First look: RXO’s Q2 revenue declined, but gross margin improved

Here are some highlights of RXO’s second-quarter earnings report, released Wednesday:

• RXO’s revenue in the second quarter dropped to $930 million from $963 million a year earlier, but its gross margin improved to 19%, up from 18.6% in the second quarter of 2023. It still had a GAAP loss of $7 million, though that included $11 million in one-off costs. Adjusted net income in the quarter was $4 million, compared to $10 million a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization was $28 million, down from $38 million a year earlier.
• Brokerage volume at RXO (NYSE: RXO) was up 4% year over year from the second quarter of 2023. That included a 40% increase in LTL volume, white full truckload was down 2%.
• The Managed Transportation segment picked up more than $200 million in freight under management during the quarter.

• Last-mile stops were up 7%, which RXO said was the fastest growth rate in almost two years.
• The earnings report does not include Coyote Logistics, the acquisition of which was announced in late June. RXO said at the time it expected the deal to be immediately accretive to earnings.
• The company’s conference call is at 8 a.m. Wednesday.

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