Radiant Logistics, Inc.

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 for $0.03 per basic and fully diluted share. For the three months into September 30, 2024, we reported net income attributable to rate logistics of $3,376,000 on $203.6 million of revenues, or $0.07 per basic and fully diluted share. This represents a decrease of approximately $2,083,000 of net income over the comparable prior year period, or 61.7%. For adjusted net income, we reported $4,467,000 for the three months ended September 30, 2025, compared to adjusted net income of $7,883,000 for the three months ended September 30, 2024. 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 30th, 2025, compared to adjusted EBITDA of $9,452,000 for the three months ended September 30th, 2024. This represents a decrease of approximately $2,655,000, or 28.1%. The current quarter largely mirrored trends that we saw in Q4 of 2025 as we've had persistent headwinds with the challenging freight market. 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. With that, I will turn the call over to our moderator to facilitate any Q&A from our callers.

Certainly. Everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press star 1 on your phone at this time. 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 1 on your phone. Your first question is coming from Jason Seidel from TD Cowan. Your line is live.

Hey, thank you, Operator Rob. Bon and Todd, afternoon, guys. Two quick things. One more of a longer-term thing. How should we think about Navigate in terms of how deployed is it currently, how quickly you could get it out to your customer base, 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.

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. 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 you might know as SAP. So we've been spending time to basically get those systems connected so we could leverage You know, our 100 plus operating locations across the country is effectively virtual sales organizations to get in front of current and prospective customers to introduce the GTM features and functionality. And, you know, early on and as we acquired Navigate, that technology was used almost exclusively in supporting ocean import business. But we have tweaked the technology such that it's now capable of supporting both international and domestic services. And we're in the middle of a fairly significant deployment where the principal focus is actually on the domestic transportation and shipping side. and kind of a holistic vendor management strategy for kind of for the entire supplier base. And so we're, you know, this is not a one size fits all. I don't think all of our customers, you know, will need necessarily to access this, the breadth and depth of this technology. But for those customers that really want to partner and, kind of manage their supply chain in this way, I really don't think that there's anybody out there that has this technology. Not only our direct peers, I'm not aware of any, even the big boys, I'm not aware that they have an offering quite like this. And then another thing that I will mention is, you know, one of the common little threads for Radiant that we talked about is trying to work with meeting people wherever they want to be met. That extends to our agency stations and whether they want to be agents or convert and become company-owned stores. But it also extends to our customers and how they might choose to interact with us around this technology. So specifically, we are in a position and kind of open for business, if you will, to sell the technology on an unbundled basis and act as, you know, effectively a 4PL managing, you know, getting our customers freight all under one umbrella, even if we're not necessarily managing all of the freight, you know, or we can you know, effectively sell the technology on a bundled basis, you know, as part of the individual shipments, you know, that we do manage. So we're, you know, we're intending to be pretty flexible, you know, leverage our, you know, our footprint and our reach, you know, and get out there and share what we think is a pretty exciting new offering coming to the marketplace. And kind of alongside that, I expect that we will be making incremental investments in our sales resources to really prime the pump and get out there to try to get some good ramp and acceleration around adoption of the technology. as we move forward. And so there's a real emerging, whether you want to call it freight tech or SaaS type solution, but there's, you know, I think that there's a real, you know, emerging is the right word to use for it, but we're really excited for the prospects and having a real distinguished differentiator in the marketplace to get in front of our customers and prospects with.

Now, that makes sense. Now, how many quarters do you think it'll take to have a noticeable impact on the P&L?

I think within the next couple of quarters, you know, we're going to be able to talk about incremental organic growth that we have earned through this differentiated offer. But I think it's going to be a long, you know, a long and exciting journey in terms of onboarding customers. This isn't like we're going to, like, cap out in 18 months and kind of hit peak. I think this is a long, you know, going to be a long and differentiated, you know, offering, and, you know, hopefully we can make a lot of hay with it.

Well, I think in future calls it would help if you can put some numbers around the adoption of the technology for us. That would definitely be very helpful. Bon, getting back to sort of the near-term macro, obviously it's a difficult freight environment, but, you know, how should we be thinking about the current quarter? So the role from sort of September to October to November, what are your clients telling you to expect on the peak sort of thing, on the peak side of things, and how should we think about the current quarter?

I mean, I think freight, when you say the current quarter, you mean the upcoming quarter into December, correct?

Yes.

Yeah, the one where you're asking. Yeah, yeah. So, I mean, I think it's, you know, continues to be a relatively difficult market out there, particularly for the international business and all the vagaries of tariffs and what's coming and going and how customers are trying to manage through that. We do seem to be seeing some kind of early signs of improvements and kind of over-the-road stock brokerage pricing. Thankfully, we don't have a lot of exposure to long-term contracts in the over-the-road space, so we're hoping to see a little improvement in terms of the performance of our own brokerage operations. How sustainable that will be, time will tell. But given all of the CDL and other kind of mandates that have been coming out, I think bringing along the notion of there needs to be some market rationalization on the capacity side of things. And so I think some of those initiatives are helping that along a little bit. So I think we'll see a little improvement there. Some of these ancillary services, so I think, you know, core trans is going to continue to kind of muddle along, you know. But at the same time, as I alluded to in the prepared comments, and 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 all of those things are going to help mitigate some of these challenges that I think are going to persist into calendar 26.

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 as some of the COVID bills come online. What are you guys seeing out there?

Well, again, as a reminder, most of our warehousing in our current environment is based up in Canada. And Canada has been a real beneficiary with some of 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 lot of incremental opportunity in Canada and Mexico, for that matter, as shippers are just trying to navigate through the tariffs. So we remain pretty bullish on the contract logistics opportunities in 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. Well, you know what, TD, we love the Canadians. Listen, guys, I appreciate your time.

All right, thank you. Thank you. Your next question is coming from Jeff Kaufman from Vertical Research Partners. Your line is live.

How are you, gentlemen? Good afternoon. Thank you. Well, Jason asked a number of my questions, but I'm going to ask them a little differently. You talked about what's going on in the truck markets. You got the recent airworthiness directive taking some MD-11s out of the international movement space. You got spot rates that are making it a little bit challenging domestically. Where is this making a difference for you, and where is it not really affecting Radiant? Well, I think we're being, I think it's making a difference in 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. You know, we don't have as much pure retail exposure as maybe some of our competitors would. 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 any more than most other folks. 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 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 was that anything that affected your business or was the business that you did largely immune to anything that happened? Well, you know, we're starting to see a little of that, but I think that's going to be short, you know, very short term in nature as opposed to kind of more of the macro aspect. But I'm optimistic that government shutdown will resolve itself here in the coming days, if not weeks. But resolving the more macro tariffs and demand and capacity and how that continues to resolve itself, I think that's a much longer timeline and story. All right, and then just to follow up on Navigate, because this is an exciting deployment that you're doing, and I apologize if you feel that you've answered this already, but once this rolls out 12 months from now, you talked about improved buying, improved routing. What types of things are you going to be able to do that you couldn't do 12 months ago? I think in particular, well, a couple of things. One, is it's 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 80s. So this isn't some, you know, new shiny object that just got created with AI and some kind of pie in the sky idea. I mean, this is kind of battle-hardened technology that's been deployed and been used for quite some time, focused almost exclusively on the international side of things. And we've taken that and we've massaged it and got it positioned now to support, you know, it'll be a bit of our coming out party, so to speak, because we, until we got GTM integrated with SAP, we couldn't go sell it to a customer because we weren't actionable. If they said yes, we couldn't really operationalize it within our operating system. But now we can, right? And we've evolved the product to be really a more holistic tool supporting both domestic and international customers. So for somebody who has an appetite or interest or sees value in really leaning in and managing their vendors and kind of managing the transportation spend of the vendors supporting them, we've got a really interesting way for them to get at that. And another kind of aspect of this that we kind of touch on in our press release is you know, kind of different runs at this solution, you know, 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 a cumbersome and challenging process. And we've kind of cracked the code on ways to get that deployed to 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.

All right. 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, Vaughn. Hey, Todd. Just a couple quick ones. Just wanted to get any updated thinking around the report acquisition. You've had it in-house for a couple months. Then also just want to touch on the first round bankruptcy. Looks like you wrote down $1.3 million. do you think there's an opportunity to call any of that back at some point? That'd be helpful. Thanks.

Sure. So we're just into the WePort acquisition, but we're really excited to have been able to get that transaction done. Mexico is, I think, overtaking China as the U.S.' 's number one trading partner. We have a lot of existing customers as they continue to diversify away from china either to southeast asia or other locations uh doing more and more in mexico so we we wanted to augment our presence in mexico to support our existing customer base much less get in a position to support kind of incremental customers with everything going on in mexico so and and we've really you know been focused on the idea of continuing to build out our own footprint here in North America, emphasize North America. Historically, we've obviously been strong in the US and Canada, but we had a modest presence in Mexico itself. So the WePort transaction really solidifies our capabilities across all of North America. you know, for those who've been with us a while know we've been on the border doing cross-border for some time, but we've never had a meaningful, true international air and ocean capability in Mexico that WePort now brings us. On to first brands, you know, that, you know, candidly caught us by surprise, and I haven't followed it terribly closely, but, you know, it looks like you know, that's a real, you know, a lot of people got scorched in a really, really big way in and around, uh, first brands, you know, we're obviously not happy to take, you know, that $1.3 million charge that, uh, that, that we encountered. Um, but we're not, you know, we've, we're, you know, we're exploring what, you know, when and if it would make sense to, support them on a post-petition basis in the bankruptcy, but we don't have clarity to that yet to know whether or not, you know, 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, candidly, but we're, at the same time, we're not alone and kind of, you know, how we ended up where we were. And it was, you know, again, I don't want to speak too far out of school on the first brand situation and the dynamics that got them there. But I think, you know, I don't think anyone appreciated there was a kind of a going concern issue at first brands until literally the lenders kind of, sniffed something out and kind of called everybody to the table. And so it was one of those, it was good until it wasn't, and it all was very quick, the way that it unraveled. But to kind of round out that conversation, we don't believe this incident is 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, you know, what appears to have been some unusual activities inside of FirstBrain.

That's helpful. Thanks, Vaughn. You bet.

Thank you. Your next question is coming from Mike Vermut from Newland Capital. Your line is live.

Hey, Vaughn. How you doing? Good. Great, great execution in this market here. Question for you. 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? Are these larger customers that we can be targeting now? Is it a broader market that we're looking at? How does it change the TAM for the company?

So a bit of a delicate question. Yeah, we've got some great case studies that we can't talk about them yet because we don't kind of have quote unquote permission, but we, but, you know, we, you know, you know, for those folks who have been on these calls for a while, you know, I'm, you'd be hard pressed to find me talking as bullishly about anything prior to Navigate than 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 who've been trying to kind of solve 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 I think are really going to bring a lot of value to the customers Just to kind of give you a sense of one of the dynamics without getting into the who, 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 turn are 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, you know, really light up in a way 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 go-to-market strategy. You know, it's just a different, you know, a different framework, right, that we're going to get to test out.

Excellent. And then into my next question. So, you know, when you go, it's really incredible when you look at what you've done to this company over the past 10 years, right? The acquisitions, the value accreted, the balance sheet strengths, The debt pay down, the cash generation, all of that, right? It's a different company than we were 10 years ago. It could be one of the biggest changes in the company in our space that I've seen. And yet the valuation on the company is the same, if not less, because we've repurchased shares along the way.

I was going to tease you for not mentioning the stock buybacks.

Yes, and we've been buying back our stock.

Right.

Our valuation is lower than it was 10 years ago, and the value created is significant along that line. I kind of feel like you've realized that here, and so our buyback has accelerated at these levels knowing that you know, what Navigate may take that we're at the bottom of the cycle here. Should we assume that if we do stay here, you will utilize that buyback maybe even larger than it has been in the past?

Yeah, well, you know, we never want to commit to magnitudes, 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, at these types of price points. We think it's a great use of capital and so, you know, we'll continue to be there, you know, on where we think there's kind of obvious value. And so, you know, we look at a lot of deals and 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.

There's no question that we are at a spot where, you know, buyback. And I actually haven't seen the future and heard it in your voice, you know, what the potential is out there. So, yeah, I'm 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'll now hand the conference back to Bob 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 the same time, we intend to thoughtfully relever our balance sheet and through a combination of agitation 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.

Thank you. Everyone, this concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.