Did Radiant Logistics beat earnings in Q2 FY2026?

Radiant Logistics reported Q2 FY2026 adjusted EPS of $0.17 on revenue of $232.1M. Limited analyst coverage makes direct beat/miss comparison difficult, but underlying results were strong with adjusted EBITDA up 93% excluding the prior year's Milton Project.

What is the Milton Project that affected RLGT results?

In Q2 FY2025, Radiant generated $64.8M in air charter revenue flying 8 million IV fluid units to the U.S. during national shortages caused by Hurricane Milton. This one-time project inflated prior year comparisons.

What is Radiant Logistics' AI agent Ray?

Ray is RLGT's first AI-powered agent, focused on streamlining quote request administration from international agents. It complements the Navegate platform and is expected to improve response times and drive operational efficiency.

What did RLGT say about freight market conditions?

CEO Bohn Crain noted freight capacity is tightening with tender rejection rates rising, which should be 'constructive' for the industry. International ocean imports remain soft, but domestic conditions are improving.

RADIANT LOGISTICS (RLGT)·Q2 2026 Earnings Summary

Radiant Logistics Q2 FY26: Adjusted EBITDA Surges 93% Ex-Milton, Launches AI Agent 'Ray'

February 9, 2026 · by Fintool AI Agent

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Radiant Logistics (NYSE: RLGT) reported Q2 FY2026 results that demonstrated strong underlying momentum once you look past a difficult year-over-year comparison. The prior year included $64.8M in air charter revenue from the "Milton Project"—flying IV fluids during Hurricane Milton's national shortage. Excluding that one-time project, adjusted EBITDA surged 93.4% and revenue climbed 16.2%. The company also launched its first AI agent, "Ray," signaling continued investment in digital transformation. On the earnings call, CEO Bohn Crain noted that freight capacity is tightening with tender rejection rates rising, a dynamic expected to be "constructive" for the industry.

Did Radiant Logistics Beat Earnings?

Radiant Logistics has limited analyst coverage as a ~$330M market cap company, making direct beat/miss comparisons challenging. Here's what the company reported for Q2 FY2026 (fiscal quarter ended December 31, 2025):

Metric	Q2 FY26	Q2 FY25	YoY Change	Ex-Milton YoY
Revenue	$232.1M	$264.5M	-12.2%	+16.2%
Gross Profit	$61.0M	$59.6M	+2.3%	+16.0%
Adjusted Gross Profit	$63.5M	$63.3M	+0.3%	+12.8%
Net Income	$5.3M	$6.5M	-18.5%	—
Adjusted Net Income	$8.1M	$10.7M	-24.3%	+30.6%
Adjusted EBITDA	$11.8M	$12.0M	-1.7%	+93.4%
Adj. EBITDA Margin	18.6%	19.0%	-40 bps	+780 bps

The headline numbers look weak, but the Milton Project comparison obscures genuine operational improvement. Excluding Milton, the $5.7M increase in adjusted EBITDA breaks down as:

U.S. Operations same-store growth: +$3.6M
Canadian Operations: +$1.4M
Acquisition growth: +$0.7M

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What Did Management Guide?

CEO Bohn Crain did not provide specific quantitative guidance but outlined a clear strategic direction. The company plans to maintain its "balanced approach to capital allocation through a combination of agent station conversions, synergistic tuck-in acquisitions, and stock buy-backs while at the same time looking to invest in incremental sales resources with attention given to deployment of the Navegate technology."

Key forward-looking priorities:

Navegate platform deployment — proprietary global trade management system that "represents a meaningful differentiator" with streamlined deployment "measured in weeks—not months or years"
AI expansion — "We look forward to expanding Ray's capabilities and introducing additional AI-powered solutions in coming quarters"
Disciplined M&A — low leverage positions the company for acquisitions with $200M credit facility available

How Did the Stock React?

RLGT closed at $7.04 on February 9, 2026, down 1.5% during regular hours. However, aftermarket trading surged to $7.54, up 7.1% following the earnings call, suggesting investors responded positively to management's commentary on capacity tightening and the Navegate/AI momentum.

Stock Metric	Value
Regular Close	$7.04
Aftermarket	$7.54 (+7.1%)
Day Change	-1.5%
52-Week High	$7.94
52-Week Low	$5.44
Market Cap	~$330M
50-Day Avg	$6.60
200-Day Avg	$6.21

The stock has rallied 30% from its 52-week lows and trades near its 52-week highs. The strong aftermarket reaction suggests investors liked what they heard on the call.

What Changed From Last Quarter?

Several notable developments emerged this quarter:

1. Milton Project Headwind Fully Absorbed

Q2 FY2025's results were inflated by the one-time Milton Project ($64.8M revenue, $7.0M gross profit, $5.9M EBITDA). Q2 FY2026 marks a clean baseline, and the underlying business is performing well.

2. AI Agent 'Ray' Launched

The company deployed its first AI-powered agent focused on automating quote request administration from international agents. This represents "an important step in our ongoing digital transformation journey."

3. Margin Normalization

Adjusted gross profit margin improved 340 bps to 27.3% from 23.9% in the year-ago period (which was depressed by the lower-margin Milton Project). Adjusted EBITDA margin expanded 780 bps year-over-year on an ex-Milton basis.

4. Continued Share Repurchases

The company repurchased 445,058 shares at an average cost of $5.97 per share for $2.7M during the quarter. Total shares outstanding: 46.8M as of December 31, 2025.

Balance Sheet and Capital Allocation

Radiant maintains a conservative balance sheet with virtually no net debt:

Balance Sheet Metric	Dec 31, 2025	Jun 30, 2025
Cash & Equivalents	$31.9M	$22.9M
Total Debt	$30.0M	$20.0M
Net Debt	~$0	~$0
Total Equity	$229.9M	$226.1M
Credit Facility	$200.0M available	—

The company has significant financial flexibility with its undrawn $200M credit facility, positioning it for opportunistic M&A.

Six-Month Results (H1 FY2026)

Metric	H1 FY26	H1 FY25	YoY Change
Revenue	$458.8M	$468.1M	-2.0%
Net Income	$6.6M	$9.8M	-32.7%
Adjusted Net Income	$12.5M	$18.6M	-32.8%
Adjusted EBITDA	$18.6M	$21.5M	-13.5%

Note: H1 FY2026 results were also impacted by a $1.3M First Brands adjustment. Normalizing for this, adjusted EBITDA would have been $19.9M.

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Q&A Highlights

During the earnings call Q&A with Elliot Alper from TD Cowen, management provided additional color on several key topics:

Freight Market Conditions:

"Generally speaking, people are, I guess, growing increasingly bullish in terms of where we are... We've seen the tender rejection rate starting to come up, so I don't think we really have seen the benefit of that most recent dynamic in the quarter into December. But as we come into the quarter, March, which historically is our seasonally slowest quarter, it'll be interesting to see how this tightening capacity environment affects overall margin characteristics."

Management noted that international and ocean imports "continues to remain relatively soft," but the capacity tightening dynamics "will be constructive for us in the peer group, more broadly."

No Near-Term Project Work Expected: When asked about potential project work from recent severe weather (cold weather in the Southeast), Crain said: "Nothing kind of immediately on the... in process for us around those types of opportunities." He added with characteristic candor: "I won't say we root for natural disasters, but we're certainly there to pick up the phone when they occur."

Navegate Customer Momentum:

"What's really exciting for us is, as we're onboarding our customers' vendors onto the technology, and they're getting exposure to what it represents and its capabilities, we're starting to get what I'll call reverse inquiry, inbound interest from these vendors themselves as becoming direct customers. So we really are seeing a compounding effect of Navegate as we continue to grow our community."

CEO Crain declined to provide specific revenue expectations for Navegate but emphasized they see "a lot of application in different industry verticals and different ecosystems."

Key Management Quotes

"With the benefit of our diversified service offering we delivered another quarter of solid financial results generating $11.8 million in adjusted EBITDA... When excluding $5.9 million in adjusted EBITDA from the Milton Project in the year ago period, adjusted EBITDA increased by $5.7 million or 93.4%." — Bohn Crain, CEO

"We continue to be encouraged about the prospects of Navegate, our proprietary global trade management and collaboration platform. Navegate represents a meaningful differentiator for us in the marketplace... With streamlined deployment measured in weeks—not months or years—our customers can quickly reduce costs, optimize routing and improve buying and routing decisions." — Bohn Crain, CEO

"We are also pleased to announce the launch of 'Ray', our first AI-powered agent, which is initially focused on streamlining the administration of quote requests from our international agents around the world." — Bohn Crain, CEO

Forward Catalysts to Watch

Ray AI Agent Expansion — Management plans to expand capabilities and introduce additional AI solutions in coming quarters
Navegate Network Effects — Vendors onboarded to the platform are becoming direct customers, creating a "compounding effect"
Capacity Tightening — Rising tender rejection rates could improve margin characteristics as the freight market tightens
Acquisition Pipeline — With no net debt and $200M credit facility, tuck-in acquisitions could accelerate growth
Seasonality — Q3 (March quarter) is historically the slowest, setting up for easier comps in Q4

Company Overview

Radiant Logistics operates as a third-party logistics company providing technology-enabled global transportation and value-added logistics services primarily in the United States, Canada, and Mexico. Services include domestic and international freight forwarding, freight brokerage, warehouse and distribution, customs brokerage, order fulfillment, inventory management, and technology services through an extensive network of company and agent-owned offices throughout North America.

Source: RLGT 8-K Filing, February 9, 2026