RXO, Inc. (RXO) AI Stock Analysis

• Market Cap: $2.85B
• Dividend Yield: N/A
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: 53.85%
• EPS Growth: 77.68%
• Country: US
• Employees: 7,540
• Sector: Industrials
• Sector Strength: 72
• Industry: Trucking
• EPS (TTM): 0.01
• Shares Outstanding: 163,987,240
• 10 Day Avg. Volume: 1,918,623
• 30 Day Avg. Volume: 2,072,371
• PEG Ratio: <0.01
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -55.80
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: 87.04
• 1Y Price Target: $15.45
• Price Target Upside: 23.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $12.00 ▼(-3.92% Downside)

RXO, Inc. faces significant challenges with profitability and cash flow, reflected in a low financial performance score. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings. While the earnings call showed some positive strategic initiatives, they are overshadowed by ongoing operational challenges and market headwinds.

Positive Factors

Technology Investments

Significant investments in technology enhance operational efficiency and competitive positioning, supporting long-term growth and innovation.

LTL Volume Growth

Strong LTL volume growth indicates robust demand and effective market penetration, contributing to revenue stability and expansion potential.

Cost Structure Improvements

Ongoing cost reductions enhance profitability and cash flow, providing a more sustainable financial foundation for future growth.

Negative Factors

Profitability Challenges

Persistent profitability issues highlight challenges in cost management, which could hinder long-term financial stability and growth.

Weak Cash Flow

Weak cash flow limits financial flexibility and investment capacity, potentially impacting the company's ability to capitalize on growth opportunities.

Margin Squeeze

Margin compression from rising costs without offsetting revenue increases can erode profitability, affecting long-term financial health.

RXO, Inc. Business Overview & Revenue Model

Company Description

RXO provides truckload freight transportation brokerage in the United States. The company, through a proprietary digital freight marketplace, offers access to truckload capacity and complementary brokered services of managed transportation, last mile, and freight forwarding. The company is based in Charlotte, North Carolina.

How the Company Makes Money

RXO generates revenue primarily through its freight brokerage services, which connect shippers with carriers to facilitate the transportation of goods. The company earns money by charging a service fee or commission on each shipment, which is typically a percentage of the total freight cost. Additionally, RXO may generate revenue from value-added services such as warehousing, inventory management, and supply chain consulting. Key partnerships with carriers and technology providers enhance its service offerings and operational efficiency, further contributing to its earnings. The company also capitalizes on market demand by utilizing its extensive network to optimize shipping routes and freight capacity, thereby maximizing profitability.

RXO, Inc. Financial Statement Overview

Summary

RXO, Inc. shows revenue growth but struggles with profitability and cash flow management. The company's leverage is moderate, but negative returns on equity and cash flow issues highlight the need for strategic improvements.

Income Statement

RXO, Inc. has shown a positive revenue growth rate of 9.65% in the TTM, indicating an upward trend in sales. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains modest at 15.45%, but the declining trend in profitability metrics suggests challenges in cost management and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.43 in the TTM, indicating a relatively moderate leverage level compared to previous years. However, the return on equity is negative, reflecting ongoing losses. The equity ratio stands at approximately 49.6%, suggesting a stable capital structure, but the negative ROE highlights the need for improved profitability.

Cash Flow

RXO, Inc. faces challenges in cash flow management, with negative operating and free cash flows in the TTM. The free cash flow growth rate is significantly negative, and the operating cash flow to net income ratio is also negative, indicating cash flow issues. Despite a high free cash flow to net income ratio, the overall cash flow position is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.52B	4.55B	3.93B	4.80B	4.69B	3.36B
Gross Profit	698.00M	696.00M	658.00M	860.00M	735.00M	539.00M
EBITDA	38.02M	-187.00M	103.00M	209.00M	272.00M	133.00M
Net Income	-65.01M	-290.00M	4.00M	92.00M	150.00M	43.00M
Balance Sheet
Total Assets	3.20B	3.41B	1.82B	2.03B	2.07B	1.87B
Cash, Cash Equivalents and Short-Term Investments	25.00M	35.00M	5.00M	98.00M	29.00M	70.00M
Total Debt	682.00M	664.00M	558.00M	617.00M	135.00M	116.00M
Total Liabilities	1.62B	1.80B	1.23B	1.44B	998.00M	802.00M
Stockholders Equity	1.58B	1.61B	594.00M	587.00M	1.07B	1.07B
Cash Flow
Free Cash Flow	-39.98M	-57.00M	25.00M	253.00M	116.00M	-22.00M
Operating Cash Flow	-6.96M	-12.00M	89.00M	310.00M	155.00M	25.00M
Investing Cash Flow	-12.06M	-1.06B	-66.00M	-56.00M	-38.00M	-39.00M
Financing Cash Flow	1.00M	1.11B	-117.00M	-183.00M	-158.00M	32.00M

RXO, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RXO, the sentiment is Negative. The current price of 12.49 is below the 20-day moving average (MA) of 17.06, below the 50-day MA of 16.69, and below the 200-day MA of 17.04, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 26.44 is Positive, neither overbought nor oversold. The STOCH value of 23.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RXO.

RXO, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARCB	62 Neutral	$1.51B	15.90	7.40%	0.65%	-5.34%	-48.16%
WERN	57 Neutral	$1.57B	64.63	1.78%	2.14%	-3.42%	-43.86%
ULH	57 Neutral	$425.49M	6.98	-6.66%	2.78%	-7.55%	-130.67%
SNDR	57 Neutral	$3.99B	35.08	3.81%	1.68%	5.46%	2.31%
MRTN	54 Neutral	$806.24M	41.59	2.53%	2.43%	-9.74%	-42.57%
RXO	43 Neutral	$2.85B	-8.00	-4.58%	―	53.85%	77.68%

RXO, Inc. Corporate Events

RXO, Inc. Reports Q3 2025 Financial Results

RXO, Inc. is a prominent provider of asset-light transportation solutions, specializing in tech-enabled truck brokerage services and complementary offerings such as managed transportation and last mile delivery, operating across North America with a focus on leveraging technology for efficient freight movement.

RXO, Inc. Reports Q3 2025 Financial Results

On November 6, 2025, RXO reported its financial results for the third quarter of 2025, revealing a revenue increase to $1.4 billion from $1.0 billion in the previous year, despite a GAAP net loss of $14 million. The company experienced a tightening in the full-truckload market due to capacity exits, affecting its brokerage gross margin. RXO’s strategic decisions and cost initiatives are expected to yield over $30 million in savings, positioning the company for long-term growth despite current market challenges.

The most recent analyst rating on (RXO) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on RXO, Inc. stock, see the RXO Stock Forecast page.

RXO, Inc. Earnings Call: Strong Growth Amid Challenges

RXO, Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company showcased robust performance in adjusted EBITDA, brokerage growth, and last mile services, alongside impressive cash flow conversion. However, challenges such as declining truckload volumes, difficulties in the automotive sector, and a generally soft freight market were significant concerns.