RXO : Fourth Quarter 2025 Results

Fourth Quarter 2025 Results

February 6, 2026

Q4 2025 overview

1. Full-truckload market tightened significantly, squeezing Brokerage gross margin

2. Brokerage late-stage pipeline increased by more than 50% year-over-year

3. Managed Transportation awarded >$200M of freight under management

4. Continued investment in transformational AI capabilities

5. Finalized new ABL facility, increasing flexibility

   3

   Companywide results

   Revenue

   $1,667M

   $1,469M

   Q4 24

   Q4 25

   Gross margin

   $258M

   $217M

   Q4 24

   Q4 25

   14.8%

15.5%

Adjusted EBITDA1

$42M

$17M

Q4 24

Q4 25

1.2%

2.5%

RXO reported adjusted EBITDA of $17M

1 See the "Non-GAAP financial measures" section. 4

Last Mile

72%

Managed

Transportation

Excludes impact of eliminations.

Numbers may not add up to 100% due to rounding.

9%

Q4 revenue by service offering

20%

Truck Brokerage

Brokerage

• Volume: Down 4% y/y

  • LTL: Up 31% y/y, 26% of volume

  • TL: Down 12% y/y, 74% of volume

• TL volume mix: 72% contract, 28% spot

• Gross margin: 11.9%

• Productivity gains: +19%1

Quarterly performance across key service offerings

Complementary services

• Managed Trans. awarded >$200M of FUM

• Managed Trans. synergy loads increased y/y

• Last Mile stop growth of 3% y/y

• Gross margin: 20.2%

1 As measured by loads per person per day over the last twelve months. Brokerage headcount defined as customer and carrier representatives.

5

1 2 Volume

•

Introduced a new proprietary AI spot quote agent

• Enhanced tender decision automation and intelligence

• Implemented additional capabilities to support Intermodal shipping

  Margin

  •

  
  
  

  Expanded pricing tooling with enhanced forecast and bid management automation

  •

  
  
  

  Deployed side-by-side contract pricing model views for improved decision making

  •

  
  
  

  Launched capacity agent to systematically capture new coverage options

  3 4 Productivity

  •

  
  
  

  Released unified freight matching and carrier recommendation AI tool

  •

  
  
  

  Introduced agentic capacity sourcing and cargo security workflows

• Increased transactions automated via robotic process automation

Artificial Intelligence

Transactional automation

Service

•

Automated thousands of tracking updates via emerging agentic tooling

•

Delivered generative AI assistant to support customer sales and operations

• Rolled out dock scheduling capabilities on RXO Connect

6

New technology across four

key pillars

Committed to technology and AI investments with a strong ROIC

24%

increase in digital bids per carrier with new AI-based load recommendation in RXO Connect

RXO will lead the next decade of freight by arming expert people with best-in-class intelligence to solve problems before they happen, delivering a level of speed and flexibility that makes the old way of working unimaginable.

Deployed

agentic AI to enhance theft-prevention processes in high-risk cargo areas

Thousands

of customer tracking updates provided by leveraging agentic AI

7

Adjusted EPS bridge

	Earnings per share	Q4-25	Q4-24
GAAP diluted EPS	$(0.27)		$(0.15)

Amortization of intangible assets	0.07	0.10
Transaction, integration and restructuring costs	0.11	0.20
Goodwill impairment1	0.07	-
Income tax associated with adjustments above2	(0.05)	(0.09)
Adjusted diluted EPS3	$(0.07)	$0.06

RXO reported Q4 2025 adjusted diluted EPS of $(0.07)

1 Goodwill impairment associated with restructuring of express servicing offering within Managed Transportation business.

2 The tax impact of non-GAAP adjustments represents the tax benefit (expense) calculated using the applicable statutory tax rate that would have been incurred had these adjustments 8

been excluded from net loss. Our estimated tax rate on non-GAAP adjustments may differ from our GAAP tax rate due to differences in the methodologies applied.

3 See the "Non-GAAP financial measures" section.

Adjusted FCF walk1

• Solid FY'25 adj. conversion of 43% - driven by disciplined strategic capital deployment and favorable working capital

  • CapEx of $57M, below $65M-$75M outlook

  • Harmonized working capital processes across the organization

• Q4 ending cash balance of $17M

Remain confident with long-term conversion of 40%-60% across market cycles

Note: In millions.

1 Adjusted EBITDA and adjusted FCF are non-GAAP financial measures. See the "Non-GAAP financial measures" section.

2 Adjusted EBITDA excludes certain NEO spin-related stock-based compensation. 9

3 Purchases of property & equipment, net of proceeds.

Q4 capital structure snapshot

LTM Leverage1,2

3.1x

3.0x

Gross

Net

Capital structure	Q4 2025
Notes due 2027	$ 355
Finance leases, asset financing, ST debt & other	62
Total debt, principal balance & other	$ 417
Less: cash	17
Net debt1	$ 400

LTM leverage moved higher as profitability impacted by Brokerage gross margin squeeze

Note: In millions.

10

1 See the "Non-GAAP financial measures" section.

2 See appendix for leverage calculations.