The Best Ideas I Found in Q3 2025 Investor Letters (Part IV)
Investment thesis on Radiant Logistics by 1Main Capital.
ICYMI
Radiant Logistics ( RLGT 0.00%↑ )
In his latest letter, Yaron Naymark, of 1Main Capital presents an interesting idea: RLGT.
At just 7x trailing and ~5x normalized EBITDA, Radiant trades at a large discount to larger logistics peers, despite a pristine balance sheet and steady growth. The company operates a non-asset-based, third-party logistics (3PL) model, coordinating shipments for customers through a network of about 30 company-owned and 70 independent agent locations across the U.S. and Canada.
This structure gives Radiant the flexibility to scale without owning costly assets like trucks, planes, or warehouses. Instead, it leverages relationships with carriers — trucking firms, railroads, airlines, and ocean shippers — to provide end-to-end freight solutions. Its agency model also allows it to offer customized, high-margin logistics services while staying nimble in cyclical downturns.
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Radiant’s differentiator, however, is capital allocation discipline. Founder and CEO Bohn Crain, who owns 22% of the company, has compounded value by acquiring smaller agencies (often from within its own network) at mid-single-digit EBITDA multiples. Since its 2005 founding, Radiant’s revenue has grown 35x, while its share count has risen only ~40% and the company remains net cash.
The timing of Yaron’s entry is deliberate. The freight industry is in the third year of a deep recession, creating pressure for smaller operators — and opportunity for RLGT to buy attractively while peers retrench. The company has accelerated acquisitions and buybacks during this downturn, positioning itself to emerge meaningfully larger and stronger when shipping volumes recover.
Naymark’s thesis rests on Radiant’s ability to “play offense while others play defense.” With a clean balance sheet, strong insider ownership, and an efficient, asset-light model, he sees a business capable of compounding value regardless of macro volatility.
While a sale isn’t part of the near-term thesis, he notes that Radiant could easily become a takeover target for a larger logistics player at a much higher multiple over the next decade. Until then, Yaron expects investors to benefit from steady cash generation, smart reinvestment, and multiple expansion as earnings normalize.