RXO (RXO) Company Report

RXO has materially completed the integration of Coyote within 12 months, unifying its operations and technology, establishing itself as the third largest provider of brokered transportation in North America.
Despite a prolonged soft freight demand environment (Cass freight shipments down 7% year over year in October 2025), market dynamics show increasing tender rejections and spot rates due to significant supply reduction.
Recent regulatory changes in 2025, such as English language proficiency requirements and rules on non-domiciled CDLs, have led to a substantial reduction in market capacity, with 200,000 CDLs identified at risk and 17,000 non-domiciled CDLs revoked in California.
RXO expects to achieve 1% in purchased transportation (PT) savings on its $4 billion brokerage PT spend, having already realized 30 to 50 basis points since May 2025, with a target of 100 basis points by May 2026.
The company invests over $100 million annually in technology and AI, which has contributed to a 38% increase in productivity over the last two years, aiming to enhance incremental margins.

Dec 3, 2025, 3:50 PM

Transcript

RXO Discusses Coyote Integration, Market Outlook, and AI Strategy

RXO

M&A

Guidance Update

New Projects/Investments

RXO has materially completed the integration of its Coyote acquisition as of December 2025, positioning it as the third largest provider of brokered transportation in North America. This integration is expected to leverage increased scale to reduce costs and diversify its market mix.
While the Coyote integration was operationally successful and on schedule, financial results in 2025 were below expectations due to a softer market and aggressive pricing actions.
The company anticipates achieving 1% in purchased transportation (PT) savings on its $4 billion brokerage PT spend, with 30 to 50 basis points already realized and the full 100 basis points expected by May 2026.
Significant regulatory changes in 2025 regarding driver qualifications have reduced market capacity, which RXO believes will lead to a lower supply environment and potentially higher rates for longer in the future, benefiting large brokers.
RXO is leveraging AI to improve productivity, which has increased by 38% over the last two years, aiming to enhance incremental margins and grow volume without a proportional increase in headcount.

Dec 3, 2025, 3:50 PM

Transcript

RXO Discusses Coyote Integration, Market Dynamics, and Technology Investments

RXO

M&A

Demand Weakening

New Projects/Investments

RXO has materially completed the integration of the Coyote acquisition within 12 months, establishing itself as the third largest provider of brokered transportation in North America.
Despite a prolonged soft freight environment in 2025, with Cass freight shipments down 7% year over year in October, key freight indicators like tender rejections and spot rates have been rising due to supply constraints.
Regulatory changes in 2025 concerning CDLs have significantly reduced market capacity, which RXO views as a long-term positive for large brokers, potentially leading to a lower supply environment and higher rates.
RXO invests over $100 million annually in technology, including AI, which has boosted productivity by 38% over the last two years and is expected to enhance margins and improve SG&A.
The company expects to achieve 100 basis points of incremental buy rate favorability on its $4 billion purchased transportation spend by May 2026, having already realized 30 to 50 basis points since the carrier cutover on May 1st.

Dec 3, 2025, 3:50 PM

Transcript

RXO Discusses Prolonged Soft Freight Market, Q4 Outlook, and Coyote Integration Benefits

RXO

Guidance Update

Demand Weakening

M&A

RXO reports a prolonged soft rate market, with Cass Freight Shipments down 7% year over year in October 2025, approaching Great Financial Crisis lows from 2008.
The company's Q4 outlook projects adjusted EBITDA between $20 million and $30 million, reflecting a muted peak season and rising costs of purchased transportation, which offsets positive truckload volume growth.
Structural changes in the freight market, including the FMCSA potentially removing 200,000 non-domiciled CDLs, are tightening supply and are seen as positive for large-scale brokers like RXO in the long term.
RXO has achieved $155 million in annualized operating expense reductions, including $60 million from Coyote, and expects an additional $30-$35 million in annualized cost benefits in 2026. The Coyote integration is largely complete, and RXO anticipates 100 basis points of incremental buy rate favorability by May 2026.
Despite underperforming in truckload volume growth in 2025 (e.g., Q3 down 12%), RXO expects automotive to cease being a material headwind in Q1 2026 and aims to resume market outperformance as a fully integrated company.

Dec 2, 2025, 8:30 PM

Transcript

RXO Discusses Q4 Outlook, Market Dynamics, and Integration Synergies

RXO

Guidance Update

Demand Weakening

M&A

RXO projects Q4 2025 adjusted EBITDA of $20 million-$30 million, noting that while truckload volumes are expected to grow sequentially, rising purchased transportation costs and slowing last-mile demand will mute the typical seasonal uplift.
The freight market is experiencing a prolonged soft rate environment, but supply-side tightening is evident due to structural and regulatory changes, with an estimated 200,000 non-domiciled CDLs potentially exiting the market.
RXO has achieved $155 million in annualized operating expense reductions since its spin-off, including $60 million from Coyote, and expects a $30-$35 million year-on-year tailwind in 2026 from these cost takeouts and synergies. The company also aims for 100 basis points of incremental buy rate favorability by May 2026 from the Coyote integration.
Despite underperforming in truckload volume growth in 2025 (e.g., Q3 down 12%), RXO anticipates automotive headwinds to become immaterial in Q1 2026 and truckload comps to ease in Q2 2026, positioning the company for market outperformance. RXO also invests over $100 million annually in technology and has achieved 38% productivity growth over the past two years, with significant potential from AI.

Dec 2, 2025, 8:30 PM

Transcript

RXO Announces Q3 2025 Results and Q4 Outlook

RXO

Earnings

Guidance Update

Demand Weakening

RXO reported Q3 2025 revenue of $1,421 million, with Adjusted EBITDA of $32 million and adjusted diluted EPS of $0.01.
The company achieved a Q3 adjusted free cash flow conversion of 56% and maintained a strong balance sheet with $395 million in net debt and $590 million in total committed liquidity as of Q3 2025.
RXO anticipates Q4 2025 Adjusted EBITDA between $20 million and $30 million, noting that the full-truckload market tightened in Q3 and is expected to persist through Q4 with soft demand.
The company is implementing new cost initiatives, expecting total annualized operating expense reductions of over $155 million, and introduced new technology in Q3 to enhance operational efficiency and productivity.

Nov 6, 2025, 1:00 PM

Presentation

RXO Reports Q3 2025 Results and Provides Q4 2025 Outlook

RXO

Earnings

Guidance Update

Demand Weakening

RXO reported $1.4 billion in total revenue and $32 million in adjusted EBITDA for Q3 2025, with adjusted earnings per share of $0.01.
The company anticipates Q4 2025 adjusted EBITDA between $20 million and $30 million, reflecting continued market tightening, higher purchase transportation costs, and weakening demand in the last-mile business, which is counter to typical seasonality.
Brokerage gross margin was 13.5% in Q3 2025, impacted by buy rates increasing faster than contractual sale rates and a lack of accretive spot opportunities, while overall demand trends weakened throughout the quarter.
RXO has implemented significant cost-saving measures, having removed over $125 million in costs since becoming a public company and announcing additional actions for more than $30 million in incremental annualized savings.

Nov 6, 2025, 1:00 PM

Transcript

RXO Announces Third-Quarter 2025 Results

RXO

Earnings

Guidance Update

Demand Weakening

RXO reported Q3 2025 revenue of $1.4 billion, a GAAP net loss of $14 million, adjusted net income of $2 million, and Adjusted EBITDA of $32 million.
Adjusted diluted earnings per share for Q3 2025 was $0.01.
Brokerage volume increased 1% year over year, primarily driven by a 43% rise in less-than-truckload volume, while Last Mile stop growth was 12%.
The full-truckload market significantly tightened in Q3 2025 due to capacity exits, impacting brokerage gross margin, and this market tightness is expected to persist throughout Q4.
For Q4 2025, RXO expects adjusted EBITDA to be between $20 million and $30 million, with brokerage gross margin projected between 12% and 13%. New cost initiatives are anticipated to yield more than $30 million in incremental savings.

Nov 6, 2025, 11:32 AM

8-K

RXO discusses soft freight market, LTL growth, and Coyote integration at Laguna Conference

RXO

Demand Weakening

M&A

New Projects/Investments

RXO is currently operating in a soft freight market, with varied regional conditions and an expectation of a potentially muted peak season in Q4.
The company's Less-Than-Truckload (LTL) volume has significantly increased from 10% to 32% of overall volume since the spin-off, with a strategic goal to reach 50% or higher, providing stability in gross profit per load and EBITDA.
The integration of the Coyote acquisition has been largely successful regarding people, customer retention, and technology integration, with all carriers booking from one platform within eight months and customer migration largely complete by early Q4. However, the profitability of the acquired business has not met initial expectations due to worse-than-anticipated weather events and higher volume loss from price adjustments.
RXO has increased its Coyote synergy estimate to more than $70 million in cash synergies ($60 million from operating expenses and $10 million from CapEx), with $50 million of operating expense synergies already realized in Q2 results and an additional $10 million anticipated in the second half of 2025.
The automotive segment, where RXO is a leader in ground expedite, has been a significant financial headwind, contributing a $10+ million EBITDA headwind in Q2 and a 40% decline in Managed Transportation automotive volume.

Sep 10, 2025, 5:45 PM

Transcript

RXO Discusses Q1 2025 Outlook, Coyote Integration, and Long-Term Strategy

RXO

Guidance Update

M&A

Revenue Acceleration/Inflection

RXO provided an EBITDA guide in the range of $20 million-$30 million, noting that gross profit per load is the biggest driver of profitability and was impacted by weather and lower pricing from the Legacy Coyote acquisition in Q4 and early Q1.
The company observes signs of the truckload market shifting from its bottom, with contract rates flipping positive and increased spot rates, though the pace of recovery remains uncertain. A V-shaped recovery is considered more beneficial for EBITDA improvement due to higher spot load volumes.
Expected synergies from the Coyote acquisition have been revised upwards from at least $25 million to at least $50 million. For 2025, overall RXO pricing is anticipated to increase by low to mid-single digits, with volume growth expected regardless of market conditions.
RXO projects normalized earnings power of $350 million-$400 million EBITDA by 2026-2027, based on a 5% EBITDA margin on $7 billion-$8 billion of revenue. The company also anticipates generating several hundred million dollars in free cash flow a couple of years out.

Feb 19, 2025, 4:20 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for RXO.

Q3 2025

Nov 6, 2025

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Q2 2025

Aug 7, 2025

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Q1 2025

May 7, 2025

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