Hub Group, Inc.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
HUBG$24.22-3.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0000950170-25-103905
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001193125-25-266623
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 88 previous paragraphs and 87 current paragraphs.
39 unchanged; 28 reworded; 19 added; 19 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
Intermodal and Transportation Solutions (“ITS”) revenue remained relatively consistent, increasing slightly to $561 million primarily due to steady intermodal volume and higher intermodal revenue per load, partially offset by lower dedicated revenue, and lower fuel revenue.
Current report
ITS operating income increased 17% to $16 million, or 3% of revenue, compared to $14 million, or 2% of revenue, in the prior year primarily due to lower purchased transportation costs, as well as the higher intermodal revenue per load.
Current report
Logistics operating income increased 27% to $24 million, or 6% of revenue in 2025, as compared to $19 million, or 4% of revenue in 2024. This increase was primarily related to continued cost controls, exiting of unprofitable business, and favorable mix between our lines of business. Additionally, there was a decrease in warehouse transfer costs and a reduction in our overall warehouse costs following the completion of our warehouse space consolidation efforts as part of our Network Alignment Initiative in 2024.
Current report
Purchased transportation and warehousing costs decreased 8% to $684 million in 2025 from $740 million in 2024.
Current report
Purchased transportation and warehousing costs declined as compared to prior year due to rail cost decreases and lower third-party carrier costs as we have purchased third party transportation more effectively. Additionally, our warehouse costs have decreased after the completion of our warehouse space consolidation efforts as part of our Network Alignment Initiative in 2024.
Current report
Salaries and benefits remained relatively consistent at $143 million in both 2025 and 2024. As a percentage of revenue, salaries and benefits increased to 15.3% in 2025 from 14.5% in 2024. A $2 million increase in driver related expenses due to increased usage of company drivers versus third party drayage, and a $3 million increase in employee incentive compensation were fully offset by a $5 million decrease in salaries and benefits due to a 5% decrease in legacy non-driver, non-warehouse headcount.
Current report
Insurance and claims expense remained relatively consistent at $10 million in both 2025 and 2024. These expenses, as a percentage of revenue, increased to 1.1% in 2025 from 1.0% in 2024.
Current report
General and administrative expenses decreased to $27 million in 2025 from $30 million in 2024. These expenses, as a percentage of revenue, decreased to 2.9% in 2025 from 3.0% in 2024.
Current report
This decrease in general and administrative expenses resulted from cost control initiatives resulting in a $2 million decrease in third party service costs and a $1 million decrease in temporary office labor costs.
Current report
Net gains on the sale of equipment remained relative consistent at $0.5 million in both 2025 and 2024.
Current report
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, introducing significant changes to the U.S. federal income tax code. Key provisions include the reinstatement of 100% bonus depreciation and the immediate expensing of research and development expenditures, including a one-time true-up deduction for previously capitalized amounts. While the Company continues to evaluate the longer-term implications of the legislation on its tax position and financial statements, we have incorporated the effects of the OBBBA into our third quarter income tax provision. These changes had no material impact on our effective tax rate.
Current report
Intermodal and Transportation Solutions (“ITS”) revenue decreased 3% to $1.62 billion primarily due to lower intermodal revenue per load, mix, lower fuel revenue and lower volume, as well as lower dedicated revenue.
Current report
ITS operating income increased 10% to $44 million, or 3% of revenue, as compared to $40 million, or 2% of revenue in the prior year due to lower purchased transportation costs, lower equipment costs, and improved insurance and claims expenses.
Current report
Logistics operating income remained relatively consistent at 5% of revenue in both 2025 and 2024. Operating income was $67 million as compared to $69 million last year primarily driven by lower yields in brokerage margins.
Current report
Purchased transportation and warehousing costs decreased 10% to $2.00 billion in 2025 from $2.21 billion in 2024.
Current report
The $7 million increase in salaries and benefits was primarily related to increases in driver costs as our usage of company drivers versus third party drayage has increased and warehouse employee costs as we increased our ratio of internal staffing of our warehouses, of $13 million. This increase in expenses was partially offset by a decrease of $6 million due to a 5% decrease in legacy non-driver, non-warehouse headcount.
Current report
General and administrative expenses decreased to $83 million in 2025 from $85 million in 2024. These expenses, as a percentage of revenue, increased to 3.0% in 2025 from 2.9% in 2024.
Current report
This expense decrease resulted from cost control initiatives resulting in a $2 million and $1 million reduction in temporary office labor costs and third party service costs, respectively, as well as a $1 million decrease in customer bad debt expense. These expense decreases were partially offset by a $2 million vendor settlement expense.
Current report
As a result of anticipated favorable timing differences, primarily related to research and development cost expensing and intangible amortization, we expect our cash paid for income taxes in 2025 to be less than our income tax expense.
Removed paragraphs (19)
Previous report
Operating Revenue and Operating Income
Previous report
Intermodal and Transportation Solutions (“ITS”) revenue decreased 6% to $528 million primarily due to intermodal mix, price declines and lower fuel revenue, as well as lower dedicated revenue. These decreases were partially offset by an increase in volume. ITS operating income increased 6% to $14.4 million, or 2.7% of revenue, as compared to $13.6 million, or 2.4% of revenue in the prior year primarily due to positive impacts from continued cost controls, improved insurance and claims expenses, and lower accessorial costs.
Previous report
Logistics revenue decreased 12% to $404 million primarily due to lower volume and revenue per load in our brokerage business, exiting from unprofitable business in consolidation and fulfillment, and sub-seasonal demand in managed transportation and final mile businesses. Logistics operating income decreased to $20 million, or 4.9% of revenue, as compared to $26 million, or 5.6% of revenue, due to lower brokerage margins and $3 million of vendor settlement related costs.
Previous report
CONSOLIDATED OPERATING EXPENSES. OTHER EXPENSES AND INCOME TAXES
Previous report
Purchased transportation and warehousing costs decreased 10% to $656 million in 2025 from $727 million in 2024. As a percentage of revenue, purchased transportation and warehousing costs decreased to 72.4% in 2025 from 73.7% in 2024.
Previous report
Purchased transportation and warehousing costs declined compared to prior year due to rail cost decreases, lower third-party drayage and warehousing costs, and lower fuel costs.
Previous report
The increase was primarily due to increased driver and warehouse employee costs of $4 million, which includes the acquisition of EASO on October 23, 2024. This increase was partially offset by decreases in office employee compensation expense of $3 million, primarily related to lower headcount, which excludes EASO.
Previous report
Insurance and claims expense decreased to $11 million in 2025 from $13 million in 2024. This decrease was primarily due to decreased claims costs related to auto liability claims. These expenses, as a percentage of revenue, decreased to 1.2% in 2025 from 1.3% in 2024.
Previous report
General and administrative expenses increased to $29 million in 2025 from $28 million in 2024. These expenses, as a percentage of revenue, increased to 3.2% in 2025 from 2.8% in 2024.
Previous report
This increase in general and administrative expenses was primarily due to vendor settlement related costs of $3 million incurred in 2025, partially offset by decreases in third party service costs and bad debt expense of $1 million each.
Previous report
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. We are still evaluating the impact the OBBBA will have on our financial statements.
Previous report
Operating Revenue and Operating Income
Previous report
Intermodal and Transportation Solutions (“ITS”) revenue decreased 5% to $1,058 million primarily due to mix, price declines, lower fuel revenue, as well as lower dedicated revenue, partially offset by an increase in intermodal volume. ITS operating income increased 7% to $28 million, or 2.7% of revenue, as compared to $27 million, or 2.4% of revenue in the prior year, primarily due to cost control efforts, lower dedicated start-up costs, and improved insurance and claims expenses.
Previous report
CONSOLIDATED OPERATING EXPENSES. OTHER EXPENSES AND INCOME TAXES
Previous report
Purchased transportation and warehousing costs decreased 10% to $1,314 million in 2025 from $1,467 million in 2024. As a percentage of revenue, purchased transportation and warehousing costs decreased to 72.2% in 2025 from 73.9% in 2024.
Previous report
The $7 million increase in salaries and benefits expense primarily related to increases in driver and warehouse employee costs of $11 million. This increase in expense was partially offset by lower office employee related expense of $4 million.
Previous report
General and administrative expenses increased to $56 million in 2025 from $55 million in 2024. These expenses, as a percentage of revenue, increased to 3.1% in 2025 from 2.8% in 2024.
Previous report
This increase in general and administrative expenses was primarily due to an increase of $3 million of expense due to vendor settlement related costs incurred in 2025, as well as an increase in rent expense of approximately $0.7 million. These increases were partially offset by decreases in third party service costs and lower property taxes and licensing fees of $1 million each, and bad debt expense of $0.7 million.
Previous report
While we still need more time to evaluate the impacts of the enactment of the OBBBA, it seems likely that given the enactment of 100% bonus depreciation and domestic research cost expensing for taxes, that our cash paid for income taxes in 2025 will be less than our income tax expense.
Reworded paragraphs (28)
Previous wording
Intermodal and Transportation Solutions. Our ITS segment offers high service, nationwide door-to-door intermodal transportation, providing value, visibility and reliability in both transcontinental and local lanes by combining rail transportation with local trucking. This segment includes our trucking operations which provides our customers with local pickup and delivery as well as high service local and regional trucking transportation using equipment dedicated to their needs. In the first six months of 2025, approximately 78% of our drayage services was provided by our own fleet. We arrange for the movement of our customers’ freight in one of our approximately 50,000 containers. We contract with railroads to provide transportation for the long-haul portion of the shipment between rail terminals. Drayage between origin or destination and rail terminals are provided by our own trucking operations and third parties with whom we contract. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations. As of June 30, 2025, our trucking transportation operation consisted of approximately 2,400 tractors, 3,300 employee drivers and 4,500 trailers. We also contract for services with approximately 500 independent owner-operators. These assets and contractual services are used to support drayage for our intermodal service offering and to serve our customers who require high service local and regional trucking transportation using equipment dedicated to their needs. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations.
Current wording
Intermodal and Transportation Solutions. Our ITS segment offers high service, nationwide door-to-door intermodal transportation, providing value, visibility and reliability in both transcontinental and local lanes by combining rail transportation with local trucking. This segment includes our trucking operations which provides our customers with local pickup and delivery as well as high service local and regional trucking transportation using equipment dedicated to their needs. In the first nine months of 2025, approximately 83% of our drayage services was provided by our own fleet. We arrange for the movement of our customers’ freight in one of our approximately 51,000 containers. We contract with railroads to provide transportation for the long-haul portion of the shipment between rail terminals. Drayage between origin or destination and rail terminals are provided by our own trucking operations and third parties with whom we contract. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations. As of September 30, 2025, our trucking transportation operation consisted of approximately 2,300 tractors, 3,100 employee drivers and 4,700 trailers. We also contract for services with approximately 500 independent owner-operators. These assets and contractual services are used to support drayage for our intermodal service offering and to serve our customers who require high service local and regional trucking transportation using equipment dedicated to their needs. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations.
Previous wording
We are focused on several margin enhancement projects including network optimization, matching of inbound and outbound loads, reducing empty miles, improving our recovery of accessorial costs, increasing our driver and asset utilization, reducing repositioning costs, providing holistic solutions and improving low profit freight. Hub’s top 50 customers represent approximately 68% of revenue for the six months ended June 30, 2025, while one customer accounted for more than 10% of our revenue in both segments for both the six months ended June 30, 2025 and 2024. We use various performance indicators to manage our business. We closely monitor profit levels for our customers. We also evaluate on-time performance, customer service, cost per load and daily sales outstanding by customer account. Vendor cost changes and vendor service levels are also monitored closely.
Current wording
We are focused on several margin enhancement projects including network optimization, matching of inbound and outbound loads, reducing empty miles, improving our recovery of accessorial costs, increasing our driver and asset utilization, reducing repositioning costs, providing holistic solutions and improving low profit freight. Hub’s top 50 customers represent approximately 68% of revenue for the nine months ended September 30, 2025, while one customer accounted for more than 10% of our revenue in both segments for both the nine months ended September 30, 2025 and 2024. We use various performance indicators to manage our business. We closely monitor profit levels for our customers. We also evaluate on-time performance, customer service, cost per load and daily sales outstanding by customer account. Vendor cost changes and vendor service levels are also monitored closely.
Previous wording
The following table includes the one customer that represented 10% or more of our revenue by segment for the six months ending June 30, 2025 and 2024, respectively:
Current wording
The following table includes the one customer that represented 10% or more of our revenue by segment for the nine months ending September 30, 2025 and 2024, respectively:
Previous wording
Total consolidated operating revenue decreased 8% to $906 million in 2025 from $986 million in 2024.
Current wording
Total consolidated operating revenue decreased 5% to $934 million in 2025 from $987 million in 2024.
Previous wording
Logistics revenue decreased 13% to $815 million primarily due to lower volume and revenue per load in our brokerage business, exiting from unprofitable business in consolidation and fulfillment, and sub-seasonal demand in managed transportation and final mile businesses. Logistics operating income decreased to $43 million, or 5.3% of revenue, as compared to $50 million, or 5.3% of revenue, due to lower brokerage margins.
Current wording
Logistics revenue decreased 13% to $402 million from $461 million in prior year primarily due to lower volume and revenue per load in our brokerage business, softened demand in final mile and managed transportation businesses, and lower customer activity in consolidation and fulfillment.
Previous wording
Headcount, which includes drivers, warehouse personnel and office employees, was 6,310, which includes 614 employees of EASO, as of June 30, 2025 and 5,813 as of June 30, 2024, respectively. The increase in headcount related primarily to drivers and warehouse employees due to the EASO acquisition.
Current wording
Headcount, which includes drivers, warehouse personnel and office employees, was 6,604, which includes 608 employees of EASO, as of September 30, 2025 and 5,900 as of September 30, 2024, respectively. The increase in headcount is primarily due to office and driver employees due to the EASO acquisition.
Previous wording
Depreciation and amortization expense decreased to $32 million in 2025 from $38 million in 2024. This decrease was related primarily to decreased container depreciation expense resulting from changes made in the third quarter of 2024 to the estimated useful lives of our containers. This expense, as a percentage of revenue, decreased to 3.6% in 2025 from 3.8% in 2024. Depreciation expense includes transportation equipment, technology investments, leasehold improvements, warehouse equipment, office equipment and building improvements.
Current wording
Depreciation and amortization expense decreased to $31 million in 2025 from $32 million in 2024. This decrease was primarily related to $2 million of decreased computer software and container depreciation expense resulting from changes made in the first and third quarters of 2025 to the estimated useful lives of our software and containers, respectively. These decreases were partially offset by an increase in depreciation and amortization due to the EASO acquisition. This expense, as a percentage of revenue, increased to 3.4% in 2025 from 3.3% in 2024. Depreciation expense includes transportation equipment, technology investments, leasehold improvements, warehouse equipment, office equipment and building improvements.
Previous wording
Other expense decreased to $1 million in 2025 from $2 million in 2024. Interest expense decreased $0.5 million primarily due to lower overall debt balances while interest rates remained relatively consistent. Interest income decreased by $0.8 million due to lower invested cash balances. These decreases were partially offset by a $0.8 million change in other, net related to the change in the Peso exchange rate due to the addition of EASO.
Current wording
Other expense, net decreased to $1 million in 2025 from $1.4 million in 2024. This decrease is due to an interest expense decrease of $0.5 million primarily due to lower overall debt balances partially offset by higher interest rates as well as a $0.8 million positive increase in Other, net related to the change in the Peso exchange rate due to the addition of EASO. These changes were partially offset by a decrease in interest income of $0.9 million due to lower invested cash balances.
Previous wording
The provision for income taxes decreased to $8 million in 2025 from $9 million in 2024 due primarily to lower pre-tax income in 2025. We provided for income taxes using an effective rate of 24.0% in 2025 and an effective rate of 22.8% in 2024. The second quarter 2025 effective tax rate of 24.0% was higher than the rate from 2024, as in 2024 we received a one-time benefit from amending state tax returns.
Current wording
The provision for income taxes increased to $10 million in 2025 from $7 million in 2024 due to an increase in pre-tax income and a higher effective tax rate. We provided for income taxes using an effective rate of 24.9% in 2025 and an effective rate of 23.2% in 2024. The third quarter 2025 effective tax rate of 24.9% was higher than the 2024 effective tax rate due to an unfavorable adjustment related to a state tax audit recorded in the third quarter of 2025.
Previous wording
Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
Current wording
Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024
Previous wording
Total consolidated operating revenue decreased 8% to $1,821 million in 2025 from $1,986 million in 2024.
Current wording
Total consolidated operating revenue decreased 7% to $2.76 billion in 2025 from $2.97 billion in 2024.
Previous wording
Purchased transportation and warehousing costs declined as compared to prior year due to lower rail, third-party warehouse, third party drayage and carrier costs, and fuel costs. The reduction in warehouse costs is primarily driven by the completion of our network optimization project in 2024.
Current wording
Purchased transportation and warehousing costs declined as compared to prior year due to lower volumes in both the intermodal and brokerage businesses, reductions in external third-party warehouse costs, lower rail, and fuel costs. The reduction in warehouse costs is primarily driven by the completion of our Network Alignment Initiative in 2024.
Previous wording
Salaries and benefits increased to $143 million in 2025 from $142 million in 2024. As a percentage of revenue, salaries and benefits increased to 15.8% in 2025 from 14.4% in 2024.
Current wording
Salaries and benefits increased to $436 million in 2025 from $429 million in 2024. As a percentage of revenue, salaries and benefits increased to 15.8% in 2025 from 14.4% in 2024.
Previous wording
Depreciation and amortization expense decreased to $65 million in 2025 from $76 million in 2024. This decrease was related primarily to decreased container depreciation expense resulting from changes made in the third quarter of 2024 to the estimated useful lives of our containers. This expense, as a percentage of revenue, decreased to 3.5% in 2025 from 3.8% in 2024. Depreciation expense includes transportation equipment, technology investments, leasehold improvements, warehouse equipment, office equipment and building improvements.
Current wording
Depreciation and amortization expense decreased to $96 million in 2025 from $108 million in 2024. This decrease was related primarily to $11 million decreased container depreciation expense resulting from changes made in the third quarters of 2024 and 2025 to the estimated useful lives of our containers. Additionally, the decrease is due to a $2 million decrease to computer software depreciation expense resulting from a change made in the first quarter of 2025 to the estimated useful lives of our software. These decreases were partially offset by a $1 million increase in intangible amortization expense. This expense, as a percentage of revenue, decreased to 3.5% in 2025 from 3.6% in 2024. Depreciation expense includes transportation equipment, technology investments, leasehold improvements, warehouse equipment, office equipment and building improvements.
Previous wording
Insurance and claims expense decreased to $22 million in 2025 from $25 million in 2024. This decrease was primarily due to decreased claim costs related to auto liability claims in 2025. These expenses, as a percentage of revenue, decreased to 1.2% in 2025 from 1.3% in 2024.
Current wording
Insurance and claims expense decreased to $32 million in 2025 from $35 million in 2024. This decrease was primarily due to decreased claim costs related to auto liability claims in 2025. These expenses, as a percentage of revenue, remained relatively consistent at 1.2% in both 2025 and 2024.
Previous wording
Net gains on the sale of equipment decreased to a loss of $0.1 million in 2025 from a gain of $0.4 million in 2024. This decrease resulted from both less units sold and a lower average gain per unit sold in 2025 as compared to 2024.
Current wording
Net gains on the sale of equipment decreased to $0.5 million in 2025 from $1.3 million in 2024. This decrease resulted from both less units sold and a lower average gain per unit sold in 2025 as compared to 2024.
Previous wording
Other expense decreased to $3 million in 2025 from $5 million 2024. Interest expense decreased $1.2 million primarily due to lower overall debt balances while interest rates remained relatively consistent. Interest income decreased by $0.9 million due to lower invested cash balances. These decreases were partially offset by a $1.3 million change in other, net related to the change in the Peso exchange rate due to the addition of EASO.
Current wording
Other expense, net decreased to $4.0 million in 2025 from $6.0 million in 2024. This decrease is due to an interest expense decrease of $1.8 million primarily due to lower overall debt balances partially offset by higher interest rates and a $2.0 million positive increase in Other, net related to the change in the Peso exchange rate due to the addition of EASO. These changes were partially offset by a decrease of $1.8 million in interest income due to lower invested cash balances.
Previous wording
The provision for income taxes remained consistent at approximately $16 million in 2025 and 2024. We provided for income taxes using an effective rate of 23.9% in 2025 as compared to an effective rate of 22.2% in 2024. The effective tax rate was higher in 2025 as compared to 2024, as in 2024 we had a one-time benefit from amending state tax returns, and in 2025 we had a smaller rate benefit related to the vesting of stock-based compensation than in 2024.
Current wording
The provision for income taxes increased to $26 million in 2025 from $23 million in 2024 due to an increase in pre-tax income and a higher effective tax rate. We provided for income taxes using an effective rate of 24.2% in 2025 as compared to an effective rate of 22.5% in 2024. The higher effective tax rate in 2025 is the result of an unfavorable adjustment related to a state tax audit and a smaller 2025 benefit on the vest of stock-based compensation.
Previous wording
Our financing and liquidity strategy is to fund operating cash payments and future dividends through cash received from the provision of services, cash on hand, and to a lesser extent, from cash received from the sale of equipment. As of June 30, 2025, we had $137 million of cash. In addition, we had $20.0 million of restricted investments and $26.6 million of restricted cash, which are held for payments of long-term liabilities and the deferred cash consideration from the EASO transaction, respectively. We generally fund our purchases of transportation equipment through the issuance of secured, fixed rate Equipment Notes. In prior years, we have funded our business acquisitions from cash on hand. Payments for our other investing activities, such as our capitalized technology investments, have been funded by cash on hand or cash flows from operations. Cash used in financing activities, including the purchase of treasury stock and dividend payments, have been funded by cash from operations or cash on hand. We have not historically used our Credit Facility to fund our operating, investing, or financing cash needs, though it is available to fund future cash requirements as needed. Based on past performance and current expectations, we believe cash on hand and cash received from the provision of services, along with other financing sources, will provide us the necessary capital to fund transactions and achieve our planned growth for the next twelve months and the foreseeable future.
Current wording
Our financing and liquidity strategy is to fund operating cash payments and future dividends through cash received from the provision of services, cash on hand, and to a lesser extent, from cash received from the sale of equipment. As of September 30, 2025, we had $120 million of cash and cash equivalents. In addition, we had $21 million of restricted investments and $27 million of restricted cash, which are held for payments of long-term liabilities and the deferred cash consideration from the EASO transaction, respectively. We generally fund our purchases of transportation equipment through the issuance of secured, fixed rate Equipment Notes, including our purchase of container assets as part of the Marten Intermodal transaction. In prior years, we have funded our business acquisitions from cash on hand. Our investment agreement with EASO in October 2024 and purchase agreement with SITH in September 2025 are consistent with this approach. Payments for our other investing activities, such as our capitalized technology investments, have been funded by cash on hand or cash flows from operations. Cash used in financing activities including the purchase of treasury stock and dividend payments, have been funded by cash from operations or cash on hand. We have not historically used our Credit Facility to fund our operating, investing, or financing cash needs, though it is available to fund future cash requirements as needed. Based on past performance and current expectations, we believe cash on hand and cash received from the provision of services, along with other financing sources, will provide us the necessary capital to fund transactions and achieve our planned growth for the next twelve months and the foreseeable future.
Previous wording
Cash provided by operating activities for the six months ended June 30, 2025 was approximately $132 million, which resulted primarily from net income of $52 million plus non-cash charges of $100 million, partially offset by the changes in operating assets and liabilities of $20 million.
Current wording
Cash provided by operating activities for the nine months ended September 30, 2025 was $160 million, which resulted primarily from net income of $81 million plus non-cash charges of $161 million, partially offset by the changes in operating assets and liabilities of $82 million.
Previous wording
Cash provided by operating activities totaled $132 million in 2025 compared to $150 million in 2024. The $18 million decrease in cash flow was primarily due to a decrease in net income of $4 million and a negative change in operating assets and liabilities of $16 million, primarily due to the change in accounts payable, partially offset by an increase in non-cash charges of $2 million.
Current wording
Cash provided by operating activities totaled $160 million in 2025 compared to $194 million in 2024. The $34 million decrease in cash flow was primarily due to a decrease in the change in assets and liabilities of $49 million, partially offset by an increase in non-cash charges of $14 million and an increase in net income of $1 million.
Previous wording
Net cash used in investing activities for the six months ended June 30, 2025 was $26 million which resulted from capital expenditures of $30 million, partially offset by proceeds from the sale of equipment of $4 million. Capital expenditures of $30 million related primarily to tractors of $18 million, technology investments of $9 million, warehouse equipment of $2 million, and other transportation equipment of $1 million.
Current wording
Net cash used in investing activities for the nine months ended September 30, 2025 was $87 million which included capital expenditures of $39 million, purchase of container assets of $53 million resulting from the Marten transaction, and $1 million related to the acquisition of SITH. This activity was partially offset by proceeds from the sale of equipment of $7 million. Capital expenditures of $39 million related primarily to tractors of $19 million, technology investments of $15 million, warehouse equipment of $4 million and the remainder for other transportation equipment.
Previous wording
Capital expenditures decreased by approximately $1 million in 2025 as compared to 2024. The 2025 decrease was due to decreases in container purchases of $2 million and warehouse equipment of $3 million. These decreases were partially offset by increases in spend on tractors of $4 million.
Current wording
Capital expenditures decreased by approximately $4 million in 2025 as compared to 2024. The 2025 decrease was due primarily to decreases in warehouse equipment purchases of $3 million, container purchases of $2 million as well leasehold improvements and transportation and other equipment of $1 million each. These decreases were partially offset by increased tractor purchases of $3 million.
Previous wording
In 2025, we estimate capital expenditures will range from $40 million to $50 million. We expect to focus these expenditures on replacements for tractors that have reached the end of their useful life as well as technology investments. We do not plan to purchase containers in 2025. In addition to our estimated capital expenditures, we expect to fund the Marten Intermodal transaction disclosed in Note 8 with equipment debt.
Current wording
In 2025, we estimate capital expenditures will range from $40 million to $50 million. We expect the remaining expenditures to focus on technology investments and warehouse equipment. We do not plan to purchase containers in 2025. We plan to fund these expenditures with cash on hand.
Previous wording
Net cash used in financing activities for the six months ended June 30, 2025 was $68 million which includes repayments of long-term debt of $52 million, purchases of treasury stock of $14 million, dividends paid of $15 million, and cash for stock tendered for payments of withholding taxes of $6 million, partially offset by proceeds from the issuance of debt of $19 million. Debt incurred in 2025 was used to fund the purchase of transportation equipment.
Current wording
Net cash used in financing activities for the nine months ended September 30, 2025 was $53 million which includes cash used for repayments of long-term debt of $77 million, the purchase of treasury stock of $14 million, dividends paid of $23 million, and cash used for stock tendered for payments of withholding taxes of $7 million, partially offset by proceeds from the issuance of debt of $67 million. Debt incurred in 2025 was used to fund the purchase of transportation equipment, including the container assets in the Marten transaction.
Previous wording
The $27 million decrease in cash used in financing activities for 2025 versus 2024 was primarily due to the decrease in the purchase of treasury stock of $19 million, less repayments of long-term debt of $2 million, less stock tendered for payments of withholding taxes of $2 million, more proceeds from the issuance of debt of $3 million and a decrease in finance lease payments of $1 million.
Current wording
The $112 million decrease in cash used in financing activities for 2025 versus 2024 was primarily due to a decrease in the purchase of treasury stock of $54 million, decrease in cash paid for repayments of debt of $4 million, cash paid for stock related to employee withholding taxes of $2 million, cash paid for finance lease payments of $1 million, as well as an increase in proceeds from the issuance of debt of $50 million.
Previous wording
We have standby letters of credit that expire in 2025. As of both June 30, 2025 and December 31, 2024, our letters of credit were $1 million.
Current wording
We have standby letters of credit that expire in 2026. Our letters of credit were $1 million as of both September 30, 2025 and December 31, 2024.
Previous wording
As of both June 30, 2025, and December 31, 2024, we had no borrowings under the Credit Agreement and our unused and available borrowings were $449 million and $349 million, respectively. We were in compliance with our debt covenants as of June 30, 2025 and December 31, 2024.
Current wording
As of September 30, 2025, and December 31, 2024, we had no borrowings under the Credit Agreement and our unused and available borrowings were $449 million and $349 million, respectively. We were in compliance with our debt covenants as of September 30, 2025 and December 31, 2024.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Logistics revenue decreased 13% to $1.22 billion primarily driven by lower volume and revenue per load in our brokerage business, exiting from unprofitable business in consolidation and fulfillment, and softened demand in final mile and managed transportation businesses.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Salaries and benefits increased to $293 million in 2025 from $286 million in 2024. As a percentage of revenue, salaries and benefits increased to 16.1% in 2025 from 14.4% in 2024.
Previous report — wording carried elsewhere
Net gains on the sale of equipment decreased to a loss of $0.1 million in 2025 from a gain of $0.9 million in 2024. The decrease resulted from both less units sold and a lower average gain per unit sold in 2025 as compared to 2024.