Core Insights - The freight market has been stagnant for nearly two years, but early signs indicate a potential upward shift, although this does not guarantee an easier environment for brokers [1] - Recent earnings calls from RXO and C.H. Robinson highlight the challenges brokers face as the market begins to strengthen, particularly regarding financial and operational stress [1] Group 1: RXO's Performance - RXO's fourth-quarter results reveal ongoing pricing pressure and margin compression, with the company struggling to balance carrier costs against cautious shipper demand [2] - The company reported a GAAP net loss of $46 million in the fourth quarter, which is a significant increase from a $25 million loss in the same quarter of 2024 and $14 million in the third quarter [5] - Brokers are experiencing difficulties not just at the bottom of the cycle, but as the market begins to improve, leading to uncomfortable decisions regarding margin sacrifice versus customer retention [2] Group 2: Market Dynamics - In an upward-inflating market, brokers face working capital strain as carrier rates increase faster than shipper pricing, requiring brokers to manage higher payments while awaiting contractual adjustments [4] - Operational stress is heightened by rising volatility, rewarding brokers with strong carrier relationships and real-time pricing visibility, while those relying on static models risk mispricing freight [5] Group 3: C.H. Robinson's Position - C.H. Robinson's earnings calls present a contrasting perspective, with management emphasizing productivity gains, cost discipline, and improved execution despite the challenging environment [6] - The market reacted positively to C.H. Robinson's performance, resulting in a stock price increase even amid mixed freight fundamentals [6]

Group 1 - The results are challenging due to a margin squeeze between contracted operations and increasing upstream rates [1] - The investment approach focuses on operational aspects and long-term earnings power rather than market-driven dynamics [1] - The majority of recommendations will be holds, indicating a cautious stance in a bullish market [1] Group 2 - There is no current or planned investment position in the companies mentioned, ensuring an unbiased analysis [2] - The article reflects the author's personal opinions without any compensation from the companies discussed [2] - Seeking Alpha emphasizes that past performance does not guarantee future results and that opinions may not represent the platform as a whole [3]

Core Insights - RXO's fourth quarter earnings report reflected anticipated negativity, with a focus on highlighting improvements rather than losses [1][2] - Management emphasized structural changes to position the company for a potential turnaround in the freight market [2] Financial Performance - The company reported lower EBITDA and a net loss for the quarter, continuing a trend from previous periods [2] - CFO James Harris projected a decrease in EBITDA for the first quarter compared to the fourth quarter, indicating limited growth in spot opportunities and sale rates [7] Market Conditions - The freight market is showing signs of strengthening, but early stages are challenging for brokers due to rising spot rates while contract rates remain stagnant [3][4] - In December, spot rates increased by approximately 15% month over month, outpacing contractual sale rates, but demand remains low [4] Spot Market Dynamics - RXO's chief strategy officer noted a slight sequential increase in spot loads from Q3 to Q4, with expectations for further increases if demand improves [6] - The SONAR Outbound Tender Rejection Index indicates a strong spot market, reflecting increased freight activity [4] AI Integration - RXO faces challenges in convincing investors of its profitability improvements through AI, similar to C.H. Robinson, which has seen significant stock growth attributed to its AI initiatives [8]

RXO (NYSE:RXO) Q4 2025 Earnings call February 06, 2026 08:00 AM ET Company ParticipantsBrian Ossenbeck - Managing DirectorDrew Wilkerson - Chairman and CEOJamie Harris - CFOJared Weisfeld - Chief Strategy OfficerKen Hoexter - Managing DirectorLucas Severa - VP of Equity ResearchRavi Shankar - Managing DirectorStephanie Moore - Managing DirectorConference Call ParticipantsAri Rosa - AnalystMatt Milask - AnalystScott Group - Managing Director and Senior AnalystTom Wadewitz - Senior Equity Research AnalystOper ...

RXO (NYSE:RXO) Q4 2025 Earnings call February 06, 2026 08:00 AM ET Company ParticipantsBrian Ossenbeck - Managing DirectorDrew Wilkerson - Chairman and CEOJamie Harris - CFOJared Weisfeld - Chief Strategy OfficerKen Hoexter - Managing DirectorLucas Severa - VP of Equity ResearchRavi Shankar - Managing DirectorStephanie Moore - Managing DirectorConference Call ParticipantsAri Rosa - AnalystMatt Milask - AnalystScott Group - Managing Director and Senior AnalystTom Wadewitz - Senior Equity Research AnalystOper ...

RXO (NYSE:RXO) Q4 2025 Earnings call February 06, 2026 08:00 AM ET Speaker7Welcome to the RXO Q4 2025 earnings conference call and webcast. My name is Ina, and I will be your operator for today's call. Please note that this conference is being recorded. During this call, the company will make certain forward-looking statements within the meaning of federal securities laws, which by their nature involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially f ...

分组1 - RXO reported a quarterly loss of $0.07 per share, missing the Zacks Consensus Estimate of a loss of $0.04, and compared to earnings of $0.06 per share a year ago, representing an earnings surprise of -80.88% [1] - The company posted revenues of $1.47 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 0.85%, and down from $1.67 billion year-over-year [2] - RXO has surpassed consensus EPS estimates only once in the last four quarters and has not beaten consensus revenue estimates during the same period [2] 分组2 - RXO shares have increased by approximately 31.2% since the beginning of the year, while the S&P 500 has declined by 0.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.07 on revenues of $1.38 billion, and for the current fiscal year, it is $0.14 on revenues of $5.95 billion [7] 分组3 - The Zacks Industry Rank indicates that the Transportation - Services sector is currently in the top 30% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - RXO's estimate revisions trend was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]

Fourth Quarter 2025 Results February 6, 2026 Non-GAAP financial measures and forward-looking statements Non-GAAP financial measures We provide reconciliations of the non-GAAP financial measures contained in this presentation to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this presentation. The non-GAAP financial measures in this presentation include: adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA margin"); adjuste ...

RXO management in its third quarter earnings call, several weeks after the fourth quarter already had begun, said things were not going the way the brokerage would have desired. Several key numbers in RXO’s fourth quarter earnings released Friday morning backed that up. Various numbers showed just how tough the quarter was for RXO, the latest data in line with challenging results reported by standalone brokers and the brokerages within trucking companies. Those various results show what happens when the f ...

Exhibit 10.1 EXECUTION VERSION ASSET-BASED REVOLVING CREDIT AGREEMENT by and among RXO, INC. and CERTAIN SUBSIDIARIES OF RXO, INC. NAMED HEREIN as Borrowers, THE OTHER CREDIT PARTIES SIGNATORY HERETO, as Credit Parties, THE LENDERS SIGNATORY HERETO FROM TIME TO TIME, as Lenders, BANK OF AMERICA, N.A., as the Agent, BANK OF AMERICA, N.A. and CITIBANK N.A., as Joint Lead Arrangers and Joint Bookrunners BARCLAYS BANK PLC, WELLS FARGO BANK N.A., GOLDMAN SACHS BANK USA and MORGAN STANLEY SENIOR FUNDING, INC., as ...