RXO, Inc. Reports 25% Revenue Growth to $1.774 Billion in Q2 2026

RXO, Inc. reported significant financial performance in its latest 10-Q filing for the second quarter of 2026, with revenues reaching $1.774 billion, a 25% increase from $1.419 billion in the same quarter of 2025. For the first half of 2026, total revenue was $3.199 billion, up 12.2% from $2.852 billion in the prior year. The growth was primarily driven by a $324 million increase in truck brokerage revenue, attributed to a 44% rise in revenue per load due to higher freight rates and fuel prices, despite a 2% decrease in load volume. The company reported a net loss of $9 million for the second quarter, consistent with the loss reported in the same period last year, and a total net loss of $45 million for the first half of 2026, compared to a loss of $40 million in the first half of 2025.

In terms of operational metrics, RXO's cost of transportation and services increased to $1.472 billion in the second quarter, representing 83% of revenue, compared to 78.8% in the same quarter of 2025. This increase was driven by rising costs associated with a tight market and higher fuel prices. The company's direct operating expenses rose to $53 million, while sales, general, and administrative expenses decreased slightly to $211 million, reflecting cost-saving measures from restructuring actions. The company also incurred $7 million in restructuring costs during the quarter, up from $3 million in the previous year.

RXO's balance sheet showed total assets of $3.459 billion as of June 30, 2026, an increase from $3.277 billion at the end of 2025. This growth was primarily due to a $218 million increase in accounts receivable linked to higher revenue. Total liabilities also rose to $1.953 billion, up from $1.736 billion, largely due to a $174 million increase in accounts payable and a $91 million rise in short-term and long-term debt. The company’s equity decreased to $1.506 billion from $1.541 billion, reflecting the accumulated deficit which increased to $429 million.

Strategically, RXO has made significant changes to its financing structure, including the establishment of a $450 million asset-based revolving credit facility in February 2026, which replaced its previous revolving credit agreement. The company also issued $400 million in unsecured notes due in 2031, using part of the proceeds to redeem its 7.50% notes due in 2027, resulting in a debt extinguishment loss of $11 million. RXO's management expressed confidence in the company's liquidity, stating that existing resources are sufficient to support operations for the foreseeable future.

Looking ahead, RXO anticipates continued growth driven by its core truck brokerage business and complementary services in managed transportation and last-mile delivery. The company aims to leverage its proprietary technology to enhance operational efficiency and customer service. However, management acknowledged potential challenges from inflationary pressures and competitive pricing environments, which could impact profitability. The company remains focused on improving operational leverage and managing costs effectively to navigate these market conditions.