Supply Chain · Profile from Supply Chain Research Companion
RXO
RXO, Inc., the Charlotte, North Carolina–based asset-light truck broker that was XPO's brokerage, managed-transportation and last-mile business until it was spun off to XPO shareholders on 1 Nov 2022 (one RXO share per XPO share). It owns no trucks; it earns the spread between what shippers pay and what it pays carriers, so it reports large gross revenue that is mostly carriers' money. In September 2024 it bought Coyote Logistics from UPS for $1.025bn (closed 16 Sep 2024), becoming the third-largest US freight broker (company claim) — a deliberate bet on buying share at the bottom of the freight cycle. The bet's first two years were hard: 2025 gross revenue rose 26.2% to ~$5.7bn on a full year of Coyote, but RXO lost ~$100m and earned adjusted EBITDA of only ~$109m (1.9% of gross revenue) as brokerage margins compressed (10-K, Q4 2025 materials). When the market turned in 2026 its gross margin fell further (14.6% in Q3 2026 vs 16.5%) as spot loads rose to 51% of truckload volume, though adjusted EBITDA rose to ~$51m (company, 29 Oct 2026). On 5 Oct 2026 RXO agreed to be acquired by C.H. Robinson for $17.25 in cash plus 0.0856 C.H. Robinson shares per RXO share (implied $30.25; ~$5.3bn equity value, ~$5.8bn enterprise value; close targeted H1 2027) (SEC Form 425 filings, reported). Its story turns on density without the productivity to monetise it: scale bought in a trough is worth most to the broker with the best cost per load.
At a glance
- Founded
- As a business: XPO's brokerage, built from 2012 with cold-start branches and acquisitions inside XPO Logistics. As a company: spun off 1 Nov 2022 (record date 20 Oct 2022; XPO release)
- Headquarters
- Charlotte, North Carolina; Coyote's main office in Chicago (verify post-integration footprint)
- Ownership / structure
- Public (NYSE: RXO). Large holders include MFN Partners and Orbis Investments, which invested $300m and $250m respectively to help fund Coyote (2024, reported). Pending acquisition by C.H. Robinson (agreed 5 Oct 2026; requires RXO shareholder and regulatory approvals)
- Leadership (2026)
- Drew Wilkerson (CEO since the spin; previously president of XPO's North American transportation/brokerage); Jamie Harris (CFO, verify); Brad Jacobs was chairman at the spin (verify current board)
- Segments / services
- Truckload brokerage (the bulk of revenue); LTL brokerage; managed transportation (outsourced transport management, TMS); last mile (heavy-goods home delivery — appliances, furniture, fitness equipment) (company; verify current segment reporting)
- Scale
- ~$5.7bn gross revenue (2025, 10-K); Q3 2026 gross revenue ~$1.871bn (vs ~$1.421bn); brokerage volume +2%, truckload +3%, LTL +2% y/y (company). Employees ~7,000–8,000 after Coyote (verify)
- Financials
- Q3 2026 gross margin 14.6% (16.5% a year earlier); brokerage gross margin 12.6%; adjusted EBITDA ~$51m (2.7% of revenue) vs ~$32m; GAAP net income ~$3m vs a ~$14m loss; adjusted EPS $0.09 (company 8-K, 29 Oct 2026). FY2025: revenue ~$5.7bn, net loss ~$100m, adjusted EBITDA ~$109m, gross margin ~16.2% (10-K and Q4 2025 summaries)
- Signature moves (incl. failures)
- Brokerage built inside XPO (2012–22); last mile and managed transportation (2013–26); spin-off (Nov 2022); the 2023 freight-recession margin squeeze; Coyote (2024); Coyote integration and cost programme (2025); the 2026 spot-mix shift and margin trade-off; agreement to be acquired by C.H. Robinson (Oct 2026)
8 strategic moves analysed
Each one gets a full strategy file in the companion: context, the decision, the financing, what happened, and the lesson.
2012
Brokerage Built Inside XPO
Founding / network build — cold-start branches plus small acquisitions
2013
Last Mile and Managed Transportation
Diversification — adding fee-based and delivery services to brokerage
2022
Spin Off from XPO
Spin-off (tax-free distribution to XPO shareholders)
2023
Freight Recession Margin Squeeze
Disruption and response — failure (earnings collapse in the trough; cost actions)
2024
Coyote Acquisition
Acquisition (carve-out from a parcel carrier)
2025
Coyote Integration and Cost Programme
Restructuring — integration and cost reduction (partial failure on earnings)
2026
Agreement to Be Acquired by C H Robinson
Acquisition (as target) — cash-and-stock merger
2026
Spot Mix Shift and Margin Trade Off
Pricing or service change — leaning into spot freight in a tightening market, accepting a lower margin percentage