Transportation broker RXO's Q1 revenue beats estimates

RXO

07/05/2026 11:45

Overview

U.S. transportation broker's Q1 revenue beat analyst expectations

Adjusted EPS for Q1 met consensus, with a loss of $0.09

Company expects significant sequential profit improvement in Q2, citing stronger volume and spot mix

Outlook

RXO expects Q2 adjusted EBITDA between $27 mln and $37 mln

Company expects Q2 full truckload volume to be approximately flat year-over-year

RXO now expects contract rates to increase by a high-single-digit percentage for the full year

Result Drivers

SPOT VOLUME MIX - Higher truckload spot mix drove the largest sequential increase in gross profit per load in more than three years

SEQUENTIAL TRUCKLOAD IMPROVEMENT - Full truckload volume improved every month through the quarter, partially offsetting overall Brokerage volume declines

LAST MILE SOFTNESS - Last Mile stops declined 8% year-over-year due to soft demand for big and bulky goods and severe weather

Company press release: ID:nBw4MvL7La

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.43 bln
$1.32 bln (14 Analysts)
Q1 Adjusted EPS
Meet
-$0.09
-$0.09 (17 Analysts)
Q1 EPS
-$0.21
Q1 Adjusted Net Income
-$16 mln
Q1 Adjusted EBITDA
$6 mln
Q1 Adjusted EBITDA Margin
0.40%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 13 "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 $16.16, about 17.7% below its May 6 closing price of $19.62

The stock recently traded at 169 times the next 12-month earnings vs. a P/E of 126 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)