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Sep 30, 2024

RXO Q3 2024 Earnings Report

RXO's third quarter results were reported, highlighting the successful integration of Coyote ahead of schedule and strong momentum in complementary services.

Key Takeaways

RXO reported revenue of $1.04 billion, a gross margin of 17.3%, and a GAAP net loss of $243 million, which included $248 million in transaction, integration, restructuring and other costs. Adjusted net income was $7 million, and adjusted EBITDA was $33 million. The company's leverage ratio decreased by more than 40% following the Coyote acquisition.

Coyote acquisition completed September 16; integration is progressing smoothly with annualized cost synergy estimate raised to at least $40 million.

The combined company leverage ratio decreased by more than 40%.

Company-wide gross margin was 17.3%, Brokerage gross margin was 13.7%.

Managed Transportation was awarded more than $300 million in new freight under management and Last Mile stop growth continued to accelerate and grew 11% year-over-year.

Total Revenue
$1.04B
Previous year: $976M
+6.6%
EPS
$0.05
Previous year: $0.05
+0.0%
Companywide gross margin
17.3%
Previous year: 17.7%
-2.3%
Brokerage gross margin
13.7%
Previous year: 15.1%
-9.3%
Gross Profit
$180M
Previous year: $173M
+4.0%
Cash and Equivalents
$55M
Previous year: $104M
-47.1%
Free Cash Flow
-$18M
Previous year: -$14M
+28.6%
Total Assets
$3.39B
Previous year: $1.95B
+74.3%

RXO

RXO

RXO Revenue by Segment

Forward Guidance

RXO expects fourth-quarter 2024 adjusted EBITDA to be between $40 million and $45 million. The company expects fourth-quarter 2024 Brokerage gross margin to be between 12% and 14%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income