Executive Summary

Q2 2023 operating revenue was $1.127B and operating income $38.9M, aided by a $75.9M gain on property disposals; GAAP net loss was $14.7M (−$0.28 EPS), versus $60.0M (+$1.17 EPS) in Q2 2022 as demand softened and costs remained elevated .
Sequentially, operating ratio improved to 96.5% from 100.8% in Q1 2023, driven by lower fuel/purchased transportation and property gains; year-over-year OR deteriorated from 93.0% in Q2 2022 .
On August 6, 2023, Yellow filed for Chapter 11 to wind down operations; Nasdaq notified delisting with trading suspension effective August 16, 2023, which is the dominant stock reaction catalyst and effectively withdraws forward guidance .
Management attributed operational and liquidity strain to labor impasses impacting the “One Yellow” network optimization, culminating in bankruptcy; investor focus should shift to claims recovery and wind-down proceeds rather than near-term earnings trajectories .

What Went Well and What Went Wrong

What Went Well

Sequential operating ratio improved to 96.5% in Q2 (from 100.8% in Q1), reflecting lower fuel and purchased transportation and a large property disposal gain that lifted operating income to $38.9M .
Asset monetization delivered $75.9M gains on property disposals in Q2, following management’s strategy to sell excess terminals to reduce debt and bolster liquidity (Q4 commentary on terminal sales provides context) .
Q1 management emphasized continued yield discipline amid soft demand: “year-over-year pricing continued to improve” even as tonnage fell, underscoring price/mix resilience going into Q2 .

What Went Wrong

Revenue fell 20.8% YoY to $1.127B and GAAP EPS swung to −$0.28 from +$1.17, driven by volume declines and higher non-operating costs despite property gains .
Interest expense increased to $48.3M in Q2 (vs $38.0M Q2 2022), pressuring net income as refinancing options narrowed .
The business entered Chapter 11 on Aug 6 and received a Nasdaq delisting notice on Aug 7, signaling a complete wind-down and eliminating forward visibility; workforce reductions preceded the filing .

Financial Results

Quarterly Comparison (Oldest → Newest)

Metric	Q4 2022	Q1 2023	Q2 2023
Operating Revenue ($USD Billions)	$1.200	$1.159	$1.127
Operating Income ($USD Millions)	$40.3	$(9.3)	$38.9
Net Income ($USD Millions)	$(15.5)	$(54.6)	$(14.7)
Diluted EPS ($)	$(0.30)	$(1.06)	$(0.28)
Operating Ratio (%)	96.6%	100.8%	96.5%

Q2 2023 vs Prior Year (YoY)

Metric	Q2 2022	Q2 2023	YoY Change
Operating Revenue ($USD Billions)	$1.424	$1.127	−20.8%
Operating Income ($USD Millions)	$99.2	$38.9	−60.8%
Net Income ($USD Millions)	$60.0	$(14.7)	N/M
Diluted EPS ($)	$1.17	$(0.28)	N/M
Operating Ratio (%)	93.0%	96.5%	+350 bps

Selected Cost/KPI Line Items

Metric ($USD Millions unless noted)	Q4 2022	Q1 2023	Q2 2023
Salaries, Wages & Benefits	$644.7	$672.5	$686.3
Fuel, Operating Exp & Supplies	$266.4	$240.6	$227.0
Purchased Transportation	$164.0	$152.0	$150.7
Depreciation & Amortization	$36.2	$35.3	$35.8
Other Operating Expenses	$76.8	$68.0	$64.0
Gains on Property Disposals, net	$(28.2)	$(0.5)	$(75.9)
Interest Expense	$45.9	$46.5	$48.3

Note: Negative values in “Gains on Property Disposals” reflect gains that reduce total operating expenses .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company outlook	FY/Q3 onward	Not provided in filings reviewed	Guidance withdrawn due to Chapter 11 wind-down	Withdrawn
Listing status	August 2023	Nasdaq listing	Nasdaq delisting; trading suspended Aug 16, 2023	Delisted

Management did not provide revenue, margin, OpEx, or tax guidance in Q2 given the bankruptcy process .

Earnings Call Themes & Trends

(There was no Q2 2023 earnings call/transcript available; themes below reflect Q4 2022 and Q1 2023 management communications and Q2 press releases.)

Topic	Previous Mentions (Q4 2022)	Previous Mentions (Q1 2023)	Current Period (Q2 2023)	Trend
Network optimization (“One Yellow”)	Phase one implemented in West; plan to sell ~17 excess terminals; expected efficiency gains	Phase One benefits cited; Phase Two planning across Midwest/Northeast/Southeast; working with IBT	Press releases reference workforce reduction; subsequent bankruptcy cites IBT blockade delaying broader rollout	Deteriorating execution due to labor impasse
Macro demand/tonnage	Tonnage/workday down 25.1% YoY; yield stable	Soft demand similar to late 2022; shipments steady but no seasonal uplift; pricing improved YoY	Revenue down 20.8% YoY; OR worsened YoY to 96.5%	Continued demand softness
Pricing/yield	Yield improvement despite volume decline	“Year-over-year pricing continued to improve”	Not explicitly detailed; implied via revenue/OR mix	Stable-to-positive yield, but overwhelmed by volume/mix decline
Capital structure/debt	Reduced debt nearly $100M; intent to refinance	LTM Adjusted EBITDA $325.4M; debt $1.509B as of Mar 31	Interest expense up; bankruptcy filing and delisting	Liquidity stress culminated in filing
Labor/regulatory/legal	N/A	Working with IBT on Phase Two	Chapter 11 filing; lawsuit vs IBT cited; wind-down	Acute labor dispute impact
Technology/AI	Not highlighted	Not highlighted	Not highlighted	No material discussion

Management Commentary

“The soft demand environment during the first quarter was similar to the slowing pace we experienced late last year… year-over-year pricing continued to improve… Phase One is a success and we continue to work with the International Brotherhood of Teamsters to determine the best path forward to implement Phase Two, and then turn our focus on refinancing the capital structure.” — CEO Darren Hawkins, Q1 2023 release .
“Reducing our outstanding debt by nearly $100 million is another important step on the path to refinancing and strengthening our capital structure.” — CEO Darren Hawkins, Q4 2022 release .
“It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business.” — CEO Darren Hawkins, Aug 6, 2023 press release announcing Chapter 11 and wind-down .

Q&A Highlights

No Q2 2023 earnings call transcript was available; IR site lists Q1 and Q4 calls only, with no Q2 event record and the company entering Chapter 11 before typical Q2 call timing .

Estimates Context

Wall Street consensus estimates from S&P Global were unavailable for YELLQ in Q2 2023 due to missing SPGI mapping for the ticker; therefore, no revenue/EPS beat/miss comparison can be made. Values retrieved from S&P Global were unavailable for this ticker.
Given the Chapter 11 filing and delisting proceedings in August, sell-side coverage and consensus would typically be disrupted; investors should rely on reported actuals and bankruptcy disclosures for assessment .

Key Takeaways for Investors

Sequential improvement: OR improved to 96.5% vs 100.8% in Q1, but remained worse than 93.0% in Q2 2022; property gains masked deeper operating pressure .
Revenue contraction: Q2 revenue fell 20.8% YoY to $1.127B as LTL volumes lagged and non-operating costs rose; non-operating interest expense up to $48.3M .
Asset monetization: $75.9M gains on property disposals supported Q2 operating income; expect asset sales to be central in wind-down value recovery .
Liquidity/solvency pivot: Chapter 11 filing on Aug 6 and Nasdaq delisting notice on Aug 7 shift focus to liquidation and claim priority rather than ongoing earnings .
Labor dynamics: Management attributes execution delays of “One Yellow” to IBT impasse; this was cited as a significant driver of lost Adjusted EBITDA and investor/customer confidence .
Trading implications: Equity delisting and bankruptcy process reduce tradability and increase volatility/uncertainty; focus should be on recovery prospects from assets and claims rather than EPS trajectory .
Medium-term thesis considerations: The LTL market rebalances as Yellow’s capacity exits; competitors may see price/mix tailwinds, while Yellow stakeholders prioritize claim recovery and terminal sale outcomes .

Sources Read In Full

Q2 2023 Form 8-K (Item 2.02 press release and exhibits): Operating results and financial statements .
Q1 2023 Form 8-K (Item 2.02 press release and exhibits): Operating results, non-GAAP reconciliations, liquidity and debt tables .
Q4 2022/FY 2022 Form 8-K (Item 2.02 press release and exhibits): Operating results, strategy commentary, non-GAAP reconciliations .
Chapter 11 press release (Aug 6, 2023): Wind-down announcement and labor dispute context .
Nasdaq delisting disclosure within Q2 8-K: trading suspension details .

Estimates: S&P Global consensus unavailable for YELLQ in Q2 2023; no comparison provided.

Yellow Corp (YELLQ)·Q2 2023 Earnings Summary