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Radiant Logistics (RLGT)
:RLGT
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Radiant Logistics
(RLGT)
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Rating:63Neutral
Price Target:
$7.50
▲(1.08% 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
Low leverage and a strengthened equity base provide durable financial flexibility. Being virtually debt-free versus a $200M facility lets management pursue tuck-in acquisitions, agent conversions or opportunistic re-leveraging while buffering cycles in freight volumes, supporting multi-quarter strategic execution.
Technology rollouts (Navigate & Ray)
Proprietary platforms and an AI agent can create structural efficiency and differentiation: they improve response times, reduce manual quote/admin costs, and increase customer stickiness across the agent network, supporting sustainable margin improvement and scalable organic growth over several quarters.
Normalized margin expansion (ex‑one‑off)
Large normalized margin expansion suggests meaningful operating leverage when one-off distortions are removed. If sustained through better pricing, cost control and tech-led efficiency, higher adjusted margins can convert modest revenue into stronger free cash flow and improve capital allocation outcomes.
Negative Factors
Top-line volatility and declines
Material YoY revenue declines reflect exposure to volatile freight volumes and one-off comparables. Persistent top-line instability limits visibility for capacity planning and makes sustaining margin gains harder, increasing execution risk across sales, agent conversions and acquisition paybacks over the medium term.
Thin underlying profitability
Very low reported margins leave limited buffer against rate compression, rising costs or price competition. This sensitivity constrains reinvestment, reduces returns on equity when volumes slip, and makes multi-quarter earnings performance vulnerable to modest adverse shifts in freight rates or mix.
Weakened cash generation
Low operating cash flow relative to sales and a notable decline in FCF reduce internal funding capacity for acquisitions, tech investments or sustained buybacks. In a cyclical industry, inconsistent cash generation raises refinancing or capital allocation risks over multiple quarters.
Radiant Logistics (RLGT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$347.45M
Dividend YieldN/A
Average Volume (3M)166.20K
Price to Earnings (P/E)25.7
Beta (1Y)0.97
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 Cap1.17
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit2.78
Enterprise Value/Ebitda13.47
Forecast
1Y Price Target
$8.75Price Target Upside17.92% 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 generates revenue primarily through its logistics and transportation services, which encompass freight forwarding, domestic and international transportation, and supply chain management. Key revenue streams include fees charged for freight forwarding services, transportation management services, and warehousing solutions. The company benefits from partnerships with carriers and third-party logistics providers, which enable it to offer competitive pricing and comprehensive logistics solutions. Additionally, Radiant Logistics leverages technology to optimize operations and improve service delivery, further enhancing its profitability. The diverse customer base across various sectors also contributes to stability and growth in revenue.
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
Positive
7.42
Price Trends
6.89
Positive
6.52
Positive
6.32
Positive
Market Momentum
0.14
Positive
54.82
Neutral
36.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLGT, the sentiment is Positive. The current price of 7.42 is above the 20-day moving average (MA) of 7.36, above the 50-day MA of 6.89, and above the 200-day MA of 6.32, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 36.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $22.08B | 38.11 | 15.79% | 0.89% | -1.60% | 4.87% | |
68 Neutral | $2.63B | 24.79 | 6.31% | 1.14% | -5.79% | -1.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $347.45M | 25.72 | 6.94% | ― | 16.42% | 79.46% | |
63 Neutral | $24.66B | 79.58 | 18.26% | ― | -0.30% | -11.02% | |
58 Neutral | $5.55B | 49.19 | 14.41% | 2.56% | -0.74% | -32.79% | |
50 Neutral | $790.27M | -7.17 | -63.14% | ― | 14.54% | 87.85% |
* Industrials Sector Average
RLGT
Radiant Logistics
7.42
0.80
12.08%
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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.