RXO, Inc. Reports 36.6% Revenue Growth to $1.421 Billion in Q3 2025

RXO, Inc. reported significant financial performance improvements in its latest quarterly filing, with revenues reaching $1.421 billion for the third quarter of 2025, a 36.6% increase from $1.040 billion in the same period last year. For the first nine months of 2025, total revenue surged to $4.273 billion, up 48.2% from $2.883 billion in the prior year. The growth was primarily driven by a substantial increase in truck brokerage revenue, largely attributed to the acquisition of Coyote, which contributed an additional $384 million in the third quarter alone. Despite the revenue growth, RXO reported a net loss of $14 million for the quarter, an improvement from a loss of $243 million in Q3 2024.

The company's cost of transportation and services also rose, totaling $1.137 billion in Q3 2025, which accounted for 80% of revenue, compared to 77.8% in the same quarter of 2024. This increase was largely due to the full integration of Coyote's operations and rising costs associated with regulatory changes affecting market capacity. Additionally, RXO's selling, general, and administrative expenses increased to $208 million, reflecting the operational costs associated with the Coyote acquisition. The overall operating loss for the quarter was $7 million, a notable improvement from the $20 million loss reported in the same quarter last year.

In terms of operational metrics, RXO's customer engagement remained strong, with a 12% increase in last-mile service volume contributing to a $37 million revenue increase in that segment. The company also reported a decrease in direct operating expenses as a percentage of revenue, indicating improved operational efficiency. However, the overall increase in costs, particularly in transportation services, highlighted the challenges posed by a tightening market.

Geographically, RXO's revenue generation remained predominantly U.S.-based, with approximately 7% of revenues coming from international markets, including Canada, Mexico, Europe, and Asia. The company continues to leverage its asset-light business model and proprietary technology to enhance service offerings and expand its market share. As of September 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 identifiable intangible assets.

Looking ahead, RXO's management expressed optimism about future growth, citing the strategic advantages gained from the Coyote acquisition and ongoing investments in technology and infrastructure. The company anticipates that these developments will enhance its competitive position and drive further revenue growth, despite potential challenges from inflation and market conditions. RXO remains committed to improving operational efficiencies and expanding its service offerings to capitalize on favorable industry trends.