Q4 2025 Radiant Logistics Inc Earnings Call

Speaker #1: Good afternoon, and welcome to Radiant Logistics Inc.'s financial discussion for the 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 the financial results for the company's fourth fiscal quarter and year ended June 30, 2025.

Matthew: 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.

Speaker #1: 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.

Speaker #1: The company is basing these forward-looking statements on its current expectations and projections about future events. 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.

Matthew: 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 Radiant's website at www.radiantdelivers.com. In addition, past results are not necessarily an indication of future performance. Now I would like to pass the call over to Radiant's founder and CEO, Bohn Crain.

Speaker #1: While it is impossible to identify all the factors that may cause the company's action 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 Radiant's website at www.radiantdelivers.com.

Speaker #1: In addition, past results are not necessarily an indication of future performance. Now I would like to pass the call over to Radiant's founder and CEO, Bohn Crain.

Speaker #3: Thanks, Matthew. Good afternoon, everyone, and thank you for joining us on today's call. With the benefit of our diverse service offerings 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.

Jeff Kauffman: 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 of 2024, Houston-based Foundation Logistics and Services in September of 2024, St.

Speaker #3: 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.

Speaker #3: For the year ended June 30, 2025, our acquisitions generated $6 million in adjusted EBITDA. This was driven principally by our greenfield acquisitions of Seattle-based Cascade Transportation in June of '24, Houston-based Foundation Logistics and Services in September of '24, and St.

Speaker #3: Louis-based TCB Transportation in December of 2024 and Los Angeles-based TransCon Shipping in March of 2025. Along with the conversion of our strategic operating partners, Miami-based Select Logistics in February of 2024 and Philadelphia-based USA Logistics in April of 2025.

Jeff Kauffman: Louis-based TCB Transportation in December of 2024, and Los Angeles-based TransCon Shipping in March of 2025, along with the conversion of our strategic operating partners, Miami-based Select Logistics in February of 2024 and Philadelphia-based USA Logistics in April of 2025. 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: In the interim, we intend to remain nimble and responsive 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.

Speaker #3: As previously discussed, we believe we are well-positioned with a durable business model, diverse service offerings, and a strong balance sheet to navigate through a slower freight market.

Jeff Kauffman: 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. 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.

Speaker #3: We continue to enjoy a strong balance sheet, with approximately $23 million of cash on hand as of June 30th, and only $20 million drawn on our $200 million credit facility.

Speaker #3: 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.

Speaker #3: While thoughtfully releveraging 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 the last year, having completed three greenfield acquisitions and three strategic operating partner conversions in fiscal '25.

Speaker #3: In addition, earlier this month, we achieved a significant milestone with our acquisition of Mexico-based WePort. 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.

Jeff Kauffman: Mexico is an important market for us, and in addition to supporting Radiant Logistics Inc.'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.

Speaker #3: We believe these transactions are representative of a broader pipeline of opportunities, which includes both greenfield acquisitions and companies not currently part of our network, as well as acquisition opportunities inherent in our agent-based network. Here, we can support our current operating partners in their exit strategies and look forward to providing further updates as we progress our acquisition efforts.

Speaker #3: With that, I'll turn it over to Todd Macomber, our CFO, to walk us through our detailed financial results. Then we'll open it up for some Q&A.

Speaker #4: 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 twelve months ended June 30, 2025.

Todd Macomber: 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 Inc. 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 Inc. 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.

Speaker #4: For the three months ended June 30, 2025, we reported net income attributable to Radiant Logistics for the quarter of $4.907 million on $220.6 million of revenues, or 10 cents per basic and fully diluted share.

Speaker #4: For the three months ended June 30, 2024, we reported net income attributable to Radiant Logistics of $4,781,000, on $206,000,000 of revenues, or $0.10 per basic and fully diluted share.

Speaker #4: This represents an improvement of approximately $126,000 in net income over the comparable prior year period, or 2.6%. For quarterly adjusted net income results, 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.

Speaker #4: 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.

Todd Macomber: 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 Inc. 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 Inc. 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%.

Speaker #4: 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 $922.7 million of revenues, or 37 cents per basic and 35 cents per fully diluted share.

Speaker #4: 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.

Speaker #4: This represents an increase of approximately $9,606,000 over the comparable prior year period, or 125%. For adjusted net income, we reported $30,904,000 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.

Todd Macomber: 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.

Speaker #4: 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.

Speaker #4: 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.

Speaker #1: Certainly. Everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press *1 on your phone at this time.

Matthew: 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 Alper from TD Cowen. Your line is live.

Speaker #1: 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 *1 on your phone.

Speaker #1: Thank you. Your first question is coming from Elliot Apur from TD Cowen. Your line is live.

Speaker #5: Yeah, thank you. This is Elliot Apuran for Jason Seidel. Can you talk about, hey guys, can you talk about the changing trade policy and how that's affected your business?

Elliot Alper: Yeah, thank you. This is Elliot Alper on for Jason Seidl. 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?

Speaker #5: I guess maybe more specifically first on the Mexico side, given your recent acquisition of WePort.

Speaker #3: Sure. You know, it remains fluid, obviously, and there are fits and starts, right? So, initially, there were some pull-forwards, you know, with people trying to get ahead of tariffs.

Bohn Crain: 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 a 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 for diversification away from China to Southeast Asia. Markets like Mexico, we believe, will continue to be a beneficiary of kind of the trade dynamic. I can't tell you which way the wind will blow next, but it will remain volatile, or I would expect that it will. 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.

Speaker #3: Then there's little inventory buildup. There were some warehousing constraints with everybody trying to navigate various strategies around the tariffs, including kind of bringing freight to the U.S.

Speaker #3: Adjacencies, whether that's Canada or Mexico, so there's, you know, 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.

Speaker #3: We believe we'll continue to be a beneficiary of the trade dynamic. I can't tell you which way the wind will blow next.

Speaker #3: But it will remain volatile, or I would expect that it will. And, you know, 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, you know, for the longest time.

Bohn Crain: 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 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.

Speaker #3: We've been strong in the U.S. back in 2015. We acquired another public company formerly known as Wheels that represented our platform in Canada. And so 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.

Speaker #3: And WePort represents that for us, helping to kind of complete our North American puzzle as we move forward.

Speaker #5: Okay. Great. And then, yeah, we’ve seen a lot of volatility in the imports this year. I guess there have been two different pull-forward events. We’ve also seen kind of more capacity in TEUs come online this year.

Elliot Alper: Okay. Great. Yeah, we've seen a lot of volatility on the imports this year, I guess, two different pull-forward events. We've also seen more capacity in TEUs 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?

Speaker #5: I guess, how are you managing your business differently, given all that's going on? And how are your customers managing their businesses differently?

Speaker #3: Well, it's been an interesting time. It's harder for the customers to manage their supply chain just given the volatility. So, a lot of shippers have been just doing their best to buy time in and around when they either are 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.

Bohn Crain: 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-affected 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 question of whether the tariffs are even legal, which I guess is coming before the Supreme Court. Needless to say, 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.

Speaker #3: And so on. Until more announcements are made around various commodities or timelines for changes, it remains difficult. And then, of course, we've got the whole issue of whether the tariffs are even legal, which I guess is coming before the Supreme Court.

Speaker #3: So, 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.

Speaker #5: Okay, that's helpful. And then maybe just one on the near term. So adjusted EBITDA was a bit below loss; specifically, EBITDA margins, I guess.

Elliot Alper: 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.

Speaker #5: Anything to call out in the quarter? Any pull-forward or lack thereof would be helpful. Thank you.

Speaker #3: Yeah, I think it's more lack thereof. I think it was more of a pull forward in earlier periods. Is what it was. And so like Bohn said, you know I mean, people pull forward and you build inventories and you burn through them and then you need to get back to bringing product in.

Todd Macomber: 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, but 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.

Speaker #3: But that's what I was seeing. I think it's timing, right? And it's hard for us to really quantify when these things are going to change.

Speaker #3: But clearly, it's impacting us, sometimes favorably and sometimes not. So, in this particular quarter, I think there was less pull forward. That's what we saw.

Speaker #3: So, that's nothing alarming, but it's kind of to be expected. However, it's hard for us to quantify exactly how things play out in the near term.

Speaker #5: Thank you, guys.

Elliot Alper: Thank you, guys.

Speaker #3: You You bet.

Todd Macomber: You bet.

Speaker #1: Thank you. Your next question is coming from Mark Argento from Lake Street. Your line is live.

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

Speaker #6: Hey, guys. Yeah, 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 to about $3.6 million.

Mark Argento: 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?

Speaker #6: Running closer to $5 a quarter, obviously at add-back wasn't there for us. What did you guys end up writing something down or what was?

Speaker #3: No, no. You know, as Bohn mentioned, in 2015 we did a pretty big acquisition, Wheels Group. And that was a 10-year life. So, basically, you know, it was a substantial amortization associated with that acquisition.

Todd Macomber: No, as Bohn mentioned, in 2015, we did a pretty big acquisition of Wills Group, and that was a 10-year life. It was a substantial amortization associated with that acquisition that basically 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.

Speaker #3: That basically, it got to the end of its life. And so now the numbers you see for this quarter are going to be more baseline going forward.

Speaker #3: So it's purely that.

Speaker #6: Got it. Just the Wheels deal fell off with the amortization. Got it. Yeah. Yeah, that's helpful. Yeah, and just pivoting back, obviously you guys have been super aggressive or active.

Mark Argento: Got it. The Wills deal fell off with the acquisition.

Todd Macomber: Yep.

Mark Argento: Got it. Yeah, that's helpful. Yeah, just pivoting back, obviously, you guys have been super active on the M&A side and buying in. I mean, you know, a lot of these guys you're buying, you're doing business, you're integrating, you've already, you know, 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.

Speaker #6: I don't know if "aggressive" is the right word, but active on the M&A side. And buying in. I mean, you know, a lot of these guys, you're buying, you're doing business, you know, you're integrating. You've already, you know, they're almost integrated effectively.

Speaker #6: 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, you know, maybe you just talk through how you're thinking about the pipeline and your, you know, ability to do more of this.

Speaker #3: Sure. The, you know, we've always talked about kind of what are the constraints around acquisitions. And we really don't think it's a, there's a, there's a true constraint on interesting acquisition.

Bohn Crain: 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, you know, and 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. We've historically had our U.S. forwarding operation platform. That's where you're seeing all of our agent 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.

Speaker #3: Candidates, you know, and given our low leverage, you know, we've got ample kind of capacity to do deals. So the ultimate constraint really becomes our ability to kind of integrate and digest the things that we acquire.

Speaker #3: And Mark, you'll remember we've historically thought of having a couple of different platforms to support M&A. So, we've historically had our U.S. forwarding operation platform.

Bohn Crain: 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, you know, 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: We're trying to lean into that opportunity. 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.

Kind of point the error arrow our way right now. So we're, you know, we're trying to lean into that opportunity, and we're really excited about the things that we're doing, uh, you know, as well as some other kind of organic initiatives that are pretty exciting that, uh, that we're working towards.

Mark Argento: This 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. Is it, 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 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?

And this is the final one for me, in terms of, you know, the tariff situation. We're getting also...

Bohn Crain: 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.

Getting closer to your end here in the holidays and everything else going on. I mean, is it? 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 those geographies, or is everybody still playing a little bit of wait and see here, regardless that we're 2 and a half months or 3 months out from your end?

Yeah, well I I think I think people are generally expecting and I guess I would call it a muted Peak, you know. I don't think we're going to see the traditional peak season that we might have otherwise, but but we do have kind of these underlying thematics of kind of more freight being sour sourced out of Southeast Asia. Uh, you know, I don't think that that's going away. Uh, but uh, the growth, you know, I I can't say enough about the growth that

You know, has occurred and is expected to continue to occur. Um, in Mexico and so, you know, I, I think, you know, it was really important for us to expand our presence, not only for kind of new opportunities, but to support our our own existing customer base, as they themselves are diversifying more and more

Of their own supply chains, kind of to a kind of a near sourcing type strategy.

Mark Argento: Yep, that's helpful. Awesome. Thanks, guys. Appreciate it.

Yep, that's helpful.

Todd Macomber: You bet.

Awesome. Thanks guys. Appreciate it.

You bet.

Matthew: Thank you. Your next question is coming from Jeff Kauffman from Vertical Research Partners. Your line is live.

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

Jeff Kauffman: 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?

Thank you very much. Congratulations, guys! Uh, crazy year.

You know, Bond, I’d like to revisit your comment about getting a little bit more active and leveraging up. Do you have a particular target where you don't necessarily want to level up past a certain point as you relieve the balance sheet and grow?

Bohn Crain: 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're ever getting 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 have any expectations to go lever up at 4 or 5X like some of our PE-sponsored competitors might.

uh, I

I think the short answer is yes. I think I think, uh,

For me, the kind of normalized target would be Call A plus or minus 2.5 times.

Uh, that's not that's not to say we might, I mean, who knows where the wherever ever? 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, but, but we certainly don't, you know, have any expectations to go level up at 4 or 5 x, like, some of our PE sponsored competitors. Might

Jeff Kauffman: You stepped up and acquired a Mexican operation at a time when the trans-border 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: 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, but 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, if 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.

Well, and and you stepped up and acquired a, a Mexican operation at a time when the, the transporter tariff situations, a little bit unclear, um, is this, was that a special situation or or are you seeing this more as an opportunity where look, eventually when you get these tears figured out? And if we can find the right International Partners, it makes sense.

You know, we all myself included, have a tendency to think of, you know, the us being the center of the world. But there's a, you know, there's a big there's a big set of global Commerce going on where we're not necessarily the center of and there's there's an extraordinary amount of trade, between China and Europe and Mexico and and we ports international business, really was virtually.

Little, if any, cross-border business, it's true. International air and ocean business.

Um, you know, from from the Pacific and, and Europe. So, you know, we we're we have for the, for a long time. Been in the crossborder business independent of the Wei Port transaction, but 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 Wii Port transaction.

Jeff Kauffman: 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: Yeah, I'd have to look at the question and see. 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, the Wills transaction at the end of Q3. I just want to validate, you know.

Okay. And just a couple of detail questions for Todd. If I can, um, Todd, I think you answered an earlier question on the DNA. So 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?

Yeah, I definitely look at it closely, but I think if I remember correctly, we did the acquisition right at the beginning of the fourth quarter.

Jeff Kauffman: The Wills 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?

Um, in 2015, I mean, we're going back 10 years, right? So, but, you know, I, you know, I can validate that but I'm pretty sure it was at the very beginning of the quarter. Um, so I think what we've got I I you know, we could Circle back but uh, but I'm you know, that's kind of, my only question is was there 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 the wheels transaction at the end of Q3. But I just want to, you know, I don't

So the wheels came off at the end of Q3, got it. Um, so the way I think about 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: For EBITDA, you're saying?

For Eva now, you're saying.

Jeff Kauffman: Yeah.

Yeah.

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

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

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

Well I mean it's it's an ad back, right? So you know it's it wouldn't, I'm sorry, it's a benefit. Thank you. Thank you benefit. Yeah.

Jeff Kauffman: Correct?

So, it'll help us, well, it'll help us for, you know, net income, right? But it'll be, it's kind of, I think it's, you know, it wouldn't matter with the EBITDA, correct?

Todd Macomber: Correct.

Jeff Kauffman: Just two other quick detailed 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.

Todd Macomber: 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.

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

Correct. Um and then just to 2 other quick detail questions. Um the contingent consideration add back uh that was just kind of more of a 1-time but these things happen every now and then we're just yeah you know consideration you know we have to evaluate all the time you know and we do that every quarter and you know we've got some headwinds going on right now and it's you know it's it's you know quite honest, it's impossible for us to know what 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 Conte consideration of liability what it is today and you know, we're always adjusting and sometimes we adjust up but we adjust down, you know. So so we we let me, let me hop in 1 second, you know, Jeff for me, that's kind of a line item is really, just a manifestation of our earnout structure at work, right? Right. Mitigate some to ensure we don't overpay or underpay for the businesses that were acquired.

Todd Macomber: Overall, you'd rather be a payer of that contingent consideration because that would mean the earn-out.

Jeff Kauffman: Of course, yes.

Todd Macomber: Yeah, 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 earn-out structure at work, to protect us from overpaying or to mitigate the likelihood that we would overpay.

But overall, you'd rather be a payer of that contingent consideration because that would be in the air. Now, of course, well,

Yes, overall, we would. But, at the same time,

you know, if we

ha have a

Jeff Kauffman: 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?

Benefit, which means we had overestimated the liability that we're needing to unwind, correct? You know, that is just kind of a, again, just kind of the earnout structure at work to protect us from overpaying or to mitigate. Okay. And then what we would overcome.

Todd Macomber: 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. That's, you know, it was over an overestimate in the prior period.

And last question for Todd Todd. Thank you. Um, I was expecting a 24% income tax rate, this quarter and I I see in the detail tables that you're saying that should be the effective tax rate. Um, but taxes were in that add to that income. What what? What happened with taxes this quarter? Yeah, that was a true up basically, with the end of the year, um, you know, it's we we you know, when we went through all the calculations, the net net was an actual benefit, it's like benefit. And so that's, you know, is over and over Aspen the prior period.

Jeff Kauffman: Okay, that's just evening up an overpayment at the time.

Todd Macomber: 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: Okay, thank you.

Todd Macomber: You bet.

Jeff Kauffman: Thanks, Jeff. No, I appreciate that. Thanks, guys.

Todd Macomber: Yeah, you bet, Jeff.

Going forward, and this was just simply a true-up when we went through all the mechanics. So, definitely. Thank you. You bet. Thanks, Chef. I appreciate that. Thanks, guys.

Yeah, you bet Jeff.

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

Bohn Crain: Hey guys, how are you doing?

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

Todd Macomber: Good. How are you, Mike?

Hey guys, how you doing?

Bohn Crain: 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 of 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.

Good. How are you?

Um, so you know, our numbers have held up, you know, results much better than most.

In our space, right? So you know, hats off to you guys. It's been a very steady, great result, and you've played a lot of offense.

During this downturn, at a time where

You know, I guess most haven't—most of the kind of held back and haven't done the acquisitions that we have. So it's really laid the foundation.

And what I see for the future for when things start to pick up.

um,

Any way to give us a look? You've brought all these new entities into the fold. What are your customers saying?

New business wins that are out there, you know, just a sense of what it's going to look like over the next year, 2 years that you see, and how it's going to be.

Additive to the business. You know, we're one of the few that's actually gone out there and expanded.

Bohn Crain: 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. Yes. Thanks, Mike. That's a great question. We've been talking a lot here internally recently about just 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 sell all of the products and services. More so than ever, we're starting to see cross-sell opportunities and really getting at this notion of wallet share within customers and selling more services.

In this time, so hats off to us. You know, you've kept the balance sheet in perfect shape. Our numbers are great; our cash flow is great.

And I assume that our customers are loving what we're doing. It's just that we haven't gotten that kind of view into it. So if you could give us a little look at what we should expect over the next year, or 2 years, with what we've brought in,

Yeah. Thank thanks, Mark, that's a great question. You know, we're really, you know, we've been talking a lot here internally recently about just

Getting.

Bohn Crain: Particularly, I'm just going to reflect back on our acquisition of Navigate a few years ago. If you'll remember, it had some really, and has some really interesting technology that we picked up as part of that transaction that is for all intents and purposes 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 that has been created here. Hopefully things like that on the technology side, on the new customers, on the acquisitions, that starts to gel.

You know, kind of working towards a more unified sales organization because we've got so many tools in the tool box and we want to make sure that our that our sales organization is in the best position possible to kind of sell all of the products and services. So, you know more so than ever. You know, we're starting to see cross-sell opportunities and and kind of, you know, really getting at kind of this notion of of wallet share within customers and selling more services. And, you know, particularly I'm I'm just going to kind of reflect back on.

Our acquisition of Navigate a few years ago, and if you'll remember, it had some really enhanced, some really interesting technology that we picked up as part of that transaction.

that, um,

You know, is for all intents and purposes a

You know, a state-of-the-art market differentiating what I'll call collaboration platform that we really don't see anybody else in the market place, having something quite like what we have. And so we're on the front end of beginning to roll that out with customers. And we're getting some really, uh, positive feedback around that. So it's, you know, it's definitely early Innings, keeping with the baseball metaphor as we're approaching the end of the regular season, but

You know, we're we're really.

uh, excited about

The whole.

Bohn Crain: It's been great when things have been really soft, and it should be super as things expand. Hats off to you guys.

Has been created here. So, yeah, hopefully things like that. On the technology side, on the new customers, on the acquisitions that start to gel. You know, it's been great when things have been really soft, and it should be super.

As things expand, so you know, hats off to you guys.

Todd Macomber: Thank you.

Mark Argento: Thanks.

Thank you, thanks.

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

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

Bohn Crain: 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 Inc. At the same time, we intend to thoughtfully re-lever our balance sheet through a combination of agent 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 Inc.

Let me close by saying that we remain optimistic about our prospects and opportunities to continue to leverage our best-in-class technology and robust North American footprint.

An extensive global network of service partners to continue to build on the great platform we've created here at Radiant.

At the same time, we intend to thoughtfully relieve our balance sheet through a combination of agent station conversions, synergistic tuck-in acquisitions, and stock buybacks.

Through our multi-pronged 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.

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

Thank you, everyone. This concludes today's event. You may disconnect at this time, and have a wonderful day.

Thank you for your participation.