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Jun 30
RXO Q2 2025 Earnings Report
RXO reported its second-quarter financial results, showing increased revenue and improved adjusted EBITDA despite a soft freight market, driven by strong performance in its Brokerage and Last Mile segments.
Key Takeaways
RXO's second quarter performance was marked by a significant increase in revenue to $1.4 billion, up from $930 million in the prior year. The company achieved a positive adjusted net income of $7 million and an adjusted EBITDA of $38 million, demonstrating resilience in a challenging freight market. Brokerage volume grew by 1% year-over-year, primarily due to a substantial increase in less-than-truckload volume, while Last Mile continued its double-digit stop growth.
Revenue for Q2 2025 reached $1.4 billion, a substantial increase from $930 million in Q2 2024.
Adjusted EBITDA improved to $38 million, up from $28 million in the same period last year.
Brokerage volume increased by 1% year-over-year, driven by a 45% growth in less-than-truckload volume.
Last Mile segment achieved 17% year-over-year stop growth, marking its fourth consecutive quarter of double-digit growth.
RXO
RXO
RXO Revenue by Segment
Revenue by Segment
Truck brokerage Revenue
CapyFin.comLast mile Revenue
CapyFin.comManaged transportation Revenue
CapyFin.com Forward Guidance
For the third quarter of 2025, RXO anticipates adjusted EBITDA to be between $33 million and $43 million. In the Brokerage segment, overall volume growth is expected to be approximately flat year-over-year, with gross margin projected to be between 13.5% and 15.0%.
Positive Outlook
- Anticipated adjusted EBITDA range of $33 million to $43 million for Q3 2025.
- Brokerage gross margin expected to remain strong, between 13.5% and 15.0% in Q3.
- Continued focus on profitable growth and realizing benefits from increased scale.
- Leveraging cutting-edge technology to drive productivity improvements.
- Positioned to deliver increased earnings power and free cash flow over the long term.
Challenges Ahead
- Overall Brokerage volume growth expected to be approximately flat year-over-year in Q3.
- Continued soft freight market conditions.
- Potential for variability and complexity in reconciling non-GAAP measures to GAAP.
- Subject to known and unknown risks, uncertainties, and assumptions that may cause actual results to differ materially.
- No undertaking to update forward-looking statements to reflect subsequent events or circumstances.