Radiant Logistics, Inc. (RLGT) is a leading provider of technology-enabled global transportation and value-added logistics solutions, primarily serving the United States and Canada. The company's diverse service offerings, robust North American footprint, and extensive global network of service partners have positioned it as a resilient player in the third-party logistics (3PL) industry, allowing it to navigate the current market headwinds with agility.
Company History and Business Overview
Radiant Logistics was founded in 2005 and has since grown organically and through strategic acquisitions to become a prominent player in the 3PL market. The company operates a multi-brand network, which includes over 100 locations, with a combination of Company-owned sites and independent agents, referred to as strategic operating partners, who operate exclusively on Radiant's behalf.
Radiant's core service offerings encompass domestic and international air and ocean freight forwarding, freight brokerage (including truckload, less-than-truckload, and intermodal services), as well as complementary value-added services such as materials management and distribution (MMD) and customs house brokerage (CHB). The company's strength lies in its ability to arrange the shipment of materials, products, equipment, and other goods on behalf of its customers, leveraging its extensive carrier network and advanced technology platforms.
The company's growth strategy has included several significant acquisitions that have expanded its capabilities and reach. In 2015, Radiant acquired the Wills Group, which included the Clipper Express business. This acquisition was rebranded as Radiant Road and Rail, enhancing the company's intermodal and truck brokerage capabilities. Around the same time, Radiant also acquired Navigate, a customs brokerage and NVOCC business, which added global trade management services to its portfolio.
Throughout its history, Radiant has faced various challenges, including macroeconomic factors affecting the freight and logistics industry, such as disruptions in global supply chains and changing trade policies. Despite these obstacles, the company has maintained a focus on strengthening existing customer relationships and expanding its service capabilities.
In March 2024, Radiant encountered a significant cybersecurity incident that impacted its operations. The company demonstrated its resilience by quickly implementing business continuity plans and working to remediate the issue. Additionally, Radiant has been addressing a material weakness in its internal controls over financial reporting by enhancing its processes and controls.
Financial Performance and Metrics
Financials
In the fiscal year ended June 30, 2024, Radiant Logistics reported total revenue of $802.47 million, down from $1.09 billion in the prior fiscal year. Net income for the same period stood at $8.20 million, compared to $20.59 million in the previous year. The company's adjusted EBITDA, a key metric, reached $29.48 million in fiscal 2024, down from $51.73 million in fiscal 2023. Annual operating cash flow was $17.25 million, with free cash flow of $8.66 million.
For the most recent quarter (Q2 2025), Radiant reported revenue of $264.54 million, a 31.5% increase compared to the same quarter in the previous year. Net income for Q2 2025 was $6.47 million, representing a substantial 556.5% increase from Q2 2024. The company's strong performance in this quarter was partly driven by its support of humanitarian and relief-related projects, including chartering 49 flights to bring 8 million units of IV fluid to the U.S.
For the six months ended December 31, 2024, Radiant reported net income of $9.84 million, up 172.9% from the prior year period. Adjusted net income for the same period was $18.58 million, a 54.2% increase, while adjusted EBITDA reached $21.47 million, up 27.2% year-over-year.
Liquidity
The company's financial position remains strong, with a healthy balance sheet. As of the most recent reporting period, Radiant Logistics had $19.91 million in cash and cash equivalents and access to a $200 million revolving credit facility, which was undrawn. The credit facility matures in August 2027, with interest rates based on SOFR and CORRA. The company's current ratio and quick ratio both stand at 1.41, indicating a robust ability to meet short-term obligations. The debt-to-equity ratio is 0.31, suggesting a conservative capital structure.
Radiant Logistics' profitability metrics have seen some fluctuations in recent years. The company's gross profit margin was 17.5% in fiscal 2024, up from 16.6% in the prior year. However, the net profit margin declined from 1.9% in fiscal 2023 to 1.0% in fiscal 2024. These changes reflect the challenging market conditions the 3PL industry has faced, as discussed in the following section.
Business Segments and Operations
Radiant Logistics operates through two primary segments: Transportation Services and Value-Added Services. The Transportation Services segment, which includes domestic and international freight forwarding, as well as truck brokerage services, is the company's largest revenue generator. For the six months ended December 31, 2024, this segment accounted for $443.88 million, or 94.8% of total revenue, with an adjusted gross profit of $107.20 million and a net transportation margin of 24.1%.
The Value-Added Services segment, which encompasses materials management and distribution (MMD), customs house brokerage (CHB), and global trade management (GTM) services, contributed $24.23 million, or 5.2% of total revenue for the same period. This segment achieved an adjusted gross profit of $13.66 million, with an impressive gross profit percentage of 56.4%.
Geographically, Radiant's operations are primarily focused on the United States and Canada. For the six months ended December 31, 2024, the U.S. market accounted for $413.58 million (88.3%) of total revenue, while the Canadian segment contributed $54.66 million (11.7%).
Navigating Market Headwinds
The 3PL industry, including Radiant Logistics, has faced significant headwinds in recent years, including supply chain disruptions, inflationary pressures, and geopolitical tensions. These factors have put pressure on profit margins and operational efficiency across the sector.
In response to these challenges, Radiant Logistics has demonstrated its agility and resilience. The company has continued to diversify its service offerings, expand its geographic reach, and pursue strategic acquisitions to strengthen its competitive position. For example, in fiscal 2024, Radiant Logistics acquired Foundation Logistics Services, a Texas-based provider of specialized transportation and logistics services for the oil and gas industry, as well as Focus Logistics, a Michigan-based freight forwarder that had been operating under Radiant's Service By Air brand since 2006.
Furthermore, the company has leveraged its robust technology platforms and data-driven insights to optimize its operations and enhance efficiency. Radiant Logistics has also remained focused on managing costs and maintaining a strong balance sheet, with a disciplined approach to capital allocation and a commitment to shareholder value creation.
Growth Strategies and Outlook
Looking ahead, Radiant Logistics remains focused on driving profitable growth through a multi-pronged strategy. The company plans to continue its organic expansion, leveraging its strong brand, extensive network, and technological capabilities to deepen relationships with existing customers and attract new ones.
Additionally, Radiant Logistics is actively pursuing strategic acquisitions, both in the form of greenfield opportunities and the conversion of its existing strategic operating partners. The company has a robust pipeline of potential targets and a track record of successfully integrating acquired businesses to drive synergies and enhance its service offerings.
The company's management has expressed cautious optimism about the near-term market environment, acknowledging the continued challenges posed by factors such as inflation, geopolitical tensions, and potential labor disruptions. Radiant expects future near-term results to be challenged by market headwinds, including recently introduced tariffs with China, Mexico, and Canada. The company also notes that the March quarter is typically their slowest seasonal quarter and expects it to play out similarly to the prior year.
Despite these challenges, Radiant Logistics remains optimistic about its prospects and opportunities. The company believes it is well-positioned with a durable business model, diverse service offering, and strong balance sheet to navigate through the current market conditions and capitalize on emerging opportunities in the 3PL landscape.
Conclusion
Radiant Logistics' history of organic growth, strategic acquisitions, and operational agility has positioned the company as a resilient player in the 3PL industry. Despite the current market headwinds, the company's diverse service offerings, extensive geographic reach, and robust technology platforms provide a solid foundation for future success. With a strong financial position, a clear growth strategy, and a demonstrated ability to adapt to changing market conditions, Radiant Logistics remains well-positioned to create long-term value for its shareholders in the dynamic and evolving 3PL market.