Radiant Logistics, Inc. reported its financial results for the three months ended September 30, 2024, revealing a decline in total revenues to $203.6 million from $210.8 million in the same period of 2023. This decrease of approximately 3.1% was primarily driven by a reduction in transportation revenues, which fell to $191.8 million from $198.0 million year-over-year. The company attributed this decline to a higher mix of ocean shipments, which typically yield lower margins.

Despite the revenue drop, Radiant Logistics experienced an increase in net income, which rose to $3.4 million compared to $2.6 million in the prior year. This improvement in profitability was supported by a reduction in total operating expenses, which decreased to $199.8 million from $207.1 million. The company reported a notable decrease in operating partner commissions, down 20.9% to $18.8 million, contributing to a lower percentage of adjusted gross profit.

The adjusted gross profit for the quarter was $50.8 million, down from $53.8 million in the previous year, reflecting a decrease in the adjusted gross profit percentage for transportation services. However, the adjusted gross profit percentage for value-added services improved from 54.7% to 57.6%.

On the balance sheet, total current assets decreased to $157.8 million from $164.2 million, while total assets increased slightly to $375.3 million. Total liabilities rose marginally to $162.8 million, and total stockholders’ equity increased to $212.4 million, up from $209.4 million.

Radiant Logistics also engaged in strategic acquisitions, including Foundation Logistics & Services, LLC, effective September 1, 2024, and Focus Logistics, Inc., effective October 1, 2024. Both acquisitions are expected to enhance the company's service offerings and operational capabilities.

Cash flow from operating activities significantly decreased to $0.2 million from $7.9 million in the prior year, while net cash used for investing activities rose to $13.5 million, primarily due to cash paid for acquisitions. The company reported $10.4 million in unrestricted cash at the end of the quarter.

Management noted ongoing remediation efforts to address a material weakness in internal controls over financial reporting, particularly related to revenue recognition. Despite these challenges, the company believes its financial statements fairly present its financial position in accordance with U.S. GAAP.