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Valence · financial review

Meridian Logistics

Trailing 12 months · GL 2024-012025-12 · 2 entities
V

The headline

Revenue
$41.3M
+18.4% YoY
Gross margin
31.2%
−341 bps YoY
Total cost
$40.6M
COGS + opex + D&A
EBITDA
$2.1M
from $3,485,000

Revenue $41,260,000 · COGS $28,390,000 · gross profit $12,870,000 · opex $10,780,000 · D&A $1,440,000 · operating income $650,000.

What doesn't hold up4

  1. Material"Customer success salaries" is classified two ways

    The same account is filed under COGS and Customer Success depending on the entity (Meridian Logistics — Canada → COGS; Meridian Logistics — US → Customer Success). Because this crosses the COGS line, the entities' gross margins are not comparable as reported, and consolidated margin depends on which treatment dominates. Pick one treatment and restate the other.

    Same account_name under 2 account_category values across entities
  2. MaterialContract Labor stepped up 3.2× at Q3 2025

    Contract Labor ran about $62K a month, then moved to about $198K from 2025-07 and stayed there. A clean step at a period boundary usually means one new arrangement rather than gradual growth. No other labour category fell to offset it, so this reads as added capacity, not substitution.

    3-month mean before vs after 2025-07 · 3.19× · sustained across 6 periods
  3. NotableOther grew +67% against revenue +18%

    Other went from $980,000 to $1,640,000, an increase of $660,000. Revenue grew +18.4% over the same period. At 4.0% of total cost, this is the kind of gap that shows up as margin compression before anyone names the cause.

    Category growth +67.3% vs revenue +18.4% · threshold 2.5× · min $250K
  4. Notable4.0% of cost has no category

    $1,640,000 is filed under "Other" — 4.0% of total cost with nothing behind it. Cost attribution can't explain what it can't see, and a buyer's diligence team will ask about this line before any other. Re-export with these accounts mapped to real categories.

    Sum of the "Other" account_category over trailing 12 months

Cost structure

Categories under 2% of cost are omitted here and shown in full in the app.

CategoryShare of costTrailing 12 monthsPrior 12
COGS69.9%$28,390,000$22,790,000
Payroll11.4%$4,640,000$4,290,000
Other4.0%$1,640,000$980,000
Contract Labor3.8%$1,560,000$600,000
Depreciation & Amortization3.5%$1,440,000$1,330,000
G&A3.2%$1,280,000$1,190,000
Marketing2.3%$950,000$875,000

What this data can and can't show

Cost attribution: category-level only. Upload AP, expense & cards to see vendor level.

4.0% of cost ($1,640,000) is uncategorized.