RXO Announces Second Quarter Financial Results

August 7, 2025  by Karen Parrish in Business Strategy, Industry   

- Brokerage volume growth of 1% year over year driven by less-than-truckload volume growth of 45%

- Beginning to realize benefits from unified carrier coverage operations; Brokerage gross margin of 4% in the quarter

- Last Mile achieved 17% year-over-year stop growth, the fourth consecutive quarter of double-digit growth

- Strong quarterly cash performance with cash balance increasing sequentially

RXO Chairman and CEO Drew Wilkerson said, “RXO executed well in the second quarter despite the prolonged soft freight market. Our Brokerage business outperformed the market, growing volume by 1% year-over-year driven by 45% growth in less-than-truckload volume. We’re seeing early benefits from our newly combined carrier and coverage operations, and we delivered Brokerage gross margin of 14.4% in the quarter. Last Mile continued its impressive run of year-over-year growth, achieving 17% stop growth, the fourth consecutive quarter of double-digit growth. Our cash performance in the quarter was strong, and we increased our cash balance sequentially from the first quarter.”

Wilkerson continued, “The actions we’re taking now are yielding results in the short term and positioning us well for the long term. We’re focused on growing profitably, and we’re realizing the benefits of our increased scale. That scale, combined with our cutting-edge technology, is driving productivity improvements. RXO is uniquely positioned to deliver increased earnings power and free cash flow over the long term and across market cycles.”

Companywide Results
RXO’s revenue was $1.4 billion for the second quarter, compared to $930 million in the second quarter of 2024. Gross margin was 17.8%, compared to 19.0% in the second quarter of 2024.

The company reported a second-quarter 2025 GAAP net loss of $9 million, compared to a net loss of $7 million in the second quarter of 2024. The second-quarter 2025 GAAP net loss included $10 million in transaction, integration, restructuring and other costs. Adjusted net income in the quarter was $7 million, compared to adjusted net income of $4 million in the second quarter of 2024.

Adjusted EBITDA was $38 million, compared to $28 million in the second quarter of 2024. Adjusted EBITDA margin was 2.7%, compared to 3.0% in the second quarter of 2024.

Transaction, integration, restructuring and other costs, and amortization of intangibles, impacted GAAP earnings per share by $0.09, net of tax. For the second quarter, RXO reported a GAAP diluted loss per share of $0.05. Adjusted diluted earnings per share was $0.04.

Brokerage
Volume in RXO’s Brokerage business, including the impact of the Coyote Logistics acquisition in both periods, increased by 1% year over year in the second quarter. Less-than-truckload volume increased by 45% but was partially offset by a 12% decline in full truckload volume.

Brokerage gross margin was 14.4% in the second quarter.

Complementary Services

Managed Transportation again increased the synergy loads provided to Brokerage.

Last Mile stops grew by 17% year-over-year.

RXO’s complementary services gross margin was 22.8% for the quarter.

Third-Quarter Outlook

RXO expects third-quarter 2025 adjusted EBITDA to be between $33 million and $43 million.

In Brokerage, the company expects overall volume growth to be approximately flat year-over-year and gross margin to be between 13.5% and 15.0% in the third quarter.

Conference Call
A replay of the conference call will be available through August 13, 2025, by calling toll-free (from U.S./Canada) 1-888-660-6264; international callers dial +1-289-819-1325. Use the passcode 82712#. Additionally, the call will be archived on http://investors.rxo.com.

For the full press release, click here.