📊 RXO Key Takeaways
Is RXO, Inc. (RXO) a Good Investment?
RXO demonstrates strong revenue growth of 26.2% YoY, but this growth masks deteriorating fundamentals: the company is unprofitable across all metrics with operating and free cash flow deeply negative (-$24M FCF), while maintaining critically low cash reserves of only $21M against $430M in debt. The inability to convert strong topline growth into profitability, combined with cash burn and tight liquidity (1.27x current ratio), indicates operational challenges that outweigh growth prospects.
RXO, Inc. Key Strengths (RXO)
- Strong revenue growth of 26.2% YoY demonstrates market demand and scale expansion
- Moderate debt-to-equity ratio of 0.28x provides some financial flexibility
- EPS improving 72.8% YoY (though still negative) suggests marginal profitability improvement
RXO Stock Risks: RXO, Inc. Investment Risks
- Deeply negative free cash flow of -$24M with only $21M cash on hand creates imminent liquidity pressure
- Operating income and net income both negative despite strong revenue growth, indicating severe operational inefficiency
- Current ratio of 1.27x provides minimal buffer; company is burning cash faster than generating it
- Negative operating cash flow (-$7M) indicates core business is not self-sustaining
Key Metrics to Watch
- Path to operating profitability and breakeven cash flow generation
- Cash position and runway given current burn rate
- Operating margin improvement and cost structure management
RXO, Inc. (RXO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
RXO, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
RXO Profit Margin, ROE & Profitability Analysis
RXO vs Transportation Sector: How RXO, Inc. Compares
How RXO, Inc. compares to Transportation sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is RXO, Inc. Stock Overvalued? RXO Valuation Analysis 2026
Based on fundamental analysis, RXO, Inc. has mixed fundamental signals relative to the Transportation sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
RXO, Inc. Balance Sheet: RXO Debt, Cash & Liquidity
RXO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: RXO, Inc.'s revenue has grown significantly by 20% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.03 reflects profitable operations.
RXO Revenue Growth, EPS Growth & YoY Performance
RXO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.4B | -$31.0M | $-0.18 |
| Q3 2025 | $1.0B | -$14.0M | $-0.08 |
| Q2 2025 | $930.0M | -$7.0M | $-0.05 |
| Q1 2025 | $913.0M | -$15.0M | $-0.13 |
| Q3 2024 | $976.0M | -$1.0M | $-0.01 |
| Q2 2024 | $930.0M | $3.0M | $0.03 |
| Q1 2024 | $913.0M | N/A | $0.00 |
| Q3 2023 | $976.0M | -$1.0M | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RXO, Inc. Dividends, Buybacks & Capital Allocation
RXO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for RXO, Inc. (CIK: 0001929561)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RXO
What is the AI rating for RXO?
RXO, Inc. (RXO) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RXO's key strengths?
Claude: Strong revenue growth of 26.2% YoY demonstrates market demand and scale expansion. Moderate debt-to-equity ratio of 0.28x provides some financial flexibility.
What are the risks of investing in RXO?
Claude: Deeply negative free cash flow of -$24M with only $21M cash on hand creates imminent liquidity pressure. Operating income and net income both negative despite strong revenue growth, indicating severe operational inefficiency.
What is RXO's revenue and growth?
RXO, Inc. reported revenue of $1.4B.
Does RXO pay dividends?
RXO, Inc. does not currently pay dividends.
Where can I find RXO SEC filings?
Official SEC filings for RXO, Inc. (CIK: 0001929561) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RXO's EPS?
RXO, Inc. has a diluted EPS of $-0.21.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is RXO's fundamental grade?
Based on our AI fundamental analysis in May 2026, RXO, Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is RXO stock overvalued or undervalued?
Valuation metrics for RXO: ROE of -2.4% (sector avg: 18%), net margin of -2.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is RXO's AI grade for 2026?
Our dual AI analysis gives RXO, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RXO's free cash flow?
RXO, Inc.'s operating cash flow is $-7.0M, with capital expenditures of $17.0M. FCF margin is -1.7%.
How does RXO compare to other Transportation stocks?
Vs Transportation sector averages: Net margin -2.5% (avg: 10%), ROE -2.4% (avg: 18%), current ratio 1.27 (avg: 1).