Radiant(RLGT) - 2025 Q4 - Annual Results

Executive Summary & Financial Highlights Radiant Logistics reported strong FY2025 financial results, driven by strategic acquisitions and a focus on future growth, alongside key operational announcements Company Overview & Announcement Radiant Logistics announced its financial results for the fourth fiscal quarter and full fiscal year ended June 30, 2025, highlighting continued progress in strategic acquisitions and positioning for future growth as market conditions improve - Radiant Logistics, Inc. (NYSE American: RLGT) is a technology-enabled global transportation and value-added logistics services company[1] - The company reported financial results for the three and twelve months ended June 30, 2025[1] Fiscal Year 2025 Financial Highlights For the fiscal year ended June 30, 2025, Radiant Logistics achieved significant year-over-year growth across key financial metrics, including a 12.5% increase in revenues, a 124.7% rise in net income, and a 24.4% increase in Adjusted EBITDA | Metric | FY2025 (Millions) | FY2024 (Millions) | Change (Millions) | Change (%) | | :-------------------------------- | :---------------- | :---------------- | :---------------- | :--------- | | Revenues | $902.7 | $802.5 | $100.2 | 12.5% | | Gross Profit | $226.1 | $223.5 | $2.6 | 1.2% | | Adjusted Gross Profit (Non-GAAP) | $239.4 | $236.5 | $2.9 | 1.2% | | Net Income Attributable to RLGT | $17.3 | $7.7 | $9.6 | 124.7% | | Basic EPS | $0.37 | $0.16 | $0.21 | 131.3% | | Diluted EPS | $0.35 | $0.16 | $0.19 | 118.8% | | Adjusted Net Income (Non-GAAP) | $30.9 | $22.6 | $8.3 | 36.7% | | Adjusted Basic EPS (Non-GAAP) | $0.66 | $0.48 | $0.18 | 37.5% | | Adjusted Diluted EPS (Non-GAAP) | $0.64 | $0.46 | $0.18 | 39.1% | | Adjusted EBITDA (Non-GAAP) | $38.8 | $31.2 | $7.6 | 24.4% | | Adjusted EBITDA Margin (Non-GAAP) | 16.2% | 13.2% | 300 bps | 22.7% | Strategic Activities (Acquisitions & Stock Buy-Back) Radiant Logistics completed several strategic acquisitions in fiscal year 2025 and early fiscal year 2026, expanding its service capabilities and geographic footprint. The company also engaged in a stock buy-back program during FY2025 - Acquired USA Logistics Services, Inc. and USA Carrier Services, LLC (Philadelphia-based) effective April 1, 2025[3] - Acquired Universal Logistics, Inc. (Houston-based) effective May 1, 2025[3] - Acquired an 80% ownership interest in Weport, S.A. de C.V. (Mexico-based) effective September 1, 2025, to provide global transportation and logistics solutions[4] - Purchased 145,717 shares of common stock at an average cost of $5.48 per share, totaling $0.8 million, during the fiscal year ended June 30, 2025[6] CEO Commentary & Business Outlook CEO Bohn Crain reviewed strong FY2025 performance, outlined future strategies for profitable growth amidst market volatility, and detailed the robust acquisition pipeline CEO's Review of Fiscal Year 2025 Performance CEO Bohn Crain highlighted the company's solid financial results for FY2025, particularly the 24.4% increase in adjusted EBITDA, which was primarily driven by successful acquisition efforts, including both green-field acquisitions and strategic operating partner conversions - Adjusted EBITDA for the fiscal year ended June 30, 2025, increased by $7.6 million (24.4%) to $38.8 million[9] - Acquisitions generated $6.0 million in adjusted EBITDA for FY2025[9] - Key acquisitions included Seattle-based Cascade Transportation (June 2024), Houston-based Foundation Logistics and Services (September 2024), St. Louis-based TCB Transportation (December 2024), Los Angeles-based Transcon Shipping (March 2025), Miami-based Select Logistics (February 2024), and Philadelphia-based USA Logistics (April 2025)[9] Market Conditions & Future Strategy The CEO anticipates near-term market volatility due to U.S. trade negotiations but expects a future surge in global trade. Radiant Logistics plans to maintain agility, leverage its strong balance sheet, and pursue profitable growth through a combination of organic initiatives, strategic acquisitions, and stock buy-backs - Expects near-term volatility in results tied to ongoing U.S. negotiations around trade and tariffs, but believes there will ultimately be a surge in global trade[10] - Maintains a strong balance sheet with approximately $22.9 million of cash on hand and only $20.0 million drawn on its $200.0 million credit facility as of June 30, 2025[10] - Strategy focuses on delivering profitable growth through organic and acquisition initiatives, while thoughtfully re-leveraging the balance sheet through strategic operating partner conversions, synergistic tuck-in acquisitions, and stock buy-backs[10] Acquisition Pipeline Radiant Logistics made significant progress in fiscal 2025 by completing 3 green-field acquisitions and 3 strategic operating partner conversions. The recent acquisition of Mexico-based Weport is expected to serve as a platform for scaling its North American footprint, with a broader pipeline of both green-field and agent-based acquisition opportunities - Completed 3 green-field acquisitions and 3 strategic operating partner conversions in fiscal 2025[11] - Achieved a significant milestone with the acquisition of Mexico-based Weport in early September 2025, which is well-positioned to serve as a platform for scaling North American footprint[11] - The broader pipeline of opportunities includes both green-field acquisitions (companies not currently part of the network) and acquisition opportunities within its agent-based network[12] Financial Results - Detailed Detailed financial results for Q4 and full FY2025 show significant revenue and net income growth, with comprehensive income statements provided Fourth Fiscal Quarter Ended June 30, 2025 For the fourth fiscal quarter ended June 30, 2025, Radiant Logistics reported a slight increase in net income and revenues, while adjusted net income and adjusted EBITDA experienced a decrease compared to the prior year period | Metric | Q4 FY2025 (Millions) | Q4 FY2024 (Millions) | Change (Millions) | Change (%) | | :-------------------------------- | :------------------- | :------------------- | :---------------- | :--------- | | Revenues | $220.6 | $206.0 | $14.6 | 7.1% | | Net Income Attributable to RLGT | $4.9 | $4.8 | $0.1 | 2.1% | | Basic EPS | $0.10 | $0.10 | $0.00 | 0.0% | | Diluted EPS | $0.10 | $0.10 | $0.00 | 0.0% | | Adjusted Net Income (Non-GAAP) | $5.5 | $7.0 | $(1.5) | -21.4% | | Adjusted Basic EPS (Non-GAAP) | $0.12 | $0.15 | $(0.03) | -20.0% | | Adjusted Diluted EPS (Non-GAAP) | $0.11 | $0.14 | $(0.03) | -21.4% | | Adjusted EBITDA (Non-GAAP) | $7.9 | $9.1 | $(1.2) | -13.2% | Fiscal Year Ended June 30, 2025 For the full fiscal year ended June 30, 2025, Radiant Logistics demonstrated strong financial performance, with net income more than doubling and adjusted net income and adjusted EBITDA showing substantial increases compared to fiscal year 2024 | Metric | FY2025 (Millions) | FY2024 (Millions) | Change (Millions) | Change (%) | | :-------------------------------- | :---------------- | :---------------- | :---------------- | :--------- | | Revenues | $902.7 | $802.5 | $100.2 | 12.5% | | Net Income Attributable to RLGT | $17.3 | $7.7 | $9.6 | 124.7% | | Basic EPS | $0.37 | $0.16 | $0.21 | 131.3% | | Diluted EPS | $0.35 | $0.16 | $0.19 | 118.8% | | Adjusted Net Income (Non-GAAP) | $30.9 | $22.6 | $8.3 | 36.7% | | Adjusted Basic EPS (Non-GAAP) | $0.66 | $0.48 | $0.18 | 37.5% | | Adjusted Diluted EPS (Non-GAAP) | $0.64 | $0.46 | $0.18 | 39.1% | | Adjusted EBITDA (Non-GAAP) | $38.8 | $31.2 | $7.6 | 24.4% | Consolidated Statements of Comprehensive Income The consolidated statements of comprehensive income show a significant increase in revenues and net income for both the three months and the full year ended June 30, 2025, compared to the prior year periods, despite an increase in total operating expenses | Metric (in thousands) | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------------------- | :-------- | :-------- | :------- | :------- | | Revenues | $220,580 | $206,032 | $902,696 | $802,470 | | Total operating expenses | $215,382 | $201,153 | $881,638 | $793,172 | | Income from operations | $5,198 | $4,879 | $21,058 | $9,298 | | Net income attributable to Radiant Logistics, Inc. | $4,907 | $4,781 | $17,291 | $7,685 | | Basic EPS | $0.10 | $0.10 | $0.37 | $0.16 | | Diluted EPS | $0.10 | $0.10 | $0.35 | $0.16 | Non-GAAP Financial Measures Reconciliation This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including adjusted gross profit, adjusted EBITDA, and adjusted net income, for clearer operational insights Explanation of Non-GAAP Measures Radiant Logistics utilizes non-GAAP financial measures, including adjusted gross profit, adjusted net income, EBITDA, adjusted EBITDA, and adjusted EBITDA margin, to provide management and investors with a clearer view of the company's ongoing operational performance by excluding certain non-cash or non-recurring charges and normalizing the tax rate - Non-GAAP measures are used by management to evaluate and understand the performance of the ongoing operations of Radiant's business[29] - Adjusted net income is calculated by applying a normalized tax rate of 24.5% and excluding non-cash charges and significant items not considered part of regular operating activities[29] - Adjusted EBITDA excludes interest, income taxes, depreciation, amortization, share-based compensation, and costs unrelated to core operations (e.g., acquisition and litigation costs)[31] Reconciliation of Gross Profit to Adjusted Gross Profit The reconciliation shows that adjusted gross profit for FY2025 increased to $239.4 million from $236.5 million in FY2024, while the adjusted gross profit percentage slightly decreased from 29.5% to 26.5% | Metric | FY2025 | FY2024 | Q4 FY2025 | Q4 FY2024 | | :-------------------------------- | :------- | :------- | :-------- | :-------- | | Revenues | $902,696 | $802,470 | $220,580 | $206,032 | | GAAP gross profit | $226,079 | $223,468 | $57,872 | $57,328 | | Depreciation and amortization | $13,340 | $13,055 | $2,513 | $3,253 | | Adjusted gross profit | $239,419 | $236,523 | $60,385 | $60,581 | | GAAP gross profit percentage | 25.0% | 27.8% | 26.2% | 27.8% | | Adjusted gross profit percentage | 26.5% | 29.5% | 27.4% | 29.4% | Reconciliation of GAAP Net Income to Adjusted EBITDA The reconciliation highlights a significant increase in Adjusted EBITDA for FY2025, reaching $38.756 million compared to $31.160 million in FY2024. However, Q4 FY2025 Adjusted EBITDA decreased to $7.890 million from $9.078 million in Q4 FY2024 | Metric | FY2025 | FY2024 | Q4 FY2025 | Q4 FY2024 | | :-------------------------------- | :------- | :------- | :-------- | :-------- | | Net income attributable to RLGT | $17,291 | $7,685 | $4,907 | $4,781 | | Income tax expense (benefit) | $3,765 | $1,523 | $(116) | $56 | | Depreciation and amortization | $18,493 | $18,552 | $3,600 | $4,779 | | Net interest expense | $39 | $(1,277) | $312 | $(291) | | Share-based compensation | $(819) | $2,611 | $361 | $85 | | Change in fair value of contingent consideration | $(2,491) | $(450) | $(1,641) | $0 | | Lease termination costs | $1,491 | $76 | $115 | $0 | | Change in fair value of interest rate swap contracts | $1,032 | $1,197 | $0 | $294 | | Other | $(45) | $1,243 | $352 | $(626) | | Adjusted EBITDA | $38,756 | $31,160 | $7,890 | $9,078 | | Adjusted EBITDA as a % of adjusted gross profit | 16.2% | 13.2% | 13.1% | 15.0% | Reconciliation of GAAP Net Income to Adjusted Net Income Adjusted net income for FY2025 increased to $30.944 million from $22.647 million in FY2024, reflecting the application of a normalized tax rate and adjustments for non-recurring items. Conversely, Q4 FY2025 adjusted net income decreased to $5.485 million from $7.015 million in Q4 FY2024 | Metric | FY2025 | FY2024 | Q4 FY2025 | Q4 FY2024 | | :-------------------------------- | :------- | :------- | :-------- | :-------- | | Net income attributable to RLGT | $17,291 | $7,685 | $4,907 | $4,781 | | Income tax expense (benefit) | $3,765 | $1,523 | $(116) | $56 | | Depreciation and amortization | $18,379 | $18,095 | $3,600 | $4,666 | | Change in fair value of contingent consideration | $(2,491) | $(450) | $(1,641) | $0 | | Lease termination costs | $1,491 | $76 | $115 | $0 | | Change in fair value of interest rate swap contracts | $1,032 | $1,197 | $0 | $294 | | Other | $1,519 | $1,870 | $400 | $(505) | | Adjusted net income before income taxes | $40,986 | $29,996 | $7,265 | $9,292 | | Provision for income taxes at 24.5% | $(10,042) | $(7,349) | $(1,780) | $(2,277) | | Adjusted net income | $30,944 | $22,647 | $5,485 | $7,015 | | Adjusted net income per basic share | $0.66 | $0.48 | $0.12 | $0.15 | | Adjusted net income per diluted share | $0.64 | $0.46 | $0.11 | $0.14 | Trailing Twelve Months Adjusted EBITDA The trailing twelve months (TTM) adjusted EBITDA for June 30, 2025, was $38.756 million, with quarterly contributions showing fluctuations throughout the fiscal year | Metric | Year Ended June 30, 2025 (TTM) | | :-------------------------------- | :----------------------------- | | Adjusted EBITDA | $38,756 | | Quarterly Adjusted EBITDA: | | | Q4 FY2025 (June 30, 2025) | $7,890 | | Q3 FY2025 (March 31, 2025) | $9,398 | | Q2 FY2025 (December 31, 2024) | $12,015 | | Q1 FY2025 (September 30, 2024) | $9,453 | Consolidated Balance Sheets The consolidated balance sheets present the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025, with year-over-year changes Assets As of June 30, 2025, Radiant Logistics reported total assets of $426.774 million, an increase of 15.0% from the prior year, primarily driven by growth in accounts receivable, goodwill, and intangible assets, despite a decrease in cash and cash equivalents | Asset Category | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :-------------------- | :--------- | | Cash and cash equivalents | $22,942 | $24,874 | $(1,932) | -7.8% | | Accounts receivable, net | $134,911 | $118,016 | $16,895 | 14.3% | | Total current assets | $179,250 | $164,205 | $15,045 | 9.2% | | Property, technology, and equipment, net | $23,489 | $25,558 | $(2,069) | -8.1% | | Goodwill | $117,637 | $93,043 | $24,594 | 26.4% | | Intangible assets, net | $49,123 | $34,943 | $14,180 | 40.6% | | Total assets | $426,774 | $371,185 | $55,589 | 15.0% | Liabilities and Equity Total liabilities increased by 24.1% to $200.689 million as of June 30, 2025, primarily due to the introduction of notes payable and a significant increase in contingent consideration. Total equity also grew by 7.9% to $226.085 million | Liability/Equity Category | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :-------------------- | :--------- | | Accounts payable | $74,411 | $73,558 | $853 | 1.2% | | Total current liabilities | $115,145 | $110,451 | $4,694 | 4.3% | | Notes payable | $20,000 | $0 | $20,000 | N/A | | Contingent consideration, net of current portion | $13,300 | $4,710 | $8,590 | 182.4% | | Total long-term liabilities | $85,544 | $51,225 | $34,319 | 67.0% | | Total liabilities | $200,689 | $161,676 | $39,013 | 24.1% | | Total Radiant Logistics, Inc. stockholders' equity | $226,016 | $209,362 | $16,654 | 8.0% | | Total equity | $226,085 | $209,509 | $16,576 | 7.9% | Corporate Information This section provides details on the earnings call, company overview, forward-looking statement disclaimers, and investor contact information Earnings Call and Webcast Information Radiant Logistics scheduled a conference call and webcast for Monday, September 15, 2025, at 4:30 PM Eastern to discuss the financial results, with replay options available for interested parties - A conference call is scheduled for Monday, September 15, 2025, at 4:30 PM Eastern, hosted by Bohn Crain, Founder and CEO[18][19] - The call is also being webcast and can be accessed via Radiant's website or a direct link[20] About Radiant Logistics Radiant Logistics operates as a third-party logistics (3PL) company, providing technology-enabled global transportation and value-added logistics services, including freight forwarding, brokerage, warehousing, and customs brokerage, primarily to customers in the United States and Canada - Radiant Logistics, Inc. operates as a third-party logistics company, providing technology-enabled global transportation and value-added logistics services[21] - Service offerings include domestic and international freight forwarding, freight brokerage, warehouse and distribution, customs brokerage, order fulfillment, inventory management, and technology services[21] - Serves a diversified account base including manufacturers, distributors, and retailers through an extensive network in North America and other key markets[21] Forward-Looking Statements This press release contains forward-looking statements regarding future business and financial performance, which are inherently subject to known and unknown risks, uncertainties, and assumptions. Readers are cautioned against undue reliance on these statements, and the company disclaims any obligation to update them - The press release contains 'forward-looking statements' related to future business, financial performance, and financial condition[22] - These statements are not guarantees and are subject to known and unknown risks, uncertainties, and assumptions that may cause actual results to differ materially[22] - Readers are cautioned not to place undue reliance on forward-looking statements, and the company disclaims any obligation to publicly update them[22] Investor & Media Contacts Contact information for investor relations and media inquiries is provided for Radiant Logistics, Inc - Investor Contact: Todd Macomber, (425) 943-4541, investors@radiantdelivers.com[23] - Media Contact: Jennifer Deenihan, (425) 462-1094, communications@radiantdelivers.com[23]