Hub Group Expands Scope of Accounting Problems, Says 2023 and 2024 Audited Statements 'Should No Longer Be Relied On'

Hub Group said its audit committee has concluded the company’s previously issued audited financial statements for 2024 and 2023 were materially misstated and should no longer be relied on, sharply expanding an accounting problem the logistics company had previously said was limited to its first three quarters of 2025.

In a Form 8-K filed with the Securities and Exchange Commission on May 12, Hub Group said the determination was made May 11 under Item 4.02, which covers non-reliance on previously issued financial statements or related audit work. The company said: “On May 11, 2026, the Audit Committee of the Board of Directors of Hub Group, Inc. (the “Company”), following discussion with and upon the recommendation of management, concluded that the previously issued audited consolidated financial statements of the Company as of and for each of the years ended December 31, 2024 (the “2024 Financial Statements”) and 2023 (the “2023 Financial Statements”) included in the Company’s Annual Reports on Form 10-K filed on February 25, 2025 and February 27, 2024, respectively, were in each case materially misstated and should no longer be relied upon.”

The company said its review found it had “identified certain transactions that were prematurely or incorrectly recognized or not adequately supported.” Hub Group added that it is continuing to review other accounting issues that could further affect its 2024 and 2023 financial statements, though it said it does not believe those additional issues will change the conclusion that investors should no longer rely on those audited annual results.

Hub Group also said it is still assessing its control environment but expects to conclude that it did not maintain effective disclosure controls and procedures, or effective internal control over financial reporting, for each of the years ended Dec. 31, 2024, and 2023. The company said management and the audit committee have discussed the matter with its outside auditor, Ernst & Young LLP. The filing was signed by Kevin W. Beth, Hub Group’s executive vice president, chief financial officer and treasurer.

The new disclosure follows an earlier announcement on Feb. 5, when Hub Group said its unaudited financial statements for the first, second and third quarters of 2025 were materially misstated and would be restated. In a press release that day, the company said it had found an accounting error that caused an understatement of purchased transportation costs and accounts payable during the first nine months of 2025. Hub Group said: “The total amount of the reduction to accounts payable and purchased transportation costs related to this issue that was recorded during these periods is $77 million.”

After that February disclosure, Hub Group delayed filing its full-year 2025 annual report. On March 24, the company disclosed that Nasdaq had notified it of a deficiency related to the late filing, and Hub Group also said it had obtained an amendment and waiver under its credit agreement tied to that delay. As of the May 12 filing, the company had not yet filed restated audited financial statements for 2023 and 2024.