Radiant Logistics reported a challenging Q3 FY2024 (quarter ended March 31, 2024) characterized by a weak freight market and tough year-over-year comparisons. Revenue was $184.6 million, with a gross margin of 15.8% and a net loss of $0.7 million for the quarter. Adjusted EBITDA totaled $5.28 million, down meaningfully versus $11.56 million in the year-ago quarter, while nine-month adjusted EBITDA stood at $22.08 million, a roughly 52% decline vs. the prior year period. On the balance sheet, Radiant maintains a solid liquidity position with approximately $31.8 million of cash and no draws on its $200 million revolver, and total debt of $60.7 million leaving net debt of about $28.9 million. Importantly, management emphasized financial discipline, a capital-allocation framework centered on agent-station conversions, tuck-in acquisitions, and stock buybacks, and a pathway to normalized results as freight markets stabilize.
Management acknowledged ongoing softness in the market but highlighted a clear path to improvement: sequential quarterly gains were observed through January–March 2024, with April “continuing to build on that trend,” and the company expects to exit Q3 into a more normalized level of activity. The growth strategy combines organic revenue expansion with strategic acquisitions and balance-sheet optimization, including 3 notable agent-station conversions (Daleray in Oct 2023; Select in Feb 2024) and Viking Worldwide in Apr 2024, plus ongoing stock repurchases as capital deployment opportunities arise. Radiant also underscored its predominantly domestic, non-asset-based model and the anticipated resilience of its North American footprint amid mixed international trends. While the near term remains challenging, the company signals its readiness to capitalize on market normalization, nearshoring opportunities, and select tuck-ins to drive profitable growth.
Key takeaways for investors center on (1) a stabilized liquidity position and modest free cash flow generation despite a negative quarterly net income, (2) a disciplined, multi-pronged growth strategy that leverages agent-to-company transitions and bolt-on acquisitions, and (3) a constructive, though prolonged, recovery trajectory in freight markets, with Q4 expected to be stronger than Q3 as seasonality normalizes. The balance of risks includes continued freight-cycle headwinds, pricing pressure during capacity misalignment, and execution risk associated with integrations and growth initiatives.