RXO (RXO) FY Conference May 08, 2025 10:30 AM ET Speaker0 Good morning, everyone. Thanks for joining us today. I'm Scott Schnaberga, the senior business and industrial services analyst at Oppenheimer. It's our pleasure to have RXO here to speak on the company's investment story. We have, with us from the company, CEO Drew Wilkerson and chief strategy officer Jared Weisfeld. RXO is a leading tech enabled transportation brokerage platform with truck brokerage, the cornerstone asset. We'll be using a fireside ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ RXO, INC. Form 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number: 001-41514 _____________ ...

For the quarter ended March 2025, RXO (RXO) reported revenue of $1.43 billion, up 57% over the same period last year. EPS came in at -$0.03, compared to -$0.03 in the year-ago quarter. Here is how RXO performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for RXO here>>> Shares of RXO have returned +6.3% over the past month versus the Zacks S&P 500 composite's +10.6% change. The stock currently has a Zacks Rank ...

RXO (RXO) Q1 2025 Earnings Call May 07, 2025 08:00 AM ET Company Participants Drew Wilkerson - CEO & DirectorJamie Harris - CFOJared Weisfeld - Chief Strategy OfficerStephanie Moore - SVP - Equity ResearchJeffrey Kauffman - Partner & Transportation and Logistics Equity ResearchLucas Servera - Vice President Equity ResearchKen Hoexter - Managing DirectorRavi Shankar - Executive Director & Institutional Equity SalesJ. Bruce Chan - DirectorScott Schneeberger - Managing Director Conference Call Participants Chr ...

RXO (RXO) Q1 2025 Earnings Call May 07, 2025 08:00 AM ET Speaker0 Welcome to the RxO Q1 twenty twenty five Earnings Conference Call and Webcast. My name is Joelle, and I will be your conference operator for today's call. Please note that this conference is being recorded. During this call, the company will make certain forward looking statements within the meaning of federal securities laws, which by their nature involve a number of risks and uncertainties and other factors that could cause actual results t ...

RXO (RXO) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -50%. A quarter ago, it was expected that this transportation services provider would post earnings of $0.06 per share when it actually produced earnings of $0.06, delivering no surprise. Over the last four quarters, the company has s ...

First Quarter 2025 Results May 7, 2025 Non-GAAP financial measures and forward-looking statements Non-GAAP financial measures We provide reconciliations of the non-GAAP financial measures contained in this presentation to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this presentation. The non-GAAP financial measures in this presentation include: adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"); bank-adjust ...

Exhibit 99.1 RXO Announces First-Quarter Results, Successful Migration of Coyote Coverage Operations to the RXO Connect Platform ® CHARLOTTE, N.C. — May 7, 2025 — RXO (NYSE: RXO) today reported its first-quarter financial results and announced the successful migration of Coyote coverage operations to the RXO Connect platform. ® "Our technology team has been working diligently to integrate the best features of the legacy Coyote technology platform into RXO Connect. Today, I'm pleased to announce a critical i ...

Acquisition and Integration - RXO, Inc. completed the acquisition of Coyote for $1.038 billion in cash, with an additional $10 million for post-closing adjustments[23]. - The company completed the acquisition of Coyote for $1.038 billion in cash on September 16, 2024[127]. - Integration of Coyote poses risks including cultural differences and operational complexities, which may hinder the realization of anticipated synergies[128]. - The company incurred substantial expenses related to the Coyote acquisition, and the expected benefits may take longer to materialize than anticipated[129]. - There may be undiscovered liabilities associated with Coyote that could adversely affect the company's financial condition[130]. Financial Performance and Customer Base - In 2024, the top 20 customers accounted for approximately 38% of total revenue, while the top five customers contributed about 23%[35]. - RXO's largest customer accounted for approximately 9.9% of total revenue in 2024, indicating a low concentration risk[35]. - The top five customers accounted for approximately 23% of the company's consolidated total revenue for the year ended December 31, 2024, with the largest customer representing about 9.9%[122]. - RXO serves a diversified customer base across various sectors, including retail, e-commerce, food and beverage, and automotive[36]. - The company has established long-term relationships with blue-chip customers across diverse verticals, enhancing its market position[27]. Business Model and Technology - RXO's truck brokerage business is one of the largest in the U.S., benefiting from a vast carrier pool and strong demand for transportation services[27]. - The company has invested significantly in proprietary technology, enhancing visibility, reliability, and cost-effectiveness in its operations[27]. - RXO's asset-light business model generates high returns and substantial free cash flow, leveraging historical invested capital[32]. - The digital brokerage platform RXO Connect® provides real-time visibility into supply and demand, optimizing transportation management[31]. - The company aims to leverage its technology to optimize brokerage processes and pricing, enhancing productivity and market share in the truck brokerage industry[33]. Workforce and Employee Engagement - RXO operates with a total workforce of 9,873 team members, including 7,540 full-time and part-time employees and 2,333 temporary workers[63]. - 34% of RXO's employees are female, with 62% male and 1% identifying as others or undisclosed[64]. - The company maintains a commitment to employee engagement and offers various career development opportunities, including workshops and leadership training[65]. - RXO's total rewards program includes competitive compensation and benefits, with the majority of healthcare costs covered to minimize inflationary impacts on employees[66]. - The company’s ability to attract and retain qualified employees is critical for maintaining its competitive position and meeting customer expectations[116]. Regulatory and Compliance Issues - RXO is subject to various federal and state regulations affecting its operations, including those related to motor carriers and independent contractors[41][44][53]. - The company operates under an exclusive forum provision to limit litigation risks, which may discourage lawsuits against RXO and its directors[150]. - RXO's operations are subject to various environmental laws, particularly concerning hazardous materials and emissions, with a focus on compliance[55]. - The company incurred significant costs related to compliance with evolving environmental regulations, which could adversely affect operations and increase expenses[112]. - The company faces potential legal challenges regarding the classification of independent contractors, which could lead to increased costs and operational changes[90][91]. Market Conditions and Risks - The transportation services industry is highly competitive, with factors such as competition from other companies and economic downturns potentially harming revenue and profit margins[76]. - Economic recessions and fluctuations in demand for transportation services can adversely impact the company's operating results and future prospects[77]. - Fuel price volatility significantly affects fuel surcharge revenue and overall profitability, with potential material impacts from fuel price fluctuations[80][82]. - A reduction in overall freight volume can limit growth opportunities, and customer financial distress may increase working capital needs[82]. - Labor disputes and organizing efforts could disrupt operations and negatively impact customer relationships and revenue[94][96]. Governance and Corporate Citizenship - The company has a strong governance structure and a commitment to corporate citizenship, which underpins its culture and operational success[60]. - RXO's management strategy focuses on growth through technology innovation and optimizing customer service[30]. - The company is implementing various cost and revenue initiatives, including advanced pricing analytics and a digital brokerage platform, to enhance profitability[118]. - The company is subject to various claims and litigation that could result in significant expenditures and impact operations[111]. Future Outlook and Challenges - The company aims to capitalize on technological advancements and market trends to enhance its competitive position in the freight brokerage industry[30]. - The company may face challenges in managing growth, including increased operational costs and the need for improved systems and controls[120]. - Changes in U.S. trade policy and international tariffs could negatively impact global transportation volumes and customer demand[82]. - The company faces risks related to cybersecurity attacks, which could lead to service interruptions and loss of revenues, potentially harming its reputation and financial condition[100]. - The company relies on third-party services, which may expose it to security incidents that could compromise customer data and negatively impact financial results[105].

Group 1 - The article discusses RXO (NYSE: RXO) and highlights a previous recommendation for a buy rating based on improved visibility to growth, with expectations for growth to accelerate back to 20% by FY26 [1] - The investment approach emphasized is fundamentals-based value investing, focusing on companies with long-term durability and robust balance sheets, rather than merely low multiple stocks [1] - The author acknowledges the risks associated with investing in successful companies, particularly the potential to overpay, but suggests that in certain situations, the growth potential may outweigh immediate price concerns [1]