RXO, Inc. (RXO) AI Stock Analysis

• Market Cap: $2.83B
• Dividend Yield: N/A
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: 46.41%
• EPS Growth: -1113.24%
• Country: US
• Employees: 7,540
• Sector: Industrials
• Sector Strength: 72
• Industry: Trucking
• EPS (TTM): 0.04
• Shares Outstanding: 163,987,240
• 10 Day Avg. Volume: 1,918,623
• 30 Day Avg. Volume: 2,072,371
• PEG Ratio: <0.01
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -55.80
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 3.85
• Enterprise Value/Ebitda: 85.79
• 1Y Price Target: $16.23
• Price Target Upside: -7.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 54 Neutral
• Price Target: $17.50 ▼(-0.68% Downside)

RXO's overall stock score reflects significant challenges in financial performance, particularly in profitability and cash flow management. However, positive technical indicators and a strong earnings call sentiment provide some optimism. The negative valuation score due to ongoing losses tempers the overall outlook.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong demand for RXO's logistics services, suggesting a robust business model and market position.

Technology Integration

Successful technology integration enhances operational efficiency and competitive advantage, supporting long-term profitability and service quality.

LTL Volume Growth

Significant growth in LTL volumes indicates strong market demand and RXO's ability to capture market share, enhancing revenue potential.

Negative Factors

Profitability Challenges

Ongoing profitability issues reflect challenges in cost management and operational efficiency, potentially impacting long-term financial health.

Cash Flow Issues

Negative cash flows limit RXO's ability to invest in growth and manage debt, posing risks to financial stability and strategic flexibility.

Automotive Sector Weakness

Weakness in the automotive sector impacts RXO's truckload volumes, reducing revenue and highlighting vulnerability to industry-specific downturns.

RXO, Inc. Business Overview & Revenue Model

Company Description

RXO provides truckload freight transportation brokerage in the United States. The company, through a proprietary digital freight marketplace, offers access to truckload capacity and complementary brokered services of managed transportation, last mile, and freight forwarding. The company is based in Charlotte, North Carolina.

How the Company Makes Money

RXO generates revenue primarily through its freight brokerage services, which connect shippers with carriers to facilitate the transportation of goods. The company earns money by charging a service fee or commission on each shipment, which is typically a percentage of the total freight cost. Additionally, RXO may generate revenue from value-added services such as warehousing, inventory management, and supply chain consulting. Key partnerships with carriers and technology providers enhance its service offerings and operational efficiency, further contributing to its earnings. The company also capitalizes on market demand by utilizing its extensive network to optimize shipping routes and freight capacity, thereby maximizing profitability.

RXO, Inc. Financial Statement Overview

Summary

RXO, Inc. shows revenue growth but struggles with profitability and cash flow. The company has a moderate leverage level, but negative returns on equity and cash flow issues highlight the need for strategic improvements.

Income Statement

RXO, Inc. has shown a positive revenue growth rate of 9.65% in the TTM, indicating an upward trend in sales. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains modest at 15.45%, but the declining trend in profitability metrics suggests challenges in cost management and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.43 in the TTM, indicating a relatively moderate leverage level compared to previous years. However, the return on equity is negative, reflecting ongoing losses. The equity ratio stands at approximately 49.6%, suggesting a stable capital structure, but the negative ROE highlights the need for improved profitability.

Cash Flow

RXO, Inc. faces challenges in cash flow management, with negative operating and free cash flows in the TTM. The free cash flow growth rate is significantly negative, and the operating cash flow to net income ratio is also negative, indicating cash flow issues. Despite a high free cash flow to net income ratio, the overall cash flow position is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.56B	4.55B	3.93B	4.80B	4.69B	3.36B
Gross Profit	859.00M	696.00M	658.00M	1.17B	1.01B	789.00M
EBITDA	38.57M	-187.00M	103.00M	209.00M	277.00M	160.00M
Net Income	-308.00M	-290.00M	4.00M	92.00M	150.00M	43.00M
Balance Sheet
Total Assets	3.20B	3.41B	1.82B	2.04B	2.07B	1.87B
Cash, Cash Equivalents and Short-Term Investments	18.00M	35.00M	5.00M	98.00M	29.00M	70.00M
Total Debt	679.00M	664.00M	558.00M	617.00M	135.00M	116.00M
Total Liabilities	1.61B	1.80B	1.23B	1.45B	998.00M	802.00M
Stockholders Equity	1.59B	1.61B	594.00M	589.00M	1.07B	1.07B
Cash Flow
Free Cash Flow	-37.01M	-57.00M	25.00M	253.00M	116.00M	-22.00M
Operating Cash Flow	-13.98M	-12.00M	89.00M	310.00M	155.00M	25.00M
Investing Cash Flow	-1.08B	-1.06B	-66.00M	-56.00M	-38.00M	-39.00M
Financing Cash Flow	1.09B	1.11B	-117.00M	-183.00M	-158.00M	32.00M

RXO, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RXO, the sentiment is Positive. The current price of 17.62 is above the 20-day moving average (MA) of 17.48, above the 50-day MA of 16.77, and above the 200-day MA of 17.25, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 53.95 is Neutral, neither overbought nor oversold. The STOCH value of 39.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RXO.

RXO, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCB	―	$1.63B	10.66	12.50%	0.65%	-6.42%	25.72%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WERN	―	$1.54B	63.15	1.78%	2.18%	-3.42%	―
ULH	―	$422.33M	6.92	9.67%	2.62%	-5.55%	-52.21%
SNDR	―	$3.75B	32.97	3.81%	1.68%	5.46%	2.31%
RXO	―	$2.83B	―	-27.96%	―	46.41%	-1113.24%
MRTN	―	$823.36M	42.47	2.53%	2.34%	-9.74%	-42.57%

RXO, Inc. Corporate Events

RXO, Inc. Earnings Call: Strong Growth Amid Challenges

RXO, Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company showcased robust performance in adjusted EBITDA, brokerage growth, and last mile services, alongside impressive cash flow conversion. However, challenges such as declining truckload volumes, difficulties in the automotive sector, and a generally soft freight market were significant concerns.

RXO, Inc. Reports Strong Q2 Performance Amid Market Challenges

RXO, Inc. is a leading provider of asset-light transportation solutions, offering tech-enabled truck brokerage services and complementary solutions such as managed transportation and last mile delivery across North America. Headquartered in Charlotte, N.C., RXO leverages cutting-edge technology to efficiently move freight through supply chains.

RXO Reports Q2 2025 Financial Results with Revenue Growth

On August 7, 2025, RXO reported its second-quarter financial results, highlighting a 1% increase in brokerage volume year-over-year, driven by a 45% growth in less-than-truckload volume. The company achieved a brokerage gross margin of 14.4%, with its Last Mile service experiencing a 17% year-over-year stop growth, marking the fourth consecutive quarter of double-digit growth. Despite a challenging freight market, RXO’s revenue rose to $1.4 billion from $930 million in the previous year, although it reported a GAAP net loss of $9 million, impacted by $10 million in transaction and restructuring costs. Adjusted net income improved to $7 million from $4 million in the previous year, and adjusted EBITDA increased to $38 million from $28 million.

The most recent analyst rating on (RXO) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on RXO, Inc. stock, see the RXO Stock Forecast page.