RXO, Inc. Q2 2025 Earnings Recap

RXO's Q2 2025 performance exceeded expectations with adjusted EBITDA of $38 million, bolstered by strong growth in last mile and less than truckload segments despite a challenging freight market.

Key Takeaways

• Achieved adjusted EBITDA of $38 million, at the high end of guidance.
• Last mile services saw 17% year-over-year stop growth, continuing a trend of double-digit growth for four consecutive quarters.
• Less than truckload volume jumped 45%, significantly outperforming the overall market, which saw a decline.
• Adjusted free cash flow conversion was robust at 58%, improving the company's cash position.
• Continued integration of technology platforms is enhancing operational efficiency and is expected to be completed by Q3.