RLGT

Radiant is a well-run, asset-light third-party logistics company operating a multi-brand agent network of 100+ locations across the US and Canada. The balance sheet is the standout: zero long-term debt (FY2024 LT debt $0.00, current portion $0.00), $226M of equity against $201M of liabilities (0.89x), a 1.56x current ratio ($179M vs $115M), and $151M of retained earnings that keep compounding. FY2025 shows a genuine recovery — revenue $903M (+12.5%), operating income $21.1M (+126.5%), net income $17.3M (+125%) and diluted EPS $0.35 (+119%) — as the company rebounds off the FY2024 freight-recession trough ($802M revenue, $7.68M net income). Capital intensity is low (capex just $5.12M against $7.76M D&A), so the model throws off cash even in soft markets.

The problem is that this is a thin-margin, highly cyclical brokerage, and the numbers say so. Gross margin is 25.5% but operating margin is only 2.3% and net margin 1.9%; ROE is a modest 7.7%. The revenue history is a rollercoaster — $1.46B in the FY2022 freight boom (net income $44.5M) collapsing to $802M by FY2024 — which tells you current results are a partial recovery, not a new plateau. Operating cash flow actually fell 23% to $13.3M despite the earnings jump, worth watching as working capital swings with freight volumes. Management's own risk language leans on 'macroeconomic factors that have recently had a negative effect on worldwide freight markets,' fuel/labor inflation, and heavy dependence on 'certain larger strategic operating partners' — the agent model is a double-edged sword.