Slide 1: Third Quarter 2025 Results
Third Quarter 2025 Results November 6, 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: Q3 2025 highlights
Q3 2025 highlights 1 Volume outperformance in a continued soft market 2 Continued Last Mile stop growth 3 Strong adjusted free cash flow conversion 4 Full-truckload market has tightened significantly, driven by capacity exits 5 New cost initiatives to enhance operational efficiency RXO is well posit
Slide 4: Q3 2025 results
Q3 2025 results Revenue Gross margin Adjusted EBITDA 1 1 1,2 $1,421M 9% - Managed Trans. $234M $1,040M 21% - Last Mile $33M $32M $180M 70% - Truck Brokerage Q3 24 Q3 25 Q3 24 Q3 25 Q3 24 Q3 25 Brokerage 3 Complementary services • Volume: Up 1% y/y • Managed Trans. pipeline & synergy loads increased
Slide 5: Incremental initiatives to drive long-term operational efficiencies
Incremental initiatives to drive long-term operational efficiencies • Post-spin (2022-2024) – >$65M of operating expense reductions over 2-years Total annualized OpEx reductions: with a more optimized cost structure >$155M • Coyote synergies – Total cash synergies of >$70M, including >$60M reduction
Slide 6: Introduced new technology in Q3 across four key pillars
Introduced new technology in Q3 across four key pillars • Introduced spot quote assistant for model training 1 Volume • Enhanced automated quoting solutions for Canadian shippers • Continued to expand TMS integration footprint • Launched next gen. pricing model leveraging a combined data set 2 Margi
Slide 7: Adjusted EPS bridge
Adjusted EPS bridge Earnings per share Q3-25 Q3-24 GAAP diluted EPS $(0.08) $(1.81) Amortization of intangible assets 0.06 0.04 Transaction, integration and restructuring costs 0.07 1.81 Income tax associated with adjustments above (0.04) (0.02) 1 Impact of dilutive shares - 0.03 Adjusted diluted EP
Slide 8: Q3 adjusted FCF walk
1 Q3 adjusted FCF walk Q3 adjusted free cash flow 1 • Q3 adj. FCF conversion of 56% $7 − Semi-annual interest payments occur in Q2 $32 and Q4, which benefited Q3 − CapEx tracking towards low-end of FY outlook $(14) $(4) $18 $(1) − Cash balance increased sequentially $(2) − YTD adj. FCF conversion of
Slide 9: Q3 capital structure snapshot
Q3 capital structure snapshot Capital structure Q3 2025 Notes due 2027 $ 355 Finance leases, asset financing, ST debt & other 65 1,2,3 LTM Leverage Total debt, principal balance & other $ 420 Less: cash 25 2.4x 2.3x Net debt $ 395 1 Liquidity Q3 2025 Cash $ 25 Revolver 565 Gross Net Total committed
Slide 10: TL revenue per load and Brokerage gross margin trends
TL revenue per load and Brokerage gross margin trends 2 TL revenue per load up 1% y/y • Fourth consecutive quarter of y/y growth; moderated vs. prior quarters – Weaker demand environment – Spot opportunities that were less accretive Revenue per load trends have moderated given soft freight market co
Slide 11: Current market conditions and Brokerage margin performance
Current market conditions and Brokerage margin performance Supply-driven market tightening • TL market tightened in September, driven by regulatory changes and capacity exits − Market tightness intensified in October and expected to persist throughout Q4 • Class 8 orders continue to decline, below r
Slide 12: TL volume and gross profit per load trends
TL volume and gross profit per load trends 1 TL gross profit per load moderated in Q3 given softer demand and tighter capacity 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 volume continues to outperform and gross profit per load increased sequentially 1 All periods prior to Q4 2024 exclude the impact of the Coyote Logistics acquisition. 13
Slide 14: Q4 2025 outlook and modeling assumptions
Q4 2025 outlook and modeling assumptions 1 Q4 2025 outlook • Adjusted EBITDA : $20M-$30M 2 • Brokerage y/y volume : Down low-single-digit % • Brokerage gross margin: 12%-13% Q4 2025 • Capital expenditures: ~$20M modeling assumptions • Depreciation: ~$20M, Amortization of intangibles: ~$10M • Stock-b
Slide 15: Balanced capital allocation
Balanced capital allocation Internal Investments 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 Ended Year Ended Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, 3 (Dollars in millions) 2025 2024 2025 2024 2025 2024 Net loss $ (14) $ (243)
Slide 19: Financial reconciliations (cont.)
Financial reconciliations (cont.) Reconciliation of net loss to adjusted net income and adjusted diluted income per share Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions, shares in thousands, expect per share amounts) 2025 2024 2025 2024 Net loss $ (14) $ (243)
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 Nine Months Ended September 30, September 30, (Dollars in millions) 2025 2024 2025 2024 Net cash provided by (used in) operating activities $ 23 $
Slide 21: Financial reconciliations (cont.)
Financial reconciliations (cont.) Calculation of gross margin and gross margin as a percentage of revenue Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) 2025 2024 2025 2024 Revenue Truck brokerage $ 1,039 $ 655 $ 3,131 $ 1,762 Complementary services 1 442 419
Slide 22: Financial reconciliations (cont.)
Financial reconciliations (cont.) Reconciliation of bank-adjusted EBITDA; Calculcation of gross and net leverage September 30, (Dollars in millions) 2025 Reconciliation of bank-adjusted EBITDA Adjusted EBITDA 1,2 for the twelve months ended September 30, 2025 $ 134 Adjustments per credit agreement 3
Slide 23: RXO
RXO