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

RXO (NYSE:RXO) announced 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. RXO had a positive return on equity of 0.88% and a negative net margin of 1.25%.The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.50 billion. During the same quarter in the prior year, the firm earned $0.06 earnings per share. The business’s revenue was down 11.9% compared to the same quarter last year.

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 Price Performance

RXO stock traded down $0.08 during trading on Friday, hitting $16.50. 3,843,426 shares of the company’s stock traded hands, compared to its average volume of 2,060,917. The business has a fifty day simple moving average of $14.35 and a 200 day simple moving average of $15.19. RXO has a 52 week low of $10.43 and a 52 week high of $22.17. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.32 and a current ratio of 1.32. The stock has a market capitalization of $2.71 billion, a price-to-earnings ratio of -38.39, a P/E/G ratio of 8.33 and a beta of 1.74.

Insider Buying and Selling

In other news, CEO Andrew M. Wilkerson purchased 7,775 shares of the business’s stock in a transaction that occurred on Monday, November 10th. The shares were bought at an average cost of $12.88 per share, for a total transaction of $100,142.00. Following the acquisition, the chief executive officer owned 7,775 shares of the company’s stock, valued at approximately $100,142. This trade represents a ∞ increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Troy A. Cooper acquired 8,317 shares of RXO stock in a transaction that occurred on Thursday, November 20th. The stock was purchased at an average cost of $10.61 per share, for a total transaction of $88,243.37. Following the completion of the transaction, the director directly owned 275,416 shares in the company, valued at $2,922,163.76. This trade represents a 3.11% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have acquired 19,942 shares of company stock worth $237,665. Company insiders own 2.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Geneos Wealth Management Inc. bought a new stake in shares of RXO during the 1st quarter worth approximately $30,000. Quarry LP purchased a new stake in RXO in the third quarter worth $33,000. Larson Financial Group LLC lifted its position in shares of RXO by 146.5% during the third quarter. Larson Financial Group LLC now owns 2,766 shares of the company’s stock worth $43,000 after purchasing an additional 1,644 shares during the last quarter. Strs Ohio purchased a new stake in shares of RXO during the first quarter valued at $97,000. Finally, Osaic Holdings Inc. grew its holdings in shares of RXO by 101.6% in the second quarter. Osaic Holdings Inc. now owns 8,507 shares of the company’s stock worth $134,000 after purchasing an additional 4,287 shares during the last quarter. Institutional investors own 92.73% of the company’s stock.

Analysts Set New Price Targets

RXO has been the topic of a number of recent research reports. Wall Street Zen downgraded RXO from a “hold” rating to a “sell” rating in a report on Saturday, November 8th. Susquehanna increased their price objective on shares of RXO from $10.00 to $11.00 and gave the stock a “negative” rating in a research note on Thursday, January 8th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of RXO in a report on Monday, December 22nd. Truist Financial dropped their price target on shares of RXO from $20.00 to $18.00 and set a “buy” rating on the stock in a research note on Thursday, January 15th. Finally, The Goldman Sachs Group reduced their price target on RXO from $17.00 to $15.00 and set a “neutral” rating for the company in a research report on Thursday, October 9th. Four 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. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $16.07.

Key RXO News

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

About RXO

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.