A middleman for freight: RXO connects businesses that need to ship goods with independent trucking carriers through its RXO Connect® digital platform, pricing each move by contract or one-time spot deal. It also runs outsourced load planning and the largest heavy-goods last-mile delivery service in the U.S. In September 2024 it bought Coyote from UPS to expand its technology-driven brokerage.
RXO revenue rose 25% to $1.77B on a 44% increase in truck brokerage rates, but gross margin fell to 17.0% as carrier costs outpaced pricing.
Truck brokerage rates turned sharply higher, but the benefit went to carriers, not the . rose 25% to $1.77 billion and reached $1 million, yet fell 4.2 points to 17.0% as tight capacity and regulatory changes pushed buy rates up faster than contractual sell rates. The company is moving more freight at higher prices but earning less on each load.
Key takeaways
Truck brokerage per load rose 44%, the largest increase since the company's spin-off, driving a $324 million revenue gain in the on 2% volume growth.
fell 4.2 percentage points to 17.0%, the lowest quarterly margin reported, as the cost of transportation and services rose to 83.0% of .
Higher fuel prices passed through to without meaningful gains, and tight capacity combined with regulatory changes pushed third-party carrier buy rates up faster than contractual sell rates.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 25% to $1.8B on higher truck brokerage rates and fuel prices, but margin compression and restructuring costs kept net loss flat at $9M.
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increased 25.0% to $1.8B, driven by a $324M rise in truck brokerage revenue from a 44% increase in revenue per load and a 2% volume gain, plus a $29M increase in last mile revenue.
expense fell $3 million to $211 million, or 11.9% of , as restructuring savings and offset the larger revenue base.
was $1 million, with a net loss of $9 million unchanged from a year ago, as $7 million in restructuring costs and $4 million in transaction and integration costs offset lower and .
was a $40 million use in the quarter, compared with $23 million provided a year earlier, as higher needs from growth consumed cash.
What changed
The 44% increase in truck brokerage per load is a clear inflection from the rate declines that defined the prior two years, but the benefit was captured by third-party carriers rather than flowing to — the fell to 17.0% from 21.2% a year ago.
Last mile added $29 million, returning to growth after a $13 million decline in Q1 2026, though the filing does not specify the volume change.
as a percentage of fell to 11.9% from 15.1% a year ago, as the restructuring program flagged in earlier quarters delivered measurable savings — restructuring costs themselves declined from $14 million in Q1 2025 to $7 million this quarter.
turned negative at -$40 million, reversing the $23 million provided a year ago, as the increase drove higher needs — a reversal from the positive cash generation trend that had been building through FY2025.
What to watch
Whether contractual sell rates can be reset to widen the spread against buy rates and lift back above 20%, now that truck brokerage per load has risen 44%.
Whether the $7 million in quarterly restructuring costs represents the tail end of the program, and whether as a percentage of can hold near 11.9% or improve further.
Whether can return to positive territory in Q3 2026, after a $47 million use in the first half, given the demands of higher .
The trajectory of last mile , which returned to growth this quarter — whether it can sustain that growth to offset continued margin pressure in truck brokerage.
rose to 83.0% of from 78.8%, as tight capacity and regulatory changes pushed buy rates up faster than contractual sell rates, and higher fuel prices passed through without meaningful gains.
fell $3M to $211M (11.9% of vs. 15.1%) due to restructuring savings and improved , while rose $6M to $53M but declined as a percentage of revenue.
was breakeven at $1M, with net loss unchanged at $9M, as lower and were offset by , $7M in restructuring costs, and $4M in transaction and integration costs.
Net cash used in operating activities was $47M for the first half of 2026, compared with $21M provided a year earlier, driven by higher needs from growth.
The company issued $400M in 6.375% Notes due 2031 and redeemed its 7.50% Notes due 2027, recording an $11M ; $335M remained available under the new ABL Facility at quarter-end.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risk related to changes in foreign currency exchange rates, commodity prices, interest rates and the price of diesel fuel purchased for use by third-party carriers who perform the physical freight movements we arrange. There have been no material changes…
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We are exposed to market risk related to changes in foreign currency exchange rates, commodity prices, interest rates and the price of diesel fuel purchased for use by third-party carriers who perform the physical freight movements we arrange. There have been no material changes to our quantitative and qualitative disclosures about market risk related to our continuing operations during the quarter ended June 30, 2026, as compared with the quantitative and qualitative disclosures about market risk described in the 2025 Form 10-K.
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Table of Contents
See Note 9—Commitments and Contingencies to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for a description of our legal proceedings.
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See Note 9—Commitments and Contingencies to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for a description of our legal proceedings.
For a discussion of our potential risks and uncertainties, see the information under the heading “Risk Factors” in the 2025 Form 10-K. There have been no material changes with respect to these risk factors.
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For a discussion of our potential risks and uncertainties, see the information under the heading “Risk Factors” in the 2025 Form 10-K. There have been no material changes with respect to these risk factors.