RXO (RXO) Q1 2026 earnings summary

Executive summary

• Freight market recovery is underway, driven by supply-side tightening, improved spot mix, and sequential gains in full truckload volume, despite soft demand and severe weather impacts in Q1.

• Managed Transportation secured over $100 million in new freight under management, with a $200 million pipeline expansion.

• Accelerated deployment of agentic AI tools and proprietary technology improved volume, margin, productivity, and service.

• Asset-light model leverages technology across truck brokerage, managed transportation, and last mile services.

• Positioned for a multi-year recovery as capacity exits the market and contract rates rise.

Financial highlights

• Q1 2026 revenue was $1,425 million, flat year-over-year; gross margin declined to 14.2% from 16.0%; adjusted EBITDA was $6 million, down from $22 million.

• Net loss for Q1 2026 was $36 million, compared to $31 million in Q1 2025; adjusted diluted loss per share was $0.09.

• Brokerage revenue was $1,097 million; Last Mile $265 million; Managed Transportation $123 million.

• Severe weather negatively impacted gross margin and EBITDA by ~$3 million, mainly in Last Mile.

• Adjusted free cash flow for Q1 2026 was $6 million; cash and cash equivalents at quarter-end were $21 million; net leverage at 3.7x.

Outlook and guidance

• Q2 2026 adjusted EBITDA expected between $27 million and $37 million, reflecting strong contribution margins from volume and price.

• Brokerage, TL, and LTL volumes expected to be approximately flat year-over-year in Q2; truckload volume to outperform market by mid-year.

• Contract rates now expected to increase by a high-single-digit percentage for the full year.

• CapEx to decline ~30% in H2 2026; full-year capital expenditures projected at $50M–$55M.

• Management expects existing liquidity and capital resources to be sufficient for operations over the next 12 months and beyond.