FAST Group, a last-mile logistics provider, is grappling with severe financial instability following its recent merger, prompting its private equity backer to freeze additional capital. Internal metrics reveal steep revenue declines and mounting debt pressures.
- FAST Group's core delivery revenue fell 38% YoY in Q4 2025, dropping to $88 million.
- Operating losses surged to $62 million in Q4 2025, more than doubling from $29 million in the prior year.
- A $300 million capital facility was frozen by the PE backer as of January 5, 2026.
- Debt service coverage ratio fell below 0.7x, signaling high liquidity risk.
- Internal audits revealed revenue recognition issues across three regional hubs.
- Client-driven partners saw stock declines of up to 12% on January 10, 2026.
FAST Group has entered a period of acute financial distress after its post-merger integration failed to deliver anticipated synergies. The company reported a 38% year-over-year decline in core delivery revenues during Q4 2025, falling from $142 million to $88 million, while operating losses ballooned to $62 million—up from $29 million in the same period the prior year. The deteriorating financial picture prompted FAST’s principal private equity investor to halt further funding commitments as of January 5, 2026. This decision effectively froze access to a $300 million committed capital facility intended for network expansion and technology upgrades. The investor cited material deviations from projected performance, including higher-than-expected customer churn and rising fuel and labor costs that eroded margins. Internal audits uncovered discrepancies in revenue recognition practices across three regional hubs, raising concerns about financial transparency. Additionally, FAST’s debt service coverage ratio dropped below 0.7x in Q4—a level indicating serious liquidity risk—down from 1.3x at the end of 2024. Management has since appointed an interim CFO and initiated a restructuring review. The fallout extends beyond FAST Group. Its major clients, including e-commerce retailers and delivery platforms, are reassessing supply chain dependencies. Stock prices of related infrastructure providers have declined by up to 12% in early trading on January 10, reflecting broader investor unease over last-mile logistics stability amid macroeconomic headwinds.