Radiant Logistics Inc (RLGT) Q2 2025 Earnings Report

Revenue and profitability
- Revenue: $264.544 million in QQ2 2025, up 31.56% YoY and up 29.96% QoQ (three- and six-month context implied by provided YoY/QoQ metrics).
- Gross Profit: $38.713 million; gross margin 14.63% (vs. prior-year period margin implied to be lower, reflecting mix shift and project-driven revenue components).
- Operating Income: $8.722 million; operating margin 3.30%.
- EBITDA: $14.021 million; EBITDA margin ~5.30% (EBITDA is used as a liquidity and operating efficiency gauge given the asset-light structure).
- Net Income: $6.467 million; net income margin 2.44%; basic EPS $0.14, diluted EPS $0.13.
- Net Income and EPS show a strong YoY uplift (Net Income YoY +556.5%; EPS YoY +566.7%), driven by higher revenue and operating leverage from the mix of services and acquisitions.

Cash flow and liquidity
- Net cash provided by operating activities: $15.685 million; free cash flow: $14.139 million.
- Capital expenditures: $1.546 million; acquisitions net of cash: $4.412 million (TCB-related activity reflected in December quarter).
- Net cash used for investing activities: $(5.91) million; net cash used for financing activities: $(0.181) million; net change in cash: $9.46 million.
- Cash at end of period: $19.908 million; cash on hand supports flexibility to fund bolt-on acquisitions and strategic partnerships.

Balance sheet and leverage
- Total assets: $386.761 million; total liabilities: $172.213 million; total stockholders’ equity: $214.449 million.
- Current assets $152.868 million; total current liabilities $108.102 million; current ratio 1.41x; quick ratio 1.41x; cash ratio 0.184x.
- Total debt: $66.778 million; net debt: $46.87 million; enterprise value multiple (based on ratios) ~25.8x; net debt to EBITDA (trailing) approximately 1.1x, indicating a conservative balance sheet posture given the acquisition runway and cash generation potential.

Operational mix and efficiency
- Revenue mix reflects a diversified funnel including intermodal, freight forwarding, brokerage services, and customs brokerage (Navigate platform, now Radiant World Trade Services).
- Margin compression evidenced by gross margin (~14.6%) in QQ2 2025, suggesting ongoing competitive pricing pressure and mix effects, even as EBITDA expands from higher utilization and synergy realization from recent conversions and acquisitions.
- Value creation through agency conversions: EBITDA margin expansion is expected as agency stations convert, reducing variable commission expense (“margin expansion” via lower commission outlays while keeping gross margin stable).