Radiant(US:RLGT)2026-02-09 21:30Financial 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]