RXO, Inc. Reports 52.6% Revenue Growth to $1.419 Billion in Latest Quarter

RXO, Inc. reported significant financial performance improvements in its latest quarterly filing, with revenues reaching $1.419 billion for the three months ended June 30, 2025, a 52.6% increase from $930 million in the same period last year. For the first half of 2025, total revenue was $2.852 billion, up 54.7% from $1.843 billion in the first half of 2024. The growth was primarily driven by a substantial increase in truck brokerage revenue, attributed to the acquisition of Coyote, which contributed $482 million in the second quarter alone. Despite the revenue growth, RXO reported a net loss of $9 million for the second quarter and $40 million for the first half of 2025, compared to losses of $7 million and $22 million, respectively, in the prior year.

The company’s cost of transportation and services also rose significantly, totaling $1.118 billion in the second quarter, which accounted for 78.8% of revenue, compared to 75.3% in the same quarter of 2024. This increase was largely due to the Coyote acquisition, which added $418 million to costs. Additionally, sales, general, and administrative expenses increased by 39% to $214 million in the second quarter, reflecting the costs associated with the integration of Coyote. The company’s direct operating expenses decreased slightly, indicating improved operational efficiency.

In terms of strategic developments, RXO completed the acquisition of Coyote on September 16, 2024, for $1.038 billion, enhancing its competitive position in the market. The acquisition is expected to provide greater scale and a broader array of service offerings. The integration of Coyote is ongoing, and the company anticipates that the synergies from this acquisition will contribute positively to future performance. As of June 30, 2025, RXO's total assets decreased to $3.201 billion from $3.414 billion at the end of 2024, primarily due to a reduction in accounts receivable and cash.

Operationally, RXO's customer engagement metrics showed a 17% increase in last-mile volume, contributing to a $50 million rise in last-mile revenue. The company reported a total employee headcount of 168,525, reflecting a significant increase from 117,579 in the previous year, which aligns with its growth strategy and the integration of Coyote. The company also noted a decrease in total current liabilities, which fell by 17.4% to $880 million, indicating improved cash management and operational efficiency.

Looking ahead, RXO remains optimistic about its growth trajectory, driven by the integration of Coyote and the continued demand for its services. The company expects to leverage its enhanced scale and technology to improve profitability and operational efficiency. However, RXO also acknowledged potential challenges, including inflationary pressures and competitive pricing environments, which could impact future performance. The company is committed to maintaining compliance with its debt covenants and believes its existing liquidity is sufficient to support operations in the near term.