By Elias Schisgall

Shares of RXO fell after the company said a tighter freight market weighed on its fourth-quarter earnings, bringing revenue down year-over-year.

Shares were down 7.7% to $15.30 in pre-market trading Friday. The stock has lost 23% over the past year.

The transportation company posted a loss of $46 million, or 27 cents a share, compared with a loss of $25 million, or 15 cents a share, a year earlier.

On an adjusted basis, the company's loss came out to 7 cents a share. Analysts polled by FactSet were expecting a loss of 4 cents a share.

Revenue fell to $1.47 billion from $1.67 billion a year earlier and short of analysts' expectations of $1.49 billion.

The brokerage business recorded gross margins of 11.9%, with volumes falling 4% year-over-year. Chief Executive Drew Wilkerson said the margin was squeezed by a tighter freight market during the quarter.

"In the fourth quarter, tightening in the freight market accelerated, driven by continued reductions in truckload capacity," Wilkerson said. "While demand remained soft, we have significant sales momentum."

For the current quarter, RXO is projecting a 5%-to-10% decline in overall volumes in the Brokerage segment, with gross margin between 11% and 13%. It is projecting adjusted earnings before interest, taxes, depreciation, and amortization between $5 million and $12 million for the quarter.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

February 06, 2026 08:31 ET (13:31 GMT)

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