RXO Inc. (NYSE: RXO) reported fourth‑quarter 2025 results on February 6, 2026, with total revenue of $1.5 billion, a 14.8% gross margin, and a GAAP net loss of $46 million. The adjusted net loss was $11 million and adjusted EBITDA stood at $17 million, reflecting the impact of transaction, integration, and restructuring costs that were excluded from the adjusted figures.
The company’s brokerage business showed a 50% year‑over‑year increase in its late‑stage pipeline, while its managed transportation segment added more than $200 million of freight under management. Last‑mile stops grew 3% year‑over‑year, and the company highlighted its focus on profitable growth amid a tightening freight market that has pressured buy rates and squeezed brokerage margins.
Management explained that the GAAP net loss widened because of significant one‑time charges related to the acquisition of a logistics platform and the integration of new technology investments. The adjusted loss, which excludes those charges, still indicates margin compression, with gross margin falling from 15.5% in Q4 2024 to 14.8% and adjusted EBITDA margin dropping from 2.5% to 1.2%. The decline is driven by higher cost of purchased transportation and a tighter full‑truckload market where buy rates rose faster than selling prices.
Revenue was roughly flat against analyst expectations of $1.48 billion, but the company missed the consensus adjusted earnings per share estimate of $-0.04, reporting an adjusted loss of $-0.07. The miss was largely due to the higher cost base and the one‑time integration expenses that were not captured in the adjusted figures, underscoring the short‑term impact of the company’s expansion strategy.
RXO’s CEO Drew Wilkerson emphasized that the company remains committed to its asset‑light model and to investing in AI‑driven procurement tools. He noted that the new $450 million asset‑based revolving credit facility, replacing a $600 million unsecured facility, provides greater flexibility across market cycles. Wilkerson also highlighted that the company is not waiting for a market recovery and is taking aggressive actions to improve results, signaling confidence in long‑term positioning.
The company’s segment performance shows that while overall revenue declined year‑over‑year, the LTL volume grew 31% and last‑mile stops increased modestly, indicating resilience in those areas. Management’s focus on profitable growth, cost discipline, and technology investments suggests a strategy to navigate the current headwinds and position for future expansion.
The market reacted negatively to the earnings miss and margin compression, with pre‑market trading showing a decline of 6.76% to 9.7%. Investors were concerned that the EPS miss and shrinking profitability metrics would affect the company’s ability to generate cash flow in the near term.
The company’s guidance for the next quarter was not disclosed in the release, leaving investors to interpret the results as a signal of cautious optimism amid ongoing freight market tightening.
The company’s full‑year 2025 results showed sales of $5.742 billion, up from $4.550 billion in 2024, and a net loss narrowed to $100 million from $290 million, indicating a gradual improvement in overall profitability.
The earnings release underscores the challenges RXO faces in a tightening freight market while highlighting its strategic focus on technology, asset‑light operations, and financial flexibility.
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