Earnings call transcript: Radiant Logistics Q3 2025 beats expectations

Radiant Logistics Inc. reported a strong third quarter for fiscal year 2025, significantly surpassing earnings expectations. The company posted an earnings per share (EPS) of $0.14, beating the forecast of $0.02, while revenue reached $214 million, exceeding the expected $198.33 million. The stock responded positively, rising 5.33% in after-hours trading to $6.52. According to InvestingPro analysis, the company appears undervalued at current levels, with analysts setting price targets between $9-$10.

Key Takeaways

• Radiant Logistics outperformed both EPS and revenue forecasts for Q3 FY2025.
• The company achieved a net income turnaround from a loss in the previous year.
• Strategic acquisitions and a strong balance sheet bolster future prospects.
• Market reaction was positive, with a notable after-hours stock price increase.
• Ongoing trade tensions and tariffs pose challenges but also opportunities.

Company Performance

Radiant Logistics demonstrated impressive growth in Q3 FY2025, with net income reaching $2.54 million compared to a loss of $703,000 in the prior year. The company also reported a 91.9% increase in adjusted net income and an 80.5% rise in adjusted EBITDA. These results reflect the company’s strategic focus on acquisitions and operational efficiencies. InvestingPro data shows the company maintains a healthy financial position with a moderate debt-to-equity ratio of 0.31 and a solid current ratio of 1.41, indicating strong liquidity management.

Financial Highlights

• Revenue: $214 million, up from $198.33 million forecast
• Earnings per share: $0.14, significantly above the $0.02 forecast
• Adjusted Net Income: $6.88 million, a 91.9% increase year-over-year
• Adjusted EBITDA: $9.40 million, an 80.5% increase year-over-year

Earnings vs. Forecast

Radiant Logistics exceeded expectations with an EPS of $0.14 against a forecast of $0.02, marking a substantial earnings surprise of 600%. Revenue also surpassed projections by $15.67 million, indicating strong operational performance and effective cost management.

Market Reaction

Following the earnings announcement, Radiant Logistics’ stock rose by 5.33% in after-hours trading, reaching $6.52. This increase reflects investor confidence in the company’s ability to navigate challenging market conditions and capitalize on growth opportunities. The stock remains within its 52-week range, suggesting room for further appreciation.

Outlook & Guidance

Looking forward, Radiant Logistics anticipates some softness in the upcoming quarter due to ongoing trade tensions and tariffs affecting up to 30% of gross margins. However, the company remains optimistic about long-term growth, driven by strategic acquisitions and a robust technology platform. InvestingPro subscribers have access to 6 additional key insights about Radiant Logistics, including detailed analysis of its growth prospects and financial health metrics. Get the complete picture with InvestingPro’s comprehensive research report, available for over 1,400 US stocks.

Executive Commentary

CEO Bon Crane emphasized the company’s resilience, stating, "Never waste a good chaos," highlighting Radiant’s strategic adaptability. Crane also noted, "We’re trying to stay the course in terms of our fundamental strategies," reflecting a commitment to long-term growth despite short-term challenges.

Risks and Challenges

• Trade tensions between the US and China continue to impact margins.
• Tariffs have led to a near standstill in ocean imports from China.
• Supply chain diversification remains a critical focus amid global uncertainties.
• Potential market volatility could affect future earnings.

Q&A

During the earnings call, analysts inquired about the impact of tariffs and trade disruptions on Radiant’s operations. The company highlighted its adaptability and ongoing efforts to explore new business opportunities arising from these challenges. Additionally, discussions focused on currency flow implications and strategic measures to mitigate risks.

Full transcript - Radiant Logistics Inc (RLGT) Q3 2025:

Conference Moderator: Greetings, and welcome to the Radiant Logistics Third Quarter Fiscal Year twenty twenty five Earnings Call. At this time, all participants are on a listen only mode and a question and answer session will follow the formal presentation. Please note, this conference is being recorded. This afternoon, Bon Crane, Radiant Logistics’ Founder and Chief Executive Officer and Radiant’s Chief Financial Officer, Todd McCumber, will provide a general business update and discuss financial results for the company’s third fiscal quarter and nine months ended 03/31/2025. Following their comments, we will open the call to questions.

This conference is scheduled for thirty minutes. This conference call may include forward looking statements within the meanings of the Securities Act of 1933 and the Securities Exchange Act of 1934. The company has based these forward looking statements on its current expectations and projections about future events. These forward looking statements are subject to known and unknown risks, uncertainties and assumptions about the company that may cause the company’s actual results or achievements to be materially different from the results or achievements expressed or implied by such forward looking statements. While it is impossible to identify all the factors that may cause the company’s actual results or achievements to differ materially from those set forth in our forward looking statements, Such factors include those that in the past and may in the future be identified in the company’s SEC filings and other public announcements that are available on the Radiant website at www.radiantdelivers.com.

In addition, past results are not necessarily an indication of future performance. Now I’d like to pass the call over to Radiant’s Founder and CEO, Bon Crane. Sir, the floor is yours.

Bon Crane, Founder and Chief Executive Officer, Radiant Logistics: Thank you. Good afternoon, everyone, and thank you for joining in on today’s call. With the benefit of our diverse service offering, we continue to deliver solid financial results and generated $9,400,000 in adjusted EBITDA for our third fiscal quarter ended 03/31/2025, which is up 4,200,000 and just over 80% relative to the comparable prior year period. The comparable year over year improvement in adjusted EBITDA was driven through a combination of improvements in our base business operations, along with contributions from our recent acquisitions. For the quarter ended March 31, our legacy US operations generated $1,500,000 in incremental adjusted EBITDA, while our legacy Canadian operations generated $500,000 in incremental adjusted EBITDA.

An additional $2,000,000 in adjusted EBITDA for the quarter ended March is driven principally by our greenfield acquisitions of Seattle based Cascade Transportations from June of twenty twenty four, Houston based Foundation Logistics and Services from our September 24 acquisition, St. Louis based TCB Transportation from our December 2024 acquisition, and Los Angeles based TransCon shipping from our March 25 acquisition, along with the conversion of our strategic operating partner, Miami based Select Logistics in February of twenty twenty four. Notwithstanding these strong results for the quarter ended March 31, we are expecting some near term volatility in our results tied to the ebb and flow of The ongoing US negotiations around trade and tariffs, And estimate that approximately 25% to 30% of our gross margins for the March would have been impacted by the recently announced tariffs. With that said, we also expect that any near term slowdown will likely result in a corresponding bullwhip effect with the surge in global trade as these tariff disputes are brought to rest and are encouraged by the de escalation of US and China trade tensions that have occurred over the weekend. In any event, we intend to remain nimble in our response to tariff announcements by the US administration and continue to support our customers in navigating these quickly evolving markets and executing thoughtful supply chain strategies to provide our customers with competitive advantage.

As previously discussed, we believe we are well positioned with a durable business model, diverse service offering and strong balance sheet to navigate through a slower freight market. We continue to enjoy a strong balance sheet with approximately $19,000,000 of cash on hand as of March 31 and only $15,000,000 drawn on our $200,000,000 credit facility. At the same time, we remain focused on the long term, staying true to our strategy to deliver profitable growth through a combination of organic and acquisition initiatives, while thoughtfully relevering our balance sheet through a combination of strategic operating partner conversions, synergistic tuck in acquisitions and stock buybacks. Through this approach, we believe over time we will continue to deliver meaningful value for our shareholders, operating partners and the end customers that we serve. We made good progress in this regard over this last quarter with the acquisition of California based TransCon Shipping, the conversion of our Pennsylvania based strategic operating partner USA Logistics and USA Carriers, which is being combined with our existing Radian operations in Philadelphia, and the conversion of our Texas based strategic operating partner Universal Logistics, which is being combined with our existing Radian operation in Houston.

We believe these three transactions are representative of our broader pipeline of opportunities, which includes both greenfield acquisitions, companies not currently part of our network, as well as acquisition opportunities inherent in our agent based network where we can support our current operating partners in their exit strategies. With that, I’ll now turn it over to Todd Maycover, our CFO, to walk us through our detailed financial results, and then we’ll open it up for some Q and A.

Todd McCumber, Chief Financial Officer, Radiant Logistics: Thanks, Bon, and good afternoon, everyone. Today, we will be discussing our financial results, including adjusted net income and adjusted EBITDA for the three and nine months ended 03/31/2025. For the three months ended 03/31/2025, we reported net income attributable to Radiant Logistics of $2,541,000 on 214,000,000 of revenues or 5¢ per basic and fully diluted share. For the three months ended 03/31/2024, reported a net loss attributable to Radiant Logistics of $703,000 on a hundred 84,600,000.0 of revenue or 2¢ per basic and fully diluted share. This represents an improvement of approximately $3,244,000 of net income over the comparable prior year period.

For adjusted net income, we reported $6,881,000 for the three months ended 03/31/2025 compared to adjusted net income of $3,586,000 for the three months ended 03/31/2024. This represents an increase of approximately $3,295,000 or approximately 91.9%. For adjusted EBITDA, we reported $9,398,000 for the three months ended 03/31/2025 compared to adjusted EBITDA of $5,208,000 for the three months ended 03/31/2024. This represents an increase of approximately $4,190,000 or approximately 80.5 percent. Moving along to the nine month results.

For the nine months ended 03/31/2025, we reported net income attributable to Radian Logistics of $12,384,000 on 682,100,000.0 of revenues or 26 per basic and 25¢ per fully diluted share. The nine months ended 03/31/2024 reported net income attributable to Radiant Logistics of $2,904,000 on 596,400,000.0 of revenues or 6¢ per basic and fully diluted share. This represents an increase of approximately $9,480,000 over the comparable prior year period or 326.4%. For adjusted net income, we reported $25,459,000 for the nine months ended 03/31/2025 compared to adjusted net income of $15,632,000 for the nine months ended 03/31/2024. This represents an increase of approximately $9,827,000 or approximately 62.9%.

For adjusted EBITDA, we reported $30,866,000 for the nine months ended 03/31/2025 compared to adjusted EBITDA of $22,083,000 for the nine months ended 03/31/2024. This represents an increase of approximately $8,783,000 or approximately 39.8%. With that, I will turn the call over to our moderator to facilitate any Q and A from our callers.

Conference Moderator: Thank you. At this time, we will be conducting our question and answer session. Thank you. Our first question is coming from Elliot Alper with Cowen. Your line is live.

Elliot Alper, Analyst, Cowen: Hi, great. Thank you. This is Elliot on for Jason Seidl.

Bon Crane, Founder and Chief Executive Officer, Radiant Logistics: Hey, Elliot.

Elliot Alper, Analyst, Cowen: Could you elaborate more on what drove the outperformance of the base business this quarter? And kind of given your commentary on the bullwhip effect, could you talk about maybe kind of the puts and takes into the June?

Bon Crane, Founder and Chief Executive Officer, Radiant Logistics: It’s certainly a little early into the June to have a lot of to be able to get at that with any granularity. We certainly saw some slowing or beginning to see some slowing in some of the international trade volumes in response to all the trade tensions that are going on. We’ll see kind of how long that lasts in the scheme of things it kind of early indications for April were that of the candidly the business was doing better than I was expecting it to or kind of we’re not being as heavily impacted as I thought we might be, but it’s certainly kind of early in the process and it seems like you know every day it’s things are shifting around. So it’s quite fluid right now and while we certainly have a fair amount of our business involved in the support of global trade, It also these challenges create opportunities kind of one of our taglines is never waste a good chaos here and or don’t let the chaos go to waste in terms of the opportunities that it’s creating for us to support our partners in navigating kind of the current environment. We would expect whatever near term impacts that we will experience, we’re pretty optimistic that over time we will kind of more than offset that to the following surge that’s sure to come as folks begin to reset their supply chains.

At the same time, as I think you’re familiar, we do have a fairly good sized presence in Canada and Mexico and kind of those markets have been kind of quasi beneficiaries of some of these trade dynamics as shippers are kind of working to kind of navigate within the constraints of these what hope to be or proving to be interim tariffs. While there’s a lot of uncertainty, I think at the end of the day, we’re going to be better than okay, I think. But having said that, the quarter ended June should be soft. I would expect it to be soft. In terms of Yeah,

Elliot Alper, Analyst, Cowen: maybe just looking back at the March, I mean, came above kind of where we were coming out for the estimates. So I guess anything to call out there? Was it broad based strength or any pockets of outperformance you saw?

Bon Crane, Founder and Chief Executive Officer, Radiant Logistics: Todd’s got some of the details there that he’s looking at. Mean,

Todd McCumber, Chief Financial Officer, Radiant Logistics: it’s just, yeah, mean, performed better than I anticipated, I’ll put it that way. And we have had, I mean, some of the files were down on account, like for the international, but the margin characteristics were per file were up. You know, so it was really broad based, you know, and then factoring in the acquisitions that, you know, that we ended up getting done, you know, helped contribute to the overall increase in the quarter.

Elliot Alper, Analyst, Cowen: Makes sense. Thanks. And then you’ve historically had some good insights into bookings out of Asia. This is given all the tariff news. I mean, curious about any trends you’ve seen evolve through April and maybe how you’re expecting shippers to react and anything out of Asia bookings you’re seeing just these last few days would be helpful.

Bon Crane, Founder and Chief Executive Officer, Radiant Logistics: Well, all woke up to the same news you did this morning, right? I think it’s a little early to start calling it out in terms of how folks will ultimately respond. But basically, ocean imports ex China had come to a virtual standstill most recently. But again, I think it’s gonna be very short lived but time will tell, right? But there had been so much kind of movement in terms of trying to find alternative sources or diverting manufacturing sites to Southeast Asia or otherwise where this certain things have been set in motion that’ll have to run its course.

So I think it’ll there’s been some level of kind of damage done that we’ll have to kind of run its course. And then we’ll see kind of how quickly things kind of revert back to some semblance of normal. I’m sure you’re aware a number of the steam ship lines have blank sailings and they reposition ships kind of in anticipation of the slower volumes. So it’s a little bit of a firefight out there. I guess another call out that I would make to just give a little bit more color is that before some of our most recent transactions, the majority of our international business was actually comes to us through our agency stations.

And so this will be less affected on a net basis than you might otherwise expect because our historical kind of trailing twelve month international numbers, much of that comes through our international agent locations. With that said, our most recent acquisition of TransCon in particular is focused heavily on ocean imports and out of Asia and kind of the Transpacific trade. So we’re particularly interested to see how things progress in and around trade and tariffs and what kind of happened over the weekend, I came in early this morning and tweaked the press release a little bit kind of in connection with kind of very recent news, we view all as positive and hopefully constructive to kind of getting things moving forward again.

Elliot Alper, Analyst, Cowen: Helpful. Thank you, Bob. Thank you, Todd.

Bon Crane, Founder and Chief Executive Officer, Radiant Logistics: You bet. Thanks.

Conference Moderator: Thank you. Our next question is coming from Jeff Kaufman with Vertical Research Partners. Your line is live.

Jeff Kaufman, Analyst, Vertical Research Partners: Thank you very much. Hey, congratulations, guys. Challenging quarter, solid results. A couple of questions. I guess the first one, I just want to understand what you’re saying when you say gross margin was affected 25% to 30%.

Is that implying that the AGP of $58,000,000 could have been 70,000,000 or $80,000,000 Or is that more talking about the percentage of 27% could have been 30% or 31%? What exactly did you mean when you said AGP, 25% to 30% was affected?

Bon Crane, Founder and Chief Executive Officer, Radiant Logistics: No, I would say 25 to 30% of our gross margin is associated with international trade.

Jeff Kaufman, Analyst, Vertical Research Partners: Okay. So not necessarily that the number could have been 25% or 30% higher. It’s just that’s how much of your freight was okay. Touched by it. Okay.

Yeah. Thank you. That’s it.

Bon Crane, Founder and Chief Executive Officer, Radiant Logistics: Yeah. And and what was part of how you should also interpret that or you shouldn’t necessarily interpret that as necessarily exposure to the downside. Right? 25% to 30% of our business is an opportunity to engage on a real time basis with our customers to try to kind of help them through the situation. Because we have there certainly are aspects of this.

So Jeff, as you might remember, we have a customs brokerage capability and a fairly robust PO management collaboration platform called GTM that came to us to navigate transaction. And that team has just been extraordinarily busy on a consultative basis trying to help customers figure out whether to zig or zag in the context of the information that keeps going. And one of the things we probably didn’t focus on enough, as I’m thinking about it, is the removal of the $800 de minimis. Historically, we really weren’t active or didn’t have much, if any, exposure to that parcel level direct to consumer e commerce play at all. Well, those businesses are getting crushed by that kind of change in the rule and going to, I think, ultimately kind of create more opportunities for us and companies like us, because there’s a lot of freight that’s been moving by kind of international parcel type carriers that are not well positioned to support these trade flows outside of that de minimis relief.

And so I think there’s going to be kind of incremental opportunity for us around that particular change.

Jeff Kaufman, Analyst, Vertical Research Partners: So, Bon, I have a big picture question here. I know it’s only been a day, since we heard about, the thaw in US China here. But having said that, there’s some things that still are going to be impacted by this even on the reduced level. So I’m just kind of curious in your mind, this isn’t really a green light on everything. What do you think is still kind of frozen or stuck in the mud?

And what kinds of business for your customers gets kind of unfogged by this change?

Bon Crane, Founder and Chief Executive Officer, Radiant Logistics: I don’t know, that’s a good question. Before kind of the tariff discussion revealed itself, there was already a move afoot for people to continue to look critically at their supply chains and look to further diversify their sourcing strategies, ultimately, certainly not abandoning China, but diversifying to Southeast Asia and India and Mexico or other locations. And I just don’t think that I think this kind of volatility is just going to reinforce the continued pursuit of those strategies. So I think the kind of whatever metaphor you want to use, the genie’s out of the bottle or the conversation’s already been started. I don’t think you can kind of put the bullet back to the gun and they continue to mix metaphors.

So I think this is we’re just kind of continuing along the journey. But honestly, I take even kind of a broader point of view personally, which is which of these strategies are going to survive the Trump administration because I expect that I and Radian’s gonna be here long after Trump’s gone and I just don’t, fail to see how some of this stuff is really going to be durable. So we’re trying not to be too affected. I mean, were all obviously, we’re all affected on the near term, but we’re really trying to stay the course in terms of our fundamental strategies and not be swayed if you will, by what ultimately are going to be kind of short term phenomenon. So you’ll see we’ve continued to be kind of aggressive in our M and A activities.

So we’re still kind of executing the same strategies, not with standing kind of the noise of tariffs.

Jeff Kaufman, Analyst, Vertical Research Partners: And then along those lines, currencies moved a lot in the last ninety or one hundred days. How do you think the battlefield or the roadmap, whichever metaphor you wanna roll with here, changes as a result of the changes in the currency flows?

Bon Crane, Founder and Chief Executive Officer, Radiant Logistics: I don’t know. I’m yeah. That one’s I’ll leave that to the economists. What I would tell you is we have a little exposure to the Canadian dollar based on what’s happening based upon our business up there. Outside of that, most of our business is conducted in US dollars.

That’s not to say so I can’t sit here today and tell you what the landed cost of a particular widget, the sensitivity of the landed cost of a widget based upon the exchange rate relative to the pound. We would have to have several bottles of wine to answer that question.

Jeff Kaufman, Analyst, Vertical Research Partners: Okay, well, can’t get your wine right now, but let me throw just one last one in. You did mention kind of a mucky fourth fiscal quarter here and maybe a bullwhip sometime in the next fiscal year. But I think going into the release today, consensus was thinking that fourth quarter is normally a pretty strong quarter for you fundamentally. It will be your second best quarter this year. You still feel that the fourth quarter might be the second best quarter this year?

Would you kind of put the caveat that there’s just so much we don’t know, we can’t still be thinking along those lines.

Bon Crane, Founder and Chief Executive Officer, Radiant Logistics: I think traditional sensitivity or traditional seasonality is kind of out the window right now. There we still don’t have, you know, great visibility to what’s you know, or how quickly things are gonna change or how people are gonna react to this news or how durable this news is or what tomorrow’s tweet might be. So I would say, at least for me, I’m expecting softness in the June quarter. And so I would not so I guess to answer your question more precisely, I would not expect it to be our June to be our second strongest quarter if I had to.

Jeff Kaufman, Analyst, Vertical Research Partners: But your feeling is that, yeah, what you might lose in the June at some point you recapture in fiscal twenty twenty seven.

Todd McCumber, Chief Financial Officer, Radiant Logistics: Right. That’s what we think.

Jeff Kaufman, Analyst, Vertical Research Partners: Yeah. Great. Thank you so much.

Conference Moderator: Thank you. As we have no further questions on the line at this time, I would like to hand the call back over to Mr. Crane for any closing remarks.

Bon Crane, Founder and Chief Executive Officer, Radiant Logistics: Thank you. Let me close by saying that we remain optimistic about our prospects and opportunities to continue to leverage our best in class technology, robust North American footprint, and extensive global network of service partners to continue to build on the great platform we’ve created here at Radiant. At the same time, we intend to thoughtfully relever our balance sheet and through a combination of agent station conversions, strategic tuck in acquisitions and stock buybacks. Through our multi pronged approach, we believe we will continue to create meaningful value for our shareholders, operating partners, the end customers that we serve. Thanks for listening and your support of Radiant Logistics.

Conference Moderator: Thank you. Ladies and gentlemen, this concludes today’s call. You may disconnect your lines at this time, and we thank you for your participation.

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