NYSE$RXO

RXO Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

RXO executed well in a soft freight market, gained market share, and maintained strong margins.

RXO reported a revenue of $1.0 billion for Q2 2023, with a net income of $3 million. The company's brokerage business experienced a 10% year-over-year volume growth. Companywide gross margin was 18.6 percent and brokerage gross margin was 15.4 percent.

  • Brokerage volume increased 10 percent year-over-year.
  • Companywide gross margin of 18.6 percent.
  • Brokerage gross margin of 15.4 percent.
  • 96 percent of RXO’s orders in the quarter were created or covered digitally.

Headline financials

Total Revenue

$963M

Previous: $322M+199.1%
EPS (adj)

$0.08

Previous: $0.38-78.9%
Companywide Gross Margin

18.6%

No prior period
Brokerage Gross Margin

15.4%

No prior period
Adjusted EBITDA

$38M

Previous: $101M-62.4%
Adjusted EBITDA Margin

3.9%

Previous: 8.2%-52.4%
Brokerage Volume Change

10.0%

No prior period
Capital Expenditures

-$28M

Previous: $12M-333.3%
Free Cash Flow

-$25M

Previous: $62M-140.3%
Net Income

$3M

Previous: $44M-93.2%
Operating Income

$14M

Previous: $58M-75.9%
Gross Profit

-$723M

Previous: $322M-324.5%
Cash & Equivalents

$124M

Previous: $212M-41.5%
Total Assets

$1.91B

No prior period
Stock-Based Comp

$6M

Previous: $4M+50.0%

Revenue & EPS history

RXO · Revenue · Quarterly

$963M

Q2 2023+199.1%vs Q2 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

RXO · $930M total across 3 segments · Q2 2023

  • Truck Brokerage
    $557M
  • Last Mile
    $261M
  • Managed Transportation
    $112M

Forward guidance

The company expects brokerage volumes to continue to grow on a year-over-year basis in the third quarter of 2023.

Tailwinds

  • Brokerage volumes are expected to continue to grow year-over-year.
  • Brokerage sales pipeline remains strong.
  • Annual bid count increased by 23 percent year-over-year in the second quarter.
  • RXO’s last mile business grew EBITDA year-over-year in the second quarter.
  • The company continues to expect to grow full-year last mile EBITDA year-over-year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 16 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-1.8%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-1.0%

Avg return

30 days after

47%

9 / 19 earnings

Positive

+9.6%

Q4 2022

Best reaction

-23.1%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.9%+2.0%+36.9%
Q4 2025+1.9%-1.5%-17.1%
Q3 2025-23.1%-30.9%-18.1%
Q1 2025-5.6%+17.4%+16.5%
Q4 2024-14.9%-14.9%-21.6%
Q3 2024-6.6%-12.9%-10.5%
Q2 2024-3.4%-5.8%-10.5%
Q1 2024+7.4%+9.1%+7.4%
Q4 2023-9.8%-4.6%-7.0%
Q3 2023-5.1%-1.4%+14.6%
Q2 2023-10.4%-8.3%-16.7%
Q1 2023+3.5%+4.9%+19.3%
Q1 2022+3.5%+4.9%+19.3%
Q4 2020-0.9%-1.9%-9.7%
Q2 2022-0.9%-1.9%-9.7%
Q4 2022+9.6%+4.6%+3.8%
Q3 2021+3.7%-1.3%-5.6%
Q4 2021+3.7%-1.3%-5.6%
Q3 2022+3.7%-1.3%-5.6%
Q2 2021
Q1 2021

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