RXOMEDIUM SIGNALFINANCIAL10-K

RXO showed strong revenue growth of 26% while substantially improving its net loss position, though operating performance remained pressured.

The company's meaningful revenue expansion suggests successful business development efforts and market share gains in the logistics sector. However, the deteriorating operating income indicates that growth is coming at the expense of operational efficiency, requiring close monitoring of margin management going forward.

Comparing 2026-02-09 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

RXO delivered solid top-line growth with revenue advancing 26% to $5.7B, while the net loss position improved meaningfully from -$290M to -$100M. Operating performance remained challenged with operating income declining to -$79M, and SG&A expenses grew roughly in line with revenue at 25%. The balance sheet shows modest debt increases and a significant reduction in cash reserves to $17M, which may constrain financial flexibility despite the improved loss metrics.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+65.5%
-$290.0M→-$100.0M

Net income grew 65.5% — bottom-line growth signals improving overall business health.

Cash & Equivalents
Balance Sheet
-51.4%
$35.0M→$17.0M

Cash declined 51.4% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Operating Income
P&L
-41.1%
-$56.0M→-$79.0M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Capital Expenditure
Cash Flow
+31.1%
$45.0M→$59.0M

Capital expenditure jumped 31.1% — major investment cycle underway; assess returns on deployment.

Revenue
P&L
+26.2%
$4.5B→$5.7B

Revenue growing 26.2% — solid top-line momentum, watch margins for quality of growth.

SG&A Expense
P&L
+24.9%
$666.0M→$832.0M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Total Debt
Balance Sheet
+10.3%
$351.0M→$387.0M

Debt rose 10.3% — additional borrowing for investment or operations; monitor coverage ratios.

LANGUAGE CHANGES
NEW — 2026-02-09
PRIOR — 2025-02-27
ADDED
As of February 5, 2026, there were 164,193,961 shares of the registrant s common stock, par value $0.01 per share, outstanding.
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24 Item 6.
Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 7A.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 70 Item 9A.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 71 Item 13.
We also offer freight forwarding services, including facilitation of ocean and air transportation, customs brokerage and additional domestic services including middle mile.
RXO s common stock, par value of $0.01 per share, began trading on the New York Stock Exchange under the ticker symbol RXO on November 1, 2022.
The Coyote Acquisition On September 16, 2024, the Company acquired the technology-driven, asset-light truckload freight brokerage services business, as well as certain assets used to conduct haulage, dedicated transport and warehousing services in the United Kingdom (collectively, Coyote ), from United Parcel Service of America, Inc.
The purchase price was subsequently increased by $10 million for working capital and other post-closing adjustments, which was paid in the first quarter of 2025.
Asset-Light Model Generates High Returns and Substantial Free Cash Flow: Our asset-light model generates high returns with strong free cash flow characteristics.
REMOVED
As of February 24, 2025, there were 163,327,709 shares of the registrant s common stock, par value $0.01 per share, outstanding.
We also offer freight forwarding services, including facilitation of ocean and air transportation, customs brokerage and additional domestic services.
The Separation On November 1, 2022, the Company completed its separation from XPO, Inc.
(formerly known as XPO Logistics, Inc.) ( XPO ) (the Spin-off or the Separation ) and the Company's common stock began regular-way trading on the New York Stock Exchange under the ticker symbol RXO.
RXO is a Delaware corporation, which was originally formed in May 2022.
The Separation was completed under a Separation and Distribution Agreement and various other agreements that govern aspects of the Company s relationship with XPO, including, but not limited to, a Tax Matters Agreement ( TMA ), an Employee Matters Agreement, a Transition Services Agreement and an Intellectual Property License Agreement.
Relationship-Based Operating Structure Our truck brokerage business operates as an intermediary between shippers and carriers (truck and fleet owners), connecting truckload supply and demand.
Our Strategy Our strategy is designed to deliver value through our extensive carrier relationships, excellent customer service, automated shipper-carrier interactions, end-to-end digital tracking and data analyses generated by our proprietary algorithms.
Customers and Markets RXO provides services to customers ranging in size from small businesses to Fortune 100 companies and sector leaders.
The diversification of our customer base minimizes concentration risk: in 2024, our top 20 customers in total and our top five customers in total accounted for approximately 38% and 23% of our revenue, respectively, with our largest customer accounting for approximately 9.9% of revenue.
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