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Jun 30, 2023

RXO Q2 2023 Earnings Report

RXO executed well in a soft freight market, gained market share, and maintained strong margins.

Key Takeaways

RXO reported a revenue of $1.0 billion for Q2 2023, with a net income of $3 million. The company's brokerage business experienced a 10% year-over-year volume growth. Companywide gross margin was 18.6 percent and brokerage gross margin was 15.4 percent.

Brokerage volume increased 10 percent year-over-year.

Companywide gross margin of 18.6 percent.

Brokerage gross margin of 15.4 percent.

96 percent of RXO’s orders in the quarter were created or covered digitally.

Total Revenue
$963M
Previous year: $322M
+199.1%
EPS
$0.08
Previous year: $0.38
-78.9%
Brokerage volume growth
10%
Companywide gross margin
18.6%
Brokerage gross margin
15.4%
Gross Profit
$179M
Previous year: $322M
-44.4%
Cash and Equivalents
$124M
Previous year: $212M
-41.5%
Free Cash Flow
$8M
Previous year: $62M
-87.1%
Total Assets
$1.91B

RXO

RXO

RXO Revenue by Segment

Forward Guidance

The company expects brokerage volumes to continue to grow on a year-over-year basis in the third quarter of 2023.

Positive Outlook

  • Brokerage volumes are expected to continue to grow year-over-year.
  • Brokerage sales pipeline remains strong.
  • Annual bid count increased by 23 percent year-over-year in the second quarter.
  • RXO’s last mile business grew EBITDA year-over-year in the second quarter.
  • The company continues to expect to grow full-year last mile EBITDA year-over-year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income