Financial Data and Key Metrics Changes - In Q4 2025, total revenue was $1.5 billion, with a gross margin of 14.8% and adjusted EBITDA of $17 million, resulting in an adjusted EBITDA margin of 1.2% [15][18] - Adjusted loss per share was $0.07, and there was a $12 million goodwill impairment related to restructuring within the managed transportation business [15][18] - For the full year, total revenue was $5.7 billion, with a gross margin of 16.2% and adjusted EBITDA of $109 million, yielding an adjusted EBITDA margin of 1.9% [18] Business Line Data and Key Metrics Changes - Brokerage revenue was $1.1 billion, down 14% year-over-year, representing 72% of total revenue, with a gross margin of 11.9%, which declined 160 basis points sequentially and 130 basis points year-over-year [15][16] - Complementary services revenue was $431 million, flat year-over-year, with a gross margin of 20.2%, down 110 basis points sequentially and 90 basis points year-over-year [16][17] - Last-mile business generated $298 million in revenue, up 3% year-over-year, while managed transportation revenue was $133 million, down 6% year-over-year [17] Market Data and Key Metrics Changes - Overall brokerage volume declined by 4% year-over-year, with truckload volume down 12% and less-than-truckload (LTL) volume up 31% [25][26] - The tightening of the full truckload market was driven by regulatory developments and capacity exits, leading to a significant increase in industry buy rates [16][31] - Tender rejections and load-to-truck ratios reached the highest levels of the year in December, indicating a tightening market [5][31] Company Strategy and Development Direction - The company is focused on optimizing its cost structure and gross profit per load while expanding its carrier base and growing stable sources of EBITDA [3][4] - RXO aims to leverage its technology platform and customer relationships to drive growth, particularly in managed transportation and LTL [10][11] - The company is investing in AI capabilities to enhance operational efficiency and improve service delivery [10][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for a demand recovery, citing positive macroeconomic indicators and a strong late-stage sales pipeline [24][36] - The company anticipates continued soft demand in the first quarter of 2026, with expected adjusted EBITDA between $5 million and $12 million [22][35] - Management highlighted the importance of ongoing regulatory changes that could lead to a more favorable freight rate environment in the long term [36] Other Important Information - The company finalized a new $450 million asset-based lending facility, which replaces its previous $600 million revolver, providing better pricing and flexibility [20][21] - Adjusted free cash flow conversion was 43% for the year, with a target range of 40%-60% over the long term [19][22] Q&A Session Summary Question: What drove the 50% increase in the late-stage brokerage pipeline? - The increase is attributed to the focus on returning to growth mode post-Coyote integration, with a mix of existing and new enterprise customers [39] Question: How is AI helping with SMB outreach? - AI initiatives are driving productivity improvements, with a 19% increase in productivity year-over-year, and are expected to enhance margins [41][43] Question: How do company actions and market dynamics interact in 2026? - The company is confident in its ability to execute on its late-stage pipeline and resume historical outperformance, independent of market recovery [47] Question: What impact did winter weather have in Q1? - Winter weather resulted in an estimated $2 million negative EBITDA impact due to operational disruptions [50][52] Question: How is the company positioned for EBITDA improvement? - The company expects significant EBITDA improvement as gross profit per load recovers, with every dollar increase translating to over $1 million in annualized EBITDA [56][70]

Financial Data and Key Metrics Changes - In Q4 2025, RXO reported total revenue of $1.5 billion, with a gross margin of 14.8% and adjusted EBITDA of $17 million, resulting in an adjusted EBITDA margin of 1.2% [14][15] - The overall brokerage volume declined by 4% year-over-year, with brokerage gross margin at 11.9%, down 160 basis points sequentially and 130 basis points year-over-year [4][16] - For the full year, RXO achieved total revenue of $5.7 billion, with a gross margin of 16.2% and adjusted EBITDA of $109 million, yielding an adjusted EBITDA margin of 1.9% [18] Business Line Data and Key Metrics Changes - Brokerage revenue was $1.1 billion, down 14% year-over-year, representing 72% of total revenue, while complementary services revenue was $431 million, flat year-over-year, accounting for 28% of total revenue [15][16] - Managed transportation generated $133 million in revenue, down 6% year-over-year, while last-mile business revenue grew by 3% year-over-year to $298 million [17] - LTL volume grew by 31%, marking the fourth consecutive quarter of double-digit growth, indicating strong momentum in this area [12] Market Data and Key Metrics Changes - The industry-wide buy rates saw the largest increase from November to December in 16 years, with rates rising about 15% month-over-month in December [5][31] - Tender rejections and load-to-truck ratios reached the highest levels of the year in December, continuing into January, indicating tightening market conditions [5][31] - The regulatory actions related to non-domiciled CDLs and English language proficiency are expected to improve safety and reduce theft and fraud, impacting near-term results but potentially benefiting large-scale brokerages in the long term [6][35] Company Strategy and Development Direction - RXO is focused on optimizing its cost structure and gross profit per load while expanding its carrier base and growing stable sources of EBITDA [3][4] - The company aims to leverage its technology platform and customer relationships to drive growth, particularly in managed transportation and last-mile services [10][12] - RXO is investing in transformational AI capabilities to enhance operational efficiency and improve service delivery, positioning itself for long-term growth [10][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for a demand recovery, citing positive developments in manufacturing data as a leading indicator for the economy [24] - The company anticipates continued soft demand across all lines of business in Q1 2026, with expected adjusted EBITDA between $5 million and $12 million [21][34] - Management remains confident in RXO's ability to return to growth mode and outperform the market, supported by a strong late-stage brokerage sales pipeline [8][40] Other Important Information - RXO finalized a new asset-based lending facility of $450 million, replacing its previous $600 million revolver, which provides better pricing and flexibility [20] - The company achieved an adjusted free cash flow conversion of 43% in 2025, with a target range of 40%-60% over the long term [19][58] - A $12 million goodwill impairment was recorded due to restructuring within the managed transportation business, which was non-cash [15] Q&A Session Summary Question: Can you unpack the 50% increase in the late-stage brokerage pipeline? - Management noted that the increase reflects strong customer relationships and a return to growth mode post-Coyote integration, with bids typically implemented in Q2 [39] Question: How is AI helping with SMB outreach? - AI initiatives are driving productivity improvements, with a 19% increase in productivity year-over-year, and are expected to enhance margins in the second half of the year [41][42] Question: How do company actions and market dynamics work together in 2026? - Management highlighted that company-specific initiatives are in place to drive growth, and they are not solely relying on market recovery [46] Question: What impact did winter weather have in Q1? - Winter weather resulted in an estimated $2 million negative EBITDA impact due to operational disruptions [49][51] Question: What are the expectations for spot volumes and EBITDA? - Spot volumes are up year-over-year, and management indicated that improvements in gross profit per load could significantly enhance EBITDA during a recovery [55][56]

分组1 - RXO reported a quarterly loss of $0.07 per share, missing the Zacks Consensus Estimate of a loss of $0.04, and compared to earnings of $0.06 per share a year ago, representing an earnings surprise of -80.88% [1] - The company posted revenues of $1.47 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 0.85%, and down from $1.67 billion year-over-year [2] - RXO has surpassed consensus EPS estimates only once in the last four quarters and has not beaten consensus revenue estimates during the same period [2] 分组2 - RXO shares have increased by approximately 31.2% since the beginning of the year, while the S&P 500 has declined by 0.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.07 on revenues of $1.38 billion, and for the current fiscal year, it is $0.14 on revenues of $5.95 billion [7] 分组3 - The Zacks Industry Rank indicates that the Transportation - Services sector is currently in the top 30% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - RXO's estimate revisions trend was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]

Fourth Quarter 2025 Results February 6, 2026 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 ("EBITDA margin"); adjuste ...

RXO management in its third quarter earnings call, several weeks after the fourth quarter already had begun, said things were not going the way the brokerage would have desired. Several key numbers in RXO’s fourth quarter earnings released Friday morning backed that up. Various numbers showed just how tough the quarter was for RXO, the latest data in line with challenging results reported by standalone brokers and the brokerages within trucking companies. Those various results show what happens when the f ...

Financing and Credit Agreements - RXO, INC. has entered into an asset-based revolving credit agreement with a total credit facility amount of $500 million[2] - The agreement includes a leverage ratio calculation that must not exceed 4.0 to 1.0[6] - The interest rate applicable to the credit facility is set at LIBOR plus a margin of 2.5%[6] - RXO, INC. is required to maintain a minimum liquidity of $50 million at all times[6] - The company has committed to using the proceeds from the credit facility primarily for working capital and general corporate purposes[6] - The agreement allows for incremental revolving loans up to an additional $200 million, subject to certain conditions[6] - RXO, INC. must provide quarterly financial statements and collateral reporting to the lenders[7] - The company is subject to various affirmative covenants, including compliance with laws and maintenance of its existence[7] - The agreement includes provisions for events of default, which could trigger immediate repayment obligations[9] - The agreement includes provisions for a security interest in collateral to secure all obligations under the loan documents[16] - The Applicable Commitment Fee Percentage is set at 0.25% per annum[37] - The Applicable Margin for Term SOFR Loans is categorized based on the Quarterly Average Excess Availability Percentage, with a maximum margin of 1.50% for lower availability[39] - The Borrowers must provide a Borrowing Base Certificate to determine the Applicable Margin, with penalties for failure to do so[40] - The aggregate Commitment on the Closing Date is $450,000,000[93] - Specified Availability is less than the greater of 10.0% of the Line Cap or $45,000,000 for 5 consecutive Business Days[82] - The Borrowers are subject to compliance testing with respect to ABL Fixed Charges, which include scheduled amortization payments and consolidated cash interest expenses[21] Financial Performance and Metrics - The company reported a revenue of $X billion for the last quarter, representing a Y% increase year-over-year[1] - The U.S. Borrower reported a significant increase in net income, with a year-over-year growth of 15% for the last fiscal quarter[1] - Consolidated total indebtedness reached $1.5 billion, reflecting a 10% increase compared to the previous quarter[105] - The consolidated secured net leverage ratio improved to 3.2x, down from 3.5x in the prior quarter, indicating better debt management[103] - EBITDA for the last four quarters was reported at $450 million, representing a 12% increase year-over-year[107] - The U.S. Borrower reported a Fixed Charge Coverage Ratio of 1.5 for the last fiscal quarter, indicating strong operational performance[171] - Consolidated EBITDA for the last fiscal year was $500 million, reflecting a 10% increase year-over-year[171] - Operating margin improved to 30%, up from 25% in the previous year, reflecting better cost management[8] - Cash flow from operations increased to $Q million, providing a strong liquidity position for future investments[10] User Engagement and Market Expansion - User data showed an increase in active users to Z million, up from A million in the previous quarter, indicating a growth rate of B%[2] - The company plans to expand its market presence in Asia, targeting a 20% increase in revenue from this region over the next fiscal year[1] - Market expansion efforts have led to entry into the M new countries, with an expected revenue contribution of $N million in the first year[6] - User data indicates a 30% increase in active users, reflecting strong customer engagement and retention strategies[1] - Customer retention rate increased to 85%, up from 80% last year, indicating improved customer satisfaction[9] Product Development and Strategic Initiatives - New product launches included the introduction of Product X, which is expected to generate an additional $F million in revenue over the next year[4] - The company is investing $G million in R&D for new technologies aimed at enhancing user experience and operational efficiency[5] - New product launches are expected to contribute an additional $100 million in revenue, with a projected growth rate of 25% in the first year[1] - The company has allocated $50 million for research and development in new technologies, aiming to enhance product offerings and operational efficiency[1] - A strategic acquisition is in progress, which is anticipated to add $200 million in annual revenue once completed[1] - The company is considering strategic acquisitions to bolster its market position, with a budget of $300 million allocated for potential deals[7] - A new strategic partnership was formed with Company Z, expected to drive additional revenue streams and customer engagement[8] Compliance and Regulatory Considerations - The term "Disqualified Institution" includes any competitor identified in writing prior to the Closing Date, which may affect lending agreements[126] - The Dodd-Frank Act is referenced, indicating regulatory compliance requirements that may affect financial operations[127] - The definition of "Documents" encompasses all relevant legal documents, which are critical for compliance and operational integrity[127]

CHARLOTTE, N.C.--(BUSINESS WIRE)---- $RXO #nyse--RXO (NYSE: RXO) today reported its fourth- quarter financial results. RXO Chairman and CEO Drew Wilkerson said, "In the fourth quarter, tightening in the freight market accelerated, driven by continued reductions in truckload capacity. This impacted our buy rates and squeezed our Brokerage gross margin. While demand remained soft, we have significant sales momentum. The Brokerage late-stage pipeline for new business grew by more than 50% year-over-year, and o ...

Investors interested in stocks from the Transportation - Services sector have probably already heard of ZTO Express (Cayman) Inc. (ZTO) and RXO (RXO) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revis ...

Company Overview - RXO is expected to report a year-over-year decline in earnings, with a projected loss of $0.04 per share, reflecting a change of -166.7% compared to the previous year [3] - Revenues for RXO are anticipated to be $1.48 billion, down 11.1% from the same quarter last year [3] Earnings Estimates and Revisions - The consensus EPS estimate for RXO has been revised 4.76% higher in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for RXO is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +13.86% [12] Earnings Surprise Prediction - A positive Earnings ESP reading suggests a potential earnings beat, particularly when combined with a strong Zacks Rank [10] - RXO currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [12] Historical Performance - In the last reported quarter, RXO was expected to post earnings of $0.03 per share but only achieved $0.01, resulting in a surprise of -66.67% [13] - Over the past four quarters, RXO has only beaten consensus EPS estimates once [14] Industry Context - In the Zacks Transportation - Services industry, Hub Group is expected to report earnings of $0.44 per share, reflecting a year-over-year change of -8.3% [18] - Hub Group's revenue is projected to be $913.41 million, down 6.2% from the previous year [19]

Group 1 - RXO announced participation in several upcoming investor conferences, including the Stifel 2026 Transportation & Logistics Conference on February 10, the Barclays 43rd Annual Industrial Select Conference on February 18, and Citi's 2026 Global Industrial Tech and Mobility Conference on February 19 [1] - The company will issue its fourth-quarter financial results before the opening of the New York Stock Exchange on February 6, 2026, followed by a conference call at 8 a.m. EST [1] - RXO has been recognized as a Leader in the inaugural 2025 Gartner Magic Quadrant for Fourth-Party Logistics (4PL), noted for its Ability to Execute and Completeness of Vision [1] Group 2 - RXO's latest Curve Freight Market Forecast indicates a sustained year-over-year increase in truckload rates in the third quarter, although the growth rate is decelerating [1]