RXO Inc's stock tumbled 9.71% during pre-market trading on Friday, following the release of its fourth-quarter 2025 financial results that fell short of analyst expectations.
The transportation solutions provider reported Q4 revenue of $1.47 billion, missing the consensus estimate of $1.49 billion. Adjusted earnings per share came in at a loss of $0.07, worse than the anticipated loss of $0.04. The company's GAAP net loss widened significantly to $46 million, an 84% increase from the same period last year.
CEO Drew Wilkerson attributed the disappointing results to a tightening full-truckload market, which impacted buy rates and squeezed brokerage gross margins. Looking ahead, RXO provided a cautious outlook for Q1 2026, expecting adjusted EBITDA between $5 million and $12 million and forecasting a 5% to 10% year-over-year decline in brokerage volume.