Slide 1: First Quarter 2025 Results
First Quarter 2025 Results May 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: Q1 2025 highlights
Q1 2025 highlights 1 Coyote carrier and coverage operations migrated to RXO Connect ® 2 Raising annualized synergy target 3 Double-digit LTL brokerage volume growth 4 Managed Transportation synergy loads increased 5 Last Mile continued to gain significant and profitable market share 3
Slide 4: As reported first-quarter financial results
As reported first-quarter financial results 1 Revenue Gross margin Adjusted EBITDA 2 $1,433M $229M $913M $22M $159M $15M 17.4% 16.0% 1.6% 1.5% Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 RXO reported adjusted EBITDA of $22M 1 Q1 2024 revenue, gross margin and adjusted EBITDA represent legacy RXO only. 2 See
Slide 5: Diversified portfolio with momentum in complementary services
Diversified portfolio with momentum in complementary services Brokerage (combined) 1 Q1 revenue by service offering • Volume: Down 1% y/y – LTL: Up 26% y/y, 25% of volume – TL: Down 8% y/y, 75% of volume 9% Truck Brokerage • TL volume mix: 73% contract, 27% spot • Gross margin: 13.3% 19% Last Mile •
Slide 6: Technology integration update
Technology integration update • Coyote carrier and coverage migration complete as of May 1 • Systems and operations leveraging benefits of a larger, unified pricing dataset • Sales operations migrated to unified CRM platform • Continue to anticipate technology integration to be substantially complet
Slide 7: Carrier and coverage migration: Complete
Carrier and coverage migration: Complete Legacy Coyote Legacy RXO Migration to RXO platform complete load creation load creation Data • Migration completed on May 1 migration • Increased capacity and availability across network Freight Optimizer Bazooka Data sync (RXO Connect ®) • Improved ability t
Slide 8: Synergy update
Synergy update >$60M >$10M COPT Revenue Annualized Capital Procure operating expenditure Cross-sell capacity more expense synergies opportunities effectively synergies >$70M quantified to-date • Raising synergy target; expect >$70M of cash synergies ($60M OpEx + $10M CapEx) – Actions to realize $50M
Slide 9: Adjusted EPS bridge
Adjusted EPS bridge Earnings per share Q1-25 Q1-24 GAAP diluted EPS $(0.18) $(0.13) Amortization of intangible assets 0.09 0.03 Transaction, integration and restructuring costs 0.12 0.10 Income tax associated with adjustments above (0.06) (0.03) 1 Adjusted diluted EPS $(0.03) $(0.03) 2 RXO reported
Slide 10: Trailing three month adjusted FCF walk
Trailing three month adjusted FCF walk 1 Three month adjusted free cash flow 1 • Trailing 3-month RXO adj. free cash flow represented a 27% conversion − Conversion impacted by lower profitability at the bottom of the freight cycle • Remain comfortable with long-term conversion of 40%-60% Trailing 3-
Slide 11: Q1 capital structure snapshot
Q1 capital structure snapshot Capital structure Q1 2025 Notes due 2027 $ 355 Finance leases, asset financing, ST debt & other 68 1,2,3 LTM Leverage Total debt, principal balance & other $ 423 Less: cash 16 2.0x 1.9x 1 Net debt $ 407 Committed liquidity Q1 2025 Cash $ 16 Gross Net Revolver 565 Total
Slide 12: Brokerage revenue per load and gross margin trends
Brokerage revenue per load and gross margin trends • Truckload revenue per load trends have improved to start the year – Truckload revenue per load up 4% y/y – Excludes the impact of changes in fuel prices and length of haul • Expect 2025 contract rates up y/y – Continue to expect truckload contract
Slide 13: Brokerage performance and current market conditions
Brokerage performance and current market conditions Market conditions loosened after January • Truckload gross profit per load increased throughout Q1 – Driven primarily via buy-side improvements Current environment creating shipper uncertainty • Continued soft trends to start Q2 – April TL volume d
Slide 14: Truckload volume and gross profit per load trends
Truckload volume and gross profit per load trends 1 TL gross profit per load was relatively stable in Q1 when compared to Q4 1 All periods prior to Q4 2024 exclude the impact of the Coyote Logistics acquisition. 14
Slide 15: LTL volume and gross profit per load trends
LTL volume and gross profit per load trends 1 LTL brokerage volume grew significantly in the quarter with new customer growth 1 All periods prior to Q4 2024 exclude the impact of the Coyote Logistics acquisition. 15
Slide 16: Q2 2025 outlook and modeling assumptions
Q2 2025 outlook and modeling assumptions 1 Q2 2025 outlook • Adjusted EBITDA : $30M-$40M 2 • Brokerage y/y volume (combined) : Down low-single-digit % • Brokerage gross margin: 13%-15% FY 2025 • Capital expenditures: $65M-$75M modeling assumptions • Depreciation: $65M-$75M, Amortization of intangibl
Slide 17: 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 18: Appendix
Appendix RXO
Slide 19: Financial reconciliations
Financial reconciliations Reconciliation of net loss to adjusted EBITDA and adjusted EBITDA margin Twelve Months Year Ended Three Months Ended March 31, Ended March 31, December 31, (Dollars in millions) 2025 2024 2025 2024 Net loss $ (31) $ (15) $ (306) $ (290) Interest expense, net 9 8 31 30 Incom
Slide 20: Financial reconciliations (cont.)
Financial reconciliations (cont.) Reconciliation of net loss to adjusted net loss and adjusted diluted loss per share Three Months Ended March 31, (Dollars in millions, shares in thousands, expect per share amounts) 2025 2024 Net loss $ (31) $ (15) Amortization of intangible assets 15 3 Transaction
Slide 21: 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 March 31, (Dollars in millions) 2025 2024 Net cash provided by (used in) operating activities $ (2) $ 7 Payment for purchases of property and equi
Slide 22: Financial reconciliations (cont.)
Financial reconciliations (cont.) Calculation of gross margin and gross margin as a percentage of revenue Three Months Ended March 31, (Dollars in millions) 2025 2024 Revenue Truck brokerage $ 1,067 $ 564 1 Complementary services 415 384 Eliminations (49) (35) Revenue $ 1,433 $ 913 Cost of transport
Slide 23: Financial reconciliations (cont.)
Financial reconciliations (cont.) Reconciliation of bank-adjusted EBITDA; Calculcation of gross and net leverage March 31, (Dollars in millions) 2025 Reconciliation of bank-adjusted EBITDA Adjusted EBITDA 1,2 for the twelve months ended March 31, 2025 $ 125 3 Adjustments per credit agreement for the
Slide 24: RXO
RXO