Slide 1: Second Quarter 2025 Results
Second Quarter 2025 Results August 7, 2025
Slide 2: Non-GAAP financial measures and forward-looking statements
Non-GAAP financial measures and forward-looking statements Non-GAAP financial measures We provide reconciliations of the non-GAAP financial measures contained in this presentation to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this present
Slide 3: Q2 2025 highlights
Q2 2025 highlights 1 Improved truckload profitability 2 Initial purchased transportation benefits from coverage migration 3 Brokerage volume growth driven by LTL 4 Continued momentum in complementary services, led by Last Mile 5 Strong adjusted free cash flow conversion 3
Slide 4: As reported Q2 financial results
As reported Q2 financial results 1 Revenue Gross margin Adjusted EBITDA 2 $1,419M $252M $38M $930M $177M $28M 19.0% 17.8% 3.0% 2.7% Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 RXO reported adjusted EBITDA of $38M 1 Q2 2024 revenue, gross margin and adjusted EBITDA represent legacy RXO only. 2 See the “Non-G
Slide 5: Continued momentum across diversified portfolio
Continued momentum across diversified portfolio Brokerage (combined) Q2 revenue by service offering 1 • Volume: Up 1% y/y – LTL: Up 45% y/y, 32% of volume – TL: Down 12% y/y, 68% of volume 10% Truck Brokerage • TL volume mix: 73% contract, 27% spot • Gross margin: 14.4%, +110bps q/q 21% Last Mile •
Slide 6: Technology integration update
Technology integration update • ERP consolidation successfully completed during the second quarter • Customer migration has already begun • Continue to anticipate technology integration to be substantially complete by end of Q3 Key technology integration milestones ERP consolidation CRM migration Te
Slide 7: Adjusted EPS bridge
Adjusted EPS bridge Earnings per share Q2-25 Q2-24 GAAP diluted EPS $(0.05) $(0.06) Amortization of intangible assets 0.07 0.03 Transaction, integration and restructuring costs 0.06 0.09 Income tax associated with adjustments above (0.04) (0.03) 1 Adjusted diluted EPS $0.04 $0.03 2 RXO reported Q2 2
Slide 8: Q2 adjusted FCF walk
1 Q2 adjusted FCF walk • Q2 adj. FCF conversion of 58% − Strong conversion driven by favorable W/C − Cash balance increased sequentially − 6-month adj. FCF conversion of 47% • Expect strong adj. FCF conversion in Q3 Remain confident with long-term conversion of 40%-60% across market cycles Note: In
Slide 9: Q2 capital structure snapshot
Q2 capital structure snapshot Capital structure Q2 2025 Notes due 2027 $ 355 Finance leases, asset financing, ST debt & other 66 1,2,3 LTM Leverage Total debt, principal balance & other $ 421 2.2x 2.1x Less: cash 18 1 Net debt $ 403 Committed liquidity Q2 2025 Cash $ 18 Gross Net Revolver 565 Total
Slide 10: TL revenue per load and Brokerage gross margin trends
TL revenue per load and Brokerage gross margin trends TL revenue per load up 3% y/y 2 • Third consecutive quarter of y/y growth • Lack of meaningful spot opportunities continue to be a headwind Expect 2025 contract rates up y/y • Continue to expect truckload contract rates up low- to-mid single digi
Slide 11: Current market conditions and Brokerage margin performance
Current market conditions and Brokerage margin performance Supply-driven market tightening • Tender rejections / load-to-truck moved higher throughout Q2 • Demand remains soft; industry KPIs moved seasonally lower in July Idiosyncratic drivers leading to improved margins • Contract rate increases co
Slide 12: TL volume and gross profit per load trends
TL volume and gross profit per load trends 1 TL gross profit per load increased sequentially by the largest % in 3 years 1 All periods prior to Q4 2024 exclude the impact of the Coyote Logistics acquisition. 12
Slide 13: LTL volume and gross profit per load trends
LTL volume and gross profit per load trends 1 LTL brokerage volume continued to grow significantly with strong contribution margin 1 All periods prior to Q4 2024 exclude the impact of the Coyote Logistics acquisition. 13
Slide 14: Q3 2025 outlook and modeling assumptions
Q3 2025 outlook and modeling assumptions 1 Q3 2025 outlook • Adjusted EBITDA : $33M-$43M 2 • Brokerage y/y volume (combined) : ~Flat % • Brokerage gross margin: 13.5%-15.0% FY 2025 • Capital expenditures: $65M-$75M modeling assumptions • Depreciation: $65M-$75M, Amortization of intangibles: $45M-$50
Slide 15: Balanced capital allocation
Balanced capital allocation Organic growth Share repurchases Opportunistic M&A Strong historical return $125 million share Complementary to RXO’s on invested capital repurchase program strategy Balanced capital allocation philosophy with a ROIC-based approach 15
Slide 16: Key investment highlights
Key investment highlights 1 Large addressable market with secular tailwinds 5 Market-leading platform with complementary transportation solutions 2 Track record of above-market growth and high profitability 6 Tiered approach to sales drives multi-faceted growth opportunities 3 Proprietary technology
Slide 17: Appendix
Appendix RXO
Slide 18: Financial reconciliations
Financial reconciliations Reconciliation of net loss to adjusted EBITDA and adjusted EBITDA margin Twelve Months Year Ended Three Months Ended June 30, Six Months Ended June 30, Ended June 30, December 31, 3 (Dollars in millions) 2025 2024 2025 2024 2025 2024 Net loss $ (9) $ (7) $ (40) $ (22) $ (30
Slide 19: Financial reconciliations (cont.)
Financial reconciliations (cont.) Reconciliation of net loss to adjusted net income (loss) and adjusted diluted income (loss) per share Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, shares in thousands, expect per share amounts) 2025 2024 2025 2024 Net loss $ (9) $ (7)
Slide 20: Financial reconciliations (cont.)
Financial reconciliations (cont.) Reconciliation of cash flows from operating activities to free cash flow and adjusted free cash flow Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2025 2024 2025 2024 Net cash provided by (used in) operating activities $ 23 $ (5) $ 21 $
Slide 21: Financial reconciliations (cont.)
Financial reconciliations (cont.) Calculation of gross margin and gross margin as a percentage of revenue Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2025 2024 2025 2024 Revenue Truck brokerage $ 1,025 $ 543 $ 2,092 $ 1,107 Complementary services 1 457 421 872 805 Eli
Slide 22: Financial reconciliations (cont.)
Financial reconciliations (cont.) Reconciliation of bank-adjusted EBITDA; Calculcation of gross and net leverage June 30, (Dollars in millions) 2025 Reconciliation of bank-adjusted EBITDA Adjusted EBITDA 1,2 for the twelve months ended June 30, 2025 $ 135 Adjustments per credit agreement 3 for the t
Slide 23: RXO
RXO