Executive Summary

Revenue beat and solid top-line growth: $226.7M, up 11.3% year over year, and above S&P Global consensus of $206.6M; adjusted EPS of $0.09 exceeded the $0.083 consensus, while adjusted EBITDA of $6.8M missed the $9.5M consensus . S&P Global values marked with an asterisk below were retrieved from S&P Global*.
Management emphasized low leverage and active buybacks (net debt ~ $2.0M as of Sept 30 and $0.8M repurchased in the quarter, plus $2.0M post-quarter through Nov 7), and subsequently renewed its share repurchase authorization to up to 5M shares through Dec 31, 2027 .
A one-time $1.3M bad debt tied to First Brands bankruptcy weighed on margins; normalized adjusted EBITDA would have been $8.1M and adjusted EPS implications similarly higher .
Strategic catalysts: the Weport acquisition expands Mexico capabilities and Navegate (GTM) technology is positioned as a differentiator expected to drive organic growth in coming quarters .
Macro remains mixed (international softness, tariff dynamics), but management sees improving brokerage pricing and tailwinds from Canada/Mexico exposure; near-term softness acknowledged with tech-enabled offerings and capital deployment as offsetting drivers .

What Went Well and What Went Wrong

What Went Well

Strong revenue growth and topline beat: $226.7M (+11.3% yoy) vs $203.6M prior year; above S&P Global consensus ($206.6M*) .
Strategic execution: acquired 80% of Weport (Mexico), reinforcing North American footprint and cross‑border capabilities .
Technology differentiation: Navegate (GTM) highlighted as a near-term organic growth catalyst with faster deployment and visibility/automation advantages; “meaningful differentiator” quote from CEO .

What Went Wrong

Profitability compression: adjusted EBITDA fell to $6.8M (11.4% of AGP) from $9.5M (16.4%) yoy; normalized EBITDA 13.7% excluding $1.3M bad debt but still below prior levels .
One-off credit event: $1.3M bad debt related to First Brands bankruptcy negatively impacted Q1 margins and earnings .
Macro headwinds: management cited continued difficulty in international freight and tariff vagaries; acknowledged near-term softness risk despite some improving brokerage pricing .

Financial Results

Core Financials vs Prior Periods

Metric	Q3 FY2025 (Mar 31, 2025)	Q4 FY2025 (Jun 30, 2025)	Q1 FY2026 (Sep 30, 2025)
Revenue ($USD Millions)	$214.0	$220.6	$226.7
GAAP Gross Profit ($USD Millions)	$54.5	$57.9	$57.1
Adjusted Gross Profit ($USD Millions)	$58.2	$60.4	$59.5
Adjusted EBITDA ($USD Millions)	$9.4	$7.9	$6.8
Adjusted EBITDA Margin (%)	16.2%	13.1%	11.4%
GAAP Net Income ($USD Millions)	$2.54	$4.91	$1.29
Diluted EPS ($USD)	$0.05	$0.10	$0.03
Adjusted Net Income ($USD Millions)	$6.88	$5.49	$4.47
Adjusted Diluted EPS ($USD)	$0.14	$0.11	$0.09

Notes: Management disclosed a one-time $1.3M bad debt tied to First Brands; normalized adjusted EBITDA would have been $8.1M and margin 13.7% for Q1 FY2026 .

Q1 FY2026 vs S&P Global Consensus

Metric	Consensus	Actual	Surprise
Revenue ($USD Millions)	$206.6*	$226.7	Beat
Primary EPS ($USD)	$0.083*	$0.09	Beat
EBITDA ($USD Millions)	$9.5*	$5.81*	Miss

Values marked with * were retrieved from S&P Global.

KPIs and Capital Structure

KPI	Q4 FY2025	Q1 FY2026
Shares Outstanding (period-end)	47,143,178	47,207,846
Buybacks (period)	145,717 shares; $0.8M	139,992 shares; $0.8M
Buybacks (post-period to Nov 7)	N/A	341,466 shares; $2.0M
Net Debt (approx.)	~$20.0M drawn on $200M facility (as of Jun 30); cash $22.9M	~ $2.0M net debt (virtually debt-free)

Note: The Q1 call referenced $2.8M repurchased post-quarter through Nov 7 vs $2.0M disclosed in the press release; management’s call commentary appears higher than the press release figure .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal Financial Guidance (Revenue, EPS, EBITDA)	FY2026/Q2	None disclosed	None disclosed	Maintained (no formal numerical guidance)
Share Repurchase Authorization	Through Dec 31, 2027	Not specified prior capacity	Up to 5.0M shares	Renewed/Expanded
Tax Rate used in Adjusted Metrics	Ongoing	24.5% normalization	24.5% normalization	Maintained

Management commentary points to balanced capital allocation (agent conversions, tuck-ins, buybacks), expected near-term macro softness in international, and organic growth initiatives (Navegate). No specific quantitative revenue/margin guidance ranges were provided .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 FY2025, Q4 FY2025)	Current Period (Q1 FY2026)	Trend
Technology (Navegate/GTM)	Integration with SAP; case for visibility/automation; pipeline developing	“Meaningful differentiator”; deployment measured in weeks; selling bundled/unbundled; targeted larger shippers	Increasing emphasis; nearer-term revenue impact expected in “next couple of quarters”
Tariffs/Macro	25–30% of gross margin tied to international trade; tariff volatility; expected bullwhip effect; softness in June quarter	International remains difficult; hopeful for brokerage pricing improvement; Canada/Mexico benefits; monitoring de minimis rule removal	Still a headwind; mix shift to adjacencies/ancillary services
Regional (Canada/Mexico)	Canada strong; Mexico footprint expanding via M&A	Canada contract logistics opportunity; Mexico strengthened via Weport	Positive exposure; strategic
Government sector exposure	Implicit benefit vs retail exposure	Some exposure; shutdown viewed short-term	Neutral to positive
Warehousing pricing	Not a major U.S. exposure; Canada strong	U.S. exposure limited; Canada/Mexico opportunities	Stable
Capital Allocation	Ongoing tuck-ins, agent conversions, buybacks	Active buybacks; low leverage; continued M&A/buybacks	Ongoing discipline

Management Commentary

“We remain virtually debt free (net debt of approximately $2.0 million as of September 30, 2025) relative to our $200.0 million credit facility... while thoughtfully re-levering our balance sheet through... conversions, tuck-in acquisitions, and stock buy-backs.”
“Navegate represents a meaningful differentiator... enhanced visibility, automation and faster decision making... deployment measured in weeks – not months or years.”
“Excluding the impact of an unusual and one-time $1.3 million bad debt expense related to First Brands bankruptcy, adjusted EBITDA would have been $8.1 million.”
“We are early in our journey... a meaningful catalyst for organic growth as we introduce the technology to our current and prospective customers in coming quarters.”

Q&A Highlights

Navegate adoption timeline and TAM: management expects noticeable P&L impact within “next couple of quarters,” targeting larger complex shippers, flexible selling (bundled/unbundled), and supplier-led network effects .
Macro outlook: continued international softness; potential improvement in brokerage pricing; Canada/Mexico as beneficiaries of tariff dynamics; minimal U.S. warehouse exposure today .
Government shutdown impact: viewed as short-term, with longer-term tariff/capacity issues more material .
Weport acquisition update: strengthens Mexico coverage, adds true int’l air/ocean capability, supports customer diversification from China .
First Brands bankruptcy: $1.3M bad debt; viewed as one-off and not indicative of broader customer risk; evaluating post-petition support .
Buyback cadence: management intends to remain active at current price points; emphasizes financial flexibility .

Estimates Context

Q1 FY2026 outcomes vs S&P Global consensus: Revenue $226.7M vs $206.6M* (beat); Primary EPS $0.09 vs $0.083* (beat); EBITDA $5.81M* vs $9.5M* (miss). Company-reported adjusted EBITDA was $6.8M, with normalized $8.1M excluding the bad debt . Values marked with * were retrieved from S&P Global.
Implications: Sell-side models likely raise revenue and adjusted EPS near-term, but cut EBITDA/margin assumptions given continued freight softness and non-recurring credit event. Normalized framework suggests partial margin recovery potential as macro stabilizes .

Key Takeaways for Investors

Top-line momentum amidst macro: revenue growth and a clear beat vs consensus signal resilient demand and acquisition contributions; watch for sustained AGP expansion as Navegate ramps .
Profitability recovery path: EBITDA miss reflects one-time bad debt and freight softness; normalized margin still below prior-year levels—monitor cadence of brokerage pricing improvement and mix shift to value-added services .
Strategic M&A and footprint: Weport solidifies Mexico capabilities, enabling cross-border growth and diversification from China; pipeline suggests continued tuck-in activity .
Technology-led differentiation: Navegate integration with SAP and rapid deployment offers a competitive edge; early customer adoption could catalyze organic growth over the next few quarters .
Capital allocation and buybacks: low leverage and renewed 5M-share repurchase authorization provide downside support; buybacks likely continue opportunistically .
Near-term trading lens: revenue/EPS beats vs consensus are supportive, but EBITDA/margin compression and macro commentary may temper reaction; stock could respond to incremental Navegate adoption metrics and accretive M&A updates .
Medium-term thesis: diversified services, technology platform, and North American expansion (Canada/Mexico) position RLGT for margin normalization and organic growth as freight markets stabilize .