Q1 2026 Radiant Logistics Inc Earnings Call

Speaker #2: Good afternoon. Welcome to Radiant Logistics Inc. Financial Discussion for the first fiscal quarter ended September 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 first fiscal quarter ended September 30, 2025.

Speaker #2: Following their comments, we will open the call to questions. This conference is scheduled for 30 minutes. This conference call may include forward-looking statements within the meaning of the securities act of 1933 and the securities exchange act of 1934.

Speaker #2: The company has based 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.

Speaker #2: While it is impossible to identify all factors which 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.

Speaker #2: In addition, past results are not necessarily an indication of future performance. Now I'd like to pass the call over to Radiant's founder and Crain.

Speaker #3: Thank

Speaker #3: you. Good afternoon, everyone, and thank you for joining in on today's call. Notwithstanding the difficult trade environment, we delivered another quarter of solid financial CEO, Bohn results, generating $6.8 million in adjusted EBITDA for our fiscal quarter ended September 30, 2025.

Speaker #3: Excluding the impact of an unusual and one-time $1.3 million bad debt expense related to the first brand's bankruptcy, adjusted EBITDA would have been $8.1 million.

Speaker #3: And while much of the growth in our transportation revenues from the quarter came through our acquisition efforts, we are seeing interesting organic growth opportunities in connection with our contract logistics, customs services, and emerging technology services offerings.

Speaker #3: We are early in our journey, but we are particularly excited about the prospects of navigating our proprietary global trade management and collaboration platform. Navigate represents a meaningful differentiator for us in the marketplace, and supports both domestic and international shipments by aggregating and organizing supply chain data to deliver enhanced visibility, automation, and faster decision-making.

Speaker #3: With streamlined deployment measured in weeks, not months or years, our customers can quickly reduce costs, optimize routing, and improve buying and routing decisions. We believe this speed to market and ease of deployment represents a clear competitive advantage and that Navigate will serve as a meaningful catalyst for organic growth as we introduce the technology to our current and prospective customers in coming quarters.

Speaker #3: As previously discussed, we believe our durable business model diverse service offering, disciplined approach to capital allocation, and low leverage continues to serve us well.

Speaker #3: We remain virtually debt-free, with net debt of approximately $2 million as of September 30, relative to our $200 million credit facility. We are on track with our continued efforts 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.

Speaker #3: In this regard, in September, 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.

Speaker #3: With respect to our stock buyback program, we acquired 0.8 million of our stock through the three-month ended September 30, 2025, and another 2.8 million of our stock subsequent to the September 30, and through November 7, ahead, we expect to continue our 2025.

Speaker #3: Looking at agitation conversions, synergistic tuck-in acquisitions, and stock buybacks, while at the same time looking to invest in incremental sales resources with attention given to our deployment of the Navigate technology.

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, Bon, and good afternoon, everyone. Today, we will be discussing our financial results, including adjusted net income and adjusted EBITDA, the three-month ended September 30th, 2025.

Speaker #4: For the three months ended September 30, 2025, we reported net income attributable to Radiant Logistics of $1,293,000 on $226.7 million of revenues, resulting in three cents per basic and fully diluted share.

Speaker #4: For the three-month ended September 30th, , 2024, we reported net income attributable to Radiant Logistics of $3,376,000 on $203.6 million of revenues for seven cents per basic and fully diluted share.

Speaker #4: This represents a decrease of approximately $2,083,000 of net income over the comparable prior year period for 61.7%. For adjusted net income, we reported $4,467,000 for the three-month ended September 30th, 2025, compared to adjusted net income of $7,883,000 for the three-month ended September 30th, 2024.

Speaker #4: This represents a decrease of approximately $3,416,000, or approximately 43.3%. For adjusted EBITDA, we reported $6,797,000 for the three months ended September 30, 2025, compared to adjusted EBITDA of $9,452,000 for the three months ended September 30, 2024.

Speaker #4: This represents a decrease of approximately $2,655,000 or $28.1%. The current quarter largely mirrored trends that we saw in Q4, 2025, as we've had persistent headwinds with the challenging freight market.

Speaker #4: Excluding the $1.3 million bad debt charge related to first brands, adjusted EBITDA would have been $8.1 million, modestly exceeding the $7.9 million reported in Q4 of 2025.

Speaker #4: With that, I will turn the call over to our moderator to facilitate any Q&A from our callers.

Speaker #5: 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.

Speaker #5: 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.

Speaker #5: Your first question is coming from Jason Seedle from TD Cowan. Your line is live.

Speaker #6: Hey, thank you. Operator, Rob Bohn and Todd, afternoon, guys. Two quick...

Speaker #4: Good afternoon.

Speaker #6: Things. One more of a longer-term thing. How should we think about Navigate in terms of how deployed it is currently? How quickly could you get it out to your customer base?

Speaker #6: And how many customers in total do you think ultimately need to have it? Is it 100%? Is it 75%? And then I have some follow-ups.

Speaker #4: Yeah, sure. Thanks, Jason. So as I kind of alluded to, we are early days with Navigate. And to just kind of level set, I guess, when we acquired the company, Navigate, which was formerly known as Northstar, it had some really interesting technology inside of it, which we now refer to as Navigate or in some context, GTM for global trade management.

Speaker #4: So there is a number of legacy Navigate customers on the technology, but we have been spending the past year and a half or so integrating GTM with our core technology stack, which some of them will call might know as SAP.

Speaker #4: So we've been spending time to basically get those systems connected so we could leverage our 100-plus operating locations across the country as effectively virtual sales organizations to get in front of current and prospective customers to introduce the GTM features and functionality.

But at the same time as I alluded to in the prepared comments.

The kind of the value added services, whether it's contract logistics and warehousing or kind of incremental opportunities on the customs brokerage side with the elimination of the de Minimis rule or what we're doing on the tech side is are all of those things are going to help mitigate what are some of.

These challenges that I think are going to.

Persist into calendar 'twenty six.

Okay.

That makes sense on the warehousing side.

We've been hearing that some of the warehousing pricing is getting a little bit more challenged.

Some of the Covid bills come builds come online what are you guys seeing out there.

Well most of you know again as a reminder, most of our warehousing.

In our current environment is basically up in Canada and.

In Canada has been a real beneficiary.

With some of the what I'll call the tariff dynamics and.

Shippers trying to mitigate or defer.

Kind of the tariff dynamics and so there's been a you know a lot of incremental opportunity in Canada, and Mexico for that matter.

As shippers are just trying to navigate through through the tariffs.

So we remain pretty bullish on the contract logistics opportunities.

And our kind of adjacent trading partners in Canada and Mexico.

And at least today, we don't have much meaningful warehouse exposure in our U S operations.

Okay. That's helpful. Oh, you know what TD, we love the Canadian So [laughter] listen guys I appreciate your time.

Alright, thank you.

Thank you. Your next question is coming from Jeff Kauffman from vertical Research partners. Your line is live.

Hello, gentlemen, good afternoon.

Good afternoon, Jason.

Thank you.

Jason asked a number of my questions, but I'm going to ask a little differently.

You talked about what's going on in the truck markets you got the recent air worthy is this directive taken some MD elevens out of the international movement space, you've got spot rates that are making a little bit challenging domestically.

Where is this making a difference for you and where is it not really affecting radio.

Well I think we're being I think it is.

Making a difference at all I mean, we're kind of kind of in the same pond with everybody else navigating. These issues. So I don't think we're necessarily insulated or immune from these market challenges that most everybody else is facing.

We don't have as much.

Pure retail exposure is maybe some of our competitors are wood. So you know maybe we're a little less exposed there, but you know.

We don't like where ocean rates are or the tariff dynamics anymore than most other other folks.

So I don't.

So I think we're kind of in the soup with everybody else, but maybe just with a little less exposure to the retail side of things and maybe a little more exposure to the to the government sector and government spending which is I think a net positive.

Well I was going to ask about that with the shutdown, which was mostly after the quarter but.

Where it was that anything that affected your business or was the business that you did largely immune to anything that happens.

Well, we're starting to see.

A little of that but I think that's going to be short very short term in nature.

As opposed to kind of more of the macro.

But I'm optimistic.

Government shutdown will resolve itself here.

In the coming days, if not weeks.

But the resolving the more macro.

Tariffs and.

Demand and capacity and how that continues to resolve itself I think thats, a much longer timeline and story.

Alright, and then just a follow up on navigate.

This is an exciting deployable put your dog.

And I apologize if you feel that you've answered this already but.

Once those rolls out 12 months from now.

You talked about improved buying improve routing what types of things are you going to be able to do it you Couldnt do 12 months ago.

I think in pretty well a couple of things one is it.

Now actionable remember a big part of what we've been doing well, let me back up and make even a more foundational comment navigate has been building and refining this technology since the early eighties. So this isn't some.

New shiny object that just got created with AI to some kind of pie in the sky.

Idea and this has got a battle hardened technology, that's been deployed and been used for quite some time.

Focus almost exclusively on the international side of things and we take.

<unk> taken that and we've massaged it and got it positioned.

Now to support.

Yes.

A bit of our coming out party so to speak because we.

Till we got.

G T M integrated with S&P.

It really we Couldnt go sell it to a customer because we werent actionable if they said, yes, we couldnt really operationalize it within our operating system.

But now we can right and and.

We've evolved the product could be.

Really a more holistic tool supporting both domestic and international so for somebody who has an appetite or interest or sees value in <unk>.

Really leaning in and managing their vendors and kind of managing the transportation spend all the vendors supporting them.

We've got a really interesting.

Way for them to get at that.

And another kind of aspect to this that we kind of touch on and our press releases.

Kind of different runs at this solution.

<unk> have occurred from time to time, but getting.

The solution actually deployed and vendors trained on the tool and how all of that works you know can be cumbersome and challenging process.

And we've kind of cracked the code.

On ways to get that deployed a broad numbers of suppliers without a lot of pain and brain damage from supplier adoption.

And so that's.

A game changer.

Thank you for the clarification and congratulations.

Alright, thank you.

And thank you once again, everyone. If you have any questions or comments. Please press star then one on your phone.

Your next question is coming from Mark Argentino from Lake Street. Your line is live.

Hey, Bob It's just a couple of quick ones just wanted to get any updated thinking there Rob.

Record acquisition.

<unk> had it in house for a couple of months.

And then also just wanted to touch on the first brand bankruptcy.

We wrote down a million three.

Do you think theres, an opportunity to call any of that back at some point.

It would be helpful. Thanks.

Sure.

So we're going to we're just into the wheat for acquisition, but were.

Really excited.

They have been able to get that transaction done Mexico as.

I think overtaken China is U S is number one trading partner.

Have a lot of existing customers as they continue to diversify away from China, either to southeast Asia or other locations.

Doing more and more in Mexico.

We wanted to augment our presence in Mexico to support our existing customer base much less yet in a position to support kind of incremental customers with everything going on in Mexico.

So and we've really.

Been focused on the idea of continuing to build out our own footprint here in.

In North America emphasize North America, historically, we've obviously been strong in the U S and Canada, but we were had a modest presence in Mexico itself. So the <unk> four transaction really solidifies our capabilities across all of North America.

Those who have been with US awhile know we've been on the board are doing cross border for some time, but we've never had a meaningful true international air and Ocean capability in Mexico that we port now brings us.

I'll answer first brands.

That.

Candidly caught us by surprise and I haven't followed it terribly closely.

It looks like.

That's a real.

There are a lot of people got storage didn't really really big what they are in and around.

First brands.

We're obviously not happy to take.

That $1 $3 million charge that.

That we encountered.

But we're not.

We've.

We're.

We're exploring.

When and if it would make sense to support the amount of post petition based basis in the bankruptcy, but we don't have clarity clarity to that yet to know whether or not that.

That would make sense or not.

It's.

You know.

The fact that a lot of other people got impacted doesn't make it feel any better can.

Candidly, but we're at the same time.

We're not alone in kind of.

No.

How we ended up where we were and it was up.

No.

Again, I don't want to speak too far out of school on the first brand situation and the dynamics that got in there, but I think.

Yes.

Yeah.

I don't think anyone appreciated there was a kind of a going concern issue at first brands until literally the.

So the lenders kind of.

Snips, something out and kind of called everybody to the table.

And so it it was one of those it was it was good until it wasn't and it all was very quick the way that it in the way that an unreasonable.

But what.

To kind of round out that conversation where certainly.

Don't believe we don't believe this.

Incident is reflective.

Reflective of a broader risk across our portfolio of customers et cetera. This really was a kind of a one off unique situation tied to.

What appears to have been some.

Unusual activities inside of her springs.

That's helpful. Thanks, Bob.

You bet.

Thank you. Your next question is coming from Mike <unk> from Newland Capital. Your line is live.

Hey, Brian how are you doing.

Yes.

Great great execution in the market here a question for you.

Are there any new for navigate are there any use cases that you have that you can discuss how you're deploying it.

And does it increase the size of the customer.

Target for US you know are these larger customers that we can be targeting now is it a broader market that we're looking at like how does it change the.

Tam for the company.

So a bit of a delicate question yeah. We got some great case studies that we can't talk about it because we don't kind of have quote unquote permission, but but but.

We.

Yeah.

For the folks who've been on these calls for a while.

You'd be hard pressed to find me talking as bullishly.

About anything prior to navigate in what I think it represents as an opportunity set for us so.

Can I get into.

Specific names no not yet, but hopefully in time, we'll have an opportunity to share some of those things.

But to your second question, yes, not to the exclusion of smaller shippers, but I do think this gives us an opportunity to.

To bring new value to larger shippers with complex supply chains.

Try to.

Kind of solved the riddle.

In a way that they've struggled that we can bring kind of a new tool to the table to help them address some of these types of initiatives that that I think you know.

Are really going to bring a lot of value to the to the customers.

And it's kind of one of the dining just to kind of give you a sense of what are the dynamics without getting into the <unk>, but just kind of more of the what is as we.

Onboard customers, who are managing their suppliers.

And bringing their suppliers onto the platform.

Those suppliers themselves in churn or getting exposure to the tool.

And create yet incremental opportunities from the suppliers, who are trying to solve some of those same or similar issues from their own perspective.

And so we're really hopeful that this is going to.

No really light up.

And in a way that.

That just is not a way that we've ever.

Had an opportunity to think or talk about.

You know the pipeline or the opportunity set or our go to market strategy.

Yes.

A different.

You know a different.

Okay.

Work right that.

We're going to get a test out.

Excellent and then into my next question. So you know when you go back it's really incredible owner and you like what you've done to this company over the past.

10 years right the the acquisition the value accretive to the balance sheet strength.

Debt pay down and the jazz cash generation all of that right. It's a different company than we were.

10 years ago, it could be one of the that.

The biggest changes in the company in our space that I've seen and yet are you know where the valuation of the company is the same if not less because you you know we've we've repurchased shares along the way and that's the point I was going to tease you for not mentioning the stock buybacks, but yes, and when we've been buying back our stock.

Right right right our value is a lot what their valuation is lower than it was 10 years ago and the value created is significant along the along that way I guess is that is that and I see I kind of feel like you you realize that here and so our buyback has accelerated at the at these levels.

Knowing you know what navigate may tag that we're at the bottom of a cycle here should we assume that you.

If we do stay here you will utilize that buyback may be even larger than it had been in the past.

Yeah.

We never want to commit to the magnitudes and we and we do value our financial flexibility.

But at the same time.

The short version is we expect to continue to be active in our stock buybacks. You know these types of price points.

We think it's a great use of capital and and so you know we'll continue to.

To be there.

And where we think there is kind of.

Obvious value and.

So you know.

We <unk>.

Look at a lot of deals on either end.

I can tell you I'm not aware of any other company on the planet of our size that you can buy at our implied multiple.

Right right right. There there there's no question that we are at a spot where.

Yeah buy back and I actually haven't seen that the future and you heard it in your voice you know what the potential is out there. So yeah, I think buying back stock here with our balance sheet, there's not much out there like we are so.

Congrats guys.

Thank you. Thank you thanks, Bob.

Thank you that concludes our Q&A session I will now hand, the conference back to bond Crane for closing remarks. Please go ahead.

Thank you.

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 at.

At the same time, we intend to thoughtfully re lever our balance sheet and 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 your listening.

And your support of Radiant logistics.

Yeah.