Radiant Logistics Q4 2025 Earnings Call Transcript

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September 15, 2025

Key Takeaways

  • Positive Sentiment: We generated $38.8 million in adjusted EBITDA for fiscal year 2025, up 24.4% year-over-year, driven principally by our acquisition efforts.
  • Positive Sentiment: We completed six strategic transactions in fiscal 2025, including the Greenfield acquisitions of Cascade Transportation, Foundation Logistics, TCB Transportation, TransCon Shipping, and the conversion of Select Logistics and USA Logistics, plus the recent purchase of Mexico-based WePort to expand our North American footprint.
  • Neutral Sentiment: We expect near-term volatility from U.S. trade and tariff negotiations but remain nimble in supporting customers and anticipate a surge in global trade once disputes are resolved.
  • Positive Sentiment: We maintain a strong balance sheet with $23 million in cash and only $20 million drawn on our $200 million credit facility, while targeting a disciplined leverage ratio around 2.5x net debt to EBITDA through acquisitions, conversions, and stock buybacks.
  • Negative Sentiment: In the fourth quarter, adjusted EBITDA fell 13.1% and adjusted net income declined 21.8% year-over-year, reflecting less pull-forward volume amid tariff timing.
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Earnings Conference Call
Radiant Logistics Q4 2025
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Operator

Good afternoon. Welcome to Radiant Logistics, Inc.'s financial discussion for our fourth fiscal quarter and year ended June 30, 2025. This afternoon, Bohn Crain, Radiant Logistics Founder and CEO, and Radiant's Chief Financial Officer, Todd Macomber, will provide a general business update and discuss financial results for the company's fourth fiscal quarter and year ended June 30, 2025. Following their comments, we will open the call to questions. This conference is scheduled for 30 minutes. This conference may include forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. The company has based these forward-looking statements on its current expectations and projections about future events.

Operator

These forward-looking statements are subject to known and unknown risks, uncertainties, and assumptions about the company that may cause the company's actual results or achievements to be materially different from the results or achievements expressed or implied by such forward-looking statements. While it is impossible to identify all the factors that may cause the company's actual results or achievements to differ materially from those set forth in our forward-looking statements, such factors include those that have in the past and may in the future be identified in the company's SEC filings and other public announcements, which are available on our website at www.radiantdelivers.com. In addition, past results are not necessarily an indication of future performance. Now I would like to call over to Radiant's Founder and CEO, Bohn Crain.

Bohn Crain
Founder and CEO

Thanks, Matthew. Good afternoon, everyone, and thank you for joining in on today's call. With the benefit of our diverse service offering and ongoing acquisition efforts, we continue to deliver solid financial results and generated $38.8 million in adjusted EBITDA for our fiscal year ended June 30, 2025, which is up $7.6 million and 24.4% relative to the prior year period. 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 million in adjusted EBITDA, driven principally by our Greenfield acquisitions of Seattle-based Cascade Transportation in June 2024, Houston-based Foundation Logistics and Services in September 2024, St. Louis-based TCB Transportation in December 2024, and Los Angeles-based TransCon Shipping in March 2025, along with the conversion of our strategic operating partners, Miami-based Select Logistics in February 2024 and Philadelphia-based USA Logistics in April 2025.

Bohn Crain
Founder and CEO

Notwithstanding these strong year-over-year results, we expect to continue to see some near-term volatility tied to the ebb and flow of the ongoing U.S. negotiations around trade and tariffs. In any event, we continue to believe that there will ultimately be a surge in global trade as these tariff disputes are brought to rest. In the interim, we intend to remain nimble in response to any tariff announcements by the U.S. administration and continue to support our customers in navigating these quickly evolving markets and executing thoughtful supply chain strategies for competitive advantage. As previously discussed, we believe we are well positioned with a durable business model, diverse service offering, and strong balance sheet to navigate through a slower freight market.

Bohn Crain
Founder and CEO

We continue to enjoy a strong balance sheet with approximately $23 million of cash on hand as of June 30 and only $20 million drawn on our $200 million credit facility. At the same time, we remain focused on the long term, staying true to our strategy to deliver profitable growth through a combination of organic and acquisition initiatives, while thoughtfully re-levering our balance sheet through a combination of strategic operating partner conversions, synergistic tuck-in acquisitions, and stock buybacks. We made good progress in this regard over this last year, having completed three Greenfield acquisitions and three strategic operating partner conversions in fiscal 2025. In addition, earlier this month, we achieved a significant milestone with our acquisition of Mexico-based WePort.

Bohn Crain
Founder and CEO

Mexico is an important market for us, and in addition to supporting Radiant's legacy and prospective customers across Mexico, WePort is well positioned to serve as a platform to help us continue to scale our North American footprint. We believe these transactions are representative of a broader pipeline of opportunities, which includes both Greenfield acquisitions, companies not currently part of our network, as well as acquisition opportunities inherent in our agent-based network, where we can support our current operating partners in their exit strategies and look forward to providing further updates as we progress our acquisition efforts. With that, I'll turn it over to Todd Macomber, our CFO, to walk us through our detailed financial results, and then we'll open it up for some Q&A.

Todd Macomber
CFO

Thanks, Bohn, and good afternoon, everyone. Today we will be discussing our financial results, including adjusted net income and adjusted EBITDA for the three and 12 months ended June 30, 2025. For the three months ended June 30, 2025, we reported net income attributable to Radiant Logistics for the quarter of $4,907,000 on $220.6 million of revenues, or $0.10 per basic and fully diluted share. For the three months ended June 30, 2024, we reported net income attributable to Radiant Logistics of $4,781,000 on $206 million of revenues, or $0.10 per basic and fully diluted share. This represents an improvement of approximately $126,000 of net income over the comparable prior year period, or 2.6%. Accordingly, adjusted net income results. For adjusted net income, we reported $5,485,000 for the three months ended June 30, 2025, compared to adjusted net income of $7,015,000 for the three months ended June 30, 2024.

Todd Macomber
CFO

This represents a decrease of approximately $1,530,000 or approximately 21.8%. For adjusted EBITDA, we reported $7,890,000 for the three months ended June 30, 2025, compared to adjusted EBITDA of $9,078,000 for the three months ended June 30, 2024. This represents a decrease of approximately $1,188,000 or approximately 13.1%. Moving on to the 12-month results. For the 12 months ended June 30, 2025, we reported net income attributable to Radiant Logistics of $17,291,000 on $902.7 million of revenues, or $0.37 per basic and $0.35 per fully diluted share. For the 12 months ended June 30, 2024, we reported net income attributable to Radiant Logistics of $7,685,000 on $802.5 million of revenues, or $0.16 per basic and fully diluted share. This represents an increase of approximately $9,606,000 over the comparable prior year period or 125%.

Todd Macomber
CFO

For adjusted net income, we reported $30,944,000 for the 12 months ended June 30, 2025, compared to adjusted net income of $22,647,000 for the 12 months ended June 30, 2024. This represents an increase of approximately $8,297,000 or approximately 36.6%. For adjusted EBITDA, we reported $38,756,000 for the 12 months ended June 30, 2025, compared to adjusted EBITDA of $31,160,000 for the 12 months ended June 30, 2024. This represents an increase of approximately $7,596,000 or approximately 24.4%. With that, I will turn the call over to our moderator to facilitate any Q&A from our callers.

Operator

Certainly. Everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star one on your phone. Thank you. Your first question is coming from Elliot Appel from TD Cowen. Your line is live.

Elliot Appel
Analyst

Yeah, thank you. This is Elliot Appel on for Jason Seidel. Can you talk about, hey guys, can you talk about the changing trade policy and how that's affected your business? I guess maybe more specifically first on the Mexico side, given your recent acquisition of WePort?

Bohn Crain
Founder and CEO

Sure. It remains fluid, obviously, and it's fits and starts, right? Initially there were some pull forward, with people trying to get ahead of tariffs. Then there's little inventory builds up. There were some warehousing constraints with everybody trying to navigate various strategies around the tariffs, including kind of bringing freight to U.S. adjacencies, whether that's Canada or Mexico. It remains an interesting time. I think we're seeing definitely a continued shift or diversification away from China to Southeast Asia, and markets like Mexico, we believe, will continue to be a beneficiary of kind of the trade dynamic. I can't tell you kind of which way the winds will blow next, but it will remain volatile, or I would expect that it will.

Bohn Crain
Founder and CEO

We're going to be there to support our customers through that process while at the same time continuing to build out and solidify our own presence across North America. For the longest time, we've been strong in the U.S. Back in 2015, we acquired another public company, formerly known as Wills, that represented our platform in Canada. Our opportunity to partner with WePort in the Mexico transaction is kind of a continuation along the theme and making good on our own kind of vision or aspirations to really have a robust kind of one-stop shop opportunity for North America on a more comprehensive basis. WePort represents that for us, helping kind of complete our North American puzzle as we move forward.

Elliot Appel
Analyst

Okay. Great. We've seen a lot of volatility on the imports this year, I guess, two different pull-forward events. We've also seen kind of more capacity in PEUs come online this year. I guess, how are you managing your business differently given all that's going on? How are your customers managing their businesses differently?

Bohn Crain
Founder and CEO

It's been an interesting time. It's harder for the customers to manage their supply chain just given the volatility. A lot of shippers have been just doing their best to buy time, in and around when they, you know, either getting in ahead of tariff-effective dates or back to this idea of bringing freight either into Canada or Mexico, while trying to decipher what's going to happen next or which commodities are going to be impacted and so on. Until there are more announcements made around various commodities or times for changes, it remains difficult. Of course, we've got the whole, you know, whether the tariffs are even legal, I guess, is coming before the Supreme Court. Needless to say, our and our competitors' customs brokerage operations are extremely active trying to keep up with these uncertain times and doing what we can to support our customers through that journey.

Elliot Appel
Analyst

Okay. That's helpful. Maybe just one on the near term. Adjusted EBITDA was a bit below us, specifically EBITDA margins, I guess. Anything to call out in the quarter? Any pull forward or lack thereof would be helpful. Thank you.

Todd Macomber
CFO

Yeah, I think it's more lack thereof. I think it was more of a pull forward in earlier periods is what it was. Like Bohn said, people pull forward and you build inventories and you burn through them and then you need to get back to bringing product in. That's what I was seeing. I think it's timing, right? It's hard for us to really quantify when these things are going to change. Clearly, it's impacting us, sometimes favorably and sometimes not. In this particular quarter, I think there was less pull forward is what we saw. It's nothing alarming, and it's kind of to be expected, but it's hard for us to quantify exactly how things play out in the near term.

Elliot Appel
Analyst

Thank you, guys.

Bohn Crain
Founder and CEO

You bet.

Operator

Thank you. Your next question is coming from Mark Argento from Lake Street. Your line is live.

Mark Argento
Analyst

Hey guys, just a quick follow-up on the last question in terms of the EBITDA. I did notice it looks like depreciation and amortization in the quarter was down at $3.6 million, running closer to $5 million a quarter. Obviously, that add-back wasn't there for us. What, you know, did you guys end up writing something down or what was it?

Todd Macomber
CFO

No, as Bohn mentioned, in 2015, we did a pretty big acquisition, Wills Group, and that was a 10-year life. Basically, it was a substantial amortization associated with that acquisition that got to the end of its life. Now the numbers you see for this quarter are going to be more baseline going forward. It's purely that.

Mark Argento
Analyst

Got it. Just the Wills deal fell off for the acquisition.

Todd Macomber
CFO

Yep.

Mark Argento
Analyst

Got it.

Todd Macomber
CFO

Yep.

Mark Argento
Analyst

That's helpful. Yeah, just pivoting back, obviously, you guys have been super active on the M&A side and buying in. I mean, a lot of these guys you're buying, you're doing business, you're integrating, you've already, they're already almost integrated effectively. Is there kind of a capacity limitation? Is there any reason you couldn't do 10 or 15 of these a year? I mean, not to get overzealous, but maybe you just talk through how you're thinking about the pipeline and your ability to do more of this.

Bohn Crain
Founder and CEO

Sure. We've always talked about kind of what are the constraints around acquisitions, and we really don't think there's a true constraint on interesting acquisition candidates. Given our low leverage, we've got ample kind of capacity to do deals. The ultimate constraint really becomes our ability to kind of integrate and digest the things that we acquire. Mark, you'll remember we've historically thought of having a couple of different platforms to support M&A activity. We've historically had our U.S. forwarding operation platform. That's where you're seeing all of our Asia Station conversions occurring. We also have our U.S. intermodal and truck brokerage platform in Chicago, where we're looking to do transactions. That's where we were able to do the TCB Transportation transaction from. We have our Canadian platform where we're always interested in exploring Canadian-type opportunities.

Bohn Crain
Founder and CEO

Most recently with WePort, we'll have yet a fourth, I think of that as yet a fourth platform where we could explore kind of other potentially interesting opportunities. From a Mexico standpoint, to continue to build out our capabilities in Mexico. Coming back, for the longest time, we've talked about our extreme low leverage on our balance sheet. As we kind of work our way back to a more normalized level, we have quite a bit of capacity within our existing capital structure to continue to grow, particularly when you consider kind of the free cash flow characteristics of the business. That's kind of part and parcel of what we're doing. I like your choice of words. I really don't view us as being aggressive, but I do view us as being active. I think the overall market dynamics kind of point the arrow our way right now.

Bohn Crain
Founder and CEO

We're trying to lean into that opportunity, and we're really excited about the things that we're doing, as well as some other kind of organic initiatives that are pretty exciting that we're working towards.

Mark Argento
Analyst

This is the final one for me. In terms of the tariff situation, we're also getting closer to year-end here and the holidays and everything else going on. I mean, are you starting to see any activity, like if a country looks like they've come to terms with the administration, all of a sudden you start to see things maybe moving around a little bit more in and around those geographies, or is everybody still playing a little bit of wait and see here, regardless of that, we're two and a half months or three months out from year-end?

Bohn Crain
Founder and CEO

I think people are generally expecting, and I guess I would call it a muted peak. I don't think we're going to see the traditional peak season that we might have otherwise. We do have these underlying thematics of more freight being sourced out of Southeast Asia. I don't think that's going away. The growth, I can't say enough about the growth that has occurred and is expected to continue to occur in Mexico. I think it was really important for us to expand our presence not only for new opportunities, but to support our own existing customer base as they themselves are diversifying more and more of their own supply chains to a kind of a near-sourcing type strategy.

Mark Argento
Analyst

Yep. That's helpful. Awesome. Thanks, guys. Appreciate it.

Bohn Crain
Founder and CEO

You bet.

Operator

Thank you. Your next question is coming from Jeff Kaufman from Vertical Research Partners. Your line is live.

Jeff Kauffman
Analyst

Thank you very much. Congratulations, guys. Crazy year. You know, Bohn, I'd like to go revisit your comment about getting a little bit more active and levering up. Do you have a particular target where you don't necessarily want to lever up past a certain point as you re-lever the balance sheet and grow?

Bohn Crain
Founder and CEO

I think the short answer is yes. I think for me, kind of the normalized target would be, call it plus or minus 2.5 times. That's not to say we might, I mean, who knows whether we'll ever get there, but at the same time, we might flex up a little bit more than that on a very temporary basis if we had the right type of transaction. We certainly don't, you know, have any expectations to go lever up at 4 or 5x like some of our PE-sponsored competitors might.

Jeff Kauffman
Analyst

You stepped up and acquired a Mexican operation at a time when the transborder tariff situation is a little bit unclear. Was that a special situation, or are you seeing this more as an opportunity where, look, eventually, we're going to get these tariffs figured out, and if we can find the right international partners, it makes sense?

Bohn Crain
Founder and CEO

I think it was opportunistic. I also think it's the right international partners. You know, we all, myself included, have a tendency to think of, you know, the U.S. being the center of the world. There's a big set of global commerce going on where we're not necessarily the center of. There's an extraordinary amount of trade between China and Europe and Mexico. WePort's international business really was virtually little, any cross-border business. It's true international air and ocean business, you know, from the Pacific and Europe. We have, for a long time, been in the cross-border business independent of the WePort transaction. What we really didn't have was a strong, true international air and ocean capability as it relates to Mexico that we now enjoy by operation of the WePort transaction.

Jeff Kauffman
Analyst

Okay. Just a couple of detailed questions for Todd, if I can. Todd, I think you answered an earlier question on the DNA. There's a step down there, and $3.6 million is kind of the right forward run rate we should be thinking about. Was that the answer?

Todd Macomber
CFO

Yeah, I'd have to look at it closely because I think if I remember correctly, we did the acquisition right at the beginning of the fourth quarter in 2015. I mean, we're going back 10 years, right? I can validate that, but I'm pretty sure it was at the very beginning of the quarter. I think what we've got, we could circle back. That's kind of my only question, was there some within the quarter, which I don't think there really was? I think it really kind of fell off, you know, the Wills transaction at the end of Q3. I just want to validate.

Jeff Kauffman
Analyst

The wheels came off at the end of Q3. Got it. The way I think about, I guess, 2026, there we go, is it's going to be about a $4 million drag on EBITDA in terms of the comparison 2026 over 2025. Is that the right way to think about it?

Todd Macomber
CFO

For adjusted EBITDA, you're saying?

Jeff Kauffman
Analyst

Yeah.

Todd Macomber
CFO

I mean, it's an add-back, right? You know, it wouldn't.

Jeff Kauffman
Analyst

I'm sorry. It's a benefit. Thank you. Thank you. Benefit.

Todd Macomber
CFO

It'll help us for net income, right? It's kind of, I think it's, you know, it wouldn't matter with the EBITDA.

Jeff Kauffman
Analyst

Correct. Correct. Just two other quick detail questions. The contingent consideration add-back, that was just kind of more of a one-timer, but these things happen every now and then. We're just going back to the consideration.

Bohn Crain
Founder and CEO

We have to evaluate all the time, and we do that every quarter. We've got some headwinds going on right now. Quite honestly, it's impossible for us to know where we're going to be 18 months from now, but we do our best and use our judgment to kind of true up where we think the overall contingent consideration liability is today. We're always adjusting, and sometimes we adjust up and we adjust down. We did.

Todd Macomber
CFO

Let me hop in one second. You know, Jeff, for me, that kind of line item is really just a manifestation of our earnout structure at work, right? Right. Mitigate to ensure we don't overpay or underpay for the businesses that we acquire.

Jeff Kauffman
Analyst

Overall, you'd rather be a payer of that contingent consideration because that would mean the earnout cost.

Bohn Crain
Founder and CEO

Of course. Overall, we would. At the same time, if we have a benefit, which means we had overestimated the liability that we're needing to unwind, correct, that is just kind of the earnout structure at work to protect us from overpaying or to mitigate the liability that we would overpay.

Jeff Kauffman
Analyst

Last question for Todd. Todd, thank you. I was expecting a 24% income tax rate this quarter, and I see in the detailed tables that you're saying that should be the effective tax rate. Taxes were in that add to net income. What happened with taxes this quarter?

Todd Macomber
CFO

Yeah, that was a true-up basically with the end of the year. When we went through all the calculations, the net net was an actual benefit, slight benefit. It was an overestimate in the prior period.

Jeff Kauffman
Analyst

Okay, that's just evening up an overpayment.

Todd Macomber
CFO

Yeah, I would not expect that going forward, right? I would use a normalized rate going forward. This was just simply a true-up when we went through all the mechanics. Definitely could use this.

Jeff Kauffman
Analyst

Thank you.

Bohn Crain
Founder and CEO

You bet. Thanks, Jeff.

Jeff Kauffman
Analyst

No, I appreciate that. Thanks, guys.

Bohn Crain
Founder and CEO

Yeah, you bet, Jeff.

Operator

Thank you. Your next question is coming from Mike Vermitt from Newland Capital. Your line is live.

Mike Vermitt
Analyst

Hey guys, how are you doing?

Bohn Crain
Founder and CEO

Good. How are you, Mike?

Mike Vermitt
Analyst

Our numbers have held up, our results much better than most in our space, right? Hats off to you guys. It's been honestly very steady, great results. You've played a lot of offense during this downturn at a time where most haven't. Most have kind of held back and haven't done the acquisitions that we have. It's really laid the foundation for what I see for the future, for when things start to pick up. Any way to give us a look? You've brought all these new entities into the fold. What your customers are saying, new business wins that are out there, just a sense of what it's going to look like over the next year, two years that you see, and how it's going to be additive to the business. We're one of the few that's actually gone out there and expanded in this time.

Mike Vermitt
Analyst

Hats off to us. You've kept the balance sheet in perfect shape. Our numbers are great. Our cash flow is great. I assume that our customers are loving what we're doing. It's just we haven't gotten that kind of view into it. If you can give us a little look as to what we should expect over the next year, two years with what we've brought in.

Bohn Crain
Founder and CEO

Yeah, thanks, Mike. That's a great question. We've been talking a lot here internally recently about just getting, you know, kind of working towards a more unified sales organization because we've got so many tools in the toolbox, and we want to make sure that our sales organization is in the best position possible to kind of sell all of the products and services. More so than ever, we're starting to see cross-sell opportunities and kind of really getting at this notion of wallet share within customers and selling more services. Particularly, I'm just going to reflect back on our acquisition of Navigate a few years ago.

Bohn Crain
Founder and CEO

If you'll remember, it had some really, and has some really interesting technology that we picked up as part of that transaction that, for all intents and purposes, is a state-of-the-art market differentiating, what I'll call collaboration platform that we really don't see anybody else in the marketplace having something quite like what we have. We're on the front end of beginning to roll that out with customers, and we're getting some really positive feedback around that. It's definitely early innings, keeping with the baseball metaphor as we're approaching the end of the regular season. We're really excited about the whole kind of our position on the field around technology and our technology set and how we think that's going to be a differentiator for us moving forward.

Mike Vermitt
Analyst

Excellent. Yeah, and you know, our valuation has been at a massive discount for years. The hope now is that people start to realize—customers, acquisition targets, and investors—what has been created here. Hopefully, things like that on the technology side, on the new customers, on the acquisitions, that starts to gel. It's been great when things have been really soft, and it should be super as things expand. Hats off to you guys.

Bohn Crain
Founder and CEO

Thank you. Thanks.

Operator

Thank you. That concludes our Q&A session. I'll now hand the conference back to Radiant's Founder and CEO, Bohn Crain, for closing remarks. Please go ahead.

Bohn Crain
Founder and CEO

Let me close by saying that we remain optimistic about our prospects and opportunities to continue to leverage our best-in-class technology, robust North American footprint, and extensive global network of service partners to continue to build on the great platform we've created here at Radiant Logistics. At the same time, we intend to thoughtfully re-lever our balance sheet through a combination of station conversions, synergistic tuck-in acquisitions, and stock buybacks. Through our multipronged approach, we believe we will continue to create meaningful value for our shareholders, operating partners, and the end customers that we serve. Thanks for listening and your support of Radiant Logistics.

Operator

Thank you. Everyone, this concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

Analysts
    • Mike Vermitt
      Analyst
    • Jeff Kauffman
      Analyst
    • Elliot Appel
      Analyst
    • Todd Macomber
      CFO
    • Bohn Crain
      Founder and CEO
    • Mark Argento
      Analyst
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