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RXO's Q3 total revenue increased 36.6% to $1.42 billion from $1.04 billion. (City of Charlotte)

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RXO experienced an increase in revenue and narrowed its loss in the midst of ongoing market challenges during the third quarter of 2025, the company reported Nov. 6.

The Charlotte, N.C.-based asset-light transportation provider posted a net loss of $14 million, or negative 8 cents a diluted share, for the three months ending Sept. 30. That compared with a loss of $243 million, negative 81 cents, during the same time the previous year. Total revenue increased 36.6% to $1.42 billion from $1.04 billion.

RXO’s earnings report highlighted that buy rates and brokerage gross margins were both impacted during the quarter as market conditions tightened and truckload capacity exits accelerated. The company also experienced further weakening of demand as the quarter progressed. Both of these dynamics have continued into the fourth quarter.

“Although we’re in a challenging market environment, and we’re not satisfied with our near-term performance, we’ve taken decisive strategic actions,” CEO Drew Wilkerson said during a call with investors. “We remain focused on what has made us so successful over the past decade-plus. We provide exceptional service, a comprehensive set of solutions, cutting-edge technology and deep customer relationships. All of this provides RXO with a unique algorithm for long-term growth.”

Meanwhile, the Federal Motor Carrier Safety Administration has pursued stricter compliance measures to ensure truck drivers are being safe. These steps have included more aggressive English-proficiency checks and stricter standards for non-domiciled commercial driver licenses. Wilkerson said this should improve the issue of excess capacity.

“If the regulatory changes hold and enforcement continues, we believe a significant amount of truckload capacity will permanently exit the market,” Wilkerson said. “This will help improve the overall safety of the industry as well as help combat theft and fraud. This has the potential to be one of the largest structural changes to truckload supply since deregulation and could result in a higher for longer freight environment.”

Wilkerson said the company is well positioned to capitalize on that shift if it occurs because of its large scale as a brokerage transportation provider. But he still noted that an increase in demand for goods is needed for a sustained freight market recovery. He noted that demand trends weakened throughout the third quarter and remain below typical seasonality.

“I remain extremely confident in RXO’s ability to deliver outsize earnings growth over the long term because of five things: our improved cost structure, larger scale, continued focus on profitable growth, best-in-class technology and ability to generate cash,” Wilkerson said. “First, our much more efficient cost structure will provide us with significant operating leverage when the market improves. Second, we have a much larger scale. Scale is a differentiator in brokerage.”

Segment Breakdown

Truck brokerage revenue increased 58.6% to $1.04 billion from $655 million during the same time last year. RXO noted that volume increased 1% year over year in the third quarter. Both Q3 2025 and Q3 2024 were impacted by the Coyote Logistics acquisition. Less-than-truckload volume increased 43%, but this was partially offset by an 11% decline in full truckload volume.

Complementary services revenue increased 5.5% to $442 million from $419 million. The earnings report noted that managed transportation increased its sales pipeline and the synergy loads provided to brokerage. Last-mile stops grew 12% year over year. RXO said its complementary services gross margin was 21.3% for the quarter.

RXO ranks No. 16 on the Transport Topics Top 100 list of the largest logistics companies in North America.

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