Radiant Logistics achieves $38.8 million in adjusted EBITDA for 2025, driven by acquisitions, despite near-term trade uncertainties impacting future outlook.

OPERATOR - (00:00:16)

Good Afternoon. Welcome to Radiant Logistics, Inc.'s financial discussion for fourth fiscal quarter and year ended June 30, 2025. This afternoon, Bon Crane, Radiant Logistics founder and CEO and Radiant's Chief Financial Officer Todd McCumber will provide a general business update and discuss financial results for the company's fourth fiscal quarter and year ended June 30, 2025. Following their comments, we will open the call to questions. This conference is scheduled for 30 minutes. This conference may include forward looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. The company has based these forward looking statements on its current expectations and projections about future events. These forward looking statements are subject to known and unknown risks, uncertainties and assumptions about the Company that may cause the Company's actual results or achievements to be materially different from the results or achievements expressed or implied by such forward looking statements. While it is impossible to identify all the factors that may cause the Company's actual results or achievements to differ materially from those set forth in our forward looking statements, such factors include those that have in the past and may in the future be identified in the Company's SEC filings and other public announcements which are available on website at www.radiantdelivers.com. In addition, past results are not necessarily an indication of future performance. Now I would like to call over to Radiant's Founder and CEO, Bon Crane.

Bon Crane - Founder and CEO - (00:01:50)

Thanks, Matthew. Good afternoon, everyone and thank you for joining in on today's call. With the benefit of our diverse service offering and ongoing acquisition efforts, we continue to deliver solid financial results and generated 38.8 million in adjusted EBITDA for our fiscal year ended June 30, 2025, which is up 7.6 million and 24.4% relative to the prior year period. The year-over-year improvement in adjusted EBITDA was driven principally through our acquisition efforts. For the year ended June 30, 2025, our acquisitions generated 6 million in adjusted EBITDA, driven principally by our greenfield acquisitions of Seattle based Cascade Transportation in June of 24, Houston based Foundation Logistics and Services in September of 24, St. Louis based TCB Transportation in December of 24 and Los Angeles based Transcon Shipping in March of 25 along with the conversion of our strategic operating partners, Miami based select Logistics in February of 24 in Philadelphia based USA Logistics in April 25. Notwithstanding these strong year-over-year results, we expect to continue to see some near term volatility tied to the ebb and flow of the ongoing US negotiations around trade and tariffs. In any event, we continue to believe that there will ultimately be a surge in global trade as these tariff disputes are brought to rest. In the interim, we intend to remain nimble in response to any tariff announcements by the US Administration and continue to support our customers in navigating these quickly evolving markets and executing thoughtful supply chain strategies for competitive advantage. As previously discussed, we believe we are well positioned with a durable business model, diverse service offering and strong balance sheet to navigate through a slower freight market. We continue to enjoy a strong balance sheet with approximately $23 million of cash on hand as of June 30 and only 20 million drawn on our $200 million credit facility. @ the same time, we remain focused on the long term, staying true to our strategy to deliver profitable growth through a combination of organic and acquisition initiatives while thoughtfully relevering our balance sheet through a combination of strategic operating partner conversions, synergistic tuck in acquisitions and stock buybacks. We made good progress in this regard over this last year, having completed three greenfield acquisitions and three strategic operating partner conversions in fiscal 25. In addition, earlier this month we achieved a significant milestone with our acquisition of Mexico based weport. Mexico is an important market for us and in addition to supporting Radiant's legacy and prospective customers across Mexico, weport is well positioned to serve as a platform to help us continue to scale our North American footprint. We believe these transactions are representative of a broader pipeline of opportunities which includes both greenfield acquisitions, companies not currently part of our network, as well as acquisition opportunities inherent in our agent based network where we can support our current operating partners in their exit strategies and look forward to providing further updates as we progress our acquisition efforts. With that, I'll turn it over to Todd Maycomber, our CFO to walk us through our detailed financial results and and then we'll open it up for some Q and A.

Todd Maycomber - (00:05:32)

Thanks Bon and good afternoon everyone. Today we will be discussing our financial results including adjusted net income and adjusted ebitda for the three and 12 months ended June 30, 2025. For the three months ended June 30, 2025, we reported net income attributable to Radiant Logistics for the quarter of 4,000,907 on 220.6 million of revenues, or $0.10 per basic and fully diluted share. For the three months ended June 30, 2024 reported net income attributable to Radiant Logistics of $4,781,000 on 206 million of revenues or $0.10 per basic and fully diluted share. This represents an improvement of approximately $126,000 of net income over the comparable prior year period, or 2.6% quarterly adjusted net income. Results for adjusted net income, we reported $5,485,000 for the three months ended June 30, 2025, compared to adjusted net income of $7,015,000 for the three months ended Jun 30, 2024. This represents a decrease of approximately $1,530,000, or approximately 21.8%. For adjusted EBITDA, we reported $7,890,000 for the three months ended jun 30, 2025 compared to adjusted EBITDA of $9,078,000 for the three months ended june 30, 2024. This represents a decline of approximately $1,188,000, or approximately 13.1%. Moving on to the twelve month results the twelve months ended Jun 30, 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. The twelve months ended Jun 30, 2024, we reported net income attributable to Rating Logistics of $7,685,000 on $802.5 million of revenues for $0.16 per basic and fully diluted share. This represents an increase of approximately $9,606,000. Over the comparable prior year period. For adjusted net income, we reported $30,944,000 for the twelve months ended June 30, 2025. Compared to adjusted net income of $22,647,000 for the twelve months ended Jun 30, 2024. This represents an increase of approximately $8,297,000, or approximately 36.6%. For adjusted EBITDA, we reported $38,756,000 for the twelve months ended jun 30, 2025 compared to adjusted EBITDA of $31,160,000 for the twelve months ended June 30, 2024. This represents an Increase of approximately $7,596,000, or approximately 24.4%. With that, I will turn the call over to our moderator to facilitate any Q and A from our callers.

OPERATOR - (00:09:08)

Certainly everyone at this time will be conducting a question and answer session if you have any questions or comments, please press Star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press Star one on your phone. Thank you. Your first question is coming from Elliot Apple from TD Cowan. Your line is live.

Elliot Alperon - (00:09:41)

Yeah, thank you. This is Elliot Apple for Jason Seidel. Can you talk about. Hey guys, can you talk about the changing trade policy and how that's affected your business? I guess maybe more specifically first on the Mexico side given your recent acquisition of Weport?

Bon Crane - Founder and CEO - (00:10:01)

Sure. It remains fluid obviously and it's fits and starts.. Right. So you know, initially there were some pull forward, you know, with people trying to get ahead of tariffs. Then there's little inventory builds up. There were some, you know, warehousing constraints with everybody trying to navigate various strategies around the tariffs, including kind of bringing freight to U.S. adjacencies,, whether that's Canada or Mexico. So there's, you know, it remains an interesting time. I think we're seeing, you know, definitely a continued shift or diversification away from China to Southeast Asia. And markets like Mexico we believe will continue to be a beneficiary of kind of the trade dynamic. I can't tell you kind of which way the wind will blow next, but it will remain volatile or I would expect that it will. And you know, we're going to be there to support our customers through that process while at the same time continuing to build out and solidify our own presence across North America. You know, for the longest time we've been strong in the U.S. back in 2015, we acquired another public company formerly known as Wheels, that represented our platform in Canada. And so our opportunity to partner with Weport with weport in the Mexico transaction is kind of a, kind of a continuation along the theme and making good on our own kind of vision or aspirations to really have a robust kind of one stop shop opportunity for North America on a more comprehensive basis. And we port represents that for us helping kind of complete our North American puzzle, you know, as we move forward.

Elliot Alperon - (00:12:14)

Okay, great. And then yeah, so we've seen a lot of volatility on the imports this year, I guess two different pull forward events. We've also seen kind of More capacity in PUs come online here, I guess. How are you managing your business differently given all that's going on? And how are your customers managing their businesses differently?

Bon Crane - Founder and CEO - (00:12:37)

Well, it's been an interesting time. It's Harder for the customers to manage their supply chain just given the volatility. So a lot of shippers have been just doing their best to buy time in and around when they either getting in ahead of tariff effective dates or back to this idea of bringing freight either into Canada or Mexico while trying to decipher what's going to happen next or which commodities are going to be impacted and so on. So. Until more announcements are made around various commodities or times for changes, it remains difficult. And then of course we've got the whole whether the tariffs are even legal. I guess it's coming before the Supreme Court. So needless to say, our and our competitors, customs brokerage operations are extremely active, trying to keep up with kind of these uncertain times and doing what we can to support our customers through that journey.

Elliot Alperon - (00:13:59)

Okay, that's helpful. And then maybe just one on the near term. So adjusted EBITDA was a bit below us, specifically EBITDA margins. I guess anything to call out in the quarter, any pull forward or lack thereof would be helpful. Thank you.

Bon Crane - Founder and CEO - (00:14:13)

Yeah, I think it's more lack thereof. I think it was more of a pull forward in earlier periods is what it was. And so like Bon said, I mean people pull forward and you build inventories and you burn through them and then you need to get back to bringing product in. But that's what I was seeing, you know, it, you know, I think it's, you know, it's timing, right. You know, and it's hard for us to really quantify when these things are going to change, you know, but clearly, you know, it's, it's impacting us, you know, sometimes favorably and sometimes not. So in this particular quarter, I think there was less pull forward is what we saw. So that's, that's, you know, it's nothing alarming, but it's going to be to be expected. But it's hard for us to quantify, you know, exactly how things play out in the near term.

Elliot Alperon - (00:15:02)

Thank you, guys.

Bon Crane - Founder and CEO - (00:15:03)

You bet.

OPERATOR - (00:15:06)

Thank you. Your next question is coming from Mark Argento from Lake Street. Your line is live.

Mark Argento - (00:15:13)

Hey guys, just a quick follow up on the last question. In terms of the ebitda, I did notice looks like depreciation and amortization in the quarter was down like 3.6 million, running closer to five a quarter. Obviously that add back wasn't there for us. What, did you guys end up writing something down or?

Bon Crane - Founder and CEO - (00:15:35)

No, No, as Bon mentioned, In 2015 we did a pretty big acquisition wheels group and that was a 10 year life. And so basically it was A substantial amortization associated with that acquisition that basically got to the end of its life. And so we. So, now the numbers you see for this quarter are going to be more baseline going forward.

Mark Argento - (00:15:59)

So it's purely that just the wheels deal fell off, the amortization. Got it. Yeah, that's helpful. Yeah. And just pivoting back. Obviously you guys have been super aggressive or active. I don't know if aggressive is the right word, but active on the M and A side and buying in. I mean, you know, a lot of. These guys, you're buying, you're doing business, you're integrating, you've already, you know, they're already almost integrated effectively. Is there kind of a capacity limitation? Is there any reason you couldn't do 10 or 15 of these a year? I mean, not to get overzealous, but, you know, maybe you just talk through how you're thinking about the pipeline and your inability to do more of this. Sure.

Bon Crane - Founder and CEO - (00:16:44)

You know, we've always talked about kind of what are the constraints around acquisitions. And we really don't think it's a. there's a there's a true constraint on interesting acquisition candidates, you know, and given our low leverage, you know, we've got ample kind of capacity to do deals. So the, the ultimate constraint really becomes our ability to kind of integrate and digest the things that we acquire and mark. You'll remember we've historically thought of having a couple of different platforms to support M&A. So we've historically had our US Forwarding operation platform. That's where you're seeing all of our agent station conversions occurring. We also have our US Intermodal and truck brokerage platform in Chicago where we're looking to do transactions. That's where we were able to do the TCB transaction from. And then we have our Canadian platform where we're always interested in exploring Canadian type opportunities. And now most recently with WE Port, we'll have yet a fourth, I think of that as yet a fourth platform where we could explore kind of other potentially interesting opportunities. And you know, from a Mexico standpoint, to continue to build out our capabilities in Mexico. And kind of coming back, you know, for the longest time we've talked about our extreme low leverage on our balance sheet. And as we kind of work our way back to a more normalized level, we have quite a bit of capacity within our existing capital structure to continue to grow. Particularly when you consider the free cash flow characteristics of the business. That's kind of part and parcel of what.