What is the revenue and EPS growth rate for RXO year over year?

What is RXO's latest dividend and current dividend yield?

What is RXO's gross profit margin?

Did RXO beat or miss consensus estimates last quarter?

What is the market's earnings forecast for RXO next quarter?

What factors drove the changes in RXO's revenue and profit?

What were the key takeaways from RXO's earnings call?

What does RXO do and what are its main business segments?

- **Pipeline Growth**: Late-stage brokerage pipeline up 50% YoY, positioning for Q2 2026 truckload outperformance.
- **AI-Driven Efficiency**: 19% productivity improvement in 2025, with AI initiatives automating bids, theft prevention, and tracking updates.
- **Market Tightening**: Regulatory changes (CDL enforcement) and soft demand driving 13% tender rejections in January, highest since 2022.
- **Financial Resilience**: 43% free cash flow conversion in 2025, with Q1 2026 EBITDA guidance of $5-12 million despite winter storm impact.
- **Customer Strength**: Won awards from major customers, with LTL volume growing 31% YoY and Managed Transportation FUM exceeding $200 million.

**【CEO Summary Section】**
- **Revenue and Market Challenges**: Q4 2025 revenue was $1.5 billion, with Brokerage revenue down 14% YoY due to soft freight market conditions. Brokerage gross margin was 11.9%, impacted by a 15% month-over-month increase in industry buy rates in December.
- **Sales Pipeline Growth**: Late-stage brokerage pipeline grew over 50% YoY, driven by full truckload opportunities. Management expects to resume year-over-year truckload volume outperformance by mid-2026.
- **Strategic Initiatives**: Finalized a $450 million asset-based lending facility to reduce costs and improve financial flexibility. Invested in AI capabilities to enhance volume, margin, productivity, and service.
- **Customer Relationships**: Won awards from major customers like Kellanova, Lowe's, and Electrolux, highlighting strong customer retention and service quality.

**【CFO Financial Commentary】**
- **Financial Results**: Adjusted EBITDA was $17 million (1.2% margin) in Q4, down from $109 million (1.9% margin) in 2025. Gross margin was 14.8%, impacted by elevated purchase transportation costs.
- **Cash Flow**: Adjusted free cash flow conversion was 43% in 2025, within the long-term target range of 40%-60%. Q1 2026 EBITDA guidance is $5-12 million, reflecting seasonal declines and winter storm impacts.
- **Cost Optimization**: Achieved $155 million in cost savings since spin-off, including 19% productivity improvement. Brokerage headcount declined mid-teens YoY.

**【CFO Outlook and Strategy】**
- **2026 Guidance**: CapEx $50-55 million, depreciation $65-75 million, and restructuring expenses $25-30 million. Focus on profitable truckload market share, stable EBITDA sources (e.g., LTL, Managed Transportation), and AI-driven efficiency.
- **Market Dynamics**: Tightening truckload market due to regulatory enforcement (non-domiciled CDLs, English proficiency) and soft demand. Tender rejections reached 13% in January, highest since 2022.

**【Q&A Highlights】**
- **Pipeline Execution**: 50% YoY growth in late-stage pipeline, with wins from both new and long-tenured customers. Expected implementation in Q2 2026, with pricing in low-mid single digits for contracts and higher for spots.
- **AI Impact**: 24% increase in digital bids per carrier, 30% improvement in theft prevention, and thousands of automated tracking updates. Productivity up 19% YoY, with further gains expected in 2026.
- **Winter Storm Impact**: Q1 EBITDA reduced by $2 million due to severe weather in Southeast and Southwest, affecting both brokerage and Last Mile operations.
- **Competitive Position**: Outperformed the Cass Freight Index in Q3 and Q4 2025, with LTL volume growing 31% YoY. Confident in ability to leverage scale and technology for long-term growth.


RXO, Inc. (RXO) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: 1% Q3 volume growth driven by 43% LTL expansion, offsetting truckload decline.
- **Margin Pressure**: 13.5% gross margin squeezed by +$0.06/mile buy rates without revenue lift.
- **Cost Efficiency**: $155M+ annualized savings, AI boosts productivity 38%.
- **Regulatory Shift**: 15-20% capacity exit potential from enforcement, creating 'higher-for-longer' market.
- **Cash Flow**: 56% Q3 free cash flow, targeting 40-60% annually.
- **2026 Outlook**: EBITDA could swing based on demand recovery; $20-25M 2025 free cash flow.

**【CEO Summary Section】**
- Q3 revenue of $1.4B reflects 1% overall volume growth, driven by 43% LTL growth offsetting a 11% truckload decline.
- Brokerage gross margin of 13.5% was impacted by higher buy rates without corresponding revenue increases.
- Announced $30M+ incremental cost savings, bringing total annualized savings to $155M+.
- AI investments improved productivity by 38% over 2 years, with cost per load down 20%.
- Regulatory enforcement (non-domiciled CDLs) is causing permanent capacity exit, potentially leading to a 'higher-for-longer' freight environment.

**【CFO Financial Commentary】**
- Adjusted EBITDA of $32M (2.3% margin) missed expectations due to $5M automotive sector margin impact.
- Last mile revenue up 14% YoY but slowing post-Labor Day, counter seasonal trends.
- Free cash flow conversion of 56% in Q3, targeting 40-60% annually.
- 2025 cash outflows ($65M+) include transaction fees, restructuring, and CapEx, setting up for $20-25M free cash flow in 2025.

**【Q&A Highlights】**
- **Market Dynamics**: 2/3 of freight from regions with buy rate increases, no spot opportunities to offset squeeze.
- **Cost Structure**: $125M+ cost savings since spin, additional $30M+ announced for 2026.
- **Regulatory Impact**: Enforcement actions may reduce 15-20% of capacity, benefiting large-scale brokerages.
- **AI Differentiation**: Customer praise for tech ease-of-use, AI-driven pricing and carrier efficiency improvements.
- **Demand Outlook**: Watching interest rates, housing, and automotive recovery; 2026 EBITDA could swing based on demand recovery timing.

RXO, Inc.(RXO)-20251106-2025 Q3 Earnings call transcript

- **Strong Q2 Results**: $38M EBITDA (high end of guidance), 58% free cash flow conversion, $2M cash added to balance sheet.
- **LTL Dominance**: 45% YoY volume growth, targeting 50% of brokerage volume long-term. Truckload gross profit per load +7% YoY.
- **Integration Payoff**: 30-50 bps buy rate improvement, $50M OpEx savings realized, 2026 CapEx cut to $45-55M.
- **Challenges**: Automotive sector headwinds ($10M+ YoY gross profit loss), last mile seasonality slowing growth.
- **Strategic Focus**: AI-driven productivity (45% YoY gain), disciplined cost management, and free cash flow generation.

**【CEO Summary Section】**
- **Adjusted EBITDA Performance**: Achieved $38 million, at the high end of guidance, driven by 1% year-over-year brokerage volume growth (17% last mile stock growth) and 58% free cash flow conversion.
- **LTL Growth**: 45% YoY volume increase, with LTL now 32% of brokerage volume, targeting 50% long-term. Truckload volume declined 12% YoY due to automotive weakness and pricing optimization.
- **Integration Benefits**: Combined carrier network improved buy rate favorability by 30-50 basis points, with full tech integration expected by Q3.
- **Cash Management**: Added $2 million to balance sheet, despite $13 million semiannual bond payment, with Q3 cash growth expected.

**【CFO Financial Commentary】**
- **Revenue & Margins**: Total revenue $1.4 billion, gross margin 17.8%. Brokerage gross margin 14.4% (up 110 bps sequentially), truckload gross profit per load +7% YoY.
- **Automotive Impact**: $10 million+ YoY gross profit headwind from automotive volume decline (28% YoY). Managed Transportation down 9% YoY, last mile up 19% YoY.
- **Synergies**: $50 million annualized OpEx savings realized, with $2.5 million/Q1 starting in 2026. 2026 CapEx expected to drop to $45-55 million.
- **Liquidity**: $575 million total committed liquidity, net leverage 2.1x, strong balance sheet for capital allocation.

**【Q&A Highlights】**
- **Truckload Volume Strategy**: 7% sequential gross profit per load improvement driven by pricing and procurement efficiency. Q3 volume expected flat YoY, with 2026 bid season conversations ongoing.
- **LTL Profitability**: Stable gross profit per load despite lower length of haul, with 30-40% EBITDA flow-through for hub-based business vs. 15% for customer-facility business.
- **AI & Productivity**: 45% YoY productivity gain (loads/person/day), with AI-powered pricing algorithms leveraging combined RXO/Coyote data set.
- **Peak Season Outlook**: Uncertain consumer demand, but confident in Q4 EBITDA growth vs. Q3. Last mile seasonality expected to slow growth rate in H2.
- **Share Repurchase**: Buyback authorization in place, but prioritizing organic growth and balance sheet (2.1x leverage ratio).

RXO (RXO)-7 Aug 25-2025 Q2 Earnings call transcript

- **Technology Integration Success**: 20% of Legacy Coyote freight now covered by Legacy RXO reps, enabling $40 million in potential purchase transportation savings.
- **Synergy Upside**: Total cash synergies raised to $70 million, with $60 million in operating expenses and $10 million in capital savings.
- **LTL Growth**: 26% YoY LTL volume growth offsets truckload decline, with LTL representing 25% of coverage volume.
- **Last-Mile Momentum**: 24% YoY stop growth driven by new customer wins and productivity gains.
- **Q2 Outlook**: EBITDA guidance of $30-40 million reflects contract rate improvements and cost control, despite macro uncertainty.

**【CEO Summary Section】**
- Achieved a significant technology milestone by integrating Coyote's carrier network into a single platform, enabling 20% of Legacy Coyote freight to be covered by Legacy RXO reps and vice versa.
- Raised acquisition synergies to $70 million annually, including $60 million in operating expenses and $10 million in capital expenditures.
- Brokerage LTL volume grew 26% YoY, offsetting a 8% YoY decline in truckload volume.
- Complementary services, including last-mile stops, increased 24% YoY, driven by new customer wins and productivity improvements.

**【CFO Financial Commentary】**
- Q1 2025 revenue reached $1.4 billion, with adjusted EBITDA of $22 million (1.5% margin).
- Brokerage gross margin was 13.3%, supported by 17% YoY productivity gains from AI and machine learning.
- Adjusted free cash flow was $6 million (27% EBITDA conversion), constrained by lower profitability in a soft freight market.
- Reduced 2025 capital expenditures by $10 million to $65-75 million, reflecting cost discipline.

**【CSO Business Outlook】**
- Q2 2025 EBITDA expected between $30-40 million, driven by contract rate increases and purchase transportation cost optimization.
- LTL volume growth outpaced the market, with 25% of coverage volume now from LTL, up 500 basis points YoY.
- Last-mile stops grew 24% YoY, accelerating from 15% in Q4 2024, supported by productivity initiatives.

**【Q&A Key Takeaways】**
- Market uncertainty impacts truckload demand, but LTL growth and cross-selling opportunities mitigate risks.
- Purchase transportation cost savings of 1% on $4 billion annual spend could yield $40 million in benefits.
- Automotive weakness is a near-term headwind, but long-term LTL and last-mile growth provide stability.
- Technology integration enables faster responses to market volatility, with AI-driven productivity improvements still in early stages.

RXO, Inc. (RXO) Q1 2025 Earnings Call Transcript

- **$50M Synergy Milestone**: Integration ahead of schedule, with $50M annualized cost savings (excluding cross-sell and CoPT benefits).
- **15% Last Mile Growth**: Accelerating momentum in last-mile stops, up 15% YoY.
- **Q1 EBITDA Guide**: $20-30M, driven by tightening market and seasonal decline in Last Mile. Full-year volume growth expected despite Q1 decline.
- **Inflationary Rates**: 2025 contract rates +low to mid-single digits YoY, first signs of spot rate recovery post-weather.
- **Balance Sheet Strength**: $35M cash on hand, undrawn revolver, and 1.7x leverage ratio.


**【CEO Summary Section】**
- **Coyote Integration Progress**: Achieved $50 million annualized cost synergies, ahead of schedule. Cross-selling opportunities exceeded internal goals, with large shippers adopting RXO's full service portfolio.
- **Q4 Financials**: Adjusted EBITDA of $42 million, in-line with guidance. Brokerage volume declined 6% YoY but increased 10% sequentially. Last Mile stops grew 15% YoY, accelerating from 11% in Q3.
- **Market Outlook**: Soft freight environment with muted peak season. National load-to-truck ratio hit 7:1, highest since 2022. Expect Q1 brokerage volume to decline mid- to high-single digits YoY, but full-year volume growth driven by disciplined bid strategy.

**【CFO Financial Commentary】**
- **Q4 Results**: Total revenue $1.7 billion, gross margin 15.5%. Brokerage gross margin 13.2%, Legacy RXO at 14.5%. Complementary services gross margin 21.1%, up 20bps YoY.
- **Cash Flow**: Q4 free cash flow $6 million (14% of EBITDA), driven by semiannual interest payment and low profitability. FY25 CapEx $75-85 million, including $15M for Charlotte expansion. Longer-term free cash flow target 40-60% of EBITDA.
- **Synergy Update**: Raised cost synergies to $50 million (excluding CoPT and cross-sell). $25M realized by Q4, $25-30M incremental in 2025. Technology integration to deliver $15M savings in 2026.

**【Q&A Key Themes】**
- **Market Recovery**: Moving from bottom of cycle to inflationary rates. 2025 contract rates expected +low to mid-single digits YoY. Spot rates improved post-weather, but market still soft.
- **Customer Mix**: Coyote's large enterprise customer (10% of gross margin) drove Q4 seasonality. SMB business (40% of Coyote) offers higher gross margin upside through cost of purchase transportation.
- **Tariff Impact**: Short-term tailwind from inventory pull-forward, long-term headwind if tariffs persist. RXO benefits from nearshore manufacturing trend.
- **Cash Allocation**: Strong balance sheet ($600M revolver undrawn). Focus on organic growth, share buybacks, and M&A. FY25 restructuring costs $40-50M, primarily non-cash.


Actual	0.28	0.11	0.08	0.05	0.06	-0.03	0.03	0.05	0.06	-0.03	0.04	0.01	-0.07
Forecast	0.2318	0.0675	0.0792	0.0085	0.0396	-0.0381	0.0261	0.0453	0.0538	-0.0193	0.0267	0.0367	-0.0407
Surprise	+20.79%	+62.96%	+1.01%	+488.24%	+51.52%	+21.26%	+14.94%	+10.38%	+11.52%	-55.44%	+49.81%	-72.75%	-71.99%

RXO

RXO fundamentals

RXO Q4 2025 Earnings

Earnings Call

You can ask Aime

RXO

RXO fundamentals

RXO Q4 2025 Earnings

Earnings Call

RXO Earnings Call Summary for Q4/20258:00 AM on Feb 6, 2026

RXO Earnings Call Summary for Q3/20258:00 AM on Nov 6, 2025

RXO Earnings Call Summary for Q2/20258:00 AM on Aug 7, 2025

RXO Earnings Call Summary for Q1/20258:00 AM on May 7, 2025

RXO Earnings Call Summary for Q4/20248:00 AM on Feb 5, 2025

You can ask Aime