What Happened to RXO, Inc.?

RXO, Inc. traces its operational roots back to XPO Logistics, where its core businesses in truck brokerage, managed transportation, and last-mile delivery were developed through organic growth and acquisitions during the 2010s. The strategic decision to separate these asset-light operations from XPO's asset-based businesses led to the spin-off of RXO, Inc. on November 1, 2022. This move aimed to create two distinct companies with clearer investment identities, with RXO becoming the fourth-largest full truckload broker in the United States, leveraging its proprietary RXO Connect™ digital brokerage platform.

Following its independence, RXO focused on gaining market share in the fragmented truck brokerage market, growing managed transportation, and enhancing its last-mile delivery services, primarily in North America. Drew Wilkerson, a long-tenured executive from XPO's brokerage operations, was appointed CEO. In its first full year as a standalone company in 2023, RXO navigated a soft freight market but reported double-digit brokerage volume growth in Q2 2023, driven by increased digital load coverage and carrier retention. However, the company also faced challenges with excess capacity in the trucking market, impacting profitability into early 2024.

A significant turning point for RXO came in June 2024 when it announced an agreement to acquire Coyote Logistics from UPS for $1.025 billion. This acquisition was intended to significantly boost RXO's brokerage scale, customer relationships, and carrier density, with the integration adjustments continuing into 2025. Financially, RXO reported a net loss of $20 million in Q4 2024, despite a revenue jump of over 70% to $1.67 billion, largely attributed to the Coyote deal.

Entering 2026, RXO continued to focus on operational efficiency and financial flexibility. In February 2026, the company finalized a $450 million asset-based lending facility and completed a $400 million unsecured notes offering to refinance existing debt. While Q4 2025 saw a GAAP net loss of $46 million due to a tightening freight market and transaction costs, Q2 2026 showed some improvement, with RXO reporting an EPS of $0.06 and revenue of $1.77 billion, beating analyst estimates. The company also highlighted a historic sequential increase in profit per load in Q2 2026, driven by a higher truckload spot mix.

The most recent and impactful development occurred on October 5, 2026, when C.H. Robinson announced a definitive agreement to acquire RXO in a stock-and-cash transaction valued at approximately $5.8 billion. This acquisition, which represents a 29% premium to RXO's closing price on October 2, 2026, is expected to create a combined entity with an enterprise value exceeding $25 billion. C.H. Robinson anticipates approximately $300 million in net run-rate cost synergies within two years post-closing, aiming to enhance scale, network density, and customer offerings. The deal is subject to regulatory and RXO stockholder approval and is expected to close in the first half of 2027.