At a glance
RXO Inc. is worth $4.55B. Revenue grew 26.2% to $5.74B in fiscal 2025, at a loss; over 5 years it has grown 11.3% a year. It pays no dividend; it spent $2.0M buying back its shares over FY2021–FY2025. The stock returned +58.3% over the past year with dividends reinvested, against +11.5% for the S&P 500.
The business in plain English
RXO is mainly a freight broker, a middleman between companies that need goods moved and the trucking firms that haul them. It runs an “asset-light” model: rather than owning a big fleet, it places each load with an independent carrier, using its RXO Connect software to match freight with open trucks. It prices jobs under contracts or on the spot market (a one-off rate for a single load) and keeps the gap between what shippers pay and carriers charge.
Revenue was $5.74 billion in fiscal 2025 (the year ended December 31, 2025). Truck brokerage brought in $4.23 billion, about 74%. Last mile, about 21%, arranges deliveries of heavy goods to consumers through third-party contractors for retailers and direct-to-consumer manufacturers; RXO says it is the largest U.S. provider of this outsourced service. Managed transportation, about 10%, runs freight operations for shippers that outsource them, from load planning to expedited freight, freight forwarding and customs brokerage. (The three shares add to slightly more than 100% as reported.)
Customers range from small businesses to Fortune 100 companies, across retail and e-commerce, food and beverage, industrial and manufacturing, and automotive. In 2025 the top five customers made up about 23% of revenue. In September 2024 RXO bought Coyote, UPS's truck brokerage business, for $1.038 billion in cash.
Price history
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RXO +58.3% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Truck brokerage | $4.22B | 73.6% |
| Last mile | $1.20B | 20.8% |
| Managed transportation | $549.0M | 9.6% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $1.87B, up 31.7% from a year earlier, and net income was $3.0M.
- For fiscal 2025, revenue was $5.74B (+26.2% year over year; +11.3% a year from FY2020 to FY2025) with a -1.7% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +11.3% good |
|---|---|
| Operating margin | -1.4% weak |
| Free cash flow margin | -0.1% weak |
| Return on equity (FY2025) | -6.5% weak |
| Return on assets (FY2025) | -3.1% weak |
| Net cash (cash minus debt) | $-471.0M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $3.36B | $43.0M | $-22.0M |
| FY2021 | $4.69B | $150.0M | $116.0M |
| FY2022 | $4.80B | $92.0M | $253.0M |
| FY2023 | $3.93B | $4.0M | $25.0M |
| FY2024 | $4.55B | $-290.0M | $-57.0M |
| FY2025 | $5.74B | $-100.0M | $-8.0M |
Valuation snapshot
| Market value | $4.55B |
|---|---|
| P/E ratio | — |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
RXO’s market value went from $2.00B at the end of 2022 to $4.55B on Oct 28, 2026, about 2.3 times as much; since the end of 2025 it is up 119%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $4.55B | +119.5% |
| 2025 | $2.07B | -45.9% |
| 2024 | $3.83B | +40.9% |
| 2023 | $2.72B | +36.0% |
| 2022 | $2.00B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| RXO price data to Oct 28, 2026 | +118.4% | +58.3% | +16.9% | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +118.3% |
| 2025 | -47.0% |
| 2024 | +2.5% |
| 2023 | +35.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 1 open-market purchases ($6.4M) and 0 sales ($0.00).
| Date | Insider | Type | Value |
|---|---|---|---|
| Feb 12, 2026 | MFN Partners, LP 10% owner | buy | $6.4M |
Who owns it
Large shareholders (13G filings)
| Orbis Investment Management Limited | 21.1% | Mar 31, 2026 |
| MFN Partners, LP | 19.2% | Dec 31, 2024 |
| BlackRock, Inc. | 14% | Dec 31, 2024 |
| Vanguard Portfolio Management | 5.54% | Mar 31, 2026 |
| Vanguard Capital Management | 5.21% | Mar 31, 2026 |
| Finepoint Capital LP | 3.2% | Jun 30, 2026 |
| Wellington Management Group LLP | 2.9% | Dec 31, 2025 |
ETFs with the most weight in RXO
| CSD Invesco S&P Spin-Off ETF | 2.13% |
| TMFM Motley Fool Mid-Cap Growth ETF | 0.92% |
| SUPL ProShares Supply Chain Logistics ETF | 0.58% |
| QSML WisdomTree U.S. SmallCap Quality Growth Fund | 0.36% |
| RWJ Invesco S&P SmallCap 600 Revenue ETF | 0.3% |
| VTWG Vanguard Russell 2000 Growth ETF | 0.25% |
| VIOV Vanguard S&P Small-Cap 600 Value ETF | 0.23% |
| VIOO Vanguard S&P Small-Cap 600 ETF | 0.21% |
What could go wrong
- A few big customers drive revenue. In 2025, RXO's largest customer accounted for about $653 million, or 11.4% of revenue, and the top five for about 23%. Losing one could noticeably dent results.
- Carrier rates can squeeze the margin. RXO earns the gap between what shippers pay and what truckers charge. When carrier prices rise faster than agreed contract rates with shippers, that gap shrinks and more cash gets tied up.
- Contractor status of carriers is being challenged. RXO relies on independent carriers, and on third-party contractors for last-mile deliveries, rather than employees. That status is being challenged; reclassification as employees could raise wage, benefit and tax costs.
- Fierce competition, including from digital rivals. Thousands of companies compete, including C.H. Robinson, J.B. Hunt, Landstar, Total Quality Logistics and Uber Freight. Rivals can undercut prices, and new technology or in-house shipping teams could cut RXO out of some work.
- Freight downturns and tariffs can cut volumes. Trucking demand follows the economy. RXO's revenue has already swung, falling from $4.8 billion in 2022 to $3.9 billion in 2023, and the company flags U.S. tariffs as a threat to volumes.
- Debt and possible acquisition write-downs. As of June 30, 2026, RXO had $495 million of debt and $15 million of cash. If deals like Coyote disappoint, goodwill (the premium paid for them) could be written down, cutting reported profit.
Recent events
- Quarterly results released
- Major agreement signed; Other company announcement
- Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Shareholder vote results
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation; Other company announcement
- Investor presentation or announcement
- Major agreement signed; Major agreement ended; Quarterly results released; New debt or financial obligation; Investor presentation or announcement
- Executive or board change
For income and retirement investors
RXO paid no dividends in fiscal 2021 through 2025, so it has offered nothing for investors who need regular income; any return has had to come from the share price. Buybacks totaled only about $2 million over those years, while the share count rose 41.8% between November 2022 and August 2026, shrinking each share's slice of the company. RXO also posted net losses of $290 million in 2024 and $100 million in 2025.
Because RXO began trading on November 1, 2022, the stock has no history in the 2008, 2020 or 2022 market slumps. Its own swings have been large: as of October 28, 2026, its worst three-year drop from peak to trough was 67.2%. It fell 47% in 2025, then rose 118% in 2026 through October 28. A one-year beta of 1.86 means it has moved almost twice as much as the market. Single stocks carry more risk than diversified funds.
Questions investors ask
How does RXO make money?
RXO makes most of its money as a truck freight broker. Shippers pay it to move loads, and it hires independent carriers to haul them, keeping the difference. Of $5.74 billion in fiscal 2025 revenue, truck brokerage brought in $4.23 billion. Last-mile delivery of heavy goods to consumers added $1.2 billion, and managed transportation, which runs freight for companies that outsource it, added $549 million. Gross margin, the share of revenue left after direct costs such as carrier payments, was 19.7%.
Does RXO pay a dividend?
No. RXO paid no dividends in fiscal 2021 through fiscal 2025, and buybacks over those years totaled only about $2 million. The company lost money in fiscal 2024 and 2025. Free cash flow (cash from operations minus capital spending) was negative $8 million in 2025, which left no spare cash from operations to hand back. Anyone owning RXO is relying on share-price gains rather than income.
Is RXO profitable?
Not in its two most recent full fiscal years. RXO posted a net loss of $100 million, or $0.59 per share, in fiscal 2025, after a $290 million loss in 2024. Profit had already shrunk from $150 million in 2021 to $4 million in 2023. In the quarter ended June 30, 2026, revenue rose 25% from a year earlier to $1.77 billion, but RXO still lost $9 million. On that date it also carried $495 million of debt against $15 million of cash.
What did RXO buy from UPS?
RXO bought Coyote, UPS's truck brokerage business, on September 16, 2024, for $1.038 billion in cash. Post-closing adjustments later added $10 million to the price, which was paid in the first quarter of 2025. The deal also included some U.K. haulage, dedicated transport and warehousing assets. In fiscal 2025, RXO's revenue rose 26.2% to $5.74 billion, though the company still posted a net loss of $100 million.
Who are RXO's largest shareholders?
Large investment firms hold big stakes. Orbis Investment Management reported 21.1% as of March 31, 2026. MFN Partners reported 19.2% as of December 31, 2024, and bought about $6.4 million more stock on February 12, 2026. BlackRock reported 14% as of December 31, 2024, and two Vanguard units reported about 5.5% and 5.2% as of March 31, 2026. RXO warns that large share sales, or the prospect of them, could weigh on its price.