RXO, Inc. Reports Slight Revenue Decline to $1.425 Billion in Q1 2026

RXO, Inc. reported a slight decline in revenue for the first quarter of 2026, generating $1.425 billion compared to $1.433 billion in the same period last year. The decrease was attributed primarily to a $14 million drop in managed transportation revenue, largely due to reduced expedite ground volume, and a $13 million decline in last mile revenue, which experienced an 8% decrease in volume. However, this was partially offset by a $30 million increase in truck brokerage revenue, driven by a 12% rise in revenue per load, influenced by higher freight rates and fuel prices, despite an 8% decrease in overall volume.

The company's operating loss for the quarter was $28 million, an improvement from a loss of $30 million in the prior year. RXO's net loss increased to $36 million, compared to $31 million in the first quarter of 2025, resulting in a basic and diluted loss per share of $0.21. The increase in net loss was influenced by an $11 million debt extinguishment loss related to the redemption of its 7.50% Notes due 2027. Additionally, total current liabilities rose to $1.048 billion, up from $1.038 billion at the end of 2025, while total long-term liabilities increased to $711 million from $698 million.

In terms of strategic developments, RXO completed a significant refinancing transaction in February 2026, entering into a $450 million asset-based revolving credit facility, which replaced its previous revolving credit agreement. The company also issued $400 million in unsecured notes due 2031, using part of the proceeds to redeem its 2027 Notes. This refinancing is expected to enhance liquidity, with $365 million available under the new facility as of March 31, 2026.

Operationally, RXO's total assets decreased slightly to $3.268 billion from $3.277 billion at the end of 2025, primarily due to a reduction in accounts receivable and identifiable intangible assets. The company reported a total employee headcount of 164,867 as of March 31, 2026, reflecting a slight increase from the previous quarter. RXO's revenue generation remains predominantly U.S.-based, with approximately 93% of revenue expected to be recognized over the next four years from existing contracts.

Looking ahead, RXO anticipates that its strategic investments in technology and operational efficiencies will support future growth. The company remains focused on leveraging its digital brokerage platform to enhance service offerings and improve profitability. However, management acknowledged potential challenges posed by inflation and competitive pricing pressures, which could impact future revenue and operating margins.