RXO reported third-quarter revenue of $1.4 billion, up from $1.0 billion a year earlier, as growth in its less-than-truckload (LTL) segment helped offset weaker truckload demand.
The company posted a GAAP net loss of $14 million, compared to a $243 million loss in the same period last year. Adjusted net income was $2 million, while adjusted EBITDA totaled $32 million, slightly below the $33 million reported in the third quarter of 2024.
Brokerage volume rose 1% year over year, driven by a 43% increase in LTL shipments. However, full-truckload volume declined 11%, reflecting capacity exits and tightening market conditions late in the quarter. Brokerage gross margin stood at 13.5%.
In Complementary Services, RXO’s Last Mile business achieved 12% year-over-year growth in stops, marking its fifth consecutive quarter of double-digit expansion. Gross margin for the segment reached 21.3%.
“Truckload capacity exits accelerated late in the third quarter, tightening the market and squeezing brokerage margins,” said Drew Wilkerson, RXO’s Chairman and CEO. “While demand softened, our scale and technology give us flexibility, and new cost initiatives are expected to deliver more than $30 million in savings.”
Looking ahead, RXO expects fourth-quarter adjusted EBITDA between $20 million and $30 million, with brokerage volume projected to decline slightly and gross margins between 12% and 13%.
