Forward Air Corp. (NASDAQ:FWRD) fell 8.51% Tuesday as customer loss risk, sliding revenue, and a failed strategic review overshadowed narrowing losses and improving operational metrics.

Customer Risk Overshadows Q1 Improvement

Forward Air said one of its largest customers may move a significant portion of its business to other providers, creating a potential revenue risk tied to a customer that generated about $250 million in fiscal 2025 revenue.

The company said discussions remain ongoing and that most of the transition is currently expected to begin in early 2027.

The disclosure came alongside first-quarter 2026 results showing revenue of $582 million, down from $613 million a year earlier, while the company’s net loss narrowed to $40.2 million from $61.2 million.

Forward Air Results And Liquidity

Operating income rose to $20.4 million from $4.8 million a year earlier. Forward Air reported $70 million in consolidated EBITDA, a 12.1% EBITDA margin, and quarter-end liquidity of $402 million, up from $367 million in the prior quarter.

Its LTM net leverage ratio was 5.4x.

Expedited Freight revenue increased 9.4% to $273 million, while operating income rose 28.2% to $20 million. Omni Logistics revenue fell 6.5% to $302 million, though its reported EBITDA margin improved to 8.3% from 7.9%.

Strategic Review

Forward Air also said its strategic alternatives review did not produce actionable proposals for the sale of the company.

The board now plans to pursue sales of non-core assets, including the Intermodal segment and two smaller Omni businesses, to reduce leverage and simplify operations.

Forward Air Short Interest Rises

Short interest in Forward Air fell from 4.27 million to 2.84 million shares in the latest reporting period, signaling reduced bearish sentiment toward the stock.

Still, 13.47% of the public float remains short. Based on average daily trading volume of about 717,000 shares, short sellers would need roughly four days to cover their positions.

Technical Analysis: Oversold Signals And Key Moving Averages

Forward Air’s stock has been under pressure, with a 12-month performance decline of 49.45%.

The current price of $9.64 is significantly below key moving averages, with the stock trading 51.3% below its 20-day simple moving average (SMA) of $19.74 and 60.2% below its 200-day SMA of $24.19.

The relative strength index (RSI) is currently at 25.79, indicating the stock is oversold and suggesting a potential rebound if buying interest returns.

Forward Air (FWRD) Analyst Consensus & Recent Actions

The stock carries a Buy rating with an average price forecast of $24.00. Recent analyst moves include:

• Susquehanna: Positive (Lowers forecast to $18.00) (May 8)
• Stifel: Buy (Lowers forecast to $30.00) (April 16)
• Stifel: Buy (Raises forecast to $32.00) (January 21)

FWRD Stock Price Activity: Forward Air shares were down 8.51% at $9.57 at the time of publication on Tuesday, according to Benzinga Pro data.

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