Executive Summary
Radiant Logistics reported a challenging Q3 FY2024 (quarter ended March 31, 2024) characterized by a weak freight market and tough year-over-year comparisons. Revenue was $184.6 million, with a gross margin of 15.8% and a net loss of $0.7 million for the quarter. Adjusted EBITDA totaled $5.28 million, down meaningfully versus $11.56 million in the year-ago quarter, while nine-month adjusted EBITDA stood at $22.08 million, a roughly 52% decline vs. the prior year period. On the balance sheet, Radiant maintains a solid liquidity position with approximately $31.8 million of cash and no draws on its $200 million revolver, and total debt of $60.7 million leaving net debt of about $28.9 million. Importantly, management emphasized financial discipline, a capital-allocation framework centered on agent-station conversions, tuck-in acquisitions, and stock buybacks, and a pathway to normalized results as freight markets stabilize.
Management acknowledged ongoing softness in the market but highlighted a clear path to improvement: sequential quarterly gains were observed through January–March 2024, with April “continuing to build on that trend,” and the company expects to exit Q3 into a more normalized level of activity. The growth strategy combines organic revenue expansion with strategic acquisitions and balance-sheet optimization, including 3 notable agent-station conversions (Daleray in Oct 2023; Select in Feb 2024) and Viking Worldwide in Apr 2024, plus ongoing stock repurchases as capital deployment opportunities arise. Radiant also underscored its predominantly domestic, non-asset-based model and the anticipated resilience of its North American footprint amid mixed international trends. While the near term remains challenging, the company signals its readiness to capitalize on market normalization, nearshoring opportunities, and select tuck-ins to drive profitable growth.
Key takeaways for investors center on (1) a stabilized liquidity position and modest free cash flow generation despite a negative quarterly net income, (2) a disciplined, multi-pronged growth strategy that leverages agent-to-company transitions and bolt-on acquisitions, and (3) a constructive, though prolonged, recovery trajectory in freight markets, with Q4 expected to be stronger than Q3 as seasonality normalizes. The balance of risks includes continued freight-cycle headwinds, pricing pressure during capacity misalignment, and execution risk associated with integrations and growth initiatives.
Key Performance Indicators
QoQ: -8.22% | YoY:-24.41%
QoQ: -83.36% | YoY:-31.62%
QoQ: -146.69% | YoY:-112.42%
QoQ: -171.37% | YoY:-116.81%
QoQ: -171.43% | YoY:-117.28%
Key Insights
Revenue: $184.559 million (Q3 2024); YoY change: -24.41%; QoQ change: -8.22%.
Gross Profit: $29.165 million; Gross Margin: 15.80%; YoY gross profit change: -31.62%; QoQ change: -83.36%.
Operating Income: -$0.777 million; Operating Margin: -0.42%; YoY: -112.42%; QoQ: -146.69%.
EBITDA: $4.224 million for Q3 2024; EBITDA Margin: 2.29%; YoY EBITDA change: (approx. -62% vs 3Q 2023 $11.122 million); QoQ change: -32% vs 2Q 2024.
Net Income: -$0.703 million; Net Margin: -0.38%; YoY: -116.81%; QoQ: -171....
Financial Highlights
Revenue: $184.559 million (Q3 2024); YoY change: -24.41%; QoQ change: -8.22%.
Gross Profit: $29.165 million; Gross Margin: 15.80%; YoY gross profit change: -31.62%; QoQ change: -83.36%.
Operating Income: -$0.777 million; Operating Margin: -0.42%; YoY: -112.42%; QoQ: -146.69%.
EBITDA: $4.224 million for Q3 2024; EBITDA Margin: 2.29%; YoY EBITDA change: (approx. -62% vs 3Q 2023 $11.122 million); QoQ change: -32% vs 2Q 2024.
Net Income: -$0.703 million; Net Margin: -0.38%; YoY: -116.81%; QoQ: -171.37%.
EPS (diluted): -$0.015; YoY: -117.28%; QoQ: -171.43%.
Cash Flow and Liquidity: Net cash provided by operating activities $3.909 million; Free cash flow $1.776 million; Cash at end of period $31.826 million; Net change in cash: -$1.058 million; Cash from financing activities: -$1.481 million; Operating cash flow yield (operating cash flow to revenue) ~2.12%; Free cash flow to revenue ~0.96%.
Balance Sheet: Total assets $363.966 million; Total current assets $159.753 million; Total liabilities $157.817 million; Total stockholders’ equity $205.971 million; Total debt $60.712 million; Net debt $28.886 million; Current ratio 1.514; Gross debt to capitalization 0.228; Net debt to EBITDA (9M 2024) not disclosed but implied manageable given liquidity. Significant liquidity with no revolver draw on the $200 million facility as of March 31, 2024.
Shareholder Metrics: Weighted average shares outstanding 46.964 million; Fully diluted 46.964 million (approx.).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
184.56M |
-24.41% |
-8.22% |
| Gross Profit |
29.17M |
-31.62% |
-83.36% |
| Operating Income |
-777.00K |
-112.42% |
-146.69% |
| Net Income |
-703.00K |
-116.81% |
-171.37% |
| EPS |
-0.02 |
-117.28% |
-171.43% |
Key Financial Ratios
operatingProfitMargin
-0.42%
operatingCashFlowPerShare
$0.08
freeCashFlowPerShare
$0.04
priceEarningsRatio
-90.52
Management Commentary
Market Environment and Trajectory
• “January started off really, really slow. And we have seen kind of sequential, February was better than January, and March was better than February. And kind of early indications, April is continuing to build on that trend.” (CEO, Bohn Crain)
• “we expect sequential quarterly improvement moving forward as markets find their way to more sustainable and normalized levels.” (CEO, Bohn Crain)
• “The international has been soft, but that seems to be improving. Canada … meaningful progress.” (CEO, Bohn Crain)
• “one of our most challenged areas has been intermodal … optimistic about the trajectory of what we’re doing in Chicago with our bimodal initiatives.” (CEO, Bohn Crain)
Strategic Alternatives and Capital Allocation
• “We remain focused on delivering profitable growth through a combination of organic and acquisition initiatives and thoughtfully relevering our balance sheet through a combination of agent station conversions, synergistic tuck-in acquisitions and stock buybacks.” (CEO, Bohn Crain)
• “we see a big opportunity emerging in the conversion of our agent stations to company-owned stores … pipeline of tuck-in acquisitions.” (CEO, Bohn Crain)
• “We expect to be active in our stock buyback moving forward.” (CEO, Bohn Crain)
Market Position and Competitive Environment
• “We are disciplined allocators of capital… the market is coming to us a little bit.” (CEO, Bohn Crain)
• “We’re not chasing deals in this environment, but we’ll look at opportunities that meet our valuation and structural criteria.” (CEO, Bohn Crain)
Operational and Customer Dynamics
• “Our customers have just been shipping less in this environment.” (CEO, Bohn Crain)
• “near-shoring and Mexico continues to play out as a growth opportunity.” (CEO, Bohn Crain)
• “cruise line industry in South Florida … trade shows coming back strongly.” (CEO, Bohn Crain)
• “the balance sheet remains a strength with cash on hand and no debt drawn on the facility.” (CEO, Bohn Crain)
January started off really, really slow. And we have seen kind of sequential, February was better than January, and March was better than February. And kind of early indications, April is continuing to build on that trend.
— Bohn Crain
We expect to be active in our stock buyback moving forward.
— Bohn Crain
Forward Guidance
Management commentary around guidance is qualitative, consistent with a signaling of a bottoming freight cycle and a move toward normalized seasonal trends. Key elements:
- Sequential improvement expected: “January started off slow… February better than January, March better than February, and April continuing to build on that trend.” This implies an improving run rate through Q3–Q4 2024 and into the 2025 period as markets normalize.
- Q4 outlook: Management indicated Q4 should be stronger than Q3 due to seasonality and the normalization of freight demand, although no specific revenue or EBITDA targets were provided. The historically weakest quarter (Q3) is expected to give way to a stronger Q4,
- Growth and capital allocation: The company will continue to deploy capital across three levers—organic growth, selective tuck-in acquisitions, and stock buybacks—subject to valuation discipline and liquidity: “multiyear capital allocation plan” involving agent-station conversions, acquisitions, and buybacks.
- Leverage and liquidity: Radiant targeted leverage around 2.5x funded debt to EBITDA with a cushion, and maintains substantial cash on hand (approx. $31–32 million) with no debt drawn on the revolver; investors should monitor cash flow from operations, working capital dynamics, and the pace of tuck-ins and conversions as key near-term drivers of liquidity and optionality.
- Market factors to monitor: pace of international recovery, continued near-shoring activity (Mexico, Canada), demand for air vs. ocean in international lanes, and the durability of price/volume trends as capacity rebalances occur. The company also flagged a potential rebound in cruise line-related logistics and retail distributions as indicators of demand stabilization.