Radiant Logistics, Inc. (RLGT) Q3 2026 Earnings Report, Transcript and Summary

Greetings. Welcome to the Financial Discussion for Third Fiscal Quarter ended 03/31/2026. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note this conference is being recorded. This afternoon, Bohn Crain, Radiant Logistics, Inc. founder and CEO, and Radiant Logistics, Inc.’s chief financial officer, Todd Macomber, will provide a general business update and discuss financial results for the company’s third fiscal quarter ended 03/31/2026. Following their comments, we will open the call to questions. This conference is scheduled for thirty 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. 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. 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 the Radiant Logistics, Inc. 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 Logistics, Inc.’s founder and CEO, Bohn Crain.

Thank you. Good afternoon, everyone, and thank you for joining today’s call. We are pleased to report another quarter of solid financial results, delivering $7.8 million in adjusted EBITDA for our third fiscal quarter ended 03/31/2026, in what is our seasonally slowest quarter of the year. The global logistics landscape during March was marked by sharply divergent dynamics across domestic and international markets, each presenting its own distinct set of challenges and opportunities, and we believe the resilience of our results reflects both the diversity of our service offering and the quality of our network. On the domestic side, we are seeing encouraging signs of a supply-driven recovery in North American truckload and intermodal markets, where capacity has been steadily exiting the industry through a combination of carrier attrition, tightening driver availability, and the structural normalization of a fleet that expanded aggressively in prior years. With spot rates, tender rejections, and other key cycle indicators moving meaningfully higher, and driver headcount at multiyear lows, the domestic freight market appears to be approaching a genuine inflection point. While these market trends are not fully reflected in our results for March, we view these developments as constructive for our business going forward, as these improving market conditions should translate into better opportunities for our domestic operations. The international picture has been considerably more challenging and, in some respects, unprecedented in its complexity. Global trade flows have been under sustained pressure from two distinct but compounding forces. The first is the ongoing transformation of the global tariff landscape. U.S. trade policy has fundamentally redrawn the economics of cross-border commerce with a universal 10% import surcharge currently in effect covering more than $1 trillion in goods, country-specific tariff investigations underway targeting dozens of trading partners for industrial overcapacity and labor practices, and critical policy decisions on permanent tariff structures expected before July. The resulting uncertainty has materially altered sourcing strategies, disrupted established trade lanes—most visibly the China-to-U.S. corridor, which has been one of the most consequential freight arteries in the global economy—and prompted widespread supply chain restructuring as importers and manufacturers accelerate nearshoring and diversification initiatives. For international freight forwarders, this environment creates both headwinds and opportunity. Near-term volumes on affected lanes have softened, but the complexity of navigating new trade routes, customs regimes, and compliance requirements increases the premium on experienced, technology-enabled partners who can guide customers through the transition. The second force is the physical disruption to global shipping routes stemming from the conflict in the Middle East. The effective closure of the Straits of Hormuz following strikes on Iran in late February—the world’s single most critical maritime checkpoint through which a significant share of global energy and container trade flows—combined with ongoing Houthi activity that has kept the Suez Canal closed to major carriers, has fundamentally rerouted global ocean freight, extended transit times materially, driven fuel costs sharply higher, and triggered a significant surge in airfreight demand as time-sensitive shippers seek alternatives. These twin disruptions to global trade—one policy-driven, one conflict-driven—have created a uniquely challenging environment for international freight markets. At the same time, they reinforce precisely why customers need a logistics partner like Radiant Logistics, Inc.—one with the global network, the technology platform, and the operational expertise to help them navigate volatility, find capacity, and keep supply chains moving when the world’s trade infrastructure is under stress. Looking beyond the near-term environment, we remain highly encouraged by the strategic progress we are making. Our Navigate global trade management and collaboration platform continues to gain traction in the marketplace, offering customers enhanced supply chain visibility, routing intelligence, and cost optimization—capabilities that are especially valued during periods of market dislocation like the ones we are currently experiencing. With deployment measured in weeks rather than months or years, Navigate delivers speed to value that we believe is a clear competitive differentiator as we introduce it to current and prospective customers in the quarters ahead. We also continue to make good progress with our recently announced launch of Ray, our first AI-powered agent. In addition to our initial efforts focused on streamlining quote administration across our global agent network, we are exploring how best to further automate key workflows across our domestic and international shipment lifecycles, while enabling faster response times and higher service quality for our customers. We look forward to expanding Ray’s capabilities and introducing additional AI-powered solutions as we continue our digital transformation journey. Finally, our financial position remains a source of significant strength. We are essentially debt-free on a net basis relative to our $200 million credit facility, giving us substantial flexibility to pursue the combination of strategic operating partner conversions, synergistic tuck-in acquisitions, and share repurchases that have long defined our approach to capital allocation. With our diversified platform, strong balance sheet, and growing suite of technology capabilities, we believe Radiant Logistics, Inc. is well positioned to emerge from this period of market turbulence as a stronger and more competitive enterprise. I will now turn the call over to Todd Macomber for the financial results, and then we will open it up for some Q&A. Thanks, and good afternoon, everyone. Today, we will be discussing our financial results including adjusted net income and adjusted EBITDA for the three and nine months ended 03/31/2026. For the three months ended 03/31/2026, we reported net income attributable to Radiant Logistics, Inc. of $4.671 million on $214.1 million of revenues, or $0.10 per basic and fully diluted share. For the three months ended 03/31/2025, we reported net income attributable to Radiant Logistics, Inc. of $2.541 million on $214 million of revenues, or $0.05 per basic and fully diluted share.

This represents an increase of approximately $2.13 million of net income over the comparable prior-year period, or 83.8%. For adjusted net income, we reported $5.337 million for the three months ended 03/31/2026, compared to adjusted net income of $6.881 million for the three months ended 03/31/2025. This represents a decrease of approximately $1.544 million, or approximately 22.4%. For adjusted EBITDA, we reported $7.151 million for the three months ended 03/31/2026, compared to adjusted EBITDA of $9.398 million for the three months ended 03/31/2025. This represents a decrease of approximately $1.647 million, or approximately 17.5%. Moving along to the nine-month results, for the nine months ended 03/31/2026, we reported net income attributable to Radiant Logistics, Inc. of $11.269 million on $672.9 million of revenues, or $0.24 per basic and $0.23 per fully diluted share. For the nine months ended 03/31/2025, we reported net income attributable to Radiant Logistics, Inc. of $12.384 million on $682.1 million of revenues, or $0.26 per basic and $0.25 per fully diluted share. This represents a decrease of approximately $1.115 million over the comparable prior-year period, or 9%. For adjusted net income, we reported [inaudible] $0.881 million for the nine months ended 03/31/2026 compared to adjusted net income of $25.459 million for the nine months ended 03/31/2025. This represents a decrease of approximately $7.578 million, or approximately 29.8%. For adjusted EBITDA, we reported $26.322 million for the nine months ended 03/31/2026, compared to adjusted EBITDA of $30.866 million for the nine months ended 03/31/2025. This represents a decrease of approximately $4.544 million, or approximately 14.7%. With that, I will turn the call back over to our moderator to facilitate any Q&A from our callers.

Thank you. At this time, we will be conducting a question-and-answer session. One moment please while we poll for questions. Once again, please press star 1 if you have a question or a comment.

Our first question comes from Jason Seidl with TD Cowen. Please proceed.

Thank you, Operator. Bohn, Todd, good afternoon. I have three things here. I want to hone in on your commentary about the domestic markets showing early signs of improvement, and that bodes well for Radiant Logistics, Inc. As the markets improve—particularly with capacity coming out and pricing going up—can you talk about some of the repricing opportunities you have? And how should we look at the current quarter on a sequential basis to the one that was just reported, given some of the trends that you are seeing?

Sure. Thanks, Jason. To give some context, January and February started off pretty slow, but as the market dynamics began to unfold, we saw a much stronger March and, sequentially, we continue to see that building. As you are aware, the asset-based carriers have been taking significant rate increases effectively across the board and rejecting previous tenders. The domino effect of that is positive for both the truck brokerage business and the intermodal business, which as an industry had suffered from mode competition versus truck in this depressed market environment. As these rates move higher, we are seeing substantially more opportunity in our intermodal business as well. We are quite encouraged, and we will see how durable this proves to be, but we are optimistic that it will be reasonably durable, with meaningful rate increase opportunities. I will point to the other public asset-based companies who have been fairly consistently reporting double-digit margin increases. That creates an opportunity for all of us to ride those coattails a bit, as they are ultimately setting the price and then we can play within that framework. There is also much incremental spot opportunity, and with our limited contracted exposure, we have been able to navigate to better situations. So we are bullish.

On the contracted situation, when you are seeing your renewals, what sort of rates are you getting? Are you getting those double-digit rate increases when they come up?

I would not go so far as to say double digit, but I would say high single digits are where we would expect to be.

Let me jump to Navigate and Ray. You have been talking about Navigate for a while. Have you thought about breaking it out and sizing it up for us to give us an idea of the actual opportunity? And for Ray, are there any data points or KPIs that you are tracking that you can report to give us an idea of benefits you are seeing and those you could see in the future?

I will take those one at a time. On Navigate, we certainly have been thinking about how we might share insights relative to this emerging catalyst and what it has the opportunity to represent over time. We are not ready for that coming-out party just yet, but we have been spending time thinking about how, within the context of our disclosures, we might go about that. It will require a little more work. It is a little amorphous, and I appreciate that, but it is happening and we are very excited about it. We believe it is a true market differentiator and provides an ability to engage with customers in a way we historically were not positioned to, and over time it will be a meaningful catalyst for organic growth within the overall Radiant Logistics, Inc. story. On Ray, it is a similar story. We are not yet ready to share KPIs around those metrics, but we will be working in that direction over time. We are still very early with Ray, but the organizational energy, excitement, and engagement across business units are really encouraging. As a reminder, we began this process a year or so ago in our partnership with the University of Washington and their graduate student program, and we are in our second year with our second cohort. We get approached by a lot of VC-backed AI start-ups pitching ideas, and when we look at where they are relative to what we are incubating on a homegrown basis, we feel really good about where we are on our own technology roadmap. Over time, that will show up in the numbers.

Appreciate the color and the time as always.

Once again, if you have a question or a comment, please press star 1. Next question comes from Jeffrey Kauffman with Citizens Bank. Please proceed.

Thanks. Hey, guys. So, Bohn, I want to follow up where Jason was going. I am more keen about what you are seeing domestically. We have seen indicators go up, and everybody we talk to in freight seems to be a lot more positive because of what is going on with rates. But when we ask about the volumes, it is still kind of stagnant—particularly in some consumer areas—maybe some businesses are starting to get a little more confident and engaging in more transactions, but the volume portion getting better still seems to be something we are waiting on. Could you elaborate where, in terms of your domestic industry verticals, you are starting to see movement in physical volume, not just price and rate? And I would say the same thing with international; I know it is tougher to track because it seems to be changing by the minute, but where are you starting to see some of your flows break whatever pattern they have been in as of late?

First, I would reinforce your foundational comment, which is this has been more of a capacity-driven dynamic than demand-driven in terms of freight volumes. As you are aware and have followed us for a long time, we do a fair amount in the government services space and the military world. In this market environment and with what is going on on the global stage, that is an area where we would expect to see—and are enjoying—some growth. Similarly, there has been some hurricane and typhoon activity, creating opportunities for us to do work. Historically, those have been some of our go-to areas, and that continues to hold true in the market today. We also are fortunate to have exposure to the data center environment and do a good amount of work in support of that area. Those would be some of the higher-performing categories. We are also seeing some improvement in the CPG, food and beverage space, particularly and most recently in Canada, with opportunities we are seeing there. The traditional retail/large goods space has not been as strong. We have never had particularly large exposures to the e-commerce space, so the de minimis tariffs did not particularly impact us. On the international side, ocean rates have been miserable, particularly in the Transpacific. Even for some of the larger public comps, where they have good news to share on international, it is on the customs brokerage and compliance side of the conversation. Fortunately, we also have some of that in our portfolio. But ocean continues to be a fairly tough intersection; hopefully that will also improve over time. The more traditional narrative is capacity tightens off of the West Coast first, but that is not necessarily the case right now. This capacity tightening is not driven by Transpac imports and their pressure on domestic capacity. The domestic demand we are seeing is really coming from the central part of the country, which is a little unusual relative to traditional traffic patterns.

Our next question comes from Mike Vermaat with Newland Capital. Please proceed, Mike.

Hi, guys. Considering how poor earnings across the board were for everyone else in the first quarter, I think you did an excellent job putting up these numbers. I have a couple of questions. First, I know it has been soft and difficult on the international side, but I have to believe the opportunity here is dramatic. The expertise and knowledge of navigating this has to be great. Are there opportunities you are seeing come to you? I assume the February timeframe internationally was pretty much the bottom—January and February were the most confusion—and it is starting to get better. We are hearing other forwarders echo those feelings. Are you seeing opportunity come to you because of the complexities now involved?

Whether intended or not, I appreciate the double entendre of “navigating.” Yes, we do see it as an opportunity, in particular with the Navigate platform and the incremental solution and level of sophistication we are able to bring to current and prospective customers using Navigate. Connecting the dots a bit, we have been opportunistic in our own M&A initiatives. We have actually been fairly aggressive in acquiring some NVOCC ocean services businesses in this softer market environment, effectively giving us an opportunity to buy these businesses on what I believe is the dip. I think that is going to work out well for us over time. This current environment will not last forever, and as things ultimately improve, I think we will be in great shape to participate in that uplift as it occurs. The Navigate technology itself is really valuable—down to SKU-level landed cost analysis. As customers diversify their sourcing strategies and try to understand the implications of tariffs on their landed costs at a SKU unit level, it is going to be really helpful. And not in this quarter, but most recently, we expanded our presence in Hong Kong and opened a new office in Shenzhen that further complements our operations in Shanghai. I think all of that is setting the stage for the opportunities ahead.

Quick follow-up on Navigate. I know you are not going to put numbers around it, but is the expectation that this will be significant to organic growth over the next few years?

Yes, I think it will. One of the things we have been thinking through is how exactly to represent it in our financials, because in some cases customers want a separate tech fee and in some cases they want the tech bundled with their cost of transportation. In some cases there will conceptually be a pure tech fee, but what is more relevant is all the incremental freight we expect to enjoy because of the technology. Whether we ultimately call it an enterprise-type account or use an alternative term to identify this growing ecosystem within our larger transactional account base, that is what we will need to spend some time thinking through.

This concludes the Q&A portion of our call. I would like to turn the floor back to management for any closing remarks. 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 America footprint, and extensive global network of service partners to continue to build on the great platform we have created here at Radiant Logistics, Inc. At the same time, we intend to thoughtfully relever our balance sheet through a combination of agent station conversions, synergistic tuck-in acquisitions, and stock buybacks. Through our multipronged approach, we believe this will continue to create meaningful value for our shareholders, operating partners, and the end customers that we serve. Thanks for listening and for your support of Radiant Logistics, Inc.

This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.