RXO Reports Q4 Declines Amid 'Tightening in Freight Market'

Logistics provider sees revenue rise for fiscal year but net loss and adjusted EBITDA fall in Q4 2025.

Published on Feb. 6, 2026

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RXO, a provider of asset-light transportation solutions, managed transportation, and last-mile delivery, reported declines in its fourth-quarter 2025 results, with revenue down year-over-year and net loss and adjusted EBITDA falling. The company cited 'tightening in the freight market' as the primary driver of the Q4 performance, which impacted buy rates and squeezed Brokerage gross margin. However, RXO noted significant sales momentum, with its Brokerage late-stage pipeline for new business growing by more than 50% year-over-year and its Managed Transportation business awarded more than $200 million of freight under management in the quarter.

Why it matters

RXO's performance reflects broader trends in the logistics and freight industry, where capacity constraints and market tightening have put pressure on providers. As a major player in the furniture and other sectors, RXO's results offer insights into the challenges facing the broader supply chain. The company's ability to navigate these headwinds and leverage its technology investments will be crucial to its long-term success.

The details

RXO reported Q4 2025 revenue of $1.469 billion, down from $1.667 billion in the same period the previous year. For the full fiscal year, revenue improved to $5.742 billion, up from $4.550 billion in 2024. However, the company reported a Q4 net loss of $46 million, compared to a $25 million net loss in Q4 2024. Adjusted net loss for the quarter was $11 million, compared to adjusted net income of $10 million in the prior-year quarter. Adjusted EBITDA fell to $17 million, down from $42 million in Q4 2024.

  • RXO reported results for the fourth quarter ended December 31, 2025.
  • For the full fiscal year 2025, RXO reported revenue and financial results.

The players

RXO

A provider of asset-light transportation solutions, managed transportation, and last-mile delivery services for a number of industries including furniture.

Drew Wilkerson

Chairman and CEO of RXO.

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What they’re saying

“In the fourth quarter, tightening in the freight market accelerated, driven by continued reductions in truckload capacity. This impacted our buy rates and squeezed our Brokerage gross margin.”

— Drew Wilkerson, Chairman and CEO (furnituretoday.com)

“The Brokerage late-stage pipeline for new business grew by more than 50% year-over-year, and our Managed Transportation business was awarded more than $200 million of freight under management in the fourth quarter.”

— Drew Wilkerson, Chairman and CEO (furnituretoday.com)

What’s next

RXO expects adjusted EBITDA to be between $5 million and $12 million in the first quarter of 2026. The company also forecasts a 5% to 10% year-over-year decline in Brokerage volume and a gross margin between 11% and 13% in that segment.

The takeaway

RXO's fourth-quarter results highlight the challenges facing logistics providers amid tightening freight market conditions, but the company remains optimistic about its long-term prospects, citing technology investments and a new lending facility that will provide financial flexibility.