RXO Q4 revenue misses estimates as full-truckload market tightens

RXO

06/02/2026 11:39

Overview

Transportation solutions provider's Q4 revenue misses analyst expectations

Adjusted loss per share for Q4 wider than analyst expectations

Company finalized $450 mln asset-based lending facility for financial flexibility

Outlook

RXO expects Q1 2026 adjusted EBITDA between $5 mln and $12 mln

Company anticipates Q1 2026 Brokerage volume to decline by 5% to 10% year-over-year

RXO forecasts Q1 2026 Brokerage gross margin between 11% and 13%

Result Drivers

TIGHTENING MARKET - Full-truckload market tightened, impacting buy rates and squeezing Brokerage gross margin, per CEO Drew Wilkerson

PIPELINE GROWTH - Brokerage late-stage pipeline for new business grew by more than 50% year-over-year

FREIGHT MANAGEMENT - Managed Transportation awarded more than $200 mln of freight under management in Q4

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$1.47 bln
$1.49 bln (17 Analysts)
Q4 Adjusted EPS
Miss
-$0.07
-$0.04 (19 Analysts)
Q4 EPS
-$0.27
Q4 Adjusted Net Income
-$11 mln
Q4 Adjusted EBITDA
$17 mln
Q4 Adjusted EBITDA Margin
1.20%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 15 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the ground freight & logistics peer group is "buy."

Wall Street's median 12-month price target for RXO Inc is $15.00, about 9.5% below its February 5 closing price of $16.58

The stock recently traded at 147 times the next 12-month earnings vs. a P/E of 54 three months ago

Press Release: ID:nBw2BsYQza

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)