Executive Summary

Q1 2025 revenue was $95.21M, up 0.7% QoQ and down 0.4% YoY; GAAP net loss was $(3.19)M and GAAP EPS was $(0.12), with Adjusted EBITDA of $7.76M and Adjusted Operating Ratio of 98.7% .
Versus S&P Global consensus, revenue was a slight miss ($95.21M vs $96.15M*) and EPS was a significant miss (GAAP $(0.12) vs $0.02*), while EBITDA was below consensus ($7.76M vs $8.33M*) ; values marked with * retrieved from S&P Global.
Management guided Q2 2025 to high single-digit sequential revenue growth with incremental margins of 20–25% and improved profitability; April was a record month, though tariff-driven volatility in imports tempered late-April/May trajectory .
Strategic positives: $60M annualized new contract wins ramping from mid-Q1, Brothers Auto Transport acquired April 1 to boost company-delivery mix, and continued systems integration; key headwinds include weaker spot pricing, dedicated fleet at minimums, and tariff/macro uncertainty impacting SAAR and import flows .

What Went Well and What Went Wrong

What Went Well

“March proved to be a strong month,” with unit volume +17% YoY and revenue +11% YoY (ATG not in prior year), helping deliver Q1 results similar to Q4 in revenue, adjusted OR, and adjusted EBITDA .
“Proficient gained significant new business during the first quarter … as much as $60 million to our top line on an annual basis,” with smooth onboarding leveraging sub-haul breadth and redeployment of equipment/drivers .
Acquisition of Brothers Auto Transport closed April 1, providing Northeast/Mid-Atlantic density; faster integration than prior deals with conversion to common TMS in Q2 and accounting by July 1 .

What Went Wrong

Pricing weakness and reduced spot opportunities: revenue per unit down ~9% YoY and spot revenue premium only ~25–30% vs >100% in early 2024; dedicated fleet revenue fell to $4.3M from $6.4M in Q1 2024 .
Tariff-related volatility: import flows showed pull-forward ahead of early-April 25% tariffs, then deceleration; OEMs are adjusting production/import mix amid rising costs and policy uncertainty .
Operating leverage pressure: Adjusted Operating Ratio remained elevated at 98.7% and GAAP operating loss was $(2.36)M, reflecting lower revenue per unit and mix shift toward subhaulers .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Total Operating Revenue ($USD)	$91,505,501	$95,100,000 (Operating revenue of $95.1M per CFO remarks)	$95,206,021
Net Income (Loss) ($USD)	$(1,365,476)	N/A (not disclosed in the Q4 transcript)	$(3,191,685)
GAAP EPS (Basic & Diluted, $)	$(0.05)	N/A (not disclosed in the Q4 transcript)	$(0.12)
Adjusted Operating Income ($USD)	$1,102,000	$1,143,000	$1,236,000
Adjusted Operating Ratio (%)	98.8%	98.8%	98.7%
Adjusted EBITDA ($USD)	$9,569,000	$6,968,000	$7,764,000
Adjusted EBITDA Margin (%)	10.4%	7.4%	8.2%
Units Delivered	499,311	521,476	494,509

KPI	Q3 2024	Q4 2024	Q1 2025
Revenue/Unit – Company ($)	$194.18	$180.94	$185.38
Revenue/Unit – Subhaulers ($)	$155.98	$162.97	$173.14
Company Deliveries (% Revenue)	39%	35%	35%
Subhaul Deliveries (% Revenue)	61%	65%	65%
Dedicated Fleet Revenue ($USD)	$4.7M	$3.4M	$4.3M

Actual vs Consensus (Q1 2025)	S&P Global Consensus*	Actual
Revenue ($USD)	$96,145,750*	$95,206,021
Primary EPS ($)	$0.0175*	GAAP $(0.12)
EBITDA ($USD)	$8,334,670*	Adjusted EBITDA $7,764,000

Notes: Values marked with * retrieved from S&P Global. “Primary EPS” may reflect normalized/continuing operations; GAAP EPS per company release shown for actuals .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue (sequential)	Q2 2025	Q1 2025 expected similar to Q4 2024 in revenue and OR	High single-digit sequential growth in Q2	Raised
Profitability/OR	Q2 2025	Q1 OR similar to Q4	Improved profitability; mid-90s OR at guided revenue	Raised
Incremental Margins	Q2 2025	Not specified	20–25% incremental margins at guided revenue	New
Dedicated Fleet Revenue	FY 2025	~$4–$5M per quarter minimums discussed in Q4	Continues $4–$5M per quarter expected	Maintained
CapEx (Revenue Equipment)	FY 2025	$25–$35M discussed for 2025 in Q4 call	~$15M expected, could increase with wins	Lowered (with caveat)
Full-Year Outlook	FY 2025	Sequential momentum and improved 2025 vs 2024	Full-year performance to outpace 2024, more reliant on market share and Brothers offsetting weaker market	Maintained (qualitative emphasis)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Tariffs/Macro & SAAR	SAAR weaker; inventory high; cautious outlook	SAAR >16M in Oct/Dec; caution into Q1 2025	Pre-tariff pull-forward; 25% tariffs impact imports; April SAAR ~16.4M; outlook cut by GS/Cox/Morningstar; bear cases 15.0–14.9M	Increasing headwind
Spot Pricing & Mix	Spot revenue/premium down; subhaul revenue/Unit down 17.5% YoY	“Episodic” spot; premium ~16% vs >100% earlier	Spot ~25–30% premium; spot revenue ~4.3% mix; weak pricing power persists	Stabilizing at lower levels
Dedicated Fleet	$4.7M (Q3) vs $16.2M prior year; at minimums	~$3.7M; minimums; volatility driver	$4.3M; guided $4–$5M per quarter	At contractual minimums
Market Share Wins	17 net new contracts YTD; renewals	Expect share gains amid competitor exit	~$60M annualized new business; Brothers acquisition	Positive
Integration/Systems	Common TMS 75% complete	Continued integration; procurement savings targeted	Brothers to TMS in Q2; accounting by July 1	Progressing
Capacity & Equipment	Owned fleet +66 units; load sharing	Slack capacity industry-wide; fleet CapEx $25–$35M	Some slack now; ability to add equipment; used equipment availability improving	Flexible capacity
OEM Bids & Contracts	Multiple renewals; 3–5 yr terms	Several OEMs running major bids; positioning for share	Additional gains expected; import/domestic mix ~60/40	Ongoing opportunity
Regional/Import Mix	N/A	N/A	~60% domestic, 40% import; ports heavier import share	Insight added
M&A	ATG closed Q3	1–2 smaller acquisitions possible	Brothers closed April 1; cautious approach; distressed assets emerging	Active but selective

Management Commentary

CEO: “The first quarter continued to exhibit the underlying market weakness… Our ability to gain market share and successfully integrate… Brothers Auto Transport will be important counterweights” .
CEO: “March proved to be a strong month… SAAR reaching 17.8 million… Most industry observers attribute the increased sales volume in March to a pull forward… expected 25% tariffs” .
CFO: “Operating revenue of $95.2 million… units delivered 494,509… revenue per unit approx $177, up 5% QoQ, down 9% YoY… OEM contract ~91% of transportation revenue” .
COO: “We are roughly 60% domestic, 40% imported… East and West have heavier import shares” .
COO: “$60 million figure is annualized… new business started mid-first quarter and ramped” .

Q&A Highlights

Tariffs and customer behavior: Some importers paused flows; others continued; bids and renewals occurring under cost pressure; pricing power weak near term .
Brothers scale: Smaller than ATG; “maybe 3/4 of it,” “a little lighter than $30M” annual revenue .
Q2 outlook: ~8% sequential revenue growth; improvement down the P&L; OR mid-90s; incremental margins 20–25% .
Capacity/equipment: Industry has flat capacity now but could tighten with volume; modest new equipment inbound; used equipment becoming available; delivery lead times manageable .
M&A posture: Cautious amid volatility; distressed assets emerging; selective pursuit .

Estimates Context

Revenue: Slight miss versus S&P Global consensus ($95.21M actual vs $96.15M*). Weak spot pricing and dedicated fleet at minimums offset unit volume strength in March .
EPS: Significant miss (GAAP $(0.12) vs $0.02*). Mix and pricing pressures, plus elevated fixed costs, drove operating loss and negative GAAP EPS .
EBITDA: Below consensus ($7.76M adjusted vs $8.33M*). Sequential improvement from Q4 but still below prior-year levels given lower revenue per unit .
Forward implications: With management guiding high single-digit Q2 revenue growth and incremental margins of 20–25%, near-term estimate revisions may balance tariff-driven demand risk against market-share gains and Brothers accretion .
Note: Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Narrative pivot: Despite tariff/macro headwinds, April record revenue and high single-digit Q2 growth guide indicate stabilization; watch late-April/May moderation tied to imports .
Share gains drive 2025: $60M annualized new wins plus Brothers acquisition should lift company-delivery mix and margins as integration completes; monitor OEM bid outcomes in H2 .
Margin trajectory: Adjusted OR improved slightly QoQ (98.8%→98.7%); CFO targets mid-90s OR at guided Q2 revenue; incremental margins 20–25% offer upside if volumes hold .
Mix/pricing risk: Spot premium ~25–30% and dedicated fleet at minimums likely cap near-term pricing; unit economics improving sequentially but still below prior-year per-unit levels .
Balance sheet flexibility: Net debt ~$68.4M; net leverage ~1.9x TTM Adjusted EBITDA; $28M of liquidity capacity available supports selective growth/M&A .
Trading lens: Near-term catalysts include tariff policy clarity, OEM awards, and reported Q2 sequential growth; downside risks are import softness and pricing pressure on renewals .
Medium term: Systems integration, procurement savings, and network optimization should structurally support OR improvement irrespective of spot cycles; watch execution on load sharing and mix shifts .

Appendix: Balance Sheet Snapshot (Q1 2025)

Metric	Q1 2025
Cash & Equivalents ($USD)	$10,910,825
Total Debt ($USD)	$79,287,374 (Long-term debt current $18.33M + LT $52.95M + line of credit $8.0M)
Net Debt ($USD)	~$68.4M
Net Leverage (TTM Adjusted EBITDA)	~1.9x
Total Assets ($USD)	$505,270,895
Stockholders’ Equity ($USD)	$335,970,847

Citations:

Q1 2025 8-K (Item 2.02 and Exhibit 99.1 press release; financial statements, KPIs, balance sheet, OR/EBITDA): .
Q1 2025 earnings call transcript (prepared remarks, guidance, themes, Q&A): .
Q4 2024 earnings call transcript (context and prior guidance): .
Q3 2024 8-K (press release, operating metrics, adjusted EBITDA/OR): .
Other press releases (investigation notices post-Q1): .

Estimates disclaimer: Values marked with * retrieved from S&P Global.

Proficient Auto Logistics, Inc (PAL)·Q1 2025 Earnings Summary