RXO suffers $31 million loss in Q1 2025 despite growth in brokerage volume

In Charlotte, North Carolina, on May 7, 2025, RXO announced its financial results for the first quarter of 2025, highlighting both challenges and growth within the company. The report indicated a GAAP net loss of $31 million, a significant decline compared to the $15 million net loss reported during the same period in 2024. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved to $22 million this quarter from $15 million last year. These figures suggest that despite facing financial setbacks, RXO is experiencing notable growth in specific segments of its business. The growth in RXO's less-than-truckload brokerage volume was reported at 26% year-over-year, showcasing the company's ability to expand its operations even amidst losses. Last Mile services also saw a commendable 24% stop growth year-over-year, indicating strong demand in this area. However, this growth was contrasted with a 1% decline in the overall brokerage volume, directly affected by the company's integration of Coyote Logistics, which also contributed to the various challenges faced. Furthermore, RXO’s adjusted net loss was $5 million for the quarter, a slight increase from the $4 million adjustment in the previous year. The adjusted EBITDA margin fell marginally to 1.5% from 1.6%, reflecting the ongoing impact of transactional and integration costs associated with the company's expansion efforts. Despite these figures, RXO continues to pursue key strategies to manage costs and enhance operational performance to stabilize and improve profitability going forward. The company is committed to addressing challenges such as pricing pressures and the ongoing integration process with Coyote Logistics. Future success will largely depend on RXO's ability to navigate competitive market conditions and the fluctuating external factors that influence operational efficiency. To this end, the management expresses cautious optimism about the potential cash synergies and strategic advantages gained through the integration, which could ultimately lead to an enhanced service offering and improved financial outcomes in the coming quarters.