SEC Filings

Knight-Swift Has $500,000 Left On Its $575 Million Receivables Sale Facility

The trucker has sold $556.5 million of invoices against $557.0 million of eligible capacity, as trade receivables climbed to $479.8 million.

Knight-Swift Transportation, the truckload and less-than-truckload carrier, has nearly exhausted its invoice-sale facility: just $500,000 of availability remained at September 30, according to its 10-Q filed Wednesday. The shares traded at $60.26, down 4.4%, in Wednesday trading.

A facility drawn to the limit

Under the receivables purchase agreement, Knight-Swift sells invoices to banks for cash. At September 30 it had sold $556.5 million against $557.0 million of capacity, which is set by eligible receivables, leaving the $500,000. The facility's maximum size is $575.0 million, and it matures October 2, 2028.

Use has climbed. The prior quarter's filing showed $541.2 million sold and $900,000 of availability, and the total was $478.2 million at December 31, 2025, when availability was $21.1 million.

Receivables left on the books grew too. Unsold eligible receivables reached $131.9 million, up from $97.3 million at June 30, and net trade receivables stood at $479.8 million versus $434.8 million at June 30. At the end of 2025 the figure was $305.3 million.

Program fees were $6.3 million in the quarter and $17.3 million for the first nine months. They are now booked in operating expenses rather than interest expense.

A freight carrier on the mend

Knight-Swift runs truckload, LTL (which combines shipments from several customers in one trailer), logistics and intermodal businesses. Its third-quarter results, first reported in an October 21 8-K, were strong: net income attributable to the company was $118.3 million versus $7.9 million a year earlier, and revenue reached $2.2 billion. The adjusted operating ratio, a cost-to-revenue measure where lower is better, improved to 89.3%.

For the first nine months, operating cash flow was $799.9 million and free cash flow $373.2 million.

The backstop behind the facility

The company issued $1.5 billion of convertible notes in May and used the proceeds to repay term loans and its revolver, which carries no borrowings. Letters of credit of $14.7 million sit under the $1.5 billion revolver. At September 30 it held $254.2 million of unrestricted cash.

Management wrote that it does not foresee material liquidity constraints or any issues meeting its debt covenants.

The next quarterly report will show whether sales under the facility keep rising toward the $575.0 million cap.