| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 30 | — | 17.8x | Bottom tier | |
Growth | 53 | 9.5% | 7.1% | Around median | |
Quality | 34 | -2.4% | 4.5% | Bottom tier | |
Safety | 41 | 11.8x | 2.6x | Around median | |
Capital Return | 17 | — | 2.12% | Bottom tier | |
Momentum | 58 | 23.8% | 2.9% | Around median | |
Sentiment | 70 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
RXO operates in asset-light logistics, generating revenue primarily from freight brokerage, managed transportation, last mile, and middle mile solutions. In Q1 FY2026, brokerage generated $1.1 billion and accounted for 74% of total revenue, while complementary services generated $388 million and accounted for 26%; within complementary services, managed transportation revenue was $123 million and last mile revenue was $265 million. The company relies on its carrier network, customer relationships, and technology to price loads, match them with carriers, and manage freight operations across their various stages.
In Q2 FY2026, revenue increased 25% year over year to $1.77 billion, but gross margin declined to 17% from 21.2% a year earlier, showing that business growth did not fully translate into improved profitability. The latest available EDGAR statements, for Q1 FY2026, reported revenue of $1.4 billion, a net loss of $36 million, and negative earnings per share of $0.21; gross margin was also 14.2% according to the earnings call, and the company recorded adjusted earnings before interest, taxes, depreciation, and amortization of $6 million.
Q1 FY2026 performance was mixed across business lines: brokerage revenue increased 3% year over year, but brokerage volume declined 8%, as full truckload volume fell 12% versus 5% growth in less-than-truckload shipments. Complementary services revenue declined 7%, with managed transportation down 10%, last mile down 5%, and last mile stops down 8%, while weather negatively affected results by approximately $3 million, mostly in the last mile business.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on RXO is Neutral, with an average price target of $25.91, a high of $35, and a low of $18. The average target is approximately 13% below the 52-week high of $29.9, while the wide gap between the $18 and $35 targets reveals significant disagreement over the pace of margin and earnings recovery; the net loss of $105 million during the twelve months ended in FY2026 also makes the price-to-earnings ratio unavailable and limits the usefulness of valuation based on current earnings.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
RXO generates most of its revenue from freight brokerage, along with managed transportation, last mile, and middle mile solutions. In Q1 FY2026, brokerage generated $1.1 billion and accounted for 74% of total revenue, compared with $388 million from complementary services, which accounted for 26%. Within complementary services, managed transportation generated $123 million and last mile generated $265 million, while the middle mile service leverages RXO's carrier network and facilities to integrate the first, middle, and last miles.
Q2 FY2026 revenue increased 25% year over year to $1.77 billion, while full truckload volume grew 2%. However, gross margin declined to 17% from 21.2% a year earlier, meaning that higher revenue was accompanied by greater transportation and operating cost pressure. In Q1 FY2026, higher freight rates, length of haul, fuel, and spot mix were among the factors that increased brokerage revenue, while fuel passed through to customers does not produce a comparable increase in gross profit.
Spot market share in Q1 FY2026 increased by 500 basis points quarter over quarter and 600 basis points year over year, then reached 35% of the full truckload mix in April 2026. This helped increase gross profit per full truckload by 9% quarter over quarter in Q1 FY2026, and Q2 FY2026 news showed a sequential increase of 11%. On the May 7, 2026 call, management raised its FY2026 contract-rate growth forecast to a high-single-digit percentage, compared with a low- to mid-single-digit percentage previously.
Agentic AI tools completed more than 500 thousand calls during Q1 FY2026, although management described this as a low percentage of total calls. The number of digitally priced full truckloads increased 30% quarter over quarter, while digital carrier offers rose approximately 15%. Management reported that employees using the spot-pricing tool achieved 15% higher volume and that productivity measured by loads per employee per day increased 15% during the twelve months preceding the May 7, 2026 call.
The company recorded a net loss of $36 million in Q1 FY2026, and the loss for the twelve months ended in FY2026 was approximately $105 million. Adjusted free cash flow was negative $15 million in Q1 FY2026, with net leverage of 3.7 times and available liquidity of $386 million. In Q2 FY2026, gross margin declined to 17% from 21.2% a year earlier, and August 8, 2026 news indicated continued negative operating cash flows and higher long-term debt.
The analyst consensus rates the stock Neutral, with an average price target of $25.91. The target range extends from $18 to $35, compared with a 52-week range of $10.425 to $29.9, reflecting wide variation in analyst estimates. The average target is approximately 13% below the 52-week high, while the net loss during the twelve months ended in FY2026 prevents the use of a positive price-to-earnings ratio to anchor the valuation to current earnings.
