RXO, Inc. engages in truck brokerage business in the United States, Canada, Mexico, Asia, and Europe. It offers truckload freight brokering services. The company also provides asset-light managed transportation and last mile services, as well as freight forwarding services, including facilitation of ocean and air transportation, customs brokerage, and additional domestic services including middle mile. RXO, Inc. was incorporated in 2022 and is headquartered in Charlotte, North Carolina.
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TD Cowen Warns of Insurance Hikes for Freight Brokers
TD Cowen has issued a sobering outlook for freight brokers' insurance costs following the Montgomery decision, citing a call with an unidentified trucking insurance agency executive that keeps the firm negative on RXO, C.H. Robinson, and Landstar. The report notes that a top-10 freight broker recently saw its liability insurance triple, and large brokers face mid-teens to mid-20s percentage rate increases, with only about ten underwriters in the market, a number expected to shrink. The executive described the market as volatile, with premiums surging after the Montgomery ruling and again after the Lipe vs. Lupus Superior nuclear verdict, indicating insurers are still assessing risk. TD Cowen also predicts industry consolidation among the roughly 22,000 brokers, as smaller players face unsustainable insurance headwinds, while C.H. Robinson and RXO executives downplay the impact, saying costs will be passed on to shippers and consumers.
RXO says truckload spot rates surged most in five years
Freight broker RXO said Tuesday that its truckload spot rate index recorded its biggest sequential gain in five years during the second quarter, with the surge extending into the third quarter. The index, which tracks linehaul rates excluding fuel surcharges, rose 32.4% year over year in the second quarter, up from 16.5% in the first quarter, and is up 43% year over year so far in the third quarter. RXO's all-in cost-per-mile index, including fuel surcharges, hit 154.9 in the second quarter, the highest since the first quarter of 2022. The company attributed the tightness to a steady exodus of capacity from regulatory enforcement and poor carrier economics, with carrier operating costs up 29% excluding fuel from the prior cycle peak. RXO executives said spot rates have consistently outpaced contract rates, straining shipper routing guides, and expect further rate volatility through peak season.
RXO Q2 2026 Revenue Rises to $1.77 Billion but Losses Persist
RXO reported second-quarter 2026 revenue of $1.774 billion, up from $1.419 billion a year earlier, while its net loss held at $9 million and loss per share from continuing operations remained $0.05. For the first half of 2026, the company's losses widened to $45 million, underscoring the tension between top-line growth and profitability. The results test the bullish thesis that AI-driven productivity and growth in less-than-truckload services can eventually turn rising sales into sustainable earnings, against the risk that a soft freight market and cost inflation continue to weigh on the bottom line.
RXO guides Q3 adjusted EBITDA to $35 million to $45 million
RXO, Inc. guided third-quarter adjusted EBITDA to a range of $35 million to $45 million, as accelerating brokerage momentum is expected to offset a steeper-than-usual seasonal decline in its Last Mile business. Chief Financial Officer James Harris disclosed the outlook during the company's second-quarter earnings call, where RXO reported total revenue of $1.8 billion, gross margin of 13.9%, adjusted EBITDA of $40 million, and adjusted earnings per share of $0.06. Brokerage revenue rose 32% year-over-year to $1.3 billion, with truckload volume up 2% and spot mix reaching 42% in the quarter, while Chief Strategy Officer Jared Weisfeld noted that spot mix climbed further to 50% of truckload volume in July. The Last Mile segment, which generated $344 million in revenue, faces an incremental sequential headwind of $3 million to $5 million due to weaker demand and higher carrier costs. Management also highlighted that Managed Transportation was awarded approximately $100 million in freight under management during the quarter and another $100 million in July.
RXO Shares Drop 21% in a Week Ahead of Earnings, Fair Value Pegged at $21.53
RXO shares have fallen 20.99% over the past week and 27% over the past month, even as the stock remains up 57.71% year to date. The pullback comes ahead of the company's June quarter earnings report, where earnings are expected to be roughly flat year over year while revenue is projected to rise. A widely followed narrative on Simply Wall St estimates RXO's fair value at about $21.53 per share, slightly above the last close of $20.25, suggesting the stock is approximately 6% undervalued. The valuation is supported by expectations of secular e-commerce growth, an expanding addressable market, and the company's asset-light, tech-focused model. Key risks include softness in the automotive end market and ongoing freight market weakness that could limit margins.
3PL stocks drop after Texas jury hits C.H. Robinson with $604 million verdict
Shares of third-party logistics providers fell sharply after a Texas jury returned a $604 million compensatory damages verdict against C.H. Robinson in a case stemming from a 2021 fatal crash. C.H. Robinson dropped 9.25% to $186.50, RXO fell 7.71% to $25.63, and Landstar declined 3.68% to $200.32, while the S&P 500 was marginally higher. The verdict in Lipe vs. Lupus Superior is the first major ruling since the Supreme Court’s Montgomery decision removed the F4A safety exception that had previously shielded brokers, and the jury also found the carrier’s driver was effectively an employee of C.H. Robinson. Analysts at TD Cowen called it a negative for brokers and warned that more nuclear verdicts are likely, while Bank of America noted the process will be long, with C.H. Robinson planning to appeal and any final outcome subject to post-trial motions. The carrier involved held a satisfactory FMCSA safety rating, raising questions about what standard brokers should use when selecting carriers.
Rocket Lab Highlighted as Top Industrials Pick While GATX and RXO Face Caution
StockStory identifies Rocket Lab as an industrials stock with exciting potential while flagging GATX and RXO as facing challenges. Rocket Lab, with a market cap of $39.32 billion, posted annual revenue growth of 55.1% over the past two years and has reduced its cash burn, becoming more self-sustaining. In contrast, GATX saw its free cash flow margin decrease by 217.1 percentage points over five years and has a return on invested capital of 3.8%, while RXO experienced declining unit sales and trades at 185.9 times forward price-to-earnings. Rocket Lab trades at 41.5 times forward price-to-sales, GATX at 17.3 times forward price-to-earnings, and RXO at $28.74 per share.
HCA Healthcare, UnitedHealth, CrowdStrike, RXO, and Enovis make big moves this week
Several stocks made notable moves this week. HCA Healthcare fell 6.7% on Tuesday after releasing preliminary second-quarter results and cutting its full-year 2026 profit guidance. UnitedHealth rose 5.1% on Thursday after reporting second-quarter earnings that surpassed Wall Street expectations, driven by improved profitability. CrowdStrike gained 9.8% on Tuesday after U.S. and international security agencies issued a joint warning about Russian state-sponsored cyber threats targeting critical infrastructure. RXO rose 4.2% on Monday after Stifel raised its price target on the stock to $30 from $22 while maintaining a Buy rating. Enovis rose 3.6% on Monday after announcing the U.S. launch of CT-RevitL, a new veterinary laser therapy system from its Companion Animal Health business.
Werner reported first-quarter revenues of $808.6 million, up 13.6% year on year and exceeding analyst expectations by 0.6%, with beats on EPS and adjusted operating income. Among the 15 ground transportation stocks tracked, the group overall beat revenue consensus by 2.1% and shares have risen 5.6% on average since reporting. Heartland Express posted the best performance relative to estimates with revenues of $176.3 million, down 19.7% year on year but beating by 2.6%, while Universal Logistics was the weakest, missing revenue estimates by 1.3% with a significant miss on adjusted operating income. RXO reported flat revenues of $1.43 billion, topping expectations by 5.9% and issuing strong EBITDA guidance, and ArcBest's revenues of $998.8 million, up 3.3%, were in line with estimates.
Combined Net Profits of Top Ten U.S. Trucking Firms Fell 46.9% from 2021 to 2025
A financial analysis by Demotech, Inc. finds that combined net profits of the ten largest U.S. trucking companies by market capitalization dropped from 4.2 billion dollars in 2021 to 2.2 billion dollars in 2025, a decline of approximately 46.9 percent. The study examined SEC filings for Old Dominion Freight Line, JB Hunt Transport Services, XPO Logistics, Saia, Knight-Swift Transportation Holdings, RXO, Schneider National, ArcBest, Werner Enterprises, and Heartland Express. While aggregate revenues rose modestly over the period, total operating expenses grew faster, and insurance and claims costs surged 54.4 percent from 992 million dollars to 1.53 billion dollars, far outpacing both revenue and expense growth. Three of the ten companies posted a net loss in 2025, compared to none in 2021, indicating that escalating insurance costs are a key factor eroding profitability in the industry.