Revenue growth accelerated to 25% year-over-year in 2026Q2, reaching $1.8B, yet operating margin remains razor-thin at 0.1% and net margin is -0.5%, indicating that the Coyote acquisition has boosted scale without delivering profitability.
RXO, Inc. (RXO) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 6.09B | 5.74B | 4.55B | 3.93B | 4.8B | 4.69B | 3.36B |
| Revenue Growth % | 9.53% | 26.2% | 15.86% | -18.12% | 2.28% | 39.68% | - |
| Cost of Goods Sold | 3.56B | 4.73B | 3.77B | 3.2B | 3.94B | 3.95B | 2.82B |
| COGS % of Revenue | - | 82.32% | 82.79% | 81.54% | 82.07% | 84.33% | 83.94% |
| Gross Profit | 2.53B | 1.01B | 783M | 725M | 860M | 735M | 539M |
| Gross Margin % | 41.57% | 17.68% | 17.21% | 18.46% | 17.93% | 15.68% | 16.06% |
| Gross Profit Growth % | - | 29.63% | 8% | -15.7% | 17.01% | 36.36% | - |
| Operating Expenses | 2.57B | 1.02B | 839M | 686M | 737M | 543M | 479M |
| OpEx % of Revenue | - | 17.8% | 18.44% | 17.47% | 15.37% | 11.58% | 14.27% |
| Selling, General & Admin | 397K | 832K | 0 | 0 | 640M | 539M | 455M |
| SG&A % of Revenue | - | 0.01% | - | - | 13.34% | 11.49% | 13.55% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 1.02B | 839M | 686M | 97M | 4M | 24M |
| Operating Income | -35M | -7M | -56M | 39M | 123M | 192M | 60M |
| Operating Margin % | -0.57% | -0.12% | -1.23% | 0.99% | 2.56% | 4.09% | 1.79% |
| Operating Income Growth % | - | 87.5% | -243.59% | -68.29% | -35.94% | 220% | - |
| EBITDA | 124M | 109M | 31M | 106M | 209M | 273M | 136M |
| EBITDA Margin % | 2.04% | 1.9% | 0.68% | 2.7% | 4.36% | 5.82% | 4.05% |
| EBITDA Growth % | 138.46% | 251.61% | -70.75% | -49.28% | -23.44% | 100.74% | - |
| D&A (Non-Cash Add-back) | 159M | 116M | 87M | 67M | 86M | 81M | 76M |
| EBIT | -127.99M | -80M | 30M | 67M | 220M | 191M | 57M |
| Net Interest Income | -27.01M | -35M | -30M | -32M | -4M | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 27.01M | 35M | 30M | 32M | 4M | 0 | 0 |
| Other Income/Expense | -88M | -108M | -248M | -35M | -4M | -1M | -3M |
| Pretax Income | -123M | -115M | -304M | 4M | 119M | 191M | 57M |
| Pretax Margin % | -2.02% | -2% | -6.68% | 0.1% | 2.48% | 4.07% | 1.7% |
| Income Tax | -18M | -15M | -14M | 0 | 27M | 41M | 14M |
| Effective Tax Rate % | 14.63% | 13.04% | 4.61% | 0% | 22.69% | 21.47% | 24.56% |
| Net Income | -105M | -100M | -290M | 4M | 92M | 150M | 43M |
| Net Margin % | -1.72% | -1.74% | -6.37% | 0.1% | 1.92% | 3.2% | 1.28% |
| Net Income Growth % | 65.91% | 65.52% | -7350% | -95.65% | -38.67% | 248.84% | - |
| Net Income (Continuing) | -105M | -100M | -290M | 4M | 92M | 150M | 43M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.62 | -0.59 | -2.17 | 0.03 | 0.79 | 1.30 | 0.37 |
| EPS Growth % | 72.05% | 72.81% | -6577.61% | -95.76% | -39.23% | 251.35% | - |
| EPS (Basic) | - | -0.59 | -2.17 | 0.03 | 0.79 | 1.30 | 0.37 |
| Diluted Shares Outstanding | 169.65M | 168.46M | 133.41M | 119.46M | 116.4M | 116.4M | 116.4M |
| Basic Shares Outstanding | 169.65M | 168.46M | 133.41M | 116.87M | 116.4M | 116.4M | 116.4M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying RXO stock.
For fiscal year 2025, RXO, Inc. (RXO) reported total revenue of $5.74B. This represents a 71.0% increase compared to $3.36B in 2020.
RXO, Inc. (RXO) reported a net loss of $100.0M for the fiscal year ending 2025.
RXO, Inc. (RXO) reported an operating income of $-7.0M, resulting in an operating profit margin of -0.1%. This margin reflects the operational efficiency of the business before interest and taxes.
RXO, Inc. (RXO) generated $1.01B in gross profit for the year, representing a gross profit margin of 17.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent negative margins and thin liquidity
Metrics are mathematically derived from official filings.
Volume Gains Outpace Freight Recession
Revenue grew 25% year-over-year in 2026Q2 to $1.8B, driven by the Coyote acquisition and brokerage share gains, though organic momentum appears mixed given prior quarters' declines.
The 25% YoY revenue growth in 2026Q2 marks a sharp acceleration from the -0.6% in 2026Q1, but this is largely inorganic, reflecting the Coyote Logistics acquisition. Excluding that, organic truckload volume grew only 2% per management commentary, suggesting the underlying market remains soft. The durability of this growth hinges on whether share gains can persist without further price concessions, as the 2025Q4 -11.9% decline shows the cyclicality of the base business.
Gross Margin Recovery Masks Structural Ceiling
Gross margin improved to 16.0% in 2026Q1 from 15.6% in 2024Q4, but remains below the 17.5% seen in mid-2024, indicating limited pricing power in a capacity-rich market.
The gross margin expansion from 15.6% to 16.0% suggests the buy-sell spread is stabilizing, but it is still well below the 17.5% recorded in 2024Q2 and Q3. This implies that RXO has not regained the pricing power it lost during the freight downturn, and the spread remains compressed due to excess carrier capacity. The 100% gross margin in 2026Q2 is a data artifact from missing COGS, so investors should rely on the 16% figure from the prior quarter as the true trend.
Operating Leverage Still Elusive
Operating income swung to a positive $1.0M in 2026Q2 from -$19.0M in 2026Q1, but the 0.1% operating margin remains near breakeven, suggesting fixed costs are not yet scaling with revenue.
Despite a 25% revenue surge, operating margin improved only to 0.1%, implying that incremental revenue is being absorbed by higher purchased transportation and integration costs. The SG&A-to-gross-profit ratio, though not fully disclosed, appears elevated given the $197K SG&A in 2026Q1 against $228M gross profit, which is negligible and likely a reporting anomaly. The path to meaningful operating leverage requires digital penetration to reduce headcount growth, but current data shows no evidence of that yet.
Net Losses Persist Despite EPS Beat
Net income remained negative at -$9.0M in 2026Q2, with diluted EPS of -$0.05, while stock-based compensation of $7.0M adds non-cash drag, underscoring that reported profitability is still elusive.
The -$0.05 EPS in 2026Q2, though better than the -$0.21 in 2026Q1, still reflects a net loss, and the $7.0M in stock-based compensation represents a real economic cost that is not captured in operating income. The 2024Q3 net loss of -$243.0M, likely driven by a one-time impairment or spin-off charge, distorts historical comparisons and should be excluded when assessing underlying earnings power. Investors should focus on gross profit as the true top-line metric, as headline revenue includes pass-through fuel and transportation costs.
Purchased Transportation Dominates Cost Base
COGS, primarily purchased transportation, consumed roughly 84% of revenue in 2026Q1, leaving a thin 16% gross margin that is highly sensitive to spot rate fluctuations and carrier capacity.
The cost structure is asset-light but variable, with purchased transportation as the largest expense, making gross margin the key swing factor. The 16.0% gross margin in 2026Q1 is below the 17.5% in 2024Q2, indicating that RXO has not fully passed through rate declines to shippers. Management's expense discipline appears focused on technology investment, but the near-zero SG&A figures in most quarters suggest either aggressive capitalization or incomplete data, warranting scrutiny of the 10-K.
Coyote Acquisition Reshapes Scale
The 2026Q2 revenue jump to $1.8B from $1.4B in 2026Q1 marks a clear inflection point, driven by the Coyote Logistics acquisition, which nearly doubled revenue but has yet to deliver profitability.
The acquisition of Coyote Logistics from UPS is the single most significant event in the income statement history, as it transformed RXO's revenue base from roughly $1.4B per quarter to $1.8B. However, the integration has not yet translated into operating leverage, with operating margin still at 0.1% and net margin at -0.5%. The lasting impact will depend on whether RXO can rationalize overlapping brokerage operations and achieve the cost synergies that justified the deal, which remains unproven.
Scale Without Profitability Is Unsustainable
Despite 25% revenue growth, RXO's operating margin of 0.1% and net margin of -0.5% suggest that the Coyote acquisition may be buying market share at the expense of pricing discipline, a key short-seller concern.
The persistent negative net margins, even after a major acquisition, indicate that RXO is prioritizing volume over profitability, which could lead to a prolonged period of value destruction if the freight market remains weak. The low cash balance of $18M against $5.7B in annualized revenue leaves minimal buffer for working capital swings, making the company reliant on credit facilities that may tighten if losses continue. The market's valuation of RXO on potential rather than earnings is risky, as any delay in margin recovery could trigger a re-rating.