Hub Group expects to receive a delisting notice from Nasdaq after failing to meet a Monday deadline for submitting its financial reports, adding another layer of uncertainty to the company’s ongoing accounting crisis.
The missed filing deadline follows an accounting error identified earlier this year. Hub Group said it intends to request a hearing with Nasdaq in an effort to preserve its stock listing and will also seek additional time to satisfy the exchange’s financial reporting requirements.
The company stressed that receiving a delisting notice would not mean its shares would immediately stop trading. A request for a hearing automatically stays the delisting process for 15 calendar days. Hub Group will also ask Nasdaq to keep its shares listed throughout the hearing proceedings, which could take approximately 30 to 45 days to begin after the request is submitted.
“While there can be no assurances, the Company expects that the Company’s Class A common stock will continue to trade on the Nasdaq Global Select Market during the hearing process,” Hub Group said in a Monday news release. The company added that it expects to present the Nasdaq Hearings Panel with what it described as a compelling plan to restore full compliance with Nasdaq’s continued listing requirements and obtain enough time to implement that plan.
Hub Group (NASDAQ: HUBG) first disclosed in February that it had identified a $77 million understatement of purchased transportation expenses covering the first three quarters of 2025. The discovery forced the company to delay its fourth-quarter and full-year 2025 financial reporting.
The accounting review subsequently expanded. In May, Hub Group said it had also found transactions from 2023 and 2024 that had been “prematurely or incorrectly recognized.” Those periods, together with the first three quarters of 2025, will therefore have to be restated.
The company expects to complete the restatement process and submit the outstanding financial results during the fourth quarter.
The uncertainty has already weighed on the stock. HUBG shares fell 6.2% in early Monday trading, while the S&P 500 was down 0.6%.
Leadership reshuffle continues
The financial difficulties are also bringing further changes to Hub Group’s leadership structure.
In a separate announcement, the company said Dave Yeager has returned as chairman and CEO. Phil Yeager, who previously served as CEO, will remain with the company as president and vice chairman.
Patrick O’Donnell is set to become chief financial officer after Hub Group completes the restatement process and files its full-year 2025 results. O’Donnell joined the company last month as a special advisor and brings 20 years of finance and accounting experience.
Until the restatement is completed, interim CFO Todd Heeter will remain in his current position.
Hub Group announced in May that its former CFO and chief operating officer were leaving the company following the accounting error.
2026 outlook reduced
Hub Group has also reduced its expectations for 2026.
The company now forecasts full-year revenue of $3.6 billion to $3.8 billion, representing a 3% reduction from its previous range of $3.65 billion to $3.95 billion.
For the first half of 2026, Hub Group expects to report an operating loss before one-time charges. First-half revenue is projected to fall between $1.7 billion and $1.8 billion.
The company said its Intermodal and Transportation Solutions operations have been affected year over year by higher fuel, rail and drayage costs. In its logistics segment, excess consolidation-and-fulfillment capacity has also put pressure on performance.
In response, Hub Group has broadened its cost-cutting program. The expanded measures include incremental initiatives targeting yield management across all services, warehouse-space consolidation, productivity improvements involving drivers and warehouse employees, targeted cost reductions and enhanced order-to-cash processes.
The company’s intermodal business also introduced rate increases at the beginning of the third quarter.
“Hub Group was founded by the Yeager family more than 55 years ago with a commitment to service, integrity and innovation,” Dave Yeager said. “I am confident that this leadership team will help drive the business forward into its next phase of growth. I look forward to partnering with Phil and Pat to deliver excellent results for our shareholders, customers and team members.”
Why it matters
As one of North America’s largest intermodal marketing companies, Hub Group’s accounting restatements, leadership changes and potential Nasdaq delisting create an additional layer of uncertainty for shippers and rail partners that depend on its network.
The company is now facing the combined challenge of repairing its financial reporting, restoring compliance with Nasdaq requirements and improving operating performance while navigating higher fuel, rail and drayage costs and excess logistics capacity.
