Radiant Logistics, Inc. (RLGT): BCG Matrix [Dec-2025 Updated]

You're trying to figure out exactly where Radiant Logistics, Inc. (RLGT) is allocating its capital for maximum return, so I've mapped their latest business units onto the four quadrants of the Boston Consulting Group Matrix using the fiscal year 2025 data. Honestly, the story is one of funding growth: the Cash Cows delivered $239.4 million in Adjusted Gross Profit to fuel Stars that saw Adjusted EBITDA jump 24.4% to $38.8 million, while the Dogs segment is defintely showing strain in the current freight environment. The big question mark is how quickly the new Mexico expansion, aimed at a 5.7% CAGR nearshoring market, will mature; check out the breakdown below to see the precise positioning of every major RLGT operation.

Background of Radiant Logistics, Inc. (RLGT)

Radiant Logistics, Inc. (RLGT) is a company that provides technology-enabled global transportation and value-added logistics services. You'll find their operations span primarily across the United States and Canada, offering a suite of services that includes freight forwarding, brokerage, and broader logistics solutions. This structure is designed to help them stay nimble in the often-volatile freight environment.

Looking at the full fiscal year that ended on June 30, 2025, Radiant Logistics, Inc. showed solid top-line growth. Revenues for the year reached $902.7 million, which was an increase of 12.5% compared to the prior year's revenues of $802.5 million. The bottom line also improved significantly on an adjusted basis; adjusted net income grew by 36.7% to $30.9 million for the year.

The company's operational efficiency also saw improvement, with Adjusted EBITDA for fiscal 2025 hitting $38.8 million, marking a 24.4% increase year-over-year. This translated to an Adjusted EBITDA margin of 16.2% for the full fiscal year, up from 13.2% the year before. Honestly, that kind of margin expansion on double-digit revenue growth is what we look for in an asset-light model.

The growth trajectory continued into the start of the new fiscal year, with the first quarter ended September 30, 2025, showing revenues of $226.7 million, an 11.3% jump from the same period last year. However, the reported net income for that quarter was $1.3 million, down from $3.4 million the prior year, and adjusted net income fell 43.0% to $4.5 million. Management pointed out that this quarterly dip was due to an unusual, one-time bad debt expense of $1.3 million tied to the bankruptcy of First Brands.

Strategically, Radiant Logistics, Inc. has been active on the acquisition front. During fiscal 2025, they completed several deals, including USA Logistics Services, Inc. and USA Carrier Services, LLC in April 2025, and Universal Logistics, Inc. in May 2025. Plus, they bolstered their North American footprint by acquiring an 80% stake in Mexico-based Weport, S.A. de C.V., effective September 1, 2025. They also continue to invest in their proprietary Navegate technology platform.

From a capital management perspective, as of June 30, 2025, the balance sheet looked strong with approximately $23 million in cash on hand and only $20 million drawn against their $200 million credit facility. Furthermore, the company has been returning capital to shareholders, repurchasing 139,992 shares for $0.8 million during the first quarter of fiscal 2026, followed by an additional 341,466 shares for $2.0 million post-quarter.

Radiant Logistics, Inc. (RLGT) - BCG Matrix: Stars

You're looking at the units within Radiant Logistics, Inc. (RLGT) that are dominating high-growth areas, meaning they demand capital but promise significant future returns. These are the businesses where Radiant Logistics is actively pouring resources to maintain market leadership, and the numbers for fiscal year 2025 (FY2025) clearly show this investment is paying off in scale.

Strategic Acquisitions Pipeline

The acquisition strategy is defintely the core growth engine right now. This focus drove the Adjusted EBITDA up by 24.4% for FY2025, landing at $38.8 million. That's a $7.6 million increase over the prior year period. Total revenues for the full fiscal year ended June 30, 2025, reached $902.7 million, marking a 12.5% increase year-over-year. The CEO attributed approximately $6.0 million of that total Adjusted EBITDA contribution directly to acquisitions and partner conversions for FY2025. If this success holds as the market matures, these units will transition into Cash Cows.

Here's a quick look at how the acquisition-driven growth stacks up against the base business performance for the fiscal year ended June 30, 2025:

The company maintains a strong liquidity position to fund this growth, with approximately $22.9 million in cash on hand and only $20.0 million drawn against the $200.0 million credit facility as of June 30, 2025. That's a lot of dry powder for more tuck-ins.

Navegate Technology Platform

The proprietary global trade management (GTM) software, stemming from the December 2021 acquisition of Navegate for $35 million, is a key component of the Star strategy, designed to drive cross-selling. This platform is where they are investing to differentiate the service offering beyond basic transport. The platform's capabilities include:

• Navegate Orderchain^TM for SKU-level visibility from manufacturing floor to final delivery.
• Navegate^® GTM for managing cross-border freight and regulatory boundaries in one place.
• Navegate ShipLens^TM offering real-time, shared shipment visibility and automatic exception alerting.
• Navegate Tradekey^TM for achieving deeper commercial alignment with global suppliers via digital SLA reporting.

Integration of Recent Acquisitions

The focus is on converting acquired agent stations and firms into the higher-margin network model. This conversion strategy is what helps boost profitability metrics like the Adjusted EBITDA margin on Adjusted Gross Profit, which was 16.2% for FY2025. The pipeline includes both greenfield acquisitions and opportunities within the existing agent-based network for partner exits.

Firms integrated or closed in FY2025 to strengthen the network density and modal breadth include:

• USA Logistics (Philadelphia-based, conversion closed April 2025).
• TransCon Shipping (Los Angeles-based, closed March 2025).
• WePort (Mexico-based, 80% stake acquired) to solidify the North America platform.
• Other contributors like Cascade Transportation, Foundation Logistics, and TCB Transportation.

High-Growth, Value-Added Services

Radiant Logistics, Inc. is expanding specialized logistics solutions to capture higher-margin business, moving beyond just basic freight movement. This is the path to turning these Stars into Cash Cows when market growth slows. The company's overall Adjusted Net Income for FY2025 increased by 36.7% to $30.9 million. This indicates that the mix shift towards value-added services is improving the bottom line faster than top-line revenue growth.

Radiant Logistics, Inc. (RLGT) - BCG Matrix: Cash Cows

Cash Cows for Radiant Logistics, Inc. (RLGT) are those business units or service segments operating in mature, high-market-share areas, reliably generating more cash than they consume. These units fund the company's growth initiatives and corporate overhead.

North American Domestic Freight Network: The stable, diversified, non-asset-based model provides consistent cash flow, characteristic of a mature market leader. This segment benefits from established customer relationships and operational maturity, requiring less aggressive promotion or placement spending.

The financial performance underscores this stability:

• Adjusted Gross Profit: Radiant Logistics, Inc. generated $239.4 million in adjusted gross profit for Fiscal Year 2025, which is a key source of internal funding for the acquisition strategy.
• Adjusted EBITDA: The company reported $38.8 million in adjusted EBITDA for the fiscal year ended June 30, 2025.

You want to see the core numbers that define this cash-generating engine for FY2025:

Strong Liquidity Position: Radiant Logistics, Inc. maintains a low leverage profile, which is crucial for a Cash Cow that should be self-sustaining and ready to support strategic moves. As of June 30, 2025, the company had only $20.0 million drawn on its $200.0 million credit facility. This leaves significant unused capacity. Furthermore, cash on hand was approximately $23 million or $22.9 million at that date. This strong balance sheet means minimal external financing pressure for operations.

Established Agent/Operating Partner Network: This network represents a mature, decentralized structure. Because it is established, it requires minimal new capital expenditure to maintain its current level of productivity, allowing gains to be passively 'milked'. The strategy involves converting these partners to increase density and cash flow efficiency. For instance, Radiant Logistics, Inc. completed 3 strategic operating partner conversions during fiscal 2025. These conversions leverage existing infrastructure, improving efficiency and boosting cash flow without heavy upfront investment.

• Focus on maintenance and efficiency improvements over aggressive market share battles.
• Conversions of strategic operating partners add scale organically.
• Minimal promotion investment needed due to high existing market share.
• The model supports funding for Question Marks or Stars.

Radiant Logistics, Inc. (RLGT) - BCG Matrix: Dogs

You're looking at the parts of Radiant Logistics, Inc. (RLGT) that are struggling to generate strong returns right now, even as the overall company posts solid annual growth driven by acquisitions. These are the Dog quadrants: low market share in low-growth or pressured segments.

Transactional Truck Brokerage is a prime candidate here. This is your low-margin, commodity-based freight service line. While the company completed six strategic transactions in fiscal 2025, including the WePort acquisition, the core brokerage operations are clearly feeling the squeeze from a difficult market. The CEO noted in Q1 2025 that they were hoping for some market rationalization on the capacity side, which suggests this segment is battling oversupply.

The financial evidence for this segment's pressure is stark when you look at the fourth quarter results compared to the prior year. The overall business saw annual adjusted EBITDA rise by 24.4% to $38.8 million for the full fiscal year 2025, but that masks the quarterly weakness. The Dog category is defined by that quarterly softness.

Here are the specific numbers showing the quarterly pressure:

The Q4 2025 Adjusted EBITDA Decline to $7.9 million from $9.1 million year-over-year clearly reflects soft market pressure on core operations, which are often the less-integrated, transactional parts of the business. This quarterly drop of 13.1% contrasts sharply with the full-year growth of 24.4%, which was heavily bolstered by acquisitions contributing approximately $6.0 million to the annual adjusted EBITDA.

The Low-Margin Spot Market Business is where you see the direct impact of oversupply and rate compression. The compression is evident in the margins: the GAAP gross margin fell to 26.2% in Q4 2025 from 27.8% in Q4 2024. Similarly, the adjusted EBITDA margin compressed to 13.1% from 15.0% year-over-year for the quarter. These segments, which are highly exposed to fluctuating spot rates, are the ones that break even or consume cash when the market turns against capacity providers.

For Legacy, Non-Integrated Operations, think of any agent operations that haven't been fully converted to the Radiant model. These units often lack the technology integration or scale benefits of the newer acquisitions. While specific segment revenue isn't broken out to isolate these, the overall Q4 revenue of $220.6 million, which missed analyst expectations of $223.7 million, suggests that the non-acquired or less-integrated parts of the business are not pulling their weight. These units are prime candidates for divestiture or aggressive conversion, as expensive turn-around plans are generally not advised for Dogs.

• Dogs are in low growth markets and have low market share.
• They frequently break even, neither earning nor consuming much cash.
• The Q4 2025 Adjusted EBITDA was $7.9 million, down from $9.1 million YoY.
• Adjusted Net Income fell 21.8% to $5.5 million in Q4 2025.
• The company holds $23 million in cash against a $200 million credit facility, providing dry powder to exit or fix these areas.

Radiant Logistics, Inc. (RLGT) - BCG Matrix: Question Marks

These business elements operate in markets showing growth potential but currently hold a low market share for Radiant Logistics, Inc. They require capital deployment to gain traction, fitting the Question Mark profile.

Mexico Expansion (Weport Acquisition)

Radiant Logistics, Inc. executed a strategic move by acquiring an 80% ownership interest in Weport, S.A. de C.V., effective September 1, 2025. This move is specifically aimed at capturing demand related to the nearshoring trend in North America. This acquisition is flagged as a key step in scaling the company's North American footprint.

• Acquisition stake: 80% ownership.
• Effective date: September 1, 2025.
• Acquired entity: Weport, S.A. de C.V.

International Air/Ocean Freight

Within the broader logistics sector, Radiant Logistics, Inc. maintains a position that suggests a need for market share growth in specific high-growth lanes. For the 2025 period, Transport Topics recognized the company ranking #71 among all third-party logistics providers in North America based on full-year gross revenue. Furthermore, the company was ranked #92 in the list for the industry's top freight brokerage firms for 2025. The service offering includes international air and ocean freight forwarding.

New Green-Field Locations

The strategy for expanding physical presence involves both new office establishment and converting existing partners. For fiscal year 2025, Radiant Logistics, Inc. reported completing 3 greenfield acquisitions and 3 strategic operating partner conversions. The company's network structure as of the latest reports includes approximately ~30 company-owned locations and ~70 independent agent (strategic partners) locations operating exclusively on its behalf. These acquisitions of agencies and greenfield operations are being executed at mid-single-digit EBITDA multiples.

Digital Transformation Investment

Capital expenditure is directed toward the full deployment of the proprietary Navegate platform across the entire network to foster organic growth. Navegate is described as a proprietary global trade management and collaboration platform. The financial performance for the first fiscal quarter ended September 30, 2025, illustrates the cash consumption and current return profile of the business units, including those undergoing transformation.

Here's the quick math on the Q1 fiscal 2025 results:

Excluding an unusual, one-time $1.3 million bad debt expense related to the First Brands bankruptcy, the adjusted EBITDA would have been $8.1 million for the quarter. The adjusted net income, normalizing for the $1.3 million charge, would have been $5.5 million for the three months ended September 30, 2025.