 2025, driven by higher volumes and expanded warehouse operations[128] - Adjusted value-added services gross profit rose to $9.2 million, with gross profit percentage increasing from 55.2% to 64.7%[128] - Transportation revenue decreased by $13.0 million, or 2.9%, to $430.9 million for the six months ended December 31, 2025, compared to $443.9 million in the prior year[142] - Adjusted gross profit for transportation was $105.2 million, down from $107.2 million, with net transportation margins increasing from 24.1% to 24.4%[142] - Value-added services revenue increased by $3.7 million, or 15.3%, to $27.9 million, driven by higher volumes and expanded warehouse operations[143] - Adjusted value-added services gross profit rose to $17.8 million, with gross profit percentage increasing from 56.4% to 63.6%[143] - Total revenues for the six months ended December 31, 2025, were $458.8 million, compared to $468.1 million in 2024[144] Cost Management - The cost of transportation and other services for Q4 2025 was $168.67 million, down from $201.24 million in Q4 2024, indicating a reduction of about 16.1%[126] - Personnel costs increased by $3.0 million, or 15.5%, to $22.6 million, with the percentage of adjusted gross profit rising to 35.6% from 30.9%[133] - Selling, general and administrative expenses decreased by $2.4 million, or 19.9%, to $9.6 million, with the percentage of adjusted gross profit decreasing to 15.1% from 19.0%[134] - Depreciation and amortization costs decreased by $1.4 million, or 29.2%, to $3.6 million, with the percentage of adjusted gross profit decreasing to 5.6% from 8.0%[135] - Operating partner commissions increased by $2.2 million, or 5.8%, to $40.3 million, with a percentage of adjusted gross profit rising to 32.8% from 31.5%[147] - Personnel costs rose by $5.0 million, or 12.7%, to $44.2 million, with the percentage of adjusted gross profit increasing to 35.9% from 32.4%[148] - SG&A expenses decreased by $0.6 million, or 2.9%, to $21.7 million, with the percentage of adjusted gross profit decreasing to 17.6% from 18.5%[149] - Depreciation and amortization costs decreased by $2.7 million, or 27.9%, to $7.1 million, with the percentage of adjusted gross profit decreasing to 5.8% from 8.1%[150] Strategic Initiatives - The company plans to grow organically and through acquisitions, focusing on enhancing customer relationships and expanding its network of strategic operating partner locations[117] - The company continues to seek acquisition candidates that provide critical mass and complementary service offerings to enhance its logistics platform[118] Economic Environment - Global economic conditions remain uncertain, influenced by inflationary pressures and geopolitical tensions, which may adversely affect shipment volumes and pricing dynamics[119] Cash Flow and Financing - Net cash provided by operating activities decreased to $14.8 million for the six months ended December 31, 2025, down from $15.9 million in 2024, a decline of about 6.9%[155] - Cash used for investing activities was $6.9 million for the six months ended December 31, 2025, significantly lower than $19.4 million in 2024, indicating a reduction of approximately 64.5%[156] - The company had $31.9 million in unrestricted cash and cash equivalents as of December 31, 2025, available for working capital and general corporate purposes[154] - The Revolving Credit Facility has a total capacity of $200 million, with $30.0 million outstanding as of December 31, 2025[161] - The company is subject to a maximum consolidated net leverage ratio of 3.00 and a minimum consolidated interest coverage ratio of 3.00 under the Revolving Credit Facility[160] - A 1.0% increase in interest rates would result in an additional interest expense of approximately $0.01 million for every $1.0 million outstanding on the Revolving Credit Facility[163] - The company has not engaged in hedging activities for foreign exchange risks, which could impact net income by approximately $0.15 million for a 1.0% change in exchange rates[162]

Core Insights - Radiant Logistics, Inc. reported financial results for the second fiscal quarter ended December 31, 2025, showing a revenue decline but significant growth in adjusted metrics when excluding the prior year's Milton Project revenues [1][4][5]. Financial Performance - Revenues for the second fiscal quarter were $232.1 million, down $32.4 million or 12.2% from $264.5 million in the prior year, primarily due to the absence of $64.8 million from the Milton Project [4][8]. - Gross profit increased to $61.0 million, up $1.4 million or 2.3% compared to the prior year, with a 16.0% increase when excluding the Milton Project [4][5]. - Adjusted net income was $8.1 million, down 24.3% from $10.7 million in the prior year, but up 30.6% when excluding the Milton Project [9][12]. - Adjusted EBITDA was $11.8 million, a slight decrease of 1.7% from $12.0 million in the prior year, but up 93.4% when excluding the Milton Project [10][13]. Operational Highlights - The company launched its first AI-powered agent, "Ray," aimed at streamlining international quote requests, enhancing operational efficiency [7]. - The Navegate platform is advancing the company's digital transformation, providing a competitive edge in global trade management [6]. Capital Management - The company repurchased 445,058 shares at an average cost of $5.97 per share, totaling $2.7 million during the quarter [3]. - Radiant Logistics remains virtually debt-free with no net debt as of December 31, 2025, relative to a $200 million credit facility [5][7]. Market Position - The company emphasizes its diversified service offerings and disciplined capital allocation strategy, which are expected to support profitable growth through both organic and acquisition initiatives [5][7].

Financial Performance - Revenues for the second fiscal quarter ended December 31, 2025, were $232.1 million, down 12.2% from $264.5 million in the prior year, but up 16.2% when excluding $64.8 million from the Milton Project[2] - Adjusted net income for the second fiscal quarter was $8.1 million, down 24.3% from $10.7 million in the prior year, but up 30.6% when excluding $4.5 million from the Milton Project[2] - Revenues for the three months ended December 31, 2025, were $232.13 million, a decrease of 12.2% compared to $264.54 million for the same period in 2024[23] - Net income attributable to Radiant Logistics, Inc. for the three months ended December 31, 2025, was $5.31 million, down from $6.47 million in the same period of 2024, representing a decline of 17.9%[23] - Adjusted net income for the three months ended December 31, 2025, was $8,076,000, a decrease of 24.4% compared to $10,696,000 in 2024[32] - GAAP net income attributable to Radiant Logistics, Inc. for the three months ended December 31, 2025, was $5,305,000, compared to $6,467,000 in 2024, showing a decrease of 18%[32] Profitability Metrics - Gross profit increased to $61.0 million, a rise of 2.3% compared to $59.6 million in the prior year, and up 16.0% when excluding $7.0 million from the Milton Project[2] - Adjusted EBITDA was $11.8 million, a decrease of 1.7% from $12.0 million in the prior year, but up 93.4% when excluding $5.9 million from the Milton Project[2] - The adjusted EBITDA margin for the second fiscal quarter was 18.6%, reflecting an increase of 780 basis points compared to 10.8% in the prior year when excluding the Milton Project[4] - Adjusted gross profit for the three months ended December 31, 2025, was $63,461,000, slightly up from $63,305,000 in 2024, indicating a stable performance[29] - The adjusted gross profit percentage for the three months ended December 31, 2025, was 27.3%, up from 23.9% in 2024, indicating improved efficiency[29] Assets and Liabilities - Total current assets increased to $191.39 million as of December 31, 2025, compared to $179.25 million as of June 30, 2025, reflecting a growth of 6.2%[21] - Total liabilities rose to $208.19 million as of December 31, 2025, compared to $200.69 million as of June 30, 2025, indicating an increase of 3.7%[21] - Cash and cash equivalents increased to $31.88 million as of December 31, 2025, from $22.94 million as of June 30, 2025, marking a significant increase of 38.8%[21] Operational Efficiency - The company reported a gross profit margin that is expected to improve as operational efficiencies are realized through strategic initiatives[26] - The company is focused on integrating recently acquired businesses to leverage synergies and enhance overall performance[25] - The company anticipates continued growth in user data and market expansion as part of its strategic initiatives moving forward[25] Strategic Initiatives - The Navegate platform is expected to enhance visibility and decision-making in supply chain management, representing a competitive advantage for organic growth[5] - The launch of 'Ray', an AI-powered agent, aims to streamline quote request administration, improving operational efficiencies[6] - The company plans to continue a balanced approach to capital allocation, focusing on agent station conversions, acquisitions, and stock buy-backs while investing in sales resources[6] Shareholder Returns - The company purchased 445,058 shares at an average cost of $5.97 per share, totaling $2.7 million during the quarter[3] - The weighted average common shares outstanding for the six months ended December 31, 2025, was 47,039,566, slightly up from 46,831,938 in 2024[32] Interest and Expenses - Operating expenses for the three months ended December 31, 2025, totaled $224.65 million, a decrease of 12.2% from $255.82 million in the same period of 2024[23] - The company reported a net interest expense of $589,000 for the three months ended December 31, 2025, compared to a net interest income of $56,000 in 2024[30]

Core Viewpoint - Radiant Logistics, Inc. will host a conference call to discuss its financial results for the three and six months ended December 31, 2025, scheduled for February 9, 2026, at 4:30 PM Eastern [1]. Group 1: Conference Call Details - The conference call is open to all interested parties, including individual investors and press, and will be hosted by Bohn Crain, Founder and CEO [2]. - Dial-in details for the conference call include US number (888) 506-0062 and international number (973) 528-0011, with a participant access code of 209811 [3]. - A replay of the call will be available from February 10, 2026, at 9:30 AM Eastern to February 23, 2026, at 4:30 PM Eastern, with US replay number (877) 481-4010 and international number (919) 882-2331, using replay ID number 53602 [3]. Group 2: Webcast Information - The conference call will also be available via webcast on Radiant's website at www.radiantdelivers.com or through a specific webcast link [4]. Group 3: Company Overview - Radiant Logistics operates as a third-party logistics company, providing technology-enabled global transportation and value-added logistics services primarily in the United States, Canada, and Mexico [5]. - The company offers a comprehensive range of services including domestic and international freight forwarding, truck and rail brokerage, warehouse and distribution, customs brokerage, order fulfillment, inventory management, and technology services [5].

Core Viewpoint - Radiant Logistics (RLGT) has seen its stock price increase from the high $5s in November 2025 to around $6.60, indicating a potential investment opportunity despite the perception of having missed the boat [1]. Company Analysis - The investment perspective is shaped by a focus on cash flow durability, balance sheet strength, and practical risks associated with capital structures [1]. - The company targets mispriced opportunities created by market fear, prevailing narratives, or misunderstandings, particularly in cyclical industries, energy, industrials, and under-followed mid-caps [1]. - There is an emphasis on identifying asymmetric setups where companies have already faced market punishment while their fundamentals are stabilizing or improving [1]. Investment Strategy - The approach involves looking for situations where sentiment lags behind reality, allowing modest changes in expectations to drive significant stock price changes [1]. - The analysis is shared through Seeking Alpha to facilitate idea generation and company analysis for the investment portfolio [1].