Radiant(US:RLGT)2026-02-09 22:32Financial 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]