RXO (NYSE:RXO) Announces Earnings Results, Hits Expectations

RXO (NYSE:RXO - Get Free Report) posted its earnings results on Thursday. The company reported ($0.09) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.09), FiscalAI reports. RXO had a negative return on equity of 0.44% and a negative net margin of 1.74%.The firm had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.34 billion. During the same quarter in the prior year, the company earned ($0.03) EPS. RXO's revenue was down .6% on a year-over-year basis.

Here are the key takeaways from RXO's conference call:

• Management says a supply-driven recovery is underway and that bid season outcomes mean they now expect full-year contract rates to increase by high single digits, up from prior low-to-mid single-digit guidance.
• Brokerage momentum accelerated as spot mix rose 500 bps sequentially (35% in April), driving a meaningful sequential increase in truckload gross profit per load and improved quoting/conversion trends.
• RXO is rapidly deploying agentic AI — including an AI spot agent and automation that handled ~500,000 calls — which management says has already increased volume, gross profit per load, and productivity (loads per person up ~15%).
• After a weather-impacted Q1 with adjusted EBITDA of $6M, the company guides Q2 adjusted EBITDA of $27M–$37M, signaling management expects significant sequential recovery into the quarter.
• Demand remains soft and there are near-term financial/operational pressures: Q1 adjusted free cash flow was -$15M, cash was $21M at quarter end, net leverage was ~3.7x, and severe weather plus some elevated negative-margin loads weighed on results.

RXO Stock Up 17.2%

NYSE RXO traded up $3.38 during trading hours on Thursday, hitting $23.00. The company had a trading volume of 6,564,615 shares, compared to its average volume of 2,278,688. RXO has a fifty-two week low of $10.43 and a fifty-two week high of $23.29. The company has a market capitalization of $3.79 billion, a price-to-earnings ratio of -39.65, a P/E/G ratio of 32.52 and a beta of 1.96. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.27 and a quick ratio of 1.27. The firm's 50 day moving average is $15.80 and its 200 day moving average is $14.97.

Key RXO News

Here are the key news stories impacting RXO this week:

• Positive Sentiment: Revenue beat and upbeat Q2 outlook — RXO reported $1.43B in revenue (above Street estimates) and provided optimistic guidance for Q2, which drove investor confidence despite an EPS loss. RXO Announces First-Quarter Results and Second-Quarter Outlook
• Positive Sentiment: Earnings allay Amazon concerns — multiple outlets report that management’s commentary and guidance reduced investor fears that Amazon’s freight initiatives would materially undercut RXO’s volumes. That narrative helped lift the stock. RXO Stock Rises as the Shipping Company's Earnings Allay Amazon Fears
• Positive Sentiment: Tech turnaround narrative — coverage highlights RXO’s investments in technology and brokerage conversion pipeline as catalysts that could improve margins and competitiveness over time. Investors are watching this as a structural positive. RXO’s tech turnaround: why investors are watching
• Neutral Sentiment: Consensus EPS met but still a loss — RXO reported ($0.09) EPS in line with consensus; analysts note the loss widened versus the prior year, making near‑term profitability a watch item. RXO (RXO) Reports Q1 Loss, Tops Revenue Estimates
• Neutral Sentiment: Analyst recaps and metric breakdowns — Coverage (Zacks, Stamford Advocate) walks through key operational metrics (brokerage volume trends, truckload improvement) that investors will use to judge whether guidance is sustainable. RXO (RXO) Reports Q1 Earnings: What Key Metrics Have to Say
• Negative Sentiment: Year‑over‑year weakness and margin pressure — revenue was down modestly YoY and the company reported negative net margins and ROE, underscoring earnings risk until cost and mix improvements stick. RXO: Q1 Earnings Snapshot
• Negative Sentiment: Some outlets flagged mixed/miss headlines — a few reports framed the quarter as a miss on certain metrics, keeping short‑term volatility possible if future quarters don’t show clear improvement. RXO misses first-quarter estimates but stock gains 3% on outlook

Institutional Trading of RXO

Several large investors have recently added to or reduced their stakes in the stock. Thrivent Financial for Lutherans increased its holdings in RXO by 1.0% in the 2nd quarter. Thrivent Financial for Lutherans now owns 104,861 shares of the company's stock valued at $1,648,000 after purchasing an additional 1,007 shares in the last quarter. Geneos Wealth Management Inc. acquired a new stake in shares of RXO during the first quarter valued at about $30,000. Bank of Montreal Can grew its stake in shares of RXO by 14.9% during the fourth quarter. Bank of Montreal Can now owns 12,332 shares of the company's stock valued at $156,000 after acquiring an additional 1,599 shares in the last quarter. Larson Financial Group LLC grew its stake in shares of RXO by 146.5% during the third quarter. Larson Financial Group LLC now owns 2,766 shares of the company's stock valued at $43,000 after acquiring an additional 1,644 shares in the last quarter. Finally, Quarry LP acquired a new stake in shares of RXO during the third quarter valued at about $33,000. 92.73% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on RXO shares. Barclays increased their price target on RXO from $15.00 to $17.00 and gave the stock an "overweight" rating in a research note on Wednesday, March 4th. Benchmark reissued a "hold" rating on shares of RXO in a research note on Monday, February 9th. Truist Financial increased their price target on RXO from $18.00 to $20.00 and gave the stock a "buy" rating in a research note on Monday, February 9th. Zacks Research raised RXO from a "strong sell" rating to a "hold" rating in a research note on Monday, April 6th. Finally, Susquehanna upped their price objective on RXO from $12.00 to $14.00 and gave the stock a "negative" rating in a report on Wednesday, April 22nd. Three investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $16.00.

About RXO

RXO Inc NYSE: RXO is a leading asset-light provider of digital freight brokerage and managed transportation solutions. The company leverages a proprietary technology platform to connect shippers with a network of third-party carriers, enabling optimized route planning, real-time shipment tracking, and dynamic pricing. RXO’s end-to-end service model spans full truckload, less-than-truckload (LTL), intermodal and cross-border freight movements, designed to improve efficiency and reduce transportation costs for its customers.

Operating primarily across North America, RXO serves a diverse base of shippers in industries ranging from retail and consumer goods to manufacturing and automotive.

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