10-Q · August 6, 2025
Hub Group reported Q2 operating revenue of $905,648,000 (down $80,847,000 or 8.2% year-over-year from $986,495,000) and GAAP diluted EPS of $0.42 (down $0.05 from $0.47 a year ago). Gross margin remained ~27.6% while…
Earnings analysis · 10-Q
HUBG earnings analysis
Filed November 5, 2025 · Our reading of the company's report
The latest report
Hub Group reported Q3 2025 revenue of $934.5M, down from $986.9M a year ago, while operating income improved to $39.4M and diluted EPS rose to $0.47. Cash balances and non-controlling interests increased, the company…
Read full summary
Hub Group reported Q3 2025 revenue of $934.5M, down from $986.9M a year ago, while operating income improved to $39.4M and diluted EPS rose to $0.47. Cash balances and non-controlling interests increased, the company completed several acquisitions (including a $53.4M Marten Intermodal asset purchase), and operating cash flow for the nine months fell to $159.6M.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.47
What stood out
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Revenue decline vs prior year
Operating revenue decreased to $934,496,000 in Q3 2025 from $986,892,000 in Q3 2024, a decline of $52,396,000 (filed Condensed Consolidated Statements of Income).
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Operating income and margin expanded
Operating income rose to $39,443,000 (Q3 2025) from $32,099,000 (Q3 2024), lifting operating margin to ~4.2% (39,443 / 934,496) from ~3.3% (32,099 / 986,892) (filed income statement).
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EPS up year-over-year
Diluted earnings per share increased to $0.47 for Q3 2025 from $0.39 in Q3 2024 (filed Condensed Consolidated Statements of Income).
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Gross margin (purchase-cost basis) improved
Using purchased transportation and warehousing as the primary cost, gross profit was $250,839,000 (934,496 − 683,657) implying a gross margin of ~26.8% in Q3 2025 versus ~25.0% in Q3 2024 (986,892 − 739,995 = 246,897) (filed income statement line items).
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Stronger cash position; modest debt reduction
Cash and cash equivalents increased to $119,699,000 at September 30, 2025 from $98,248,000 at December 31, 2024 (+$21,451,000), while total long-term debt declined to $160,479,000 from $164,361,000 (filed balance sheet).
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Capital deployment and acquisitions
Nine months investing activity included purchases of property and equipment of $39,190,000 and acquisition of container assets of $53,427,000; the company completed a $53.4M Marten Intermodal asset purchase and a ~$1.3M SITH acquisition (filed notes and cash flow statement).
What to watch
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Operating cash flow decreased YTD
Net cash provided by operating activities for the nine months ended September 30, 2025 was $159,633,000 versus $193,815,000 for the nine months ended September 30, 2024, a decline of $34,182,000 (filed Statement of Cash Flows).
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Working capital headwind (AP down, AR up)
Accounts receivable trade, net rose to $592,202,000 from $581,516,000 (increase $10,686,000) while accounts payable trade fell to $243,415,000 from $279,982,000 (decrease $36,567,000), indicating a working capital use pressure (filed balance sheet).
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Deferred consideration / restricted cash tied to acquisition
Deferred consideration related to the EASO transaction was $28,579,000 and restricted cash was $26,806,000 as of September 30, 2025, reflecting contingent/deferred payments from the investment (filed notes and balance sheet).
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Contingent consideration exposure
Total contingent consideration related to the EASO transaction disclosed at closing was $3,721,000 (filed acquisition disclosure), representing a potential cash reimbursement obligation tied to pre-transaction operating tax balances.
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Non-controlling interest and permanent equity classification
Non-controlling interests increased to $53,139,000 at September 30, 2025 (from $46,954,000 at December 31, 2024) and management notes a call right (2030–2032) that does not meet derivative definition, resulting in permanent equity treatment—a structural financing/ownership consideration (filed notes).
Management's outlook
The 10-Q contains no explicit numeric forward guidance for revenue or EPS. MD&A/disclosures include: estimated amortization related to the EASO investment of $669,000 for the remainder of 2025 and $2,681,000 in each of 2026–2029 (filed Note 3); the Board declared quarterly cash dividends of $0.125 per share (filed Note 1); and the Board’s $250M repurchase authorization remains (no Q3 purchases; YTD nine months purchases were ~330,441 shares for $13.8M) (filed Note 1).
Earlier filings 4
10-Q · May 9, 2025
Hub Group reported operating revenue of $915,216,000 for the quarter ended March 31, 2025, down from $999,493,000 in the comparable 2024 period. Margins improved (gross ~28.1%, operating ~4.1%) and diluted EPS was flat…
10-K · February 25, 2025
Hub Group describes a multi-modal, asset-light + asset-owned strategy focused on intermodal and logistics services, generating approximately $4.0 billion of annual revenue and targeting growth through cross-selling,…
10-Q · November 1, 2024
Hub Group reported Q3 operating revenue of $986,892,000 (down $37,943,000 or 3.7% vs. Q3 2023) and GAAP diluted EPS of $0.39 (vs. $0.48 prior year). Gross margin was ~25.0% and operating margin was ~3.3% for the…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.