RXO(US:RXO)2025-11-06 21:14Revenue Performance - Revenue for the third quarter of 2025 increased by 36.6% to $1.421 billion, compared to $1.040 billion in the same quarter of 2024, driven by a $384 million increase in truck brokerage revenue due to the Coyote acquisition[86]. - Revenue increased by 48.2% to $4.3 billion in the first nine months of 2025, compared to $2.9 billion in the same period of 2024[95]. Cost and Expenses - Cost of transportation and services in the third quarter of 2025 was $1.137 billion, or 80.0% of revenue, up from $809 million, or 77.8% of revenue in the same quarter of 2024, primarily due to a full quarter of Coyote activity[87]. - Cost of transportation and services was $3.4 billion, or 79.8% of revenue, in the first nine months of 2025, up from $2.2 billion, or 76.6% of revenue, in 2024[96]. - Direct operating expenses decreased by 2.0% to $48 million in the third quarter of 2025, representing 3.4% of revenue, down from 4.7% in the same quarter of 2024, attributed to cost reduction initiatives[88]. - Direct operating expense decreased by $9 million, or 5.9%, to $143 million, representing 3.3% of revenue in 2025 compared to 5.3% in 2024[97]. - SG&A expenses increased by 39.6% to $208 million in the third quarter of 2025, representing 14.6% of revenue, compared to 14.3% in the same quarter of 2024, mainly due to a full quarter of Coyote activity[89]. - SG&A expenses increased by $184 million, or 41.1%, to $632 million, but as a percentage of revenue decreased to 14.8% from 15.5%[98]. - Depreciation and amortization expense rose to $26 million in the third quarter of 2025, compared to $21 million in the same quarter of 2024, reflecting an increase from Coyote activity[90]. - Depreciation and amortization expense rose to $88 million in 2025 from $54 million in 2024, largely due to the Coyote acquisition[99]. Financial Performance - The net loss for the third quarter of 2025 was $14 million, compared to a net loss of $243 million in the same quarter of 2024, indicating improved financial performance[85]. - Net cash provided by operating activities was $44 million in the first nine months of 2025, compared to a net cash used of $5 million in the same period of 2024[109]. - Net cash used in investing activities decreased significantly to $56 million in 2025 from $1.1 billion in 2024, primarily due to the Coyote acquisition in 2024[110]. Taxation - The effective income tax rate for the third quarter of 2025 was 9.2%, compared to (0.4)% for the same quarter in 2024, influenced by nondeductible expenses during a pre-tax loss[93]. - The effective income tax rate for the first nine months of 2025 was 16.0%, compared to 2.2% for the same period in 2024[102]. Acquisition and Integration - The company acquired Coyote for $1.038 billion in cash, with an additional $10 million for working capital adjustments, enhancing its truckload freight brokerage services[78]. - Transaction and integration costs decreased significantly to $5 million in the third quarter of 2025 from $30 million in the same quarter of 2024, with costs related to the Coyote acquisition included[91]. Assets and Liabilities - Total current assets decreased by 10.3% to $1.2 billion as of September 30, 2025, from $1.3 billion at the end of 2024[108]. - Total liabilities decreased by $181 million from December 31, 2024, to September 30, 2025, primarily due to a decrease in third-party transportation costs[108]. Service Positioning - The last mile service is positioned within 125 miles of the majority of the U.S. population, serving a customer base of omnichannel and e-commerce retailers[77].