Forward Air Corporation (NASDAQ:FWRD) (the "Company", "Forward", "we", "our", or "us") today provided an update regarding ongoing discussions with one of its largest customers (the "Customer"). As previously disclosed on May 7, 2026, the Company has been engaged in discussions with the Customer regarding the Customer’s planned transition of a portion of the services currently provided by the Company to other service providers as part of the Customer’s operational and supplier diversification initiatives.

On July 20, 2026, the Company entered into a non-binding memorandum of understanding (the "MOU") with the Customer regarding the continued provision of those services. Under the current MOU, the Company expects to retain at least half of the approximate $250 million of revenue attributable to the Customer for the fiscal year ended December 31, 2025, with the potential of retaining an additional approximate 25%. Furthermore, the MOU extends the term of the contract for the retained services for a period of no less than two years.

The services that are expected to be transitioned to the other providers are anticipated to start later this year, with the majority taking place in December 2026 and throughout the balance of 2027.