RXO, Inc. (NYSE: RXO)

RXO, Inc. operates as a brokered transportation platform, leveraging cutting-edge technology and an asset-light business model. The company's core business revolves around truck brokerage, with additional operations in asset-light managed transportation and last mile services. RXO's operations are designed to connect shippers with qualified independent carriers, facilitating the efficient movement of freight. The company's technology-driven approach aims to optimize transportation management, enhance visibility, and improve cost-effectiveness for its customers.

RXO generates revenue through its brokered transportation services, which include truck brokerage, managed transportation, and last mile services. The company's primary products and services are facilitated by its proprietary digital brokerage technology, which enables shippers to post freight loads and carriers to find available capacity. RXO's customer base is diverse, ranging from small businesses to Fortune 100 companies, and spans various industry sectors, including retail, e-commerce, food and beverage, industrial and manufacturing, logistics and transportation, and automotive. The company's revenue model is based on pricing its services on either a contract or a spot basis, depending on the needs of its customers.

• Truck Brokerage: RXO's core business segment involves acting as an intermediary between shippers and carriers, connecting truckload supply and demand. The company's proprietary RXO Connect technology platform plays a crucial role in this segment, providing real-time visibility into available supply and demand, ensuring competitive rates, and optimizing for value and margin. This segment caters to a wide range of industries, including e-commerce and retail, where efficient transportation management is critical.

• Managed Transportation: This segment offers asset-light solutions for shippers who outsource their freight transportation to gain reliability, visibility, and cost savings. RXO's managed transportation services include bespoke load planning and procurement, complex solutions tailored to specific challenges, performance monitoring, engineering, and data analytics. The service leverages proprietary technology to enhance revenue synergy, with cross-selling to truck brokerage and last mile. This segment serves shippers looking for comprehensive transportation management solutions.

• Last Mile: RXO's last mile offering is an asset-light service that facilitates consumer deliveries performed by highly qualified third-party contractors. As the largest provider of outsourced last mile transportation for heavy goods in the United States, RXO serves a customer base of omnichannel and e-commerce retailers and direct-to-consumer manufacturers. This segment caters to the growing demand for efficient and reliable delivery services in the consumer goods sector.

RXO operates in a highly fragmented industry with thousands of competitors, including local, regional, national, and international companies. Key competitors include C.H. Robinson, Echo Global Logistics, Expeditors, Forward Air, Flexport, J.B. Hunt, Landstar System, Total Quality Logistics, and Uber Freight. RXO's competitive advantages lie in its proprietary technology, extensive carrier relationships, strong management expertise, and favorable long-term industry tailwinds. The company's first-mover advantage in brokerage technology and its ability to leverage data for optimal outcomes position it as a leading innovator in the industry. Additionally, RXO's asset-light model generates high returns with strong free cash flow characteristics, further enhancing its competitive position.

RXO's customer base is highly diversified, with no single customer accounting for a disproportionate share of revenue. In 2025, the top 20 customers collectively accounted for approximately 37% of the company's revenue, while the top five customers accounted for about 23%. The largest customer represented approximately 11.4% of total revenue. RXO serves customers ranging in size from small businesses to Fortune 100 companies and sector leaders, with a strong presence in the e-commerce and retail sectors. The company's diversified customer base minimizes concentration risk and positions it to benefit from long-term industry growth and secular trends in demand for truckload transportation.