RXO Posts Solid Q3 Profits Ahead of C.H. Robinson Acquisition

RXO delivered its third quarter earnings showing strong momentum across core metrics, with revenue reaching $1.9 billion (up 36% year-over-year) and adjusted EBITDA of $51 million, surpassing the company's prior guidance of $35-45 million. The company achieved profitability for a second consecutive quarter with adjusted net income of 2 cents per share, marking a meaningful turnaround after years of inconsistent earnings. This performance is particularly noteworthy given RXO's pending acquisition by C.H. Robinson, which is expected to complete and will combine two major North American freight brokers.

The earnings reveal strategic shifts driving improved operational efficiency. The truckload segment saw spot market volume climb to 51% of mix (up from 42% sequentially), yielding the largest sequential gross profit per load growth in over four years. Meanwhile, last-mile and LTL segments both posted volume gains of 5% and 2% year-over-year respectively. However, company-wide gross margin compressed to 14.6% from 16.5% year-ago, though this improved from Q2's 13.9%, suggesting pricing pressures persist despite the uptick in higher-margin spot market freight.

For supply chain and logistics professionals, this earnings report signals several critical trends: the resilience of freight brokerage models during market transitions, the strategic value of last-mile capabilities (which C.H. Robinson specifically highlighted as a driver for the acquisition), and the importance of spot market positioning as a margin driver. The fact that RXO exceeded guidance while operating as a transitional entity demonstrates operational continuity and management credibility entering the merger phase.