Hub Group CFO and COO Exit After $77M Accounting Error

Hub Group's chief financial officer and chief operating officer left the company May 28, 2026. The exits follow a $77 million accounting error that forced the publicly traded 3PL to restate financials for 2023, 2024, and the first three quarters of 2025.

What did Hub Group's accounting error involve?

Hub Group (NASDAQ: HUBG) flagged the problem in February 2026. The company understated purchased transportation expenses by $77 million across the first three quarters of 2025. Purchased transportation is the cost a broker or 3PL pays to the carrier who actually hauls the freight. The understatement delayed Hub Group's fourth-quarter and full-year 2025 earnings release.

Earlier in May, the company announced it would restate results for 2023 and 2024 as well. It also delayed first-quarter 2026 financial reporting.

Who left Hub Group?

CFO Kevin Beth and COO Brian Meents both departed. Hub Group said in a May 28 news release that both executives will remain available to the company on a consulting basis during a transition period.

Todd Heeter was appointed interim CFO and treasurer effective immediately. Heeter has 30 years of finance and accounting experience in leadership and advisory roles. His initial term is set for six months but may be extended. Hub Group has engaged a national search firm to find a permanent CFO. Other senior leaders will assume the COO duties.

What does this mean for carriers working with Hub Group?

Hub Group is a major 3PL and intermodal provider. The accounting error involved how the company recorded what it paid carriers. The understatement means Hub Group's reported costs were lower than actual costs for three quarters in 2025, and the restatement extends back two additional years.

Carriers who hauled freight for Hub Group during 2023, 2024, and 2025 should verify that all invoices were paid in full. The accounting error does not indicate that Hub Group failed to pay carriers, only that the company's internal books understated those payments. However, any carrier with outstanding invoices from that period should confirm payment status.

What did Hub Group's board say?

"The Hub Group Board of Directors views the integrity of the Company's financial statements as a key pillar of our ongoing success," said Peter McNitt, lead director, and Gary Yablon, chair of the audit committee, in a joint statement. "In connection with the review conducted under the direction of the Audit Committee, we are taking corrective actions, including enhancing our financial reporting processes and making changes to the Company's leadership team."

The board said it will continue to prioritize finalizing the company's financial statements.

What should carriers check before working with any broker or 3PL?

This case highlights the importance of verifying a broker's financial stability before signing a rate confirmation. Carriers should check:

• BMC-84 or BMC-85 bond status on the FMCSA's Licensing and Insurance database. A $75,000 bond is the minimum, but larger brokers often carry higher bonds or trust accounts.
• Days to pay reported on Carrier411, DAT, or other broker-rating platforms. Sudden payment delays can signal internal financial problems.
• Public filings for publicly traded brokers and 3PLs. Hub Group's accounting error was disclosed in SEC filings before the executive departures.
• Recent enforcement actions on the FMCSA website. Revoked or suspended authority is a red flag.

Carriers who spot payment delays or accounting irregularities at any broker should document the issue and consider filing a BMC-84 bond claim if invoices go unpaid beyond the agreed terms.