Radiant Logistics (NYSEAMERICAN:RLGT) management said the company delivered “another quarter of solid financial results” in the second fiscal quarter ended December 31, 2025, while laping an unusually large and lower-margin project in the prior-year period tied to emergency air charter activity following Hurricane Milton.
Quarterly results and the impact of “Project Milton”
Founder and CEO Bohn Crain said the company generated $11.8 million in adjusted EBITDA for the quarter. He emphasized that the year-ago period included $64.8 million of revenues for air charters that helped bring about 8 million units of IV fluid to the U.S. during national shortages caused by Hurricane Milton. That prior-year project contributed $5.9 million of adjusted EBITDA, which management described as “Project Milton.”
- $3.6 million of same-store growth in U.S. operations
- $1.4 million of same-store growth in Canadian operations
- $0.7 million from acquisitions
Crain also said that without the lower margin of Project Milton in the current-period mix, adjusted gross profit margin “returned to more normalized levels,” improving 340 basis points to 27.3% compared with 23.9% in the year-ago period. Excluding Project Milton from the prior-year comparison, he said adjusted EBITDA margin expanded by 780 basis points to 18.6%, attributing the improvement to operational efficiency and disciplined cost management in a challenging freight market.
Income statement details for the quarter and first half
Chief Financial Officer Todd Macomber provided additional detail, including GAAP net income, adjusted net income, and adjusted EBITDA for both the quarter and the six-month period ended December 31, 2025.
For the three months ended December 31, 2025, the company reported:
- Net income attributable to Radiant Logistics of $5.305 million on $232.1 million of revenues, or $0.11 per basic and fully diluted share
- Adjusted net income of $8.076 million
- Adjusted EBITDA of $11.774 million
For the three months ended December 31, 2024, Macomber said Radiant reported:
- Net income of $6.467 million on $264.5 million of revenues, or $0.14 per basic and $0.13 per fully diluted share
- Adjusted net income of $10.696 million
- Adjusted EBITDA of $12.016 million
Macomber said net income declined about $1.162 million, or 18%, year over year, while adjusted net income decreased about $2.620 million, or 24.5%. Adjusted EBITDA was down about $242,000, or 2%, but he reiterated that the prior-year quarter included the $5.9 million Project Milton contribution.
For the six months ended December 31, 2025, Macomber reported:
- Net income attributable to Radiant Logistics of $6.598 million on $458.8 million of revenues, or $0.14 per basic and fully diluted share
- Adjusted net income of $12.543 million
- Adjusted EBITDA of $18.571 million
For the six months ended December 31, 2024, the company reported net income of $9.843 million on $468.1 million of revenues, or $0.21 per basic and $0.20 per fully diluted share, alongside adjusted net income of $18.578 million and adjusted EBITDA of $21.468 million. Macomber said net income fell about $3.245 million, or 33%, while adjusted EBITDA declined about $2.897 million, or 13.5%, over the comparable period.
Technology initiatives: Navigate and “Ray”
Crain said Radiant continues to be encouraged by the prospects for Navigate, the company’s proprietary global trade management and collaboration platform. He described Navigate as a differentiator that supports domestic and international shipments by aggregating and organizing supply chain data to deliver visibility, automation, and faster decision-making. He said deployments are “measured in weeks, not in months or years,” and that customers can use the platform to reduce costs, optimize routing, and improve buying and routing decisions.
The company also announced the launch of Ray, described as Radiant’s “first AI-powered agent,” initially focused on streamlining administration of quote requests from international agents. Crain said the company expects Ray to improve response times across its global network, enhance service quality, and drive further efficiencies, with plans to expand Ray’s capabilities in coming quarters.
Demand commentary, capacity trends, and project work outlook
On the Q&A portion of the call, Crain said the demand environment appears to be improving, adding that people are “growing increasingly bullish” and pointing to the quarter’s growth excluding Project Milton. He said international and ocean imports “continue to remain relatively soft,” but added that Radiant’s business diversity and traction with Navigate have helped performance in the current environment.
Crain also cited early signs of tightening capacity, noting that the tender rejection rate has been rising. He said the company did not see the benefit of that dynamic in the quarter ended in December, and that it would be important to watch how the capacity environment affects margins as the company enters the March quarter, which he described as “historically our seasonally slowest quarter.” He said tightening capacity should be constructive for the peer group.
Asked about potential project work stemming from severe weather early in the calendar year, Crain said there was “nothing on the books yet,” though the company continues to monitor events.
Regarding Navigate revenue expectations, Crain said he did not want to provide specific numbers. He described a “compounding effect” as customers onboard their vendors to the platform, generating “reverse inquiry” and inbound interest from those vendors becoming direct customers.
Balance sheet and capital allocation
Crain said the company remains “virtually debt-free,” reporting no net debt as of December 31, 2025 relative to its $200 million credit facility. He said management plans to maintain a balanced approach to capital allocation through operating partner conversions, tuck-in acquisitions, and stock buybacks, while also investing in incremental sales resources, with attention to deployment of the Navigate technology.
Crain added that the company repurchased $2.7 million of stock during the three months ended December 31, 2025. In closing remarks, he said Radiant remains optimistic about leveraging its technology, footprint, and global network, while “thoughtfully relevering” the balance sheet through conversions, acquisitions, and buybacks.
About Radiant Logistics (NYSEAMERICAN:RLGT)
Radiant Logistics, Inc, through its subsidiaries, is a third-party logistics (3PL) provider offering freight brokerage, managed transportation, contract logistics and supply chain solutions. The company arranges full-truckload (FTL), less-than-truckload (LTL), intermodal, ocean and air freight across multiple geographies. Radiant also provides customs brokerage, trade compliance services and warehousing support, serving industries such as manufacturing, retail, energy and automotive.
Founded in 2005 and headquartered in Green Bay, Wisconsin, Radiant Logistics has grown its network of client-facing offices throughout North America, with additional service centers in Europe and the Asia Pacific region.
