RXO (NYSE: RXO) Q4 Earnings Show Widening Freight Margin Pressures and Q1 Outlook Downturn

RXO (NYSE: RXO) reports Q4 adjusted EBITDA of $17 million, down from $32 million in Q3 and $42 million in Q4 2024; margins contracted to 1.2% from 2.3% in Q3 and 2.5% in Q4 2024. GAAP net loss was $46 million in Q4, versus $25 million in Q4 2024 and $14 million in Q3. Q1 guidance: adjusted EBITDA $5–$12 million and gross margin 11%–13%, down from 14.8% in Q4. Freight market tightness drove higher buy rates and squeezed margins: Q4 revenue $1.47 billion (+3.5%) vs transportation costs up 5.2% to $1.2 billion. Brokerage volume to decline 5%–10% YoY; LTL up 31%, truckload down 12%. Management replaced a $600 million unsecured revolver with a $450 million asset-based facility in Q1.