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RL

RADIANT LOGISTICS, INC (RLGT)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 revenue was $220.6M and diluted EPS was $0.10; GAAP gross margin compressed to 26.2% while adjusted EBITDA was $7.9M and margin 13.1% .
  • Versus Wall Street, EPS beat consensus by $0.04 while revenue modestly missed; consensus EPS $0.075* vs actual 0.11*, consensus revenue $223.7M* vs actual $220.6M*; highlight: EPS beat on cost controls/non‑GAAP normalization amid tariff/mix headwinds (bolded in table) .
  • Management reiterated tariff-related volatility but emphasized balance sheet strength ($22.9M cash, $20.0M drawn on $200.0M facility) and acquisition-driven growth; Weport (Mexico) adds North America coverage and a platform for scaling .
  • Near-term narrative catalysts: tariff trajectory, integration of recent acquisitions, and early momentum in value-added logistics and technology initiatives discussed subsequently (Navegate roll-out) .

What Went Well and What Went Wrong

What Went Well

  • Acquisition strategy accretive at the annual level: FY2025 adjusted EBITDA rose 24.4% YoY to $38.8M; CEO attributed ~$6.0M adjusted EBITDA contribution from acquisitions/partner conversions (Cascade, Foundation, TCB, Transcon, Select Logistics, USA Logistics) .
  • Balance sheet and liquidity remained strong entering Q4 report: ~$22.9M cash on hand and only $20.0M drawn against $200.0M credit facility, providing flexibility for tuck-ins and buybacks .
  • Strategic expansion into Mexico via Weport (80% stake) to solidify a true air/ocean capability and serve as a North America platform for growth .

What Went Wrong

  • Quarterly margin pressure: GAAP gross margin fell to 26.2% from 27.8% YoY; adjusted EBITDA margin declined to 13.1% vs 15.0% YoY, reflecting mix and market headwinds .
  • Adjusted profitability down YoY for the quarter: adjusted net income of $5.5M vs $7.0M prior year; adjusted EBITDA $7.9M vs $9.1M prior year .
  • Management cautioned on tariff-driven volatility; Q3 commentary estimated 25–30% of gross margins were impacted by tariffs for that quarter, foreshadowing continued noise into Q4 and beyond .

Financial Results

Quarterly comparison vs prior quarter and prior year

MetricQ4 2024Q3 2025Q4 2025
Revenue ($USD Millions)$206.0 $214.0 $220.6
Diluted EPS ($)$0.10 $0.05 $0.10
GAAP Gross Profit ($USD Millions)$57.3 $54.5 $57.9
GAAP Gross Margin (%)27.8% 25.5% 26.2%
Adjusted Gross Profit ($USD Millions)$60.6 $58.2 $60.4
Adjusted EBITDA ($USD Millions)$9.1 $9.4 $7.9
Adjusted EBITDA Margin (%)15.0% 16.2% 13.1%
Net Income Attributable ($USD Millions)$4.8 $2.5 $4.9

Estimate comparison (S&P Global consensus, Q4 FY2025)

MetricConsensus EstimateActualSurprise
Revenue ($USD Millions)223.7*220.6 -3.1 (-1.4%)*
EPS ($)0.075*0.11*+0.035 (bold beat)*

Values retrieved from S&P Global.*

Segment breakdown

  • The company does not provide a formal segment revenue breakdown in the press release/8‑K; operations are discussed across freight forwarding, brokerage, and value-added logistics without discrete segment reporting .

KPIs (quarterly)

KPIQ4 2024Q3 2025Q4 2025
Adjusted Net Income ($USD Millions)$7.0 $6.9 $5.5
Adjusted Gross Profit %29.4% 27.2% 27.4%
Weighted Avg Diluted Shares (Millions)48.590 48.667 48.691

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/QuarterNot providedNot providedN/A
Gross MarginFY/QuarterNot providedNot providedN/A
Adjusted EBITDAFY/QuarterNot providedNot providedN/A
Tax RateFY/QuarterNormalized 24.5% used for non-GAAP metricsContinued use in adjusted metricsMaintained
Capital AllocationOngoing$200M facility available; low leverageContinued tuck-ins, partner conversions, and buybacksMaintained

Management did not issue quantitative revenue/EPS guidance; commentary emphasized tariff-related volatility and capital allocation priorities .

Earnings Call Themes & Trends

TopicQ2 2025 (Dec 31, 2024)Q3 2025 (Mar 31, 2025)Q4 2025 (Jun 30, 2025)Trend
Tariffs/MacroCaution on newly introduced tariffs with China, Mexico, Canada; expect near-term challenges Estimated 25–30% of gross margins impacted by tariffs; remain nimble Expect continued near-term volatility; anticipate eventual surge in global trade as disputes resolve Persistent headwind; potential rebound if disputes de-escalate
Acquisitions & ConversionsFoundation Logistics, Focus Logistics assets, TCB; strategy to re‑lever through tuck-ins Transcon; USA Logistics; Universal Logistics; accretive contributions Weport (Mexico); continued pipeline of green-field and partner conversions Continued M&A momentum
Technology InitiativesNot highlightedNot highlightedNot highlighted in Q4 PR; subsequent quarter emphasizes Navegate GTM platform as differentiator Increasing emphasis post-Q4
Regional TrendsStrength in U.S. humanitarian charters (49 flights IV fluids) De-escalation in U.S.-China tensions noted; Canada/US legacy ops contributing Mexico platform expansion via Weport to scale North America footprint Diversifying footprint
Capital AllocationUntapped $200M facility; buybacks contemplated Low leverage; continued buybacks/acquisitions $22.9M cash; $20.0M drawn; buybacks (~145,717 shares at $5.48 avg) Ongoing buyback/M&A

Management Commentary

  • “We continue to deliver solid financial results and generated $38.8 million in adjusted EBITDA for our fiscal year ended June 30, 2025… The year-over-year improvement in adjusted EBITDA was driven principally through our acquisition efforts. For the year ended June 30, 2025, our acquisitions generated $6.0 million in adjusted EBITDA…” — Bohn Crain, Founder & CEO .
  • “We expect to continue to see some near-term volatility… tied to… negotiations around trade and tariffs… we intend to remain nimble… and continue to support our customers in navigating these quickly evolving markets” .
  • “We continue to enjoy a strong balance sheet with approximately $22.9 million of cash on hand… and only $20.0 million drawn on our $200.0 million credit facility… staying true to our strategy… strategic operating partner conversions, synergistic tuck-in acquisitions, and stock buy-backs” .
  • On Mexico expansion: “Weport… is well positioned to serve as a platform to help us continue to scale our North American footprint.” .

Q&A Highlights

  • Technology (Navegate GTM): Management underscored Navegate as a market differentiator enabling faster deployment, improved visibility, and potential organic growth; within 1–2 quarters they expect to discuss adoption metrics; flexibility to offer as bundled or unbundled 4PL solution .
  • Near-term macro: Anticipated difficult international freight environment, watching spot rate dynamics; some early signs of improvement in brokerage pricing; regulatory capacity rationalization may help over-road pricing .
  • Regional/warehousing exposure: Core warehousing concentrated in Canada; incremental opportunities in Canada/Mexico due to tariff dynamics; limited U.S. warehouse exposure .
  • Weport update and credit risk: Early confidence in Mexico strategy; one-time $1.3M bad debt tied to First Brands bankruptcy; assessing post-petition support options; not indicative of broader customer risk .
  • Buybacks: Continued activity at perceived attractive valuation; emphasize maintaining financial flexibility but expect to remain active .

Note: The Q4 2025 earnings call transcript was not available in our document set; Q&A references are from the subsequent Q1 FY2026 call for narrative continuity -.

Estimates Context

  • Q4 FY2025: EPS beat and revenue slight miss versus S&P Global consensus; EPS 0.11* vs 0.075* estimate; revenue $220.6M vs $223.7M* estimate; mix/margin compression in the quarter weighed on revenue while EPS benefited from non-GAAP normalization and cost discipline .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • EPS beat despite revenue miss suggests effective cost controls; however margin compression indicates continued pricing/mix pressure from tariffs and market headwinds—watch gross margin trajectory in upcoming quarters .
  • M&A remains a core growth lever; Weport provides a strategic Mexico air/ocean platform to scale North America and support customers diversifying supply chains—monitor integration updates and cross‑sell .
  • Strong liquidity and modest draw on $200M facility enable ongoing tuck-ins, partner conversions, and buybacks; expect continued capital allocation as a support to per‑share metrics .
  • Technology differentiation (Navegate) could become an organic growth catalyst; look for adoption metrics and incremental revenue/margin contribution in the next 1–2 quarters .
  • Tariff developments remain the key macro swing factor; any de-escalation could trigger volume “bullwhip” upside; conversely, prolonged volatility pressures margins—position sizing accordingly .
  • Sequential comparisons: from Q3 to Q4, revenue improved ($214.0M → $220.6M) while adjusted EBITDA declined ($9.4M → $7.9M); focus on conversion of adjusted gross profit to EBITDA amid integration costs .
  • Short-term trading: favor catalysts around tariff headlines, acquisition updates, and technology announcements; medium-term thesis: consolidation strategy + technology + North America footprint expansion could re-rate margins once macro stabilizes .