RXO, Inc. (RXO) AI Stock Analysis

RXO, Inc.

(BMV:RXO)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Brokerage momentumRecent operating performance indicates improving execution in the core brokerage platform. Market-share gains, volume growth above market performance, and stronger spot mix can support better gross profit per load and reinforce shipper and carrier relationships over the next several quarters.

Negative Factors

Margin compression and lossesRevenue growth has not translated into durable profitability, as materially lower gross margins and ongoing losses indicate pressure on pricing, spreads, or the cost structure. If this pattern persists, it can limit reinvestment, weaken returns on capital, and reduce the benefit of expanding scale.

RXO, Inc. (RXO) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 4.53B
Dividend Yield: ―
Average Volume (3M): 10
Price to Earnings (P/E): -53.9
Beta (1Y): 0.00
Revenue Growth: -1.58%
EPS Growth: -6.20%
Country: Mexico
Employees: 6,906
Sector: Industrials
Sector Strength: 63
Industry: Trucking

RXO, Inc. Business Overview & Revenue Model

Company Description

RXO, Inc., headquartered in Charlotte, North Carolina, functions as a freight broker specializing in full truckload transportation services across the United States. The company utilizes its unique digital marketplace to link clients with available t...

RXO, Inc. Earnings Call Summary

Earnings Call Date:Aug 05, 2026(Q2-2026)|% Change Since:0.00%|Next Earnings Date:Feb 10, 2027

Earnings Call SentimentPositive

The call was strongly optimistic. RXO reported better-than-expected second-quarter results, profitable brokerage share gains, accelerating spot activity, Managed Transportation wins, Last Mile share gains, and measurable benefits from Agentic AI. Management also expects continued brokerage growth and sees a path to the high end of third-quarter EBITDA guidance. The main challenges were soft industry demand, higher purchased-transportation and carrier costs, expected Last Mile weakness, negative free cash flow from working capital, elevated leverage, and uncertainty around future insurance renewals. Overall, the positive operating momentum and outlook significantly outweighed the stated challenges.

Positive Updates

Strong Second-Quarter Financial Results

RXO reported $1.8 billion in total revenue, a 13.9% gross margin, $40 million of adjusted EBITDA, and adjusted EPS of $0.06. Adjusted EBITDA exceeded the high end of the company's outlook due to better-than-expected brokerage performance and Last Mile stop growth.

Negative Updates

Brokerage Gross-Margin Pressure

Brokerage gross margin declined 70 basis points sequentially to 10.7%. The decline was due to higher fuel prices, which represented an approximately 90 basis point headwind, along with the continued increase in the cost of purchased transportation.

Company Guidance

RXO expects third-quarter adjusted EBITDA to be between $35 million and $45 million, with truckload volume up a low to mid-single-digit percent year-over-year, LTL volume growing by low to mid-single-digit percent year-over-year, another quarter of sequential truckload gross profit per load improvement, and automotive managed expedite volume growing again on a year-over-year basis; Last Mile is expected to decline more than typical seasonality and includes an incremental sequential headwind of $3 million to $5 million due primarily to weaker demand and higher carrier costs, while the midpoint assumes truckload gross profit per load declines by about 10% from July through September with no meaningful uptick in demand, and the company sees a path to the high end of its outlook, expects 40% to 60% adjusted free cash flow conversion over the long term and across market cycles, and estimates normalized earnings of at least a mid-single-digit EBITDA margin, with an upcycle of high single digits to low double digits.

RXO, Inc. Risk Analysis

RXO, Inc. disclosed 34 risk factors in its most recent earnings report. RXO, Inc. reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

RXO, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

MX:RXO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARCB	59Neutral	$2.80B	179.20	1.26%	0.38%	3.70%	-89.58%
KNX	59Neutral	$9.89B	63.97	2.18%	1.28%	7.03%	7.31%
SNDR	56Neutral	$5.12B	36.09	4.65%	1.35%	6.03%	24.21%
CVLG	50Neutral	$784.68M	147.24	1.31%	0.91%	12.46%	-83.31%
WERN	49Neutral	$1.66B	-89.07	-1.41%	2.02%	14.68%	―

* Industrials Sector Average

Performance Comparison

MX:RXO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:RXO	RXO, Inc.	368.00	18.00	5.14%
CVLG	Covenant Logistics Group, Inc.	30.92	10.90	54.43%
KNX	Knight Transportation	60.77	16.53	37.35%
WERN	Werner Enterprises	27.71	1.84	7.12%
ARCB	Arcbest	125.44	54.39	76.56%
SNDR	Schneider National	29.23	7.60	35.14%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

RXO, Inc. AI Stock Analysis