Radiant Logistics Inc Q2 FY2026 Earnings Call - Adjusted EBITDA up 93% on a normalized basis as Navigate and AI push scale

Conference Moderator: Greetings! Welcome to the Radiant Logistics Inc financial discussion for second fiscal quarter ended December 31, 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 second fiscal quarter ended December 31, 2025. 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. 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 website at www.radiantdelivers.com. 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 CEO, Bohn Crain.

Bohn Crain, Founder and CEO, Radiant Logistics: Thank you, John. Good afternoon, everyone, and thank you for joining in on today’s call. With the benefit of our diversified service offering, we delivered another quarter of solid financial results, generating $11.8 million in Adjusted EBITDA for our second fiscal quarter ended December 31, 2025. We had a tough year-over-year comp, as the year-ago period included $64.8 million in revenues for Air Charters, bringing approximately 8 million units of IV fluid to the U.S. as a result of the national shortages resulting from Hurricane Milton. When excluding $5.9 million in Adjusted EBITDA from Project Milton in the year-ago period, Adjusted EBITDA increased by $5.7 million, or 93.4%, compared to $6.1 million for the second fiscal quarter ended December 31, 2024.

This growth breaks down as follows: same-store growth of $3.6 million in our U.S. operations, same-store growth of $1.4 million in our Canadian operations, and another $0.7 million in growth from our acquisitions. Without the lower margin of the Project Milton in the current period, our adjusted gross profit margin returned to more normalized levels, improving 340 basis points to 27.3%, compared to 23.9% in the year-ago period, demonstrating our ability to maintain solid margins even as we navigate a challenging freight market. Importantly, when excluding the impact of Project Milton in the comparable prior year period, our Adjusted EBITDA margin expanded by 780 basis points to 18.6%, reflecting our continued focus on operational efficiency and disciplined cost management.

And while still very early in our journey, we continue to be encouraged by the prospects of Navigate, 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. With streamlined deployment measured in weeks, not in months or years, our customers can quickly reduce costs, optimize routing, and improve buying and routing decisions. We believe the speed to market and ease of deployment represent 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.

We are also pleased to announce the launch of Ray, our first AI-powered agent, with its initial focus on streamlining the administration of quote requests from our international agents around the world. Ray represents an important step in our ongoing digital transformation journey and complements our Navegate platform by further automating and accelerating key workflows. By leveraging artificial intelligence to handle routine quote administration tasks, we expect Ray to improve response times for our global network of agents, enhance service quality for our customers, and drive additional operational efficiencies across our organization. We look forward to expanding Ray’s capabilities into additional AI-powered solutions in coming quarters. 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.

We remain virtually debt-free, with no net debt as of 12/31/2025, relative to our $200 million credit facility... and on track with our continual efforts to deliver profitable growth through a combination of organic and acquisition initiatives, while thoughtfully releveraging our balance sheet through a combination of strategic operating partner conversions, synergistic tuck-in acquisitions, and stock buybacks. With respect to our stock buyback program, we acquired another $2.7 million of our stock through the three months ended December 31, 2025. Looking ahead, we expect to stay the course with our balanced approach to capital allocation through a combination of agent station 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 Navegate technology.

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 Q&A.

Todd Macomber, Chief Financial Officer, Radiant Logistics: Thanks, Vaughn, and good afternoon, everyone. Today, we will be discussing our financial results, including Adjusted Net Income and Adjusted EBITDA for the three and six months ended December 31, 2025. For the three months ended December 31, 2025, we reported net income attributable to Radiant Logistics of $5,305,000 on $232.1 million of revenues, or $0.11 per basic and fully diluted share. For the three months ended December 31, 2024, we reported net income attributable to Radiant Logistics of $6,467,000 on $264.5 million of revenues, or $0.14 per basic and $0.13 per fully diluted share.

This represents a decrease of approximately $1,162,000 of net income over the comparable prior year period, or 18%. For adjusted net income, we reported $8,076,000 for the three months ended December 31, 2025, compared to adjusted net income of $10,696,000 for the three months ended December 31, 2024. This represents a decrease of approximately $2,620,000, or approximately 24.5%. For adjusted EBITDA, we reported $11,774,000 for the three months ended December 31, 2025, compared to adjusted EBITDA of $12,016,000 for the three months ended December 31, 2024. This represents a decrease of approximately $242,000, or approximately 2%.

While reported Adjusted EBITDA is essentially flat, the prior year period included $5.9 million of EBITDA, represented by the infrequent project cargo work we referred to in our press release as Project Milton, which was awarded to Radiant for Q2 2025. Excluding this non-routine Radiant’s Q2 fiscal 2025 Adjusted EBITDA would have been $6.1 million. On a normalized basis, the current quarter would essentially reflect a $5.7 million increase, representing 93.4% quarter-over-quarter growth in Adjusted EBITDA. For the six months ended December 31, 2025, we reported net income attributable to Radiant Logistics of $6,598,000 on $458.8 million of revenues, or $0.14 per basic and fully diluted share.

For the six months ended December 31, 2024, we reported net income attributable to Radiant Logistics of $9.843 million on $468.1 million of revenues, or $0.21 per basic and $0.20 per fully diluted share. This represents a decrease of approximately $3.245 million over the comparable prior year period, or 33%. For adjusted net income, we reported $12.543 million for the six months ended December 31, compared to adjusted net income of $18.578 million for the six months ended December 31, 2024. This represents a decrease of approximately $6.035 million, or approximately 32.5%.

For Adjusted EBITDA, we reported $18.571 million for the six months ended December 31, 2025, compared to Adjusted EBITDA of $21.468 million for the six months ended December 31, 2024. This represents a decrease of approximately $2.897 million, or 13.5%. With that, we’ll turn the call over to our moderator to facilitate any Q&A from our callers.

Conference Moderator: Thank you. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Once again, please press star one if you have a question or a comment. The first question comes from Elliot Alper with TD Cowen. Please proceed.

Elliot Alper, Analyst, TD Cowen: Yeah, great. Thank you. This is Elliot Alper on for Jason Seidl. So nice growth after excluding the project work from last year. Curious if you could talk about the demand environment currently, maybe what your agents are telling you, and then any project work from severe weather in the March quarter.

Bohn Crain, Founder and CEO, Radiant Logistics: Sure. I think, you know, generally speaking, people are, I guess, growing increasingly bullish in terms of where we are. We’ve seen a little bit of improvement here. You know, again, excluding the project cargo from the year ago period, some really good growth. You know, international and kind of ocean imports in particular continues to remain relatively soft. But you know, all in all, with the diversity of our business and candidly, some of the traction we’re getting with the Navegate technology platform is really helping to kinda help us put points on the board in this environment. It seems to be most recently kind of a tightening of capacity.

You know, we’ve seen the tender rejection rate starting to come up, so I don’t think we really have seen the kind of the benefit of that most recent dynamic in the quarter into December. But as we come into the quarter, March, you know, which historically is our seasonally slowest quarter, you know, it’ll be interesting to see kinda how this tightening capacity environment kind of affects overall margin characteristics and what’s kinda what’s happening in the domestic market. And I think all of this capacity tightening will be constructive for us in the peer group, more broadly. And I’m sorry, Elliot, what was your second question?

Elliot Alper, Analyst, TD Cowen: Just on if we should expect any project work from the severe weather we’ve seen to begin the calendar year?

Bohn Crain, Founder and CEO, Radiant Logistics: Nothing on the, kind of on the books yet. You know, we’ll continue to watch. We, I won’t say we, we root for natural disasters, but we’re certainly there to pick up the phone when they, when they occur. You know, again, most recently, there’s a kind of an unusually cold weather system in the, you know, that hit the Southeast, which, you know, will probably cause a little bit of slowness for a lot of folks around, you know, that particular event. But in terms of kinda broader natural disasters, you know, fires, hurricanes, that type of stuff, there’s nothing kind of immediately on the... kind of in process for us around those types of opportunities.

Elliot Alper, Analyst, TD Cowen: Okay, great. It sounds like you guys are making a lot of progress on Navegate. I know it’s still very early in the journey, but, I’m curious, like, how much revenue you expect from Navegate this year?

Bohn Crain, Founder and CEO, Radiant Logistics: You know, I don’t wanna get into specific numbers, but you know, but kind of looking at it, you know, a little more broadly, what’s really, you know, exciting for us is, you know, ultimately, we’re partnering with our customers as they kind of onboard their, their vendors onto the, onto the platform, and the visibility and their ability to kinda better control and manage their vendor base. But as, as we’re onboarding our customers’ vendors onto the technology, and they’re getting exposure to what it represents and its capabilities, we’re starting to get, what I’ll call, reverse inquiry, inbound interest from these vendors themselves as becoming direct customers. So we really are seeing a compounding effect of Navegate as we continue to grow our community. You know, I think we’re getting really positive feedback and kind of broadening interest.

You know, we see this having a lot of, you know, application, you know, in different industry verticals, and different ecosystems, you know, as we continue to roll it out.

Elliot Alper, Analyst, TD Cowen: Okay, great. Thank you, Bob.

Bohn Crain, Founder and CEO, Radiant Logistics: Thank you.

Conference Moderator: Once again, if there are any remaining questions, please indicate so by pressing star one on your touchtone phone. Okay, there are currently no questions in the queue. I’d like to turn the floor back to Bohn Crain for any closing remarks.

Bohn Crain, Founder and CEO, Radiant Logistics: 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 footprint, and 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 relever 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.

Conference Moderator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.