Radiant Logistics (RLGT) reported a solid QQ3 2025 to-date performance with notable earnings strength driven by a combination of base business improvements and meaningful contributions from recent acquisitions. On a three-month basis, revenue reached $214.0 million, with adjusted EBITDA of $9.40 million and adjusted net income of $6.88 million, reflecting an 80%+ year-over-year increase in adjusted EBITDA and a ~92% rise in adjusted net income. The quarter benefited from acquisitions (Cascade Transportation, Foundation Logistics, TCB Transportation, Transcon Shipping) and the conversion of strategic operating partners, which collectively added approximately $2.0 million in adjusted EBITDA alongside $1.5 million (US) and $0.5 million (Canada) of incremental EBITDA from legacy operations.
Management highlighted near-term volatility tied to US tariff negotiations, estimating that roughly 25%–30% of March-quarter gross margins were affected by tariffs. They expect a bullwhip dynamic as trade volumes recalibrate but remain confident in a durable, diversified business model and a strong balance sheet capable of navigating a slower freight market. Radiant ended QQ3 with approximately $19 million in cash and only $15 million drawn on a $200 million credit facility, underscoring liquidity flexibility to pursue additional acquisitions and strategic partner conversions. Looking ahead, the company plans to pursue profitable growth through organic initiatives and tuck-in acquisitions while thoughtfully relevering the balance sheet via strategic partner conversions and repurchases, with a focus on expanding North American coverage and leveraging a robust partner network.
In sum, Radiant is delivering meaningful EBITDA progression fueled by acquisitions and base-business execution, but near-term margin pressure from tariff dynamics and macro softness in the June quarter introduce caution for the near term. The longer-term investment thesis remains anchored in pipeline opportunities, a diversified service mix, and a strong liquidity position to support bolt-on growth.
Key Performance Indicators
Revenue
214.01M
QoQ: -19.10% | YoY:15.96%
Gross Profit
32.79M
15.32% margin
QoQ: -15.30% | YoY:12.43%
Operating Income
3.33M
QoQ: -61.77% | YoY:529.09%
Net Income
2.54M
QoQ: -60.71% | YoY:461.45%
EPS
0.05
QoQ: -64.29% | YoY:433.33%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $214.01 million in Q3 2025 (YoY growth and QoQ decline not shown in a single-year display in data; implied YoY improvement given adjusted EBITDA growth and acquisitions). Gross margin: 15.32% ($32.79 million gross profit on $214.01 million revenue).
Operating performance: Operating income $3.334 million; operating margin 1.56%; EBITDA $8.384 million; EBITDA margin 3.92%; Net income $2.541 million; net income margin 1.19%; EPS $0.05.
Adjusted measures: Adjusted net income $6.881 million; adjusted EBITDA $9.398 million for the three months ended March 31, 2025 (noting that these are non-GAAP metrics used to reflect ongoing profitability stripped of certain items).
Nine months ended 2025: Revenue $682.1 million; net income attributable to Radiant $12.384 million; adjusted net income $25.459 million; adjusted EBITDA $30.866 million (YoY and QoQ notated in schedule).
Cash flow and liquidity: Net cash provided by operating activities negative at $(5.737) million; free cash flow $(6.361) million; cash at period end $19.041 million; total debt $78.941 million; net debt $59.9 million; cash balance partially offset by $15 million drawn on a $200 million facility.
Financial Highlights
Overview of QQ3 2025 financials and notable trends:
- Revenue: $214.01 million in Q3 2025 (YoY growth and QoQ decline not shown in a single-year display in data; implied YoY improvement given adjusted EBITDA growth and acquisitions). Gross margin: 15.32% ($32.79 million gross profit on $214.01 million revenue).
- Operating performance: Operating income $3.334 million; operating margin 1.56%; EBITDA $8.384 million; EBITDA margin 3.92%; Net income $2.541 million; net income margin 1.19%; EPS $0.05.
- Adjusted measures: Adjusted net income $6.881 million; adjusted EBITDA $9.398 million for the three months ended March 31, 2025 (noting that these are non-GAAP metrics used to reflect ongoing profitability stripped of certain items).
- Nine months ended 2025: Revenue $682.1 million; net income attributable to Radiant $12.384 million; adjusted net income $25.459 million; adjusted EBITDA $30.866 million (YoY and QoQ notated in schedule).
- Cash flow and liquidity: Net cash provided by operating activities negative at $(5.737) million; free cash flow $(6.361) million; cash at period end $19.041 million; total debt $78.941 million; net debt $59.9 million; cash balance partially offset by $15 million drawn on a $200 million facility.
- Balance sheet health: Total assets $414.502 million; total liabilities $196.185 million; total stockholders’ equity $218.238 million; debt-to-capitalization ~26.6%; interest coverage around 11x. Receivables turnover about 1.506x; asset turnover 0.516x; fixed asset turnover 2.72x.
- Growth vs. guidance: Acquisitions contributed incremental EBITDA of roughly $2 million in the March quarter; legacy U.S. operations contributed $1.5 million and Canada $0.5 million in incremental EBITDA. Management cautions near-term softness in June and potential volatility from tariff dynamics, but remains focused on accretive M&A and balance-sheet optimization.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
214.01M
15.96%
-19.10%
Gross Profit
32.79M
12.43%
-15.30%
Operating Income
3.33M
529.09%
-61.77%
Net Income
2.54M
461.45%
-60.71%
EPS
0.05
433.33%
-64.29%
Key Financial Ratios
currentRatio
1.49
grossProfitMargin
15.3%
operatingProfitMargin
1.56%
netProfitMargin
1.19%
returnOnAssets
0.61%
returnOnEquity
1.16%
debtEquityRatio
0.36
operatingCashFlowPerShare
$-0.12
freeCashFlowPerShare
$-0.14
priceToBookRatio
1.33
priceEarningsRatio
28.48
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Key management takeaways from the QQ3 2025 earnings call:
- Tariff impact and near-term margin dynamics: Bohn Crain stated that approximately 25%–30% of gross margins in the March quarter would have been affected by newly announced tariffs, noting that the firm expects a bullwhip effect as trade volumes re-balance and that some portions of the business can be leveraged to help customers navigate tariff-driven shifts. (Quote themes: tariff impact, risk management, opportunities arising from disruption)
- Base business strength and acquisitions: Crain highlighted that base business improvements combined with acquisitions drove the adjusted EBITDA uplift; legacy U.S. operations contributed $1.5 million and Canada $0.5 million in incremental EBITDA, with approximately $2 million in EBITDA from greenfield acquisitions and partner conversions (Cascade, Foundation Logistics, TCB Transportation, Transcon Shipping, Select Logistics). (Quote themes: growth via acquisitions, operational leverage)
- Market outlook and execution: Crain framed near-term volatility as transitory and anticipates a rebound as supply chains re-optimize, reinforcing Radiant’s durable business model and balance sheet to navigate a slower freight market while remaining active on M&A and balance-sheet optimization. He cited ongoing pipeline opportunities and the strategic importance of agent-station conversions. (Quote themes: strategic flexibility, M&A pipeline, balance-sheet strategy)
- Q&A insights on Asia/Tariffs and currency: Management noted that ocean imports from Asia were temporarily slowed given tariff news and that diversification (to Southeast Asia, India, Mexico) could persist beyond tariff cycles; FX exposure was modest (noting Canadian dollar as a small risk) with most dealings in USD.
- Q&A sentiment on seasonality: Management suggested traditional seasonality may be distorted by tariffs and macro moves, with June expected to be soft rather than a repeat of prior strengths. (Quote themes: macro uncertainty, seasonality disruption)
"approximately 25% to 30% of our gross margins for the March quarter would have been impacted by the recently announced tariffs."
— Bohn Crain
"we believe over time we will continue to deliver meaningful value for our shareholders, operating partners and the end customers that we serve."
— Bohn Crain
Forward Guidance
Assessment of near-term outlook based on management commentary and industry context:
- Tariff-driven volatility persists in the near term, with management estimating 25–30% of March quarter gross margins were tariff-affected. While this creates near-term headwinds, Radiant views this as transitory and believes it can be offset over time by a surge in trade activity as supply chains reset and customers seek advisory-intensive logistics solutions.
- EBITDA and profitability momentum is driven by acquisitions and integration: The QQ3 2025 adjusted EBITDA of $9.40 million and nine-month adjusted EBITDA of $30.87 million reflect the benefit from Cascade, Foundation Logistics, TCB, Transcon, and Select Logistics conversions, with ongoing opportunities to realize synergies from tuck-in acquisitions and partner conversions.
- Growth strategy remains intact: Radiant continues to pursue profitable growth through organic initiatives and opportunistic tuck-ins, with a plan to relever the balance sheet via agent-station conversions and acquisitions, as well as stock buybacks.
- Path to visibility: There is no formal forward-looking numeric guidance released in the call; investors should monitor tariff developments, global trade dynamics, currency movements (Canadian exposure modest), and the tempo of new acquisitions and integrations, all of which will shape revenue mix, margins, and cash flow in the near term.
- Key monitoring factors for investors: (1) tariff resolution timing and the related bullwhip effect on volumes; (2) integration progress and synergy realization from recent acquisitions; (3) working capital efficiency and the trajectory of free cash flow; (4) leverage trajectory and capital allocation decisions (dividends, buybacks, additional tuck-ins).
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
RLGT Focus
15.32%
1.56%
1.16%
28.48%
EVI
30.00%
2.43%
0.74%
51.34%
PAMT
6.57%
1.26%
0.78%
35.68%
TRAK
84.60%
30.60%
4.02%
47.06%
ULH
16.50%
10.90%
4.21%
10.69%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Radiant Logistics exhibits a constructive long-term investment thesis rooted in a diversified 3PL platform, accretive acquisitions, and a strong balance sheet enabling bolt-ons and strategic partner conversions. The QQ3 2025 results show meaningful EBITDA expansion driven by recent acquisitions and base-business execution, offset by tariff-related margin pressure and near-term volume uncertainty. The stock could appeal to investors seeking exposure to a growing, asset-light, acquisition-enabled logistics platform with a capable management team and a clear M&A growth trajectory. Key inputs to watch include tariff developments, integration success of acquisitions, working capital dynamics, and the pace of deleveraging as free cash flow recovers. Given the current volatility in trade policy and macro conditions, a patient, long-duration view with emphasis on execution and capital allocation discipline is advised.
Key Investment Factors
Growth Potential
Acquisition-driven expansion across North America and new greenfield opportunities (e.g., Transcon focus on ocean imports from Asia). Strategic operating-partner conversions continue to add EBITDA and expand Radiant's network, accelerating profitable growth while diversifying revenue streams and geographic footprint.
Profitability Risk
Tariff and policy changes create near-term margin pressure and volume volatility. Dependency on acquisitions for growth poses integration and execution risk. Currency exposure is modest but present (primarily CAD). Economic slowdown or prolonged trade tensions could suppress volumes and pricing power. Limited visibility into Q4 and beyond due to macro dynamics and tariff outcomes.
Financial Position
Solid liquidity with ~$19 million cash and low draw on a $200 million facility (only $15 million drawn). Net debt ~$59.9 million and interest coverage around 11x; debt-to-capitalization ~26.6%. Negative free cash flow in QQ3 due to working capital needs and acquisitions, indicating near-term cash use but with potential for improvement as synergies materialize and working capital normalizes.
SWOT Analysis
Strengths
Diversified, multi-service platform with a broad North American footprint and global network
Acquisition-driven EBITDA growth and integration optionality through a pipeline of tuck-ins
Strong liquidity position and modest leverage with ample debt capacity remaining
Weaknesses
Near-term margin pressure from tariff-related volatility and macro headwinds
Reliance on acquisitions for high-teen-to-20s EBITDA growth may strain integration risk and capital allocation discipline
Free cash flow negative in QQ3 due to working capital and investment activity
Opportunities
Expansion into higher-margin segments through strategic acquisitions and greenfield opportunities in Cascades, Transcon-like platforms
Rising demand for logistics consulting and supply-chain optimization in tariff-impacted environments
Opportunity to monetize international parcel growth (e-commerce) as de minimis rules shift
Threats
Tariff policy volatility and potential trade restrictions impacting volumes and margins
Macro slowdown affecting global trade and freight volumes
Integration risks and execution challenges with rapid consolidation
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