RXO | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 1.774 B

Revenue: As of FY2026 Q2, the actual value is USD 1.774 B, beating the estimate of USD 1.631 B.

EPS: As of FY2026 Q2, the actual value is USD -0.05, missing the estimate of USD -0.0434.

EBIT: As of FY2026 Q2, the actual value is USD 10 M.

Overall Financial Performance (Three Months Ended June 30, 2026 vs. 2025)

Net Income

RXO, Inc. reported a GAAP net loss of - $9 million for the second quarter of 2026, which was consistent with the net loss of - $9 million in the prior year’s second quarter. The 2026 GAAP net loss included $13 million in transaction, integration, restructuring, and other costs. Adjusted net income for the quarter was $10 million, an increase from $7 million in the second quarter of 2025.

Gross Margin

Overall gross margin for RXO, Inc. was 13.9% in the second quarter of 2026, down from 17.8% in the second quarter of 2025.

Adjusted EBITDA

Adjusted EBITDA was $40 million for the second quarter of 2026, up from $38 million in the second quarter of 2025. The adjusted EBITDA margin was 2.3% in the second quarter of 2026, compared to 2.7% in the same period of 2025.

Operating Income (Loss)

Operating income for RXO, Inc. was $1 million in the second quarter of 2026, compared to $0 million in the second quarter of 2025.

Operating Costs (Three Months Ended June 30, 2026 vs. 2025)

• Cost of transportation and services was $1,472 million in 2026, compared to $1,118 million in 2025.
• Direct operating expense was $53 million in 2026, versus $47 million in 2025.
• Sales, general and administrative expense was $211 million in 2026, down from $214 million in 2025.
• Depreciation and amortization expense was $26 million in 2026, compared to $30 million in 2025.
• Transaction and integration costs were $4 million in 2026, down from $7 million in 2025.
• Restructuring costs were $7 million in 2026, up from $3 million in 2025.
• Interest expense, net was $9 million in 2026, compared to $8 million in 2025.

Segment Performance (Three Months Ended June 30, 2026)

Truck Brokerage

Revenue for Truck Brokerage was $1,349 million, representing 73% of total revenue. The segment’s gross margin was 10.7%. Volume increased by 2% year over year, with Truckload volume also up 2% year over year and Less-than-Truckload volume up 3% year over year. Gross profit per load achieved an 11% sequential increase, and the Truckload spot mix was 42% of volume, increasing by 1,500 basis points year over year.

Complementary Services (Last Mile and Managed Transportation)

Revenue for Complementary Services was $488 million. The segment achieved a gross margin of 21.1%. Last Mile stops increased by 3% year over year due to market share gains. Managed Transportation won approximately $100 million in additional freight under management.

Cash Flow

Net Cash from Operating Activities (Six Months Ended June 30, 2026 vs. 2025)

Net cash used in operating activities was - $47 million for the six months ended June 30, 2026, compared to net cash provided by operating activities of $21 million in the same period of 2025.

Adjusted Free Cash Flow (Q2 2026)

Adjusted free cash flow for Q2 2026 was - $42 million, primarily due to working capital usage driven by revenue growth, a higher freight rate environment, increased volume, and substantially increased Carrier QuickPay. RXO, Inc. maintains confidence in a long-term conversion rate of 40%-60% across market cycles and anticipates strong Q3 adjusted free cash flow conversion.

Capital Structure (As of Q2 2026)

Total debt, principal balance, and other stood at $506 million, with Notes due 2031 at $400 million and finance leases, asset financing, ST debt & other at $106 million. Cash was $15 million, resulting in net debt of $491 million, and available liquidity was $350 million. The Last Twelve Months (LTM) Gross Leverage was 4.2x, and LTM Net Leverage was 4.1x.

Outlook / Guidance

For the third quarter of 2026, RXO, Inc. anticipates adjusted EBITDA to be between $35 million and $45 million. The company expects overall Brokerage volume growth to increase by a low-to-mid-single-digit percentage year over year. Brokerage truckload gross profit per load is projected to increase sequentially, with expectations for spot mix and gross profit per load to increase again in Q3.