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Radiant Logistics (RLGT)
:RLGT
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Radiant Logistics
(RLGT)
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Rating:63Neutral
Price Target:
$7.00
▲(2.94% Upside)
Action:ReiteratedDate:02/10/26
The score is driven primarily by moderate financial performance (thin margins, softer cash flow and revenue) balanced by a relatively solid balance sheet. Technicals are supportive with the stock trading above major moving averages and positive momentum. Valuation provides limited support (P/E ~22.6 with no dividend yield data), while the earnings call was mixed—stronger normalized margins and product initiatives offset by reported top-line and GAAP earnings declines and demand uncertainty.
Positive Factors
Balance sheet strength
Radiant's controlled leverage (TTM D/E ~0.41), a larger equity base and management's 'no net debt' posture plus a $200M credit facility provide durable financial flexibility to fund tuck-ins, agent conversions and buybacks while absorbing freight cycle stresses without forced asset sales.
Margin recovery & efficiency
Normalized margin expansion and large ex‑one‑off adjusted EBITDA gains indicate improved pricing, mix and cost control. Sustained higher margins enhance operating leverage and long‑term cash generation, strengthening the firm's ability to reinvest in technology and pursue disciplined M&A.
Technology & growth initiatives
Proprietary platform (Navigate) and AI agent (Ray) are structural investments to automate quoting, increase visibility and shorten sales cycles. Combined with agent‑station conversions and targeted tuck‑ins, these initiatives support scalable organic growth and durable service differentiation.
Negative Factors
Thin profitability
Margins remain thin, leaving limited cushion against freight rate compression or volume declines. Persistently low profitability constrains reinvestment, reduces resilience in downturns and pressures return metrics, making long‑term organic investment and capital allocation more difficult.
Weakened cash generation
Operating and free cash flow have softened materially, with low cash conversion versus revenue. This inconsistent cash generation limits ability to fund tech rollouts, acquisitions and sustained buybacks without increasing leverage or tapping external capital, raising structural financing risk.
Cyclicality & one‑off sensitivity
The business shows material top‑line volatility driven by lumpy, project‑level activity and freight market cycles. Large one‑offs like Project Milton distort comparability, complicate forecasting and obscure underlying demand trends, making sustainable organic growth harder to assess.
Radiant Logistics (RLGT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$318.42M
Dividend YieldN/A
Average Volume (3M)166.20K
Price to Earnings (P/E)14.0
Beta (1Y)0.99
Revenue Growth16.42%
EPS Growth79.46%
CountryUS
Employees909
SectorIndustrials
Sector Strength72
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)0.11
Shares Outstanding46,826,546
10 Day Avg. Volume210,007
30 Day Avg. Volume166,203
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.26
Price to Sales (P/S)0.32
P/FCF Ratio35.07
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit2.60
Enterprise Value/Ebitda12.59
Forecast
1Y Price Target
$8.75Price Target Upside28.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.16
Revenue Forecast (FY)$919.00M
Radiant Logistics Business Overview & Revenue Model
Company DescriptionRadiant Logistics, Inc., a third-party logistics company, provides multi-modal transportation and logistics services primarily in the United States and Canada. The company offers domestic and international air and ocean freight forwarding services; and freight brokerage services, including truckload, less than truckload, and intermodal services. It also provides other value-added supply chain services, including materials management and distribution services, as well as customs house brokerage services. The company serves consumer goods, food and beverage, manufacturing, and retail customers through a network of company-owned and strategic operating partner locations under the Radiant, Radiant Canada, Clipper, Airgroup, Adcom, DBA, and Service By Air brands. Radiant Logistics, Inc. was incorporated in 2001 and is headquartered in Renton, Washington.
How the Company Makes MoneyRadiant Logistics primarily makes money by arranging and managing freight transportation and logistics services for customers, earning revenue from the sale of transportation and related logistics services. Key revenue streams generally include (1) domestic transportation management (e.g., truckload, less-than-truckload, intermodal, and other ground transportation) where Radiant acts as a broker/manager and earns a gross margin spread between what it charges the customer and what it pays underlying carriers; and (2) international forwarding (e.g., air and ocean freight forwarding and related trade/customs services) where it earns margins on freight movements and service fees for value-added activities (such as documentation, customs brokerage/trade compliance support, and logistics coordination). The company’s earnings are influenced by shipment volumes, freight rates and carrier capacity conditions, customer mix, and its ability to procure transportation capacity efficiently. Information on specific material partnerships, customer concentration, or current contract terms is null.
Radiant Logistics Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The call contained a mix of encouraging operational and margin progress alongside notable declines in reported revenue and earnings due largely to a difficult year-ago comparison that included a nonrecurring Project Milton. Management highlighted significant normalized EBITDA growth (93.4% ex-Milton), margin expansion (gross margin +340 bps; EBITDA margin +780 bps ex-Milton), product launches (Navigate and Ray), a strong balance sheet (no net debt) and continued buybacks ($2.7M). Offsetting these positives were a meaningful quarter-over-quarter revenue decline (-12.2%), decreases in net income (quarter -18%; six months -33%) and softer demand in certain freight channels (ocean imports) with seasonal uncertainty. Overall the positives around margins, product initiatives and balance sheet resilience are meaningful but are balanced by the reported declines in top-line and GAAP earnings driven in part by prior-year one-time activity.Q2-2026 Updates
Positive Updates
Adjusted EBITDA Recovery and Strong Margin Expansion (Excluding One‑Off)
Reported adjusted EBITDA of $11.8M for Q2 FY2026. Excluding the prior-year Project Milton ($5.9M of EBITDA), adjusted EBITDA increased by $5.7M, or 93.4% year-over-year on a normalized basis. Adjusted EBITDA margin expanded by 780 basis points to 18.6% (ex-Milton).
Improved Gross Profit Margin
Adjusted gross profit margin returned to more normalized levels, improving 340 basis points to 27.3% in the quarter versus 23.9% in the year-ago period (Milton project impact removed from comparisons).
Same‑Store and Acquisition Growth
Same-store growth contributed $3.6M in U.S. operations and $1.4M in Canadian operations, with an additional $0.7M of growth from acquisitions in the quarter, demonstrating organic and inorganic contributions to growth.
Technology Rollouts — Navigate Platform and Ray AI Agent
Launched Navigate, a proprietary global trade management and collaboration platform positioned to drive visibility, automation and faster decision-making; launched Ray, the first AI-powered agent focused on streamlining international quote administration. Management expects these initiatives to improve response times, service quality and drive incremental organic growth.
Strong Balance Sheet and Active Capital Allocation
Company reported being virtually debt-free (no net debt as of latest date relative to a $200M credit facility) and repurchased $2.7M of stock in the quarter. Management plans continued disciplined capital allocation via agent station conversions, tuck-in acquisitions and buybacks.
Negative Updates
Quarterly Revenue Decline
Quarterly revenues fell to $232.1M for the three months ended December 31, 2025 from $264.5M in the year-ago quarter, a decline of approximately $32.4M or -12.2% year-over-year.
Decline in Net Income and EPS (Quarter)
Net income attributable to Radiant was $5.35M ( $0.11 per share) for the quarter versus $6.467M ( $0.14 basic / $0.13 diluted) a year earlier — a decrease of about $1.1M or -18% year-over-year.
Adjusted Net Income and Six‑Month Earnings Pressure
Adjusted net income for the quarter declined to $8.76M from $10.696M (≈ -24.5%). For the six months ended December 31, 2025 adjusted net income was $12.543M versus $18.570M prior year (≈ -32.5%), and six-month net income fell ≈ -33% to $6.598M.
Full‑Period Adjusted EBITDA Decline
Reported adjusted EBITDA for the three months was essentially flat (-2% to $11.774M from $12.16M), but the six-month adjusted EBITDA declined approximately 13.5% to $18.571M from $21.468M.
Tough Year‑Over‑Year Comparison Driven by Nonrecurring Project
Prior-year results were materially affected by Project Milton (air charters and one-time freight related to IV fluid transport), which added ~$64.8M of revenue and ~$5.9M of adjusted EBITDA in the year‑ago period and created a difficult comp that impacted reported year-over-year comparisons.
Demand Pockets Softness and Market Uncertainty
Management noted continued softness in ocean imports, a seasonally slow March quarter ahead, and early signs of capacity tightening (increasing tender rejection rates). There was no material project work booked from recent severe weather events at the time of the call.
Company Guidance
Management's guidance was to "stay the course" with a balanced capital‑allocation strategy—pursuing agent‑station conversions, synergistic tuck‑in acquisitions and continued stock buybacks—while investing in incremental sales resources and accelerating deployment of its Navigate platform (streamlined in weeks) and AI agent Ray to drive organic growth and operational efficiency; they remain virtually debt‑free with no net debt as of 11/25 against a $200 million credit facility and repurchased $2.7 million of stock in the quarter. For context, Q2 revenues were $232.1 million with net income attributable to Radiant of $5.35 million (EPS $0.11), adjusted net income of $8.76 million and adjusted EBITDA of $11.8 million (adjusted gross profit margin 27.3%, adjusted EBITDA margin 18.6% excluding the $5.9 million Project Milton benefit in the prior year), and six‑month revenues of $458.8 million with six‑month adjusted EBITDA of $18.57 million—management expects these actions to support profitable growth and thoughtful re‑leverage.Radiant Logistics Financial Statement Overview
Summary
Profitability remains positive but thin (TTM net margin ~1.6%, EBITDA margin ~3.6%) with slightly declining TTM revenue (-3.5%). Balance sheet is a relative strength with manageable leverage (TTM D/E ~0.41), but cash generation has softened (TTM FCF down ~22.8%) and operating cash flow is low versus revenue (~1.4%).Income Statement
TTM (Trailing-Twelve-Months) revenue is slightly down (-3.5%), following a period of volatility (strong growth in 2022, then declines in 2023–2024, rebound in 2025 annual). Profitability is positive but thin in TTM, with net margin around 1.6% and EBITDA margin around 3.6%, both below the stronger levels seen in 2022–2023. Overall, the business remains profitable, but margins and growth consistency are moderate and appear sensitive to cycle/volume.58
Neutral
Balance Sheet
Leverage looks manageable with TTM debt-to-equity around 0.41, improved versus the higher 2022 level (~0.61), and equity has grown over time (TTM equity ~$230M vs ~$161M in 2021). Return on equity is positive but has stepped down from prior peaks (TTM ~6.9% vs ~22.9% in 2022), indicating reduced efficiency/profit conversion recently. Overall balance sheet risk appears moderate, supported by a solid equity base and controlled leverage.71
Positive
Cash Flow
Cash generation is positive but has weakened: TTM operating cash flow (~$12.2M) and free cash flow (~$8.5M) are down, with TTM free cash flow declining about 22.8%. Free cash flow is reasonably supported by earnings (TTM free cash flow is ~71% of net income), but operating cash flow is low relative to revenue (TTM operating cash flow-to-revenue ~1.4%) and well below the unusually strong 2023 cash year. Overall, cash flow quality is acceptable but lacks consistency and has recently softened.52
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 893.37M | 902.70M | 802.47M | 1.09B | 1.46B | 899.81M |
| Gross Profit | 146.48M | 157.91M | 158.31M | 181.63M | 215.33M | 149.41M |
| EBITDA | 30.26M | 36.95M | 26.94M | 53.52M | 80.11M | 48.77M |
| Net Income | 14.05M | 17.29M | 7.68M | 20.59M | 44.46M | 23.11M |
Balance Sheet | ||||||
| Total Assets | 439.45M | 426.77M | 371.19M | 393.74M | 497.35M | 374.53M |
| Cash, Cash Equivalents and Short-Term Investments | 31.88M | 22.94M | 24.87M | 32.46M | 24.44M | 13.70M |
| Total Debt | 92.12M | 83.24M | 57.98M | 69.24M | 118.51M | 72.89M |
| Total Liabilities | 208.19M | 200.69M | 161.68M | 188.65M | 302.79M | 212.96M |
| Stockholders Equity | 229.83M | 226.02M | 209.36M | 204.87M | 194.38M | 161.28M |
Cash Flow | ||||||
| Free Cash Flow | 8.48M | 8.14M | 8.66M | 90.33M | 17.41M | 2.67M |
| Operating Cash Flow | 12.19M | 13.27M | 17.25M | 97.89M | 24.88M | 14.10M |
| Investing Cash Flow | -21.00M | -33.49M | -15.16M | -10.71M | -45.68M | -11.07M |
| Financing Cash Flow | 20.68M | 18.23M | -10.18M | -80.21M | 28.93M | -23.75M |
Radiant Logistics Technical Analysis
Neutral
6.80
Price Trends
7.05
Negative
6.66
Positive
6.38
Positive
Market Momentum
-0.08
Positive
41.69
Neutral
22.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLGT, the sentiment is Neutral. The current price of 6.8 is below the 20-day moving average (MA) of 7.20, below the 50-day MA of 7.05, and above the 200-day MA of 6.38, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 41.69 is Neutral, neither overbought nor oversold. The STOCH value of 22.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RLGT.
Radiant Logistics Risk Analysis
Radiant Logistics disclosed 51 risk factors in its most recent earnings report. Radiant Logistics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Radiant Logistics Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $18.70B | 31.73 | 16.33% | 0.89% | -1.60% | 4.87% | |
68 Neutral | $2.06B | 18.11 | 6.30% | 1.14% | -5.79% | -1.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $318.42M | 13.99 | 6.24% | ― | 16.42% | 79.46% | |
63 Neutral | $22.23B | 50.75 | 17.81% | ― | -0.30% | -11.02% | |
58 Neutral | $5.05B | 44.08 | 13.01% | 2.56% | -0.74% | -32.79% | |
45 Neutral | $496.66M | -6.83 | -63.14% | ― | 14.54% | 87.85% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.