Executive Summary

Strong Q3 FY2025 beat vs consensus: revenue $214.0M vs $194.0M est (+10.3%); Primary EPS $0.14 vs $0.04 est (+223%); EBITDA $8.73M vs $5.45M est (+60%) driven by base business improvement and recent acquisitions; GAAP diluted EPS was $0.05 as reported . Revenue growth +15.9% YoY; adjusted EBITDA +~80% YoY . Revenue/EPS/EBITDA beats from S&P Global estimates.*
Mix and M&A: contributions from greenfield/acquired operations (Cascade, Foundation, TCB, Transcon; plus USA Logistics and Universal subsequent to quarter-end) lifted profitability; Canada outperformed internal expectations .
Macro/tariffs: management flagged near‑term volatility; ~25–30% of gross margin tied to international trade would have been impacted by tariffs; expects June quarter (Q4 FY25) to be “soft,” with potential bullwhip rebound thereafter .
Balance sheet/capacity to act: $19.0M cash, $15.0M drawn on $200M revolver; low leverage supports continued tuck‑ins, partner conversions, and buybacks as pipeline remains active .

What Went Well and What Went Wrong

What Went Well

Broad-based profitability improvements: adjusted EBITDA up ~80% YoY to $9.4M; adjusted EBITDA margin on adjusted gross profit up 640 bps to 16.2% driven by base business gains and acquisitions .
Acquisitions scaling international and intermodal capabilities: closed Transcon (ocean freight gateways; 2024 EBITDA ~$4.0M on $75M revenue), and post-quarter closed USA Logistics (Mid‑Atlantic) and Universal (Houston) to strengthen network density and modal breadth .
Management confidence and liquidity: $19M cash, $15M on $200M facility; reiteration of strategy to profitably grow via partner conversions/tuck-ins and buybacks (re-lever prudently) .

What Went Wrong

Sequential moderation from project-rich Q2: revenue fell to $214.0M from $264.5M in Q2; adjusted EBITDA to $9.4M from $12.0M; adjusted EBITDA margin compressed to 16.2% from 19.0% .
Tariff-driven uncertainty: management expects Q4 (June) to be soft; ~25–30% of gross margin tied to international trade makes results sensitive to tariff timing/changes .
Gross margin rate below prior year: GAAP gross margin 25.5% vs 26.4% in Q3 FY2024, reflecting mix and market headwinds despite YoY revenue growth .

Financial Results

Quarterly trend (oldest → newest):

Metric	Q1 FY2025 (Sep 30, 2024)	Q2 FY2025 (Dec 31, 2024)	Q3 FY2025 (Mar 31, 2025)
Revenue ($M)	$203.565	$264.544	$214.007
GAAP Diluted EPS ($)	$0.07	$0.13	$0.05
Adjusted Diluted EPS ($)	$0.16	$0.22	$0.14
GAAP Gross Profit ($M)	$54.066	$59.598	$54.543
GAAP Gross Margin (%)	26.6%	22.5%	25.5%
Adjusted EBITDA ($M)	$9.452	$12.016	$9.398
Adjusted EBITDA Margin (% of Adjusted GP)	16.4%	19.0%	16.2%

Q3 FY2025 vs S&P Global consensus (Primary EPS, revenue, EBITDA):

Metric	Actual	Consensus	Surprise
Revenue ($M)	$214.007*	$194.030*	+10.3%*
Primary EPS ($)	$0.14*	$0.0433*	+223%*
EBITDA ($M)	$8.73*	$5.45*	+60%*
# Estimates (EPS / Revenue)	3* / 3*	—	—

*Values retrieved from S&P Global.

Year-over-year and sequential comparisons:

Metric	Q3 FY2024	Q2 FY2025	Q3 FY2025	YoY Change	QoQ Change
Revenue ($M)	$184.559	$264.544	$214.007	+15.9%	-19.1%
GAAP Diluted EPS ($)	-$0.02	$0.13	$0.05	N/M	-$0.08
Adjusted Diluted EPS ($)	$0.08	$0.22	$0.14	+75%	-36.4%
Adjusted EBITDA ($M)	$5.208	$12.016	$9.398	+80.5%	-21.8%
GAAP Gross Margin (%)	26.4%	22.5%	25.5%	-90 bps	+300 bps

Balance sheet and liquidity (as of Mar 31, 2025):

Item	Value
Cash & equivalents	$19.041M
Notes payable (drawn)	$15.000M
Credit facility capacity	$200.0M (company statement)

KPIs (Q3 FY2025):

Adjusted Gross Profit $58.175M; Adjusted GP % 27.2% .
Adjusted EBITDA Margin on Adjusted GP 16.2% .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue / EPS / EBITDA	Q4 FY2025 (June qtr)	None provided	Qualitative: expect “soft” quarter due to tariff-driven volatility; near-term slowdown may set up bullwhip rebound	N/A
Exposure to tariffs	Ongoing	Not quantified	~25–30% of gross margin tied to international trade activities (sensitive to tariff developments)	New disclosure

No formal quantitative guidance was issued; management emphasized flexibility and potential for rebound as trade tensions de-escalate .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 FY2025)	Current Period (Q3 FY2025)	Trend
Tariffs/Macro	Anticipated near-term headwinds; some pull-forward into Dec; customs brokerage/GTM platform supports customers	25–30% of gross margin tied to international trade; expect Q4 softness with potential bullwhip rebound as tensions ease	Near-term soft; potential rebound
M&A / Partner Conversions	Active pipeline; TCB added 40’ intermodal competency; expect continued conversions; dry powder available	Closed Transcon (Mar), acquired USA Logistics (Apr) and Universal (May) to densify gateways/regions	Accelerating
International/Ocean	Expect tight near-term ocean capacity; Red Sea/tariff dynamics supported pricing (Q1)	Ocean imports ex‑China slowed briefly; Transcon adds transpacific focus; watch de minimis change impact	Mixed near term
Regional Trends	West Coast capacity tightening; Canada stable; project charters buoyed results (Q1/Q2)	Canada outperformed expectations in Q3	Improving Canada
Seasonality/Visibility	Q3 seasonally slow; expected softness; Q4 could improve, contingent on tariffs (Q2)	Seasonality “out the window”; June quarter expected soft; recovery timing uncertain	Visibility limited

Management Commentary

“We continue to deliver solid financial results and generated $9.4 million in adjusted EBITDA… up just over 80% relative to the comparable prior year period,” attributing gains to base operations and acquisitions .
“We expect some near-term volatility… estimate that approximately 25–30% of gross margins for the March quarter would have been impacted by the recently announced tariffs… [but] expect a corresponding bullwhip effect” .
“Strong balance sheet with approximately $19.0 million of cash… and only $15.0 million drawn on our $200.0 million credit facility… focused on profitable growth via partner conversions, tuck-ins, and stock buy-backs” .
CFO: Q3 adjusted net income $6.881M; adjusted EBITDA $9.398M; nine-month adjusted EBITDA $30.866M .

Q&A Highlights

Outlook: Management expects a soft June quarter given tariff uncertainty; seasonality patterns less predictive; recovery likely in FY2026 as trade normalizes .
Revenue mix: Canada outperformed expectations; acquisitions contributed; margins per file improved in some international lanes despite lower volumes .
Tariff exposure: 25–30% of gross margin linked to international trade; opportunity for advisory/customs brokerage (Navegate GTM); removal of $800 de minimis could shift volumes toward providers like RLGT .
Asia bookings: Ocean imports ex‑China slowed briefly; lines added blank sailings; Transcon’s transpacific focus increases sensitivity/optionality .
Currency: Limited impact beyond Canadian exposure; most business in USD .

Estimates Context

Radiant beat S&P Global consensus on revenue, Primary EPS, and EBITDA in Q3 FY2025: revenue $214.0M vs $194.0M (+10.3%); Primary EPS $0.14 vs $0.0433 (+223%); EBITDA $8.73M vs $5.45M (+60%)*.
Given management’s indication of a soft June quarter and tariff-related volatility, near-term EPS/revenue estimates for Q4 FY2025 may drift lower; however, the M&A cadence and expected “bullwhip” as trade normalizes could support upward estimate revisions into FY2026.*
*Values retrieved from S&P Global.

Key Takeaways for Investors

Q3 FY2025 was a clean beat on revenue/EPS/EBITDA, supported by acquisition contributions and improving base operations; GAAP diluted EPS remained modest ($0.05), but Primary/adjusted diluted EPS of $0.14 highlights underlying earnings power .
Expect near-term softness in Q4 FY2025 due to tariffs; the setup for FY2026 improves if de‑escalation holds and transpacific volumes rebound (“bullwhip effect”) .
M&A flywheel active: Transcon (ocean gateways), USA Logistics (Mid‑Atlantic), Universal (Houston) expand network density and modal breadth; integration and cross‑sell are near-term catalysts .
Margin dynamics: sequential adjusted EBITDA margin compressed from Q2 to Q3 (19.0% → 16.2%), but GAAP gross margin improved sequentially (22.5% → 25.5%); watch mix normalization and acquisition synergies in coming quarters .
Liquidity remains a differentiator: $19M cash, modest $15M draw on $200M facility; capacity to keep consolidating agent partners and pursue tuck-ins through the cycle .
Trading setup: Near-term volatility from tariffs could pressure the June quarter print; medium-term upside tied to integration synergies, normalization of international flows, and continued partner conversions.

References: Q3 FY2025 press release and 8‑K ; Q3 call transcript ; Q2 FY2025 results ; Q2 call transcript ; Q1 FY2025 results/call ; acquisition releases .

RADIANT LOGISTICS, INC (RLGT)·Q3 2025 Earnings Summary