RXO(US:RXO)2025-11-06 11:32Revenue Performance - RXO reported third-quarter 2025 revenue of $1.4 billion, a 36.5% increase from $1.0 billion in the same quarter of 2024[3] - Total revenue for Q3 2025 was $1,421 million, a 36.6% increase from $1,040 million in Q3 2024[29] - Truck brokerage revenue reached $1,039 million in Q3 2025, up 58.6% from $655 million in Q3 2024[29] - Complementary services revenue was $442 million in Q3 2025, slightly up from $419 million in Q3 2024[34] - Total revenue for the nine months ended September 30, 2025, was $4.273 billion, a 48.3% increase from $2.883 billion in the same period of 2024[34] Profitability and Loss - The company experienced a GAAP net loss of $14 million in Q3 2025, significantly improved from a net loss of $243 million in Q3 2024[4] - Net loss for Q3 2025 was $14 million, significantly improved from a net loss of $243 million in Q3 2024[31] - Adjusted EBITDA for the quarter was $32 million, slightly down from $33 million in Q3 2024, with an adjusted EBITDA margin of 2.3% compared to 3.2% in the prior year[5] - Adjusted EBITDA for Q3 2025 was $32 million, with an adjusted EBITDA margin of 2.3% compared to 3.2% in Q3 2024[31] - Gross margin for Q3 2025 was $234 million, compared to $180 million in Q3 2024, reflecting a 30% increase[34] - Gross margin as a percentage of revenue decreased to 16.5% in Q3 2025 from 17.3% in Q3 2024[34] Operational Metrics - Brokerage volume growth was 1% year-over-year, driven by a 43% increase in less-than-truckload volume, although full truckload volume declined by 11%[6][7] - Last Mile service achieved a 12% year-over-year growth in stops, marking the fifth consecutive quarter of double-digit growth[6][8] - Cost of transportation and services for Q3 2025 was $1.137 billion, up from $809 million in Q3 2024, representing a 40.5% increase[34] - Direct operating expenses for Q3 2025 were $48 million, slightly down from $49 million in Q3 2024[34] Future Outlook - RXO expects fourth-quarter 2025 adjusted EBITDA to range between $20 million and $30 million, with a projected low-single-digit percentage decline in overall volume[9] - The company anticipates brokerage gross margin to be between 12% and 13% in Q4 2025, reflecting ongoing market tightness[9] - RXO's new cost initiatives are expected to yield over $30 million in incremental savings[6] - RXO, Inc. continues to focus on expanding its truck brokerage and complementary services to drive future growth[34] Balance Sheet Highlights - Cash and cash equivalents at the end of Q3 2025 were $26 million, down from $35 million at the end of Q4 2024[27] - Total assets decreased to $3,201 million in Q3 2025 from $3,414 million in Q4 2024[25] - Total current liabilities decreased to $907 million in Q3 2025 from $1,065 million in Q4 2024[25] - Long-term debt increased to $387 million in Q3 2025 from $351 million in Q4 2024[25] - The company reported a net cash provided by operating activities of $44 million for the nine months ended September 30, 2025, compared to a net cash used of $5 million for the same period in 2024[27] Business Acquisition Costs - Business acquisition costs amounted to $10 million in Q3 2025, a significant decrease from $1,019 million in Q3 2024[27]