RXO (NYSE: RXO) reported second-quarter 2026 revenue of $1.774 billion, up about 25% from $1.419 billion a year earlier, while adjusted diluted EPS rose to $0.06 from $0.04 and the GAAP diluted loss remained $0.05 per share. Brokerage volume grew 2%, and a higher truckload spot mix helped increase gross profit per load by 11% sequentially. However, companywide gross margin and adjusted EBITDA margin both declined, while operating cash flow remained negative for the first half of the year.
Core financial results
Revenue growth did not translate into higher gross-margin dollars. Companywide gross margin declined to $247 million from $252 million, with the margin rate falling 390 basis points to 13.9%.
GAAP net loss was unchanged at $9 million. The quarter included $13 million of transaction, integration, restructuring and other costs, while adjusted net income increased to $10 million from $7 million.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Revenue | $1.774 billion | $1.419 billion | Approximately +25% |
| Gross margin dollars / rate | $247 million / 13.9% | $252 million / 17.8% | Approximately -2% / -390 bps |
| Operating income | $1 million | $0 million | Up $1 million |
| GAAP net loss | $9 million | $9 million | Unchanged |
| GAAP diluted loss per share | $0.05 | $0.05 | Unchanged |
| Adjusted net income | $10 million | $7 million | Approximately +43% |
| Adjusted diluted EPS | $0.06 | $0.04 | +50% |
| Adjusted EBITDA / margin | $40 million / 2.3% | $38 million / 2.7% | Approximately +5% / -40 bps |
Business and segment performance
Truck brokerage accounted for most of the revenue increase. Brokerage volume rose 2%, including 2% growth in truckload volume and 3% growth in less-than-truckload volume. Full truckload volume improved each month during the quarter.
Truckload spot activity represented 42% of volume, up from 33% in the first quarter and 1,500 basis points year over year. Management attributed the 11% sequential increase in gross profit per load—the largest such increase in four years—primarily to the higher spot mix.
| Service or metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Truck brokerage revenue | $1.349 billion | $1.025 billion | Approximately +32% |
| Last Mile revenue | $344 million | $315 million | Approximately +9% |
| Managed Transportation revenue | $144 million | $142 million | Approximately +1% |
| Brokerage gross margin dollars / rate | $144 million / 10.7% | $148 million / 14.4% | Approximately -3% / -370 bps |
| Complementary Services gross margin dollars / rate | $103 million / 21.1% | $104 million / 22.8% | Approximately -1% / -170 bps |
Within Complementary Services, Last Mile stops increased 3% because of market-share gains. Managed Transportation was awarded approximately $100 million of additional freight under management during the quarter.
Higher brokerage revenue did not prevent margin compression
The central issue in the quarter was the divergence between revenue and gross-margin performance. Revenue increased about 25%, but transportation and service costs rose about 32% to $1.472 billion. Direct operating expense also increased to $53 million from $47 million, leaving companywide gross-margin dollars slightly below the prior-year level.
Lower selling, general and administrative expense provided a partial offset, declining to $211 million from $214 million. This helped RXO produce $1 million of GAAP operating income and increase adjusted EBITDA by $2 million, even as the adjusted EBITDA margin contracted to 2.3%.
Cash flow and balance sheet
Cash-flow figures were provided for the six months ended June 30 rather than for the second quarter alone. First-half operating cash flow was negative $47 million, compared with positive $21 million in the same period of 2025. Accounts receivable generated a $223 million cash outflow, partly offset by a $179 million cash inflow from accounts payable. Capital expenditures were $29 million in both periods.
RXO ended June with $15 million of cash and cash equivalents, compared with $17 million at the end of 2025. Short-term debt and current maturities increased to $36 million from $17 million, while long-term debt and finance-lease obligations rose to $459 million from $387 million. Accounts receivable increased to $1.444 billion as revenue expanded.
Third-quarter outlook
RXO expects continued positive Brokerage trends in the third quarter. The adjusted EBITDA range centers on the second quarter’s $40 million result, while the operating outlook calls for higher year-over-year volume and a sequential improvement in truckload gross profit per load.
| Metric | Q3 2026 outlook | Comparison basis |
|---|---|---|
| Adjusted EBITDA | $35 million–$45 million | Q2 2026 actual: $40 million |
| Brokerage volume | Low-to-mid-single-digit growth | Year over year |
| Truckload gross profit per load | Increase | Sequential |
The company did not provide a GAAP reconciliation for the adjusted EBITDA outlook because of the variability and complexity of the excluded items.
Recent insider transaction
Most entries in the supplied insider summary lacked a disclosed transaction type or value. One purchase had sufficient details to report, but the transaction alone does not establish the insider’s view of RXO’s prospects.
| Date | Insider | Transaction | Price | Reported value |
|---|---|---|---|---|
| Feb. 12, 2026 | MFN Partners LP | Purchase | $12.00 per share | $6,387,312 |
Risks investors should monitor
- Margin pressure: Revenue increased substantially, but gross-margin dollars declined and both major business groupings reported lower margin rates.
- Freight recovery execution: Management described the market recovery as being in its early stages. Third-quarter results depend on anticipated Brokerage volume growth and better truckload gross profit per load.
- Cash conversion: First-half operating cash flow was negative as the increase in accounts receivable outweighed much of the benefit from higher accounts payable.
- GAAP profitability: RXO remained loss-making on a GAAP net-income basis, and transaction, integration, restructuring and other costs continued to affect reported earnings.
Summary
RXO’s second-quarter revenue growth was led by truck brokerage, while increased spot activity supported sequential improvement in gross profit per load. Those gains were not enough to prevent companywide margin compression, although lower SG&A expense helped adjusted EBITDA rise modestly. The next points to watch are whether Brokerage volume and per-load profitability continue improving in the third quarter and whether revenue growth begins to produce better cash conversion and margin performance.
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