New York, February 6, 2026, 15:05 (EST) — Regular session
- Hub Group shares slumped 18.6% in afternoon trading after the company revealed an accounting error and pushed back its results.
- The audit committee’s review found that certain quarterly financial statements for 2025 are no longer reliable.
- Stifel and Baird both downgraded their ratings, with investors still left waiting on a postponed 2025 annual report and new restated figures.
Hub Group Inc (HUBG) tumbled 18.6% to $41.76 on Friday. The logistics firm disclosed an accounting error—now it needs to restate three quarters from 2025 and hold back its full results. Earlier in the session, shares hit a low of $33.00.
In a filing to the SEC, Hub Group’s audit committee determined its unaudited financial statements for the first three quarters of 2025 were materially misstated and should not be relied on. The company also expects to conclude it lacked effective disclosure controls and internal control over financial reporting for 2025, after discussions with Ernst & Young. 1
Hub Group disclosed in a press release alongside its filing that it had understated purchased transportation costs and accounts payable for the first nine months of 2025, pegging the related amount at $77 million. The company, based in Oak Brook, Illinois, said there’s no expected effect on cash or operating cash flow. Hub Group also delayed its full earnings release and conference call as it addresses the restatement. “Accuracy and transparency in reporting on our performance is of the utmost importance at Hub Group,” Chief Executive Phil Yeager said. 2
Purchased transportation costs—what freight brokers and logistics players shell out to outside carriers to haul freight—can throw off reported margins and quarterly profits if booked late or misclassified. The cash itself may go out the door on time, but when the numbers don’t line up, investors often see a red flag for trust.
Hub Group released some early numbers alongside its update, projecting full-year 2025 revenue at around $3.7 billion and operating cash flow at $194 million. For 2026, the company said it’s aiming for revenue between $3.65 billion and $3.95 billion, with capex in the range of $35 million to $45 million. Intermodal volume ticked up 1% in the fourth quarter versus the same period last year. 3
Stifel wasted no time slashing Hub Group to “sell” from “buy” and chopping its price target down to $27 from $52. The firm flagged the accounting problem, warning that margins could be reset lower and pegging 2027 earnings at $1.75 a share. Baird likewise cut its rating to “neutral” from “outperform” and set the target at $29, citing the haze around the year-end audit and pending restatement. 4
Hub Group stood out on Friday, falling behind a transport sector that mostly saw gains. The SPDR fund tracking the S&P 500 (SPY) climbed roughly 1.8%, and the iShares U.S. Transportation ETF (IYT) posted a 1.7% rise. Shares of J.B. Hunt (JBHT), C.H. Robinson (CHRW) and XPO (XPO) all moved higher as well.
Now comes the focus on the company’s audited results: Are the adjustments bleeding into the fourth quarter? Which segments take the biggest cost hit? And what’s the fallout for operating margin in the revised periods?
Still, the risk scenario isn’t clear-cut. Hub Group noted it’s evaluating if the problem touches 2023 and 2024 financials. A prolonged review process could keep certain investors wary, particularly if the final restatement expands or if remediation of controls drags on beyond what markets are pricing in.
