RXO (NYSE:RXO) Releases Earnings Results, Misses Expectations By $0.03 EPS

RXO (NYSE:RXO) issued its quarterly earnings results on Friday. The company reported ($0.07) EPS for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.03), FiscalAI reports. The business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.50 billion. RXO had a positive return on equity of 0.88% and a negative net margin of 1.25%.The business’s revenue was down 11.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.06 earnings per share.

Here are the key takeaways from RXO’s conference call:

• RXO reported an 11.9% brokerage gross margin and Q4 adjusted EBITDA of $17M, blaming a pronounced margin squeeze from industry capacity exits and regulatory-driven buy-rate spikes that increased purchased transportation costs faster than contractual rates.
• Management says its late-stage brokerage sales pipeline grew more than 50% year‑over‑year (driven by full truckload) and the company won >$200M of freight under management in Q4, which it expects to convert and drive truckload outperformance as early as mid‑2026.
• RXO replaced its $600M revolver with a tailored $450M asset‑based lending facility that lowers unused commitment costs, offers ~35 bps better current pricing, a $200M accordion, and a more flexible covenant structure.
• The firm has completed major tech integration (CRM, RXO Connect, Freight Optimizer) and is scaling AI initiatives that delivered ~19% productivity improvement and new tools (AI spot quote agent, agentic capacity sourcing) intended to structurally lift margin and throughput.
• RXO ended the quarter with $17M cash, 2025 adjusted free cash flow conversion of 43% and ~3x net leverage; management expects positive free cash flow in 2026 but Q1 may use modest cash depending on market recovery.

RXO Trading Down 0.5%

Shares of RXO stock traded down $0.08 during trading on Friday, reaching $16.50. The company’s stock had a trading volume of 3,843,426 shares, compared to its average volume of 2,060,917. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 0.24. RXO has a 52-week low of $10.43 and a 52-week high of $22.17. The firm’s 50-day moving average is $14.35 and its two-hundred day moving average is $15.19. The company has a market cap of $2.71 billion, a price-to-earnings ratio of -38.39, a PEG ratio of 8.33 and a beta of 1.74.

Insider Activity

In other news, Director Troy A. Cooper bought 8,317 shares of the firm’s stock in a transaction that occurred on Thursday, November 20th. The shares were bought at an average cost of $10.61 per share, with a total value of $88,243.37. Following the completion of the purchase, the director directly owned 275,416 shares in the company, valued at $2,922,163.76. This represents a 3.11% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, CEO Andrew M. Wilkerson acquired 7,775 shares of the stock in a transaction dated Monday, November 10th. The shares were purchased at an average cost of $12.88 per share, with a total value of $100,142.00. Following the completion of the purchase, the chief executive officer owned 7,775 shares of the company’s stock, valued at approximately $100,142. The trade was a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders bought 19,942 shares of company stock worth $237,665. Company insiders own 2.80% of the company’s stock.

Institutional Trading of RXO

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RXO. Orbis Allan Gray Ltd boosted its position in RXO by 3.8% during the 2nd quarter. Orbis Allan Gray Ltd now owns 31,375,221 shares of the company’s stock valued at $493,218,000 after acquiring an additional 1,142,710 shares in the last quarter. Franklin Resources Inc. grew its stake in shares of RXO by 91.2% in the 3rd quarter. Franklin Resources Inc. now owns 2,328,843 shares of the company’s stock worth $35,818,000 after buying an additional 1,110,530 shares during the last quarter. Wellington Management Group LLP boosted its holdings in RXO by 7.9% in the third quarter. Wellington Management Group LLP now owns 9,998,681 shares of the company’s stock worth $153,780,000 after acquiring an additional 735,810 shares in the last quarter. UBS Group AG grew its stake in shares of RXO by 45.9% in the third quarter. UBS Group AG now owns 2,159,907 shares of the company’s stock worth $33,219,000 after acquiring an additional 679,040 shares during the last quarter. Finally, Voloridge Investment Management LLC bought a new position in RXO in the 3rd quarter worth about $7,372,000. Hedge funds and other institutional investors own 92.73% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. TD Cowen restated a “hold” rating on shares of RXO in a research report on Friday, January 9th. Truist Financial cut their price target on RXO from $20.00 to $18.00 and set a “buy” rating for the company in a research note on Thursday, January 15th. Wolfe Research raised shares of RXO from an “underperform” rating to a “peer perform” rating in a report on Friday, November 14th. Stifel Nicolaus set a $15.00 price target on RXO in a research report on Thursday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of RXO in a research note on Monday, December 22nd. Four equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, RXO has an average rating of “Hold” and a consensus price target of $16.07.

RXO News Roundup

Here are the key news stories impacting RXO this week:

• Positive Sentiment: Management highlighted accelerating sales momentum and a materially larger late‑stage pipeline for brokerage new business (late‑stage pipeline up >50% year‑over‑year), which supports future revenue recovery and margin improvement potential. RXO Announces Fourth-Quarter Results
• Neutral Sentiment: Full earnings call/transcript provides additional color on capacity dynamics, buy‑rate trends and cost actions; useful for investors wanting management’s forward commentary on when margins may normalize. RXO, Inc. (RXO) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst writeups (Zacks) walk through key metrics vs. estimates and prior year to help parse where pressures were concentrated (brokerage gross margin vs. volumes). Useful for modeling revisions. Here’s What Key Metrics Tell Us About RXO (RXO) Q4 Earnings
• Negative Sentiment: RXO missed on profit and revenue: reported EPS of ($0.07) vs. consensus ($0.04) loss and revenue $1.47B vs. $1.50B expected; revenue fell ~11.9% year‑over‑year — a clear near‑term earnings/headline negative. RXO (RXO) Reports Q4 Loss, Misses Revenue Estimates
• Negative Sentiment: Tightening freight market and reduced truckload capacity squeezed brokerage buy rates and gross margins; multiple outlets note this dynamic as the primary reason for the earnings shortfall and the intra‑day share drop. RXO shares tumble nearly 11% as market squeeze hits brokerage margins
• Negative Sentiment: Company posted a small negative net margin (~-1.25%) and EPS swing from $0.06 a year ago to a loss this quarter, heightening near‑term earnings uncertainty and likely prompting analyst/estimate revisions. RXO Shares Fall as Tight Freight Market Hits Earnings

RXO Company Profile

RXO Inc (NYSE: RXO) is a leading asset-light provider of digital freight brokerage and managed transportation solutions. The company leverages a proprietary technology platform to connect shippers with a network of third-party carriers, enabling optimized route planning, real-time shipment tracking, and dynamic pricing. RXO’s end-to-end service model spans full truckload, less-than-truckload (LTL), intermodal and cross-border freight movements, designed to improve efficiency and reduce transportation costs for its customers.

Operating primarily across North America, RXO serves a diverse base of shippers in industries ranging from retail and consumer goods to manufacturing and automotive.