RLGT Filings — Radiant Logistics, Inc. - FilingSpy
RLGT
Radiant Logistics, Inc.
A freight-forwarding and logistics network that moves cargo by air, ocean, truck, and rail across North America, arranging shipments for companies shipping everything from electronics to food and beverage. Founded in 2005 by logistics veteran Bohn Crain, it grew by buying up regional freight brands like Airgroup and Adcom Worldwide and folding them into a network of more than 100 locations. The "Radiant" name reflects Crain's vision of bringing together many independent logistics entrepreneurs under one bright umbrella.
Net income rose 84% to $4.7M on a $3.7M non-cash gain, while core freight margin compressed and revenue was flat.
A non-cash accounting gain masked a quarter of flat and . Revenue was essentially flat at $214.1M, and rose 83.8% to $4.7M, but the increase was driven by a $3.7M gain from a reduction in liability rather than operating performance. The underlying freight business saw its adjusted transportation contract as a less favorable product mix offset the benefit of lower technology spending.
Key takeaways
rose 83.8% to $4.7 million, but the increase was driven by a $3.7 million non-cash gain from a decrease in the fair value of liabilities, compared to a $0.3 million expense a year ago.
was essentially flat at $214.1 million, up just 0.1% , as a $13.0 million decline in transportation revenue for the nine-month period was offset by growth in value-added services.
Adjusted transportation margin contracted to 24.5% from 25.4% a year ago, driven by a change in product mix that shifted toward lower-margin freight.
Section summaries
Management's Discussion and Analysis
Revenue flat at $214.1M; adjusted gross profit fell 3.2% to $56.3M on mix shift, while net income rose to $4.7M aided by a $3.7M contingent consideration gain.
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Total was essentially flat at $214.1M, as a $13.0M decline in transportation revenue for the nine-month period was offset by growth in value-added services.
Adjusted transportation margin contracted to 24.5% from 25.4% in the quarter, driven by a change in product mix.
Operating partner commissions rose as a percentage of adjusted to 34.0%, reflecting a higher mix of margin from strategic operating partners, reversing the multi-quarter trend of declining commission ratios.
SG&A fell 7.0% to $9.3 million on lower technology spending, partially offsetting a 5.0% increase in personnel costs tied to acquisition-related headcount.
The company drew $25.0 million on its $200 million , down from $30.0 million in the prior quarter, while unrestricted cash rose to $39.7 million.
What changed
The multi-quarter decline in operating partner commissions as a percentage of adjusted reversed: commissions rose to 34.0% of adjusted gross profit from 30.5% in the prior quarter, as the margin mix shifted back toward strategic operating partners.
The adjusted transportation fell to 24.5% from 27.3% in the prior quarter, as the favorable mix shift away from project charters was offset by a new shift toward other lower-margin freight.
The balance declined to $25.0 million from $30.0 million, and unrestricted cash rose to $39.7 million from $31.9 million, suggesting the prior-quarter borrowing peak may have been a event rather than the start of sustained .
What to watch
Whether the adjusted transportation stabilizes near 24.5% or compresses further, given the product mix shift cited by management.
Whether the reversal in the operating partner commission ratio to 34.0% is a one-quarter event or the start of a sustained shift back toward strategic operating partner margin.
Whether the $25.0 million balance continues to decline or rises again, given of $29.4 million over nine months and ongoing acquisition spending.
Progress on remediating the material weakness in controls, which continues to block timely SEC filings and access to the shelf registration.
Operating partner commissions rose as a percentage of to 34.0%, reflecting a higher mix of margin from strategic operating partners.
Personnel costs increased 5.0% to $21.5M due to headcount from recent acquisitions, while SG&A fell 7.0% to $9.3M on lower technology spending.
A $3.7M gain from the change in fair value of , versus a $0.3M expense last year, significantly boosted .
was $29.4M for the nine months; the Company had $39.7M in unrestricted cash and $25.0M drawn on its $200M .
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks in the ordinary course of business. These risks are primarily related to foreign exchange risk. We have currency exposure arising from both sales and purchases denominated in foreign currencies, as well as intercompany transactions. Significant cha…
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We are exposed to market risks in the ordinary course of business. These risks are primarily related to foreign exchange risk. We have currency exposure arising from both sales and purchases denominated in foreign currencies, as well as intercompany transactions. Significant changes in exchange rates between foreign currencies in which we transact business and the U.S. dollar may adversely affect our results of operations and financial condition. Historically, we have not entered into any hedging activities, and, to the extent that we continue not to do so in the future, we may be vulnerable to the effects of currency exchange rate fluctuations. A portion of our business is conducted in Canada and Mexico. If foreign exchange rates were 1.0% higher or lower, our net income for the nine months ended March 31, 2026 would have changed by approximately $0.27 million. A fluctuation in foreign exchange rates could have a modest impact on the contingent consideration payments that could be due under our acquisition of Weport, S.A. de C.V.
We are also subject to risks related to an increase in interest rates. For every $1.0 million outstanding on our Revolving Credit Facility, we will incur approximately $0.05 million of interest expense. For every 1.0% increase in interest rates, our interest expense per $1.0 million in borrowings will increase by approximately $0.01 million.
The Company and its subsidiaries may be subject to legal actions and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened legal proceedings that are considered other than routine…
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The Company and its subsidiaries may be subject to legal actions and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened legal proceedings that are considered other than routine legal proceedings. The Company believes that the ultimate disposition or resolution of its routine legal proceedings, in the aggregate, are not material to its financial position, results of operations and liquidity.
There have been no material changes in the risk factors disclosed by us under Part I, Item 1A. Risk Factors contained in the Annual Report on Form 10-K for the fiscal year ended June 30, 2025.
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There have been no material changes in the risk factors disclosed by us under Part I, Item 1A. Risk Factors contained in the Annual Report on Form 10-K for the fiscal year ended June 30, 2025.