10-Q · May 7, 2026
RXO reported Q1 2026 revenue of $1.425 billion, a slight decrease from $1.433 billion in Q1 2025, resulting in a larger net loss of $36 million compared to a $31 million loss the previous year. Operating margin remained…
Earnings analysis · 10-Q
RXO earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
RXO delivered strong revenue growth to $1.871 billion and positive GAAP diluted EPS of $0.02, while adjusted diluted EPS reached $0.09 and exceeded the high end of the company’s outlook. However, gross margin compressed…
Read full summary
RXO delivered strong revenue growth to $1.871 billion and positive GAAP diluted EPS of $0.02, while adjusted diluted EPS reached $0.09 and exceeded the high end of the company’s outlook. However, gross margin compressed to 14.6% from 17.0% in the prior quarter and 20.0% a year earlier, and the company incurred $7 million of transaction, integration, restructuring and other costs. The pending C.H. Robinson merger remains the dominant forward catalyst and risk, with a $175 million potential termination fee, regulatory conditions, and an expected closing in the first half of 2027.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.02
- Gross margin
- 14.6%
What stood out
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Revenue accelerated
Third-quarter revenue was $1.871 billion, up approximately 5.7% from $1.77 billion in Q2 2026 and approximately 31.8% from $1.42 billion in Q3 2025.
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Profitability turned positive
GAAP diluted EPS was $0.02, improving from a loss of $0.05 in Q2 2026 and a loss of $0.08 in Q3 2025. Adjusted diluted EPS was $0.09, exceeding the high end of management’s outlook.
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Revenue growth came with margin pressure
Gross margin fell to 14.6%, down from 17.0% in Q2 2026 and 20.0% in Q3 2025, indicating substantial margin compression despite higher revenue.
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Merger-related costs were material
The company recorded $7 million of transaction, integration, restructuring and other costs during the quarter, related to the pending C.H. Robinson transaction and related activities.
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Transaction remains the key catalyst
The filing states that the proposed C.H. Robinson merger is expected to close in the first half of 2027, subject to stockholder, regulatory and other closing conditions.
What to watch
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Merger completion risk
The merger agreement includes a $175 million termination fee under specified circumstances. Failure to complete the transaction could also negatively affect RXO’s stock price, customer and carrier relationships, and financial results.
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Limited strategic flexibility
MFN Partners LP beneficially owns approximately 19% of RXO’s outstanding common stock and has agreed to vote in favor of the merger, while the merger agreement restricts alternative acquisition proposals.
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Regulatory and timing uncertainty
The merger is subject to required antitrust clearances and other regulatory approvals, which could delay completion, impose conditions, or prevent closing. The transaction is expected to close in the first half of 2027, but the filing provides no assurance that this timing will be met.
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Ongoing transaction cost burden
RXO expects to incur substantial non-recurring legal, accounting, advisory, regulatory, employee-retention and severance-related expenses, including costs payable regardless of whether the merger is completed. The quarter already included $7 million of transaction, integration, restructuring and other costs.
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Severe gross-margin compression
Gross margin declined to 14.6% from 17.0% in the prior quarter and 20.0% in the prior-year quarter, creating earnings sensitivity even as revenue increased to $1.871 billion.
Management's outlook
No quantitative forward revenue or EPS guidance was provided in the filing. Management stated that the C.H. Robinson transaction is expected to close in the first half of 2027.
Earlier filings 4
10-Q · August 7, 2025
RXO reported Q2 revenue of $1,419 million, up $489 million (+52.6%) versus Q2 2024 ($930 million), driven primarily by truck brokerage. Despite top-line expansion, the company remains unprofitable (net loss of $9…
10-Q · May 7, 2025
RXO reported Q1 revenue of $1,433 million, up $520 million versus Q1 2024 ($913 million), driven by truck brokerage and last mile. Despite top-line growth, the company widened its operating loss to $(30) million…
10-K · February 27, 2025
RXO reported revenue of $4,550 million in 2024 but swung to a net loss of $(290) million (diluted EPS $(2.17)), driven by acquisition-related items and other expense. The company acquired Coyote Logistics for $1.048…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.