Radiant Logistics, Inc. 2026 Q4 Earnings Call

Thank you. Good afternoon, everyone, and thank you for joining in on today's call. We are pleased to report another quarter of solid financial results, delivering $10.4 million in adjusted EBITDA for our fourth fiscal quarter into June 30, 2026. Our fourth fiscal quarter results were strong across the board, with revenues up 18.5%, adjusted gross profit up 10.6%, adjusted net income up 34.5%, adjusted EBITDA up 31.6%, and adjusted EBITDA margin expanding 240 basis points, all measured against the comparable prior year period. Our quarter-over-quarter improvement was driven principally by our U.S. forwarding operations and contribution across the board from both our domestic and international service offerings, including notable strength in our international air freight operations.

On the domestic side, Navegate is beginning to prove itself out as a catalyst for growth, providing customers with better visibility and tools to manage complex supply chains with one of our enterprise customers now actively managing over 1,400 vendors using the platform. More broadly, capacity has continued to exit the North America truckload and intermodal markets through a combination of carrier attrition, tighter driver availability, and the normalization of a fleet that had expanded aggressively in prior years. Spot rates, tender rejections, and other cyclical indicators moved higher through the spring and carried into our fourth quarter. While these market trends are not fully reflected in our results for the June quarter, we view these developments as constructive for our domestic operations in general and our U.S. brokerage operations in particular. If these trends continue, we believe they support a broad-based and durable recovery for the domestic freight market.

Also during the quarter, we extended our two-decade track record as one of the industry's premier freight forwarding agent networks into the truck brokerage and intermodal space with the launch of a new independent agent program at Radiant Road & Rail. The program brings the same value proposition that has long distinguished our freight forwarding business, access to our carrier network, technology platform, back office infrastructure, and a clear structured path to build long-term equity value with a built-in exit strategy to a new population of logistics entrepreneurs. We are pleased with the early response to the program and see this as a meaningful new avenue for organic growth as we bring the Radiant model to an entirely new market. The international picture, while still shaped by a complex and evolving trade environment, showed encouraging signs of improvement during the fourth fiscal quarter.

Global trade flows continued to be influenced by two significant forces. The first is the ongoing disruption to traditional ocean shipping routes, stemming from the closure of the Strait of Hormuz and continued Houthi activity affecting Suez Canal transits, which have kept capacity tight across key international trade lanes. Despite all of the complications impacting the ocean markets, we saw an encouraging uptick in ocean freight rates late in the quarter as carriers exercised continued capacity discipline, an early signal that the prolonged downturn in ocean pricing may be starting to stabilize. The second is the ongoing transformation of the global tariff landscape, with U.S. trade policy sustaining a high degree of compliance complexity for shippers.

This complexity, together with a period of elevated IEEPA-related filing activity across the industry, has continued to drive demand for our customs brokerage expertise as customers rely on experienced partners to navigate the evolving tariff structure. More recently, escalating tariff action between the U.S. and Canada, including new retaliatory measures Canada put into effect in early September, add a further layer of complexity for shippers moving goods across our border. While it is early to gauge the full impact, we expect this cross-border dynamic to remain a source of demand for our customs, brokerage, and compliance capabilities, and it may also create additional international air and ocean freight forwarding opportunities for our Canadian operations as shippers look to diversify away from cross-border trucking and rail.

Notably, our airfreight performance was up meaningfully during the quarter, driven in large part by our work in support of disaster relief following typhoon activity in the Western Pacific earlier this year. We are entering this next phase of the cycle from a position of real financial strength. in August of 2026, we completed an amended and restated $200 million senior credit facility, extending its maturity to 2031, expanding our acquisition focus according to $100 million, and improving our pricing terms. We enter fiscal 2027 with no net debt. That capacity, together with our long-term strategy for growing organically where our network gives us an advantage, and supplementing that growth through disciplined acquisitions, positions us well to build on the encouraging, though still early, signs of a domestic freight recovery.

With that, I will turn it over to Todd Macomber, our CFO, to walk us through our detailed financial results. Then we will open it up for Q&A.

Thanks, Bob, and good afternoon, everyone. Today we will be discussing the financial results, including adjusted net income and adjusted EBITDA for the three and 12 months ended June 30th, 2026. For the three months ended June 30th, 2026, we reported net income attributable to Radiant Logistics of $7,517,000 on $261.4 million of revenues, or $0.16 per basic and $0.15 per fully diluted share. For the three months ended June 30th, 2025, we reported net income attributable to Radiant Logistics of $4,907,000 on $220.6 million of revenue, or $0.10 per basic and fully diluted share. This represents an increase of approximately $2,610,000 of net income over the comparable prior year period, or 53.1%. For adjusted net income, we reported $7,373,000 for the three months ended June 30th, 2026, compared to adjusted net income of $5,487,000 for the three months ended June 30th, 2025.

This represents an increase of approximately $1,886,000, or approximately 34.5%. For adjusted EBITDA, we reported $10,362,000 for the three months ended June 30th, 2026, compared to adjusted EBITDA of $7,886,000 for the three months ended June 30th, 2025. This represents an increase of approximately $2,472,000, or approximately 31.6%. Moving along to the full year numbers. For the 12 months ended June 30th, 2026, we reported net income attributable to Radiant Logistics of $18,786,000 on $934.4 million of revenues, or $0.40 per basic and $0.39 per fully diluted share. For the 12 months ended June 30th, 2025, we reported net income attributable to Radiant Logistics of $17,291,000 on $902.7 million of revenues, or $0.37 per basic and $0.35 per fully diluted share. This represents an increase of approximately $1,495,000 over the comparable prior year period, or 8.7%.

For adjusted net income, we reported $25,253,000 for the 12 months ended June 30th, 2026, compared to adjusted net income of $30,944,000 for the 12 months ended June 30th, 2025. This represents a decrease of approximately $5,691,000, or approximately 18.4%. For adjusted EBITDA, we reported $36,684,000 for the 12 months ended June 30th, 2026, compared to adjusted EBITDA of $38,756,000 for the 12 months ended June 30th, 2025. This represents a decrease of approximately $2,072,000, or approximately 5.4%. With that, I will turn the call over to our moderator to facilitate any Q&A from our callers.