RXO, Inc.

RXO reported first-quarter 2026 total revenue of $1.4 billion, gross margin of 14.2%, adjusted EBITDA of $6 million, and adjusted loss per share of $0.09. Brokerage revenue was $1.1 billion, up 3% year over year; complementary services revenue was $388 million, down 7% year over year. Brokerage gross margin was 11.4%; complementary services gross margin was 19.8%. Truckload gross profit per load increased 9% sequentially, and brokerage spot mix increased 500 basis points sequentially and 600 basis points year over year. The company ended the quarter with $21 million of cash, $386 million of total available liquidity, net leverage of 3.7x LTM bank adjusted EBITDA, and adjusted free cash flow of negative $15 million. For the second quarter, RXO expects adjusted EBITDA of $27 million to $37 million. Management also said full-year 2026 contract rates are now expected to increase by high single digits year over year, versus prior guidance for low- to mid-single-digit growth. Brokerage volume is expected to be approximately flat year over year in Q2, LTL volume approximately flat year over year in Q2, and last mile stops down a low-single-digit percentage year over year in Q2.

Drew Wilkerson framed the quarter as evidence that a supply-driven freight recovery is starting to take hold, even though demand remains soft. He emphasized that RXO’s model is working as customers shift toward large, proven brokers that can deliver service, vet carriers rigorously, and use technology to improve execution. His tone was confident and upbeat, with repeated references to being in the “early innings” of a multiyear recovery and to RXO being well positioned to win as conditions improve.

Jamie Harris focused on the reported numbers, explaining that Q1 adjusted EBITDA of $6 million was at the low end of the company’s range because severe weather hurt last mile and lowered gross margin and EBITDA by about $3 million. He highlighted the balance sheet actions, including refinancing the 2027 senior notes into notes due May 2031, ending Q1 with $386 million of available liquidity, $21 million of cash, and net leverage of 3.7x. He also noted adjusted free cash flow of negative $15 million, said capex should decline about 30% in the second half of the year, and reiterated the company’s long-term 40% to 60% cash conversion expectation.

Analysts pressed management on why spot mix is rising so sharply, whether RXO is taking share, and how to think about normalized earnings power. Drew said the company’s service model, customer relationships, technology, and ability to handle spots, projects, and mini bids are driving the gains, and he described normalized EBITDA as mid-single-digit at mid-cycle and high single-digit to low double-digit at the peak. Questions also focused on regulatory change and the Montgomery case; management said tighter carrier vetting and higher insurance/shipping requirements should favor scale brokers like RXO, while a favorable court outcome could increase opportunities as weaker brokers exit. Analysts also asked about AI, staffing, and productivity, and management said the tools are still early but are already improving quoting, volume, gross profit per load, and loads per person per day.