HUBG Shares Drop 19% Amid $77M Transportation Expense Understatement

Hub Group (NASDAQ: HUBG) shares fell 19% in midday trading on February 6, 2026, after the company disclosed a $77 million understatement in purchased transportation expenses for the first three quarters of 2025. Financial statements are under review, with fourth-quarter and full-year results delayed pending resolution. The company plans to restate Q1–Q3 2025 results and assess potential impacts on prior years. “We look forward to reporting our full financial results as soon as practicable,” said Phil Yeager, President, CEO and Vice Chairman. Deutsche Bank analyst Richa Harnain estimated the correction could reduce adjusted operating margins by about 300 bps, from 4.4% to roughly 1.4%, representing roughly 2.8% of revenue and over 65% of EBIT for the nine months ended September 30, 2025. Q4 intermodal revenue declined slightly with volumes up 1% y/y, while dedicated revenue was down. January intermodal volumes were off 4% after winter storms and a forward-looking comp period. Hub Group reported 2025 revenue of about $3.7B, a 7% y/y decline, and guided 2026 revenue of $3.65B–$3.95B.