Hub Group said Tuesday that it will delay financial reporting for the 2026 first quarter due to a previously disclosed accounting error. It said it will also restate results for 2023 and 2024, in addition to a prior plan to restate numbers for the first three quarters of 2025.
In February, the company flagged a $77 million understatement of purchased transportation expenses for the first three quarters of 2025, causing it to delay the release of fourth-quarter and full-year results.
At the time, it said it was also assessing any potential impacts to 2023 and 2024. The Tuesday update said Hub Group (NASDAQ: HUBG) “identified certain transactions that were prematurely or incorrectly recognized or not adequately supported within those financial statements.”
The $77 million understatement represents roughly 2% of Hub’s 2025 revenue. The company does not expect any impact on cash or operating cash flow for any periods.
Hub has until Sept. 14 to regain compliance with Nasdaq’s timely filing rules, and “intends to regain compliance on or prior to such date.”
Q1 business update
Hub didn’t provide any numbers in a recap of first-quarter trends.
It said intermodal volumes reflected “steady demand” and that the outlook for intermodal pricing continues to improve as truckload capacity exits. Heightened regulatory enforcement of the driver pool and higher diesel prices are prompting the capacity exodus.
Hub noted “significant new business” wins in its managed transportation and final mile offerings. It said brokerage volumes declined in the period as it continues to focus on higher yields and profitability.
“The Company continues to take actions to drive growth, improve profitability and increase operating cash flows, which along with its balance sheet strength and strong service positions Hub Group well for long-term growth,” the report concluded.
Shares of HUBG were off 9.2% in pre-market trading on Tuesday.
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