RXO Inc. Common Stock (RXO)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at RXO as a business, not a story. It is an asset-light truck broker that reported $5.7B of revenue in fiscal year 2025 (ended 2025-12-31) but a net loss of $100.0M. In fiscal Q2 2026 (the quarter ended 2026-06-30), revenue was $1.8B and net loss was $9.0M. The losses are narrowing—fiscal Q1 2026 (ended 2026-03-31) lost $36.0M, and fiscal year 2024 (ended 2024-12-31) lost $290.0M—but a business earning nothing on capital is not a bargain merely because revenue is rising. The given Lynch category is TURNAROUND, because there was a $4.0M profit in fiscal year 2023 (ended 2023-12-31) before losses set in; I need proof the turnaround is real, not just a freight-cycle hope. Financial health is mixed. Debt to equity is 0.48, not alarming, but trailing free cash flow is -$76.0M, ROE is -6.79%, and ROCE is -0.26%. The Piotroski F-Score is 4/9 and the Altman Z-Score is 1.91, which is not a fortress. Valuation offers little margin of safety: at the 2026-10-13 close of $28.60, FairStock calculations show P/B of 3.13 and EV/EBITDA of 285.78, with a FairStock score of 31/100. The stock sits near the top of its 52-week range of $10.43 to $29.90, with a beta of 1.99. Growth is real, but I want to see positive earnings and cash flow before paying up for a low-margin broker with limited pricing power.

In plain English: RXO is a truck brokerage and freight services company that arranges freight rather than owning most trucks. It is losing money and using cash even as sales grow, though the latest losses are smaller than earlier ones. At $28.60 a share, the price looks expensive compared with current profits and cash flow and is near its 52-week high.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer