EPS of $0.13 increased by 566.7% from previous year
Gross margin of 14.6%
Net income of 6.47M
"With the benefit of our diverse service offering, we continue to deliver solid financial results and generated $12 million in adjusted EBITDA for our second fiscal quarter into December 31st, 2024." - Bohn Crain
Radiant Logistics (RLGT) reported a solid QQ2 2025 (quarter ended December 31, 2024) with revenue of $264.54 million and net income of $6.47 million, translating to basic and diluted EPS of $0.14 and $0.13, respectively. Adjusted EBITDA reached $12.02 million in the three months ended December 31, 2024, underscoring the company’s ability to generate cash flow despite a challenging macro environment and modest near-term seasonality headwinds. Management attributes the quarterly outperformance to a diversified service mix and, notably, project-driven logistics related to Hurricane Milton (e.g., IV fluid shipments), which provided meaningful incremental activity and margin contribution within a low-visibility macro backdrop.
Management signaled that near-term results will remain challenged by tariffs and seasonality, but the company remains positioned to navigate through slower markets via a durable business model, a robust North American footprint, and a strong balance sheet (approximately $20 million of cash and an untapped $200 million credit facility). The strategic thrust remains anchored in accretive acquisitions (Foundation Logistics, TCB Transportation, and Focus Logistics conversions) and ongoing tuck-in opportunities within a modular asset-light/agency-based operating model. TCB Transportation, acquired in December, is expected to contribute approximately $2–$3 million of incremental EBITDA, although management cautions that only one month of post-close results is reflected in QQ2 2025 results. Navigate World Trade Services (Radiant World Trade Services) integration remains a core competitive differentiator in customs brokerage and global trade management.
Looking ahead, management projects ongoing volatility from tariff-related dynamics and seasonality but remains optimistic about long-term growth through a disciplined M&A program, gross-margin optimization via partner conversions, and technology-enabled cross-selling. The balance sheet remains a source of resilience, and the company emphasizes capital allocation discipline (acquisitions, partner conversions, and selective buybacks when appropriate). Overall, RLGT presents a constructive risk-adjusted growth profile for investors willing to tolerate near-term macro and policy uncertainty.
Key Performance Indicators
Revenue
264.54M
QoQ: 29.96% | YoY:31.56%
Gross Profit
38.71M
14.63% margin
QoQ: 16.87% | YoY:-77.91%
Operating Income
8.72M
QoQ: 129.28% | YoY:424.16%
Net Income
6.47M
QoQ: 91.56% | YoY:556.55%
EPS
0.14
QoQ: 93.64% | YoY:566.67%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $264.544 million in QQ2 2025, up 31.56% YoY and up 29.96% QoQ (three- and six-month context implied by provided YoY/QoQ metrics).
Gross Profit: $38.713 million; gross margin 14.63% (vs. prior-year period margin implied to be lower, reflecting mix shift and project-driven revenue components).
EBITDA: $14.021 million; EBITDA margin ~5.30% (EBITDA is used as a liquidity and operating efficiency gauge given the asset-light structure).
Net Income: $6.467 million; net income margin 2.44%; basic EPS $0.14, diluted EPS $0.13.
Financial Highlights
Revenue and profitability
- Revenue: $264.544 million in QQ2 2025, up 31.56% YoY and up 29.96% QoQ (three- and six-month context implied by provided YoY/QoQ metrics).
- Gross Profit: $38.713 million; gross margin 14.63% (vs. prior-year period margin implied to be lower, reflecting mix shift and project-driven revenue components).
- Operating Income: $8.722 million; operating margin 3.30%.
- EBITDA: $14.021 million; EBITDA margin ~5.30% (EBITDA is used as a liquidity and operating efficiency gauge given the asset-light structure).
- Net Income: $6.467 million; net income margin 2.44%; basic EPS $0.14, diluted EPS $0.13.
- Net Income and EPS show a strong YoY uplift (Net Income YoY +556.5%; EPS YoY +566.7%), driven by higher revenue and operating leverage from the mix of services and acquisitions.
Cash flow and liquidity
- Net cash provided by operating activities: $15.685 million; free cash flow: $14.139 million.
- Capital expenditures: $1.546 million; acquisitions net of cash: $4.412 million (TCB-related activity reflected in December quarter).
- Net cash used for investing activities: $(5.91) million; net cash used for financing activities: $(0.181) million; net change in cash: $9.46 million.
- Cash at end of period: $19.908 million; cash on hand supports flexibility to fund bolt-on acquisitions and strategic partnerships.
Balance sheet and leverage
- Total assets: $386.761 million; total liabilities: $172.213 million; total stockholders’ equity: $214.449 million.
- Current assets $152.868 million; total current liabilities $108.102 million; current ratio 1.41x; quick ratio 1.41x; cash ratio 0.184x.
- Total debt: $66.778 million; net debt: $46.87 million; enterprise value multiple (based on ratios) ~25.8x; net debt to EBITDA (trailing) approximately 1.1x, indicating a conservative balance sheet posture given the acquisition runway and cash generation potential.
Operational mix and efficiency
- Revenue mix reflects a diversified funnel including intermodal, freight forwarding, brokerage services, and customs brokerage (Navigate platform, now Radiant World Trade Services).
- Margin compression evidenced by gross margin (~14.6%) in QQ2 2025, suggesting ongoing competitive pricing pressure and mix effects, even as EBITDA expands from higher utilization and synergy realization from recent conversions and acquisitions.
- Value creation through agency conversions: EBITDA margin expansion is expected as agency stations convert, reducing variable commission expense (“margin expansion” via lower commission outlays while keeping gross margin stable).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
264.54M
31.56%
29.96%
Gross Profit
38.71M
-77.91%
16.87%
Operating Income
8.72M
424.16%
129.28%
Net Income
6.47M
556.55%
91.56%
EPS
0.14
566.67%
93.64%
Key Financial Ratios
currentRatio
1.41
grossProfitMargin
14.6%
operatingProfitMargin
3.3%
netProfitMargin
2.44%
returnOnAssets
1.67%
returnOnEquity
3.02%
debtEquityRatio
0.31
operatingCashFlowPerShare
$0.33
freeCashFlowPerShare
$0.3
priceToBookRatio
1.47
priceEarningsRatio
12.16
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Key management insights from the earnings call and discussion:
- Strategy and growth construct: “With the benefit of our diverse service offering, we continue to deliver solid financial results and generated $12 million in adjusted EBITDA for our second fiscal quarter into December 31st, 2024.” (Bohn Crain, CEO)
- M&A and integration: “The acquisition of Texas-based Foundation Logistics, the conversion of Focus Logistics in Michigan (Detroit), and the acquisition of TCB Transportation in St. Louis…represent a broader pipeline of opportunities, including greenfield acquisitions and opportunities in our agent-based network.” (Bohn Crain, CEO)
- Incremental EBITDA from acquisitions: “dimensionally, it’s in $2 million to $3 million of incremental EBITDA contribution is what we would anticipate from that business” (TCB Transportation discussion; Bohn Crain).
- Customs brokerage and technology: “Navigate…rebranded as Radiant World Trade Services…bundled solution offering to provide a robust collaboration platform for PO management, vendor management, customs brokerage, in a holistic way” (Bohn Crain).
- Tariffs and near-term headwinds: “near-term results could also be further frustrated by the recently introduced tariffs with China, Mexico, and Canada as we head into our slowest seasonal quarter ended March 31” (Bohn Crain).
- Balance sheet and flexibility: “strong balance sheet with approximately $20 million of cash on hand, no meaningful debt, and an untapped $200 million credit facility” (Bohn Crain).
- Market outlook and industry dynamics: “the market remains soft… but I’ve never been more bullish about Radiant’s prospects… we have the financial flexibility and a differentiated tech stack” (Bohn Crain, Kevin Gainey/Q1 commentary).
With the benefit of our diverse service offering, we continue to deliver solid financial results and generated $12 million in adjusted EBITDA for our second fiscal quarter into December 31st, 2024.
— Bohn Crain
We see a lot of potential revenue synergies through the onboarding of this [TCB Transportation] and they're a small but mighty player in the 40-foot space.
— Bohn Crain
Forward Guidance
Outlook and management assessment:
- Near-term visibility remains constrained by tariff policy developments and seasonality. Management reiterated a cautious stance that QQ3/Q1 (calendar Q1 2025, quarter ended March 31) is historically the slowest period and that tariffs could inject additional volatility into near-term results.
- Near-term growth drivers: ongoing consolidation in the brokerage/intermodal space via agency conversions and tuck-in acquisitions (e.g., TCB Transportation’s integration is still in early stages with limited post-close run-rate impact). Management indicated expected incremental EBITDA from TCB of approximately $2–$3 million, recognizing only one month of contribution in QQ2 2025.
- Revenue and margin trajectory: Revenue growth remains a positive driver (YoY +31.6%), but gross margin is under pressure (gross margin ~14.6%) due to mix and market conditions. The company expects operating leverage to improve as conversions complete and the Navigate platform benefits broaden cross-sell opportunities.
- Balance sheet and capital allocation: Radiant emphasizes disciplined, multi-pronged capital allocation (agency station conversions, opportunistic tuck-ins, and selective stock buybacks when appropriate). The company also maintains a robust cash position and a large undrawn credit facility, enabling further M&A and strategic investments if favorable opportunities arise.
- Key factors for investors to monitor: tariff policy evolution and potential remediation or escalation, macro demand signals in North America, the pace and profitability of integration for Foundation Logistics, Focus Logistics, and TCB Transportation, and the contribution from radiating Navigate-enabled capabilities to cross-sell international services across the client base.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
RLGT Focus
14.63%
3.30%
3.02%
12.16%
EVI
29.70%
2.58%
0.82%
46.12%
PAMT
5.67%
-0.39%
-0.95%
-29.79%
TRAK
81.70%
24.60%
3.24%
65.11%
ULH
17.00%
10.20%
5.05%
8.69%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Radiant Logistics’ QQ2 2025 performance reinforces a disciplined growth thesis centered on a diversified industrial services platform, selective M&A, and technology-enabled cross-selling. Near-term headwinds from tariffs and seasonality temper visibility, but the company has meaningful optionality through a robust balance sheet and a sizable, undrawn credit facility to fund accretive acquisitions and technology investments. The incremental EBITDA potential from TCB Transportation, continued agency-conversion-driven margin expansion, and the Navigate platform’s integration into cross-border clients support a constructive longer-term trajectory. Investors should monitor tariff developments, integration progress of acquisitions, and the organic growth trajectory of cross-sell opportunities across the Radiant network. Valuation is supported by a multi-year growth cadence but remains sensitive to macro policy risk and throughput capacity dynamics in North American freight markets.
Key Investment Factors
Growth Potential
Strategic growth is anchored in (i) accretive tuck-in acquisitions and greenfield opportunities within Radiant’s agent network and intermodal/OOI (over-the-road/intermodal) space, (ii) margin expansion through agency conversions that reduce commission expense while preserving gross margin, and (iii) technology-enabled cross-selling via Navigate/Radiant World Trade Services, enhancing PO/vendor management, customs brokerage, and global trade visibility. Management indicated $2–$3 million of incremental EBITDA potential from TCB Transportation and highlighted a healthy pipeline of opportunities, including greenfield targets and partner exits.
Profitability Risk
Key risks include (i) tariff policy volatility and potential shocks to import demand, (ii) execution risk from ongoing acquisitions and integration (cultural and systems alignment, customer retention), (iii) potential cyclical or secular downturn in freight volumes, (iv) currency fluctuations given a sizable Canadian footprint, and (v) competitive pricing pressures in a low-margin segment of the third-party logistics market.
Financial Position
Radiant maintains a solid liquidity and balance sheet with approximately $20 million of cash, no meaningful debt, and an untapped $200 million credit facility. Net debt to EBITDA stands around 1.1x on an implied trailing basis, providing substantial dry powder for continued M&A and strategic investments while preserving financial flexibility to navigate tariff-driven volatility and seasonality.
SWOT Analysis
Strengths
Diverse, multi-modal service offering (freight forwarding, brokerage, intermodal, customs brokerage via Navigate/WORLD Trade Services) reducing dependency on a single revenue stream.
Strong liquidity and asset-light profile with substantial cash and a large undrawn credit facility (approx. $200 million).
Active M&A and partner-conversion program generating incremental EBITDA and expanding the network (Foundation Logistics, Focus Logistics conversion, TCB Transportation).
Navigate-enabled global trade management capabilities that enhance cross-selling and customer collaboration.
Weaknesses
Gross margin softness (~14.6% in QQ2 2025) despite revenue growth, indicating ongoing pricing pressure and mix-related headwinds.
Constrained near-term visibility due to tariff policy and seasonality, complicating quarterly forecasting.
Reliance on project-driven surges (e.g., Milton IV fluid shipments) which may be episodic rather than recurring.
Opportunities
Acceleration of intermodal/bimodal services through TCB and other partnerships to broaden capacity and service mix.
Expansion of Navigate-based global trade platform to deepen cross-sell with international clients.
Continued agency-conversion program to improve EBITDA efficiency and operating leverage.
Threats
Tariff dynamics and protectionist measures impacting trade flows and carrier pricing.
Market softness and cyclicality in industrial/logistics volumes.
Integration risks and potential dilution from M&A activity if target synergies underperform.
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