Breaking Down Radiant Logistics, Inc. (RLGT) Financial Health: Key Insights for Investors

You're looking at Radiant Logistics, Inc. (RLGT) and seeing a mixed signal, which is defintely the right way to approach it. The logistics sector is volatile, but the company's full-year 2025 results show a deliberate strategy at play: they drove annual revenues to a strong $902.7 million, a 12.5% jump year-over-year, and net income soared by a massive 125% to $17.3 million, translating to a diluted EPS of $0.35 per share. Here's the quick math: that kind of bottom-line growth in a tough freight environment doesn't happen by accident. But, the most recent quarter (Q1 FY2026) revealed the near-term risk, with net income dropping to $1.3 million, partly due to a one-time $1.3 million bad debt expense, which reminds us that global supply chain disruptions and trade volatility are still major headwinds. We need to look past the noise of that one-off charge and focus on the strategic acquisitions, like the 80% stake in Mexico-based Weport, and the low leverage-only $20 million drawn on a $200 million credit facility-to see if the long-term growth story is intact, or if the market headwinds will stall their momentum.

Revenue Analysis

You want to know where Radiant Logistics, Inc. (RLGT) is actually making its money, and the short answer is that their growth is coming from smart acquisitions layered onto a core North American freight forwarding and logistics business. For the fiscal year ended June 30, 2025, the company reported total annual revenue of $902.7 million, marking a significant year-over-year increase of 12.5% compared to the $802.5 million reported in the prior fiscal year. That's a solid jump in a volatile freight market.

Primary Revenue Streams and Growth Drivers

Radiant Logistics operates as a non-asset-based third-party logistics (3PL) provider, meaning they arrange transportation without owning the planes, ships, or most of the trucks. This model keeps their fixed costs low and is a key part of their financial flexibility. Their primary revenue sources are the fees and margins earned from coordinating a diverse service offering, which includes domestic and international freight forwarding, ground and intermodal brokerage, and value-added logistics services.

The 12.5% revenue growth in FY2025 was primarily fueled by two factors: strategic acquisitions and a boost from high-margin, one-off project charter revenues. This is a critical distinction: acquisitions provide a permanent lift, but project revenues can be lumpy. You need to watch the organic growth rate (excluding acquisitions) to see the true health of the core business. Six acquisitions completed during fiscal 2025 helped drive this top-line expansion.

• Freight Forwarding: Arranging air, ocean, and ground transport for customers.
• Brokerage: Matching shippers with carriers for domestic truckload and less-than-truckload (LTL) shipments.
• Value-Added Logistics: Services like warehousing, distribution, and supply chain consulting.

Geographical Contribution to Revenue

While Radiant Logistics is a global transportation company, its revenue base is heavily concentrated in North America. Looking at the most recent quarterly data (Q1 FY2026, ended September 30, 2025), we get a clear picture of the geographical segment contribution. The acquisition strategy, including the recent 80% stake in Weport, a Mexico-based logistics firm, is defintely a move to diversify this concentration and enhance their international air and ocean capabilities.

Here's the quick math on the most recent geographical split, which totaled $226.7 million in revenue for the quarter:

Near-Term Risks and Strategic Shifts

The main risk you need to track is the ongoing near-term volatility in the freight environment, which is tied to U.S. trade and tariff negotiations. This uncertainty can suppress demand and squeeze transportation margins (which dropped to 25.0% in FY2025 from 27.8% in the prior year). The company is actively counteracting this by focusing on its proprietary global trade management platform, Navegate, to drive organic growth by giving customers better supply-chain visibility. Plus, they're expanding their North American footprint through acquisitions, which you can read more about in their Mission Statement, Vision, & Core Values of Radiant Logistics, Inc. (RLGT).

Profitability Metrics

You're looking at Radiant Logistics, Inc. (RLGT) because you want to know if their revenue growth is translating into real, sustainable profit. The quick takeaway is this: RLGT is managing to grow its bottom line, but it's operating on a much tighter margin than the industry average for net profit, which is a key risk to monitor. It's a low-margin, high-volume game for them right now.

For the full fiscal year 2025 (FY2025), which ended June 30, 2025, Radiant Logistics, Inc. reported $902.7 million in total revenue. This strong top-line number is important, but a true analyst focuses on what's left after costs. Here's the quick math on their core margins:

• Gross Profit Margin: The company posted a Gross Profit of $226.1 million, resulting in a Gross Profit Margin of approximately 25.04%.
• Operating Profit Margin (Adjusted): Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a solid proxy for operational profit in logistics, reached $38.8 million. This translates to an Adjusted Operating Margin of about 4.30% on total revenue.
• Net Profit Margin: Net Income for the year was $17.3 million, yielding a Net Profit Margin of just 1.92%.

Margin Trends and Industry Comparison

The trend shows margin compression, which is a headwind. For example, the Adjusted Gross Profit Margin fell to 27.4% in Q4 FY2025 from 29.4% in the prior year quarter. This is a defintely a sign that pricing power is being squeezed by market competition or changes in service mix, like higher project charter revenues with lower margins.

Comparing these figures to the broader logistics sector highlights the pressure points:

The low Net Profit Margin is the clear red flag. It tells you that while the cost of services (Gross Margin) is fine, the operating expenses (like SG&A, depreciation, and interest) are eating up most of the remaining profit, leaving little room for error. This is a common challenge for asset-light, acquisition-heavy models.

Operational Efficiency and Near-Term Risk

To be fair, Radiant Logistics, Inc. shows bright spots in operational efficiency. They are actively managing costs, evidenced by a decrease in operating partner commissions, which points to efficiency gains in their network. Plus, the company is using its proprietary Navegate technology platform to automate processes, which helps offset rising input costs in a volatile environment.

Still, recent events show the fragility of this low net margin. In the most recent quarter (Q1 FY2026, ended September 30, 2025), Net Income plummeted to $1.3 million from $3.4 million in the prior year period. This sharp drop was largely due to a single, one-time $1.3 million bad debt expense related to a customer bankruptcy. That's the reality of a thin net margin: one major client default can wipe out a significant portion of quarterly profit. For a deeper look at the company's long-term strategy, you should review their Mission Statement, Vision, & Core Values of Radiant Logistics, Inc. (RLGT).

Action: Monitor their Adjusted EBITDA margin, not just Net Income, as it strips out non-cash and one-time noise, giving you a cleaner view of core business performance. If that margin dips below 4.0% consistently, the acquisition-driven growth story becomes questionable.

Debt vs. Equity Structure

You're looking for a clear picture of how Radiant Logistics, Inc. (RLGT) funds its growth, and the short answer is: very conservatively. They are running a remarkably low-leverage model right now, choosing to rely heavily on equity and internal cash flow while keeping significant debt capacity in reserve. This tells me management is prioritizing financial flexibility over aggressive financial engineering.

As of September 30, 2025, Radiant Logistics, Inc. (RLGT) was operating with what management calls 'virtually debt-free' status, reporting a minimal net debt of approximately $2.0 million. This is a negligible amount for a company of its size. The real story here is the untapped liquidity: they have a massive, virtually unused $200 million credit facility that acts as a war chest for future moves. This structure means short-term and long-term debt obligations are extremely manageable, giving them a huge buffer against market volatility.

Here's the quick math on their leverage:

• Debt-to-Equity Ratio: As of November 2025, the company's Debt-to-Equity ratio stood at a very low 0.09.
• Industry Benchmark: The median Debt-to-Equity ratio for the broader Transportation Services industry is far higher, sitting around 2.23 for 2024.

Honestly, a 0.09 ratio is a massive outlier; it signals a very conservative balance sheet that is largely funded by shareholder equity, not borrowed money. This low leverage puts Radiant Logistics, Inc. (RLGT) in the top 10% of its industry for low debt, which is defintely a point of strength in a downturn.

The company's financing strategy is all about balance. They aren't issuing new long-term debt right now because they don't need to. Instead, they are 'thoughtfully re-levering' the balance sheet, which means they are using their cash and credit facility capacity strategically for growth and capital return. This strategy is visible in their recent capital allocation:

They are using their strong balance sheet to execute synergistic tuck-in acquisitions, like the Mexico-based WePort in September 2025, to scale their North American footprint. Plus, they are actively returning capital to shareholders through stock buybacks, acquiring $0.8 million of their own stock in the first fiscal quarter ended September 30, 2025. This approach shows a management team confident enough in their cash generation to buy back shares while still keeping the powder dry for M&A. If you want to dive deeper into who is buying their stock and why, you should check out Exploring Radiant Logistics, Inc. (RLGT) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You want to know if Radiant Logistics, Inc. (RLGT) has the cash to cover its near-term obligations and fund its growth strategy. The short answer is yes, they do. The company maintains a strong liquidity profile, largely due to its asset-light model and conservative debt management, even while actively pursuing acquisitions in fiscal year 2025.

Their liquidity positions, measured by the Current Ratio (CR) and Quick Ratio (QR), are solid. The CR and QR both stood at 1.56 at the end of the fourth fiscal quarter of 2025. A quick ratio of 1.56 (meaning $1.56 in highly liquid assets for every $1.00 in current liabilities) is excellent, especially in the logistics sector. This high Quick Ratio is a direct benefit of their brokerage model, which minimizes inventory-the main difference between the two ratios (Current Ratio and Quick Ratio) for most companies. It's a clean balance sheet.

Here's the quick math on their working capital and cash position:

• Working Capital Trend: The change in net working capital for fiscal year 2025 was a positive increase of $13.034 million, a 41.5% jump year-over-year. This signals that the growth in current assets (like accounts receivable) outpaced the growth in current liabilities (like accounts payable), which is a healthy sign of a growing business managing its short-term accounts well.
• Cash Position: As of June 30, 2025, Radiant Logistics, Inc. (RLGT) held $23 million in cash. Plus, they had only drawn $20 million on their substantial $200 million revolving credit facility. This leaves a significant amount of dry powder-over $180 million-for future opportunities or to weather a market downturn.

Cash Flow Statement Overview: Where the Money Moved

The Cash Flow Statement for the 2025 fiscal year tells a clear story of a company focused on strategic expansion, using internally generated cash to fund its growth. You can see the company's Mission Statement, Vision, & Core Values of Radiant Logistics, Inc. (RLGT) reflected in these numbers.

The trends across the three main cash flow activities are definitive:

• Operating Cash Flow (OCF): The core business generated $13.27 million in cash. This is the lifeblood of the company, showing it is profitable and converting sales into cash, even with the softer freight market conditions seen in 2025.
• Investing Cash Flow (ICF): This was a significant cash outflow of -$33.49 million for the year. This negative number is not a concern; it's a strategic decision. It was primarily driven by cash acquisitions of $28.53 million as the company executed on its growth-by-acquisition model. They are putting cash to work to expand their North American footprint.
• Financing Cash Flow (FCF): The financing section reflects a conservative approach. They are not taking on significant new debt, as evidenced by the minimal draw on their credit line. Instead, they are using cash for shareholder-friendly actions, including repurchasing 145,717 shares of common stock for $0.8 million during the year.

What this estimate hides is the potential for near-term volatility due to ongoing U.S. trade and tariff negotiations, which management has flagged. Still, the strong liquidity ratios and the large, unused credit facility mean Radiant Logistics, Inc. (RLGT) is defintely well-positioned to navigate these market headwinds and continue its acquisition strategy. The balance sheet is a key strength right now.

Valuation Analysis

Is Radiant Logistics, Inc. (RLGT) overvalued or undervalued? Based on a blended look at fiscal year 2025 (FY2025) metrics, the stock appears to be priced reasonably, leaning toward slightly undervalued when you look at its Enterprise Value to EBITDA (EV/EBITDA) compared to the broader logistics sector.

The core of any valuation starts with the multiples. As of November 2025, Radiant Logistics, Inc.'s Price-to-Earnings (P/E) ratio sits at around 19.17x. This is a decent number, but it's not screaming cheap. Remember, P/E tells you how much investors are willing to pay for every dollar of earnings. When we look at the Price-to-Book (P/B) ratio, which compares the market value to the book value of assets, Radiant Logistics, Inc. is trading at just 1.26x. That's defintely low and suggests the market isn't giving the company much credit for its asset base, which is common in logistics.

The most telling multiple for a company like this is Enterprise Value-to-EBITDA (EV/EBITDA), which strips out capital structure differences and non-cash charges. For Radiant Logistics, Inc., this ratio is roughly 5.5x as of November 2025. Here's the quick math: the company generated $38.8 million in adjusted EBITDA for FY2025. A 5.5x multiple is generally considered attractive in the Industrials sector, suggesting the stock isn't expensive right now.

• P/E Ratio: 19.17x (Reasonably priced, not cheap).
• P/B Ratio: 1.26x (Suggests undervaluation of assets).
• EV/EBITDA: 5.5x (Attractive for the logistics industry).

Stock Performance and Non-Dividend Policy

The stock price trend over the last 12 months tells a story of market skepticism, not exuberance. Radiant Logistics, Inc. shares have traded in a 52-week range between $5.44 and $7.94, but the overall trend has been down. The stock price has decreased by approximately 16.43% over the last year, with the latest close around $5.94 as of mid-November 2025. This decline suggests that while the valuation multiples look fair, the market is pricing in near-term headwinds, likely related to the ongoing volatility in freight volumes and U.S. trade negotiations.

For income-focused investors, there's a clear signal here: Radiant Logistics, Inc. is not a dividend stock. The company maintains a 0.00% dividend yield and a 0.00% payout ratio because it simply does not pay a dividend. Management has been clear that capital is being reinvested into growth, primarily through strategic acquisitions and conversions of operating partners, which is a common strategy for smaller, growing logistics firms. If you are looking for yield, this isn't the place. If you want to dive deeper into who is buying and why, you can check out Exploring Radiant Logistics, Inc. (RLGT) Investor Profile: Who's Buying and Why?

Analyst Sentiment and Price Targets

Wall Street's view on Radiant Logistics, Inc. is mixed but leans positive, which is important to note given the recent stock underperformance. While some recent analysis has issued a 'Hold' rating with a price target of $6.50, the broader consensus among analysts is a 'Buy' or 'Strong Buy' rating. This split view reflects the risk/reward profile: solid valuation metrics (low EV/EBITDA) but a choppy operating environment.

The average one-year price target from analysts sits at $8.00. Here's a table of the key valuation data points:

The consensus target of $8.00 suggests a potential upside of over 34% from the current price of $5.94, which is a significant margin of safety if the company can execute its acquisition-driven growth strategy and weather the near-term freight volatility. The key action for you is to monitor their next quarterly earnings call for any change in guidance on freight volumes and acquisition pipeline.

Risk Factors

You're looking at Radiant Logistics, Inc. (RLGT) and seeing a company that delivered a solid $38.756 million in Adjusted EBITDA for its fiscal year ended June 30, 2025. That's a strong 24.4% jump from the prior year, mostly acquisition-fueled. But as a seasoned analyst, I have to map out the near-term risks that could trip up that momentum, because the logistics world is anything but smooth right now.

The primary external risk is the volatile trade policy environment. Honestly, this is the big one. Management has openly cited the near-term volatility tied to ongoing U.S. negotiations around trade and tariffs as a persistent challenge. Here's the quick math: an estimated 25% to 30% of the company's gross margin is tied to international trade, making it highly sensitive to sudden tariff announcements or shifts in global trade flows. A sustained downturn in global trade volumes, particularly from Asia, would defintely squeeze margins.

Internally, the biggest challenge is execution risk tied to its aggressive growth strategy. RLGT completed six strategic transactions in fiscal 2025, including the acquisition of Mexico-based Weport to expand its North American platform. While these acquisitions drove growth, they also introduce integration capacity risk and potential margin pressure. We saw a glimpse of this fragility in the first fiscal quarter of 2026 (ended September 30, 2025), where net income dropped to $1.3 million from $3.4 million in the prior year period, largely due to a one-time $1.3 million bad debt expense related to a customer bankruptcy (First Brands). That's a sharp reminder that customer-specific financial health remains a key operational risk.

Here is a breakdown of the key risks and the company's counter-strategy:

• External Risk: Trade & Tariffs: Unpredictable U.S. trade negotiations and tariff changes create market uncertainty.
• Financial Risk: Margin Compression: Pricing instability in areas like ocean freight and the cost of integrating new acquisitions can compress gross and adjusted gross margins, which were already down in Q4 2025.
• Operational Risk: Bad Debt Exposure: The $1.3 million one-time bad debt expense in Q1 2026 shows that customer bankruptcy risk can materially impact quarterly net income.

To be fair, Radiant Logistics, Inc. is not just sitting on its hands. Its mitigation strategy centers on remaining 'nimble' in response to trade announcements, plus leveraging its strong financial position to weather the storm. The company's balance sheet is robust, with approximately $23 million of cash on hand and only $20 million drawn on its $200 million credit facility as of June 30, 2025. This low leverage gives them the flexibility to continue their acquisition strategy and execute stock buybacks-they repurchased shares worth $0.8 million in Q1 2026 and an additional $2.0 million post-quarter. They're betting on their diverse service offering and the proprietary Navegate technology platform to drive organic growth and operational efficiency to offset market headwinds. You can get a better sense of their long-term view by reading their Mission Statement, Vision, & Core Values of Radiant Logistics, Inc. (RLGT).

Growth Opportunities

You want to know where Radiant Logistics, Inc. (RLGT) goes from here, especially with the freight market still finding its footing. The direct takeaway is that the company is not waiting for a broad market recovery; it is actively manufacturing its own growth through strategic acquisitions and a major technology push, all backed by a surprisingly strong balance sheet.

For the full fiscal year 2025, which ended June 30, Radiant Logistics delivered a total revenue of $902.7 million and a full-year Adjusted EBITDA of $38.8 million, up 24.4% year-over-year. This growth wasn't just organic; it was a result of deliberate capital allocation. The company's strategy is simple: buy, integrate, and digitize.

Strategic Acquisitions and Market Expansion

The core of the growth strategy is a disciplined roll-up model-acquiring smaller, synergistic logistics firms and converting strategic operating partners. In fiscal year 2025 alone, Radiant Logistics completed six acquisitions, which contributed $6 million to the year-over-year increase in Adjusted EBITDA. That is a clear, repeatable playbook.

The most significant recent move is the acquisition of an 80% stake in Weport, a Mexico-based logistics company, effective September 1, 2025. This is a crucial step for scaling the North American footprint, which is defintely a smart move given the rise in nearshoring and cross-border trade activity. They are positioning themselves to capture more of the complex, high-margin customs brokerage (a service provided by licensed professionals to assist importers and exporters in meeting federal requirements for international trade) and airfreight business.

• Buy-and-Build: Completed six acquisitions in FY2025.
• Mexico Expansion: Acquired 80% of Weport for North American scale.
• Capital Strength: Only $20 million drawn on a $200 million credit facility.

Technology and Financial Projections

Beyond M&A, the company's proprietary Navegate technology platform is the key product innovation. This platform for global trade management is a competitive advantage because it offers speed-to-market and ease of deployment, which should serve as a meaningful catalyst for organic growth as they roll it out to customers. This is how a 3PL (third-party logistics) company stays relevant: by being a technology company that moves freight, not just a freight mover.

Here's the quick math on what analysts expect for the near-term future, which aligns with the company's aggressive strategy:

What this estimate hides is the potential for upside if the freight market recovers faster than anticipated, or if the Weport acquisition and Navegate deployment accelerate organic growth. Still, the projected revenue of $952.00 million for fiscal year 2026 suggests a steady, acquisition-fueled trajectory.

Durable Competitive Advantages

Radiant Logistics is well-positioned to navigate the current volatility because of its durable business model and strong financial flexibility. They have a diverse service offering-domestic and international freight forwarding, brokerage, and value-added logistics-which insulates them when one segment, like ocean freight, is struggling.

The balance sheet is a major advantage. With approximately $23 million in cash and minimal debt utilization, they have significant 'dry powder' to fund future synergistic tuck-in acquisitions. This financial strength, coupled with the technology-enabled, diversified service model, is what gives them an 'Outperform' status among brokerage firms. For a deeper look at the foundational numbers, you can check out Breaking Down Radiant Logistics, Inc. (RLGT) Financial Health: Key Insights for Investors.