Executive Summary
Radiant Logistics Inc. (RLGT) reported QQ1 2025 results (quarter ended September 30, 2024) showing resilience in a softened freight market. Revenue of $203.6 million declined 3.4% year over year and 1.2% quarter over quarter, while net income reached $3.38 million (EPS $0.0723) helped by a $1.0 million litigation gain. Adjusted EBITDA stood at $9.452 million, a modest 3.1% year-over-year gain, underscoring operational stability amid macro headwinds. Management conveyed a multi-pronged growth thesis anchored in project-type opportunities and disciplined M&A activity, including the acquisitions of Foundation Logistics and the Focus Logistics integration in Detroit, and signaled a healthy forward trajectory through Q2 (fiscal Q2) driven by project work. The balance sheet remains robust with approximately $10 million of cash, no meaningful debt, and a $200 million untapped credit facility, enabling further tuck-ins and opportunistic acquisitions without material balance-sheet risk.
Management emphasized that near-term earnings strength will be aided by project-based revenue and selective acquisitions, even as the market remains challenging. They expect Q2 to benefit from project work, while margins may compress on a sequential basis due to project mix, even as gross dollars rise. The company also highlighted an active acquisition pipeline and the use of earn-outs to align seller incentives with long-term performance. Investors should monitor three key themes: (1) project-driven revenue contributions and its margin mix, (2) integration progress and contribution from Foundation Logistics and Focus Logistics, and (3) macro risks including tariffs, West Coast port dynamics, and broader freight-cycle cycles that could influence pricing and volumes.
Key Performance Indicators
QoQ: -9.26% | YoY:-82.29%
QoQ: -29.39% | YoY:28.76%
QoQ: -27.70% | YoY:30.51%
Key Insights
Revenue: $203.565 million (YoY -3.43%, QoQ -1.20%).
Gross Profit: $33.126 million; Gross Margin 16.27% (YoY -82.29%, QoQ -9.26%).
Operating Income: $3.804 million; Operating Margin 1.87% (YoY +3.89%, QoQ -22.03%).
EBITDA: $9.611 million; EBITDA Margin ~4.72% (EBITDA level cited in call as $9.452 million for adjusted EBITDA).
Net Income: $3.376 million; Net Margin 1.66% (YoY +28.76%, QoQ -29.39%).
EPS (basic/diluted): $0.0723 / $0.0695 (YoY +30.51%, QoQ -27.70%).
Adjusted Net Income: $7.883 milli...
Financial Highlights
Revenue: $203.565 million (YoY -3.43%, QoQ -1.20%).
Gross Profit: $33.126 million; Gross Margin 16.27% (YoY -82.29%, QoQ -9.26%).
Operating Income: $3.804 million; Operating Margin 1.87% (YoY +3.89%, QoQ -22.03%).
EBITDA: $9.611 million; EBITDA Margin ~4.72% (EBITDA level cited in call as $9.452 million for adjusted EBITDA).
Net Income: $3.376 million; Net Margin 1.66% (YoY +28.76%, QoQ -29.39%).
EPS (basic/diluted): $0.0723 / $0.0695 (YoY +30.51%, QoQ -27.70%).
Adjusted Net Income: $7.883 million (YoY +20.4%).
Adjusted EBITDA: $9.452 million (YoY +3.1%).
Free Cash Flow: -$1.854 million; Cash from operations: $0.205 million; Net cash used in investing activities: -$13.473 million; Net cash used in financing activities: -$1.216 million.
Liquidity/Leverage: Cash and cash equivalents $10.448 million; Total debt $56.441 million; Net debt $45.993 million; Current ratio 1.452; Debt to capitalization 21.0%; Debt to equity 0.266%; Interest coverage 16.05x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
203.57M |
-3.43% |
-1.20% |
| Gross Profit |
33.13M |
-82.29% |
-9.26% |
| Operating Income |
3.80M |
3.91% |
-22.03% |
| Net Income |
3.38M |
28.76% |
-29.39% |
| EPS |
0.07 |
30.51% |
-27.70% |
Key Financial Ratios
operatingProfitMargin
1.87%
operatingCashFlowPerShare
$0
freeCashFlowPerShare
$-0.04
Management Commentary
- Market backdrop and strategic stance: Management reiterated that slower freight markets persist but emphasized profitability through project work and a diversified portfolio, signaling a constructive path back toward normalization through organic growth and acquisitions. The CFO highlighted adjusted EBITDA of $9.452 million for the quarter and noted the $1 million litigation gain included in GAAP net income that was excluded from adjusted metrics.
- Acquisitions and integration: The call stressed a disciplined, earn-outādriven approach to tuck-ins and strategic partner conversions, with Foundation Logistics and Focus Logistics highlighted as representative transactions in a broader pipeline of opportunities. Management underscored the ability to ādouble our EBITDA within our existing capital structureā through accretive acquisitions and efficient capital allocation.
- Market dynamics and pricing: Management discussed near-term pricing in ocean freight as relatively robust due to tariff hedging and Red Sea activities, while cautioning that longer-term durability remains uncertain. They noted potential West Coast capacity tightening, which could support near-term rates but highlighted the need to monitor tariff policy and overall demand. They also discussed potential project-type opportunities in Q4 that could bolster results ahead of fiscal Q2.
- Guidance and financial discipline: Management conveyed optimism about project-type opportunities in the near term and a continued focus on profitable growth, including opportunistic acquisitions and stock buybacks. The balance sheetās strength (low leverage, ample liquidity) was repeatedly cited as a competitive advantage to fund growth without material balance-sheet risk.
"While the slower freight markets persist, we continue to deliver solid financial results and generated $9.5 million in adjusted EBITDA for the fiscal quarter ended September 30, 2024."
ā Bohn Crain
"We typically use an earn-out structure or almost exclusively use earn-outs in terms of our structure where we would value a business. And again, just for the benefit of the conversation, we typically most of our transactions have been what Iāll characterize as plus or minus $2 million EBITDA type transactions. And we believe we can value and structure those in a way that is a win-win for everybody, and that includes the use of earn-outs where the sellers continue to have skin in the game for several years post-closing to ensure that the business continues to perform."
ā Bohn Crain
Forward Guidance
Management signaled a favorable near-term tilt from project-driven opportunities, with expectations of a stronger Q2 due to project-related revenue. They did not provide explicit revenue or EBITDA targets for forthcoming quarters but emphasized continued execution on acquisitions and balance-sheet optimization. Key growth catalysts include greenfield acquisitions and tuck-ins within Radiantās agency network, supported by an unlevered balance sheet and a $200 million credit facility. Risks to the outlook include: (1) tariff policy shifts and potential customer pull-forward effects, (2) durability of the current freight-cycle recovery, (3) ongoing port congestion and capacity constraints particularly on the West Coast, (4) integration risk from acquisitions, and (5) execution risk of leveraging project-type revenue channels. Investors should monitor: trend in project-related revenue contribution, integration milestones from Foundation Logistics and Focus Logistics, pace of tuck-in acquisitions, stock buyback activity, and any changes to tariff or trade dynamics that could alter customer behavior or freight volumes.