• 'Expedia for freight.'
• 'A large-scale 'Uber for semi-trucks' for businesses.'

• Truckload Brokerage: Connects shippers with a vast network of carriers for full truckload freight transportation.
• Less-than-Truckload (LTL) Brokerage: Arranges shipments that do not require a full truck, consolidating freight from multiple shippers to optimize space and cost.
• Managed Transportation: Provides comprehensive, technology-driven logistics management services for businesses, encompassing planning, execution, and optimization of their supply chains.
• Expedited Freight: Offers time-critical transportation solutions for urgent shipments, often utilizing specialized equipment or services to ensure rapid delivery.
• Intermodal: Combines multiple modes of transportation, typically rail and truck, for cost-effective and environmentally friendly long-haul shipping.
• Global Forwarding: Manages international freight shipping across air and ocean, including customs brokerage, to facilitate cross-border trade.

RXO (NYSE: RXO) primarily sells its transportation and logistics services to other companies (B2B).

RXO maintains a highly diversified customer base, and according to its latest annual filings (e.g., 2023 Form 10-K), no single customer accounted for more than 10% of its total revenue. Therefore, specific major customer names are not publicly disclosed.

However, RXO serves a broad range of businesses across various industries, which can be categorized as:

• Retail and E-commerce Companies: Businesses that require efficient supply chain management, freight brokerage, and last-mile delivery services to transport goods to consumers or stores.
• Manufacturing Companies: Industries that utilize RXO's services for the movement of raw materials, components, and finished products within their supply chains.
• Consumer Goods Companies: Producers and distributors of consumer products that leverage RXO's network for logistics and transportation solutions.

Their customer base includes a mix of small and medium-sized businesses, as well as large multinational corporations.

Drew Wilkerson, Chairman and CEO

Drew Wilkerson's vision and brokerage expertise are central to RXO, delivering sustained company growth. A transportation industry veteran with 19 years of brokerage leadership experience, Mr. Wilkerson joined RXO's predecessor company in 2012. He was subsequently promoted to regional vice president, president of the North American brokerage business, and then, in 2020, president of North American Transportation. He was selected as CEO when RXO was established as an independent company in 2022 and named Chairman of the RXO Board of Directors in May 2025. Prior to RXO, he spent six years with C.H. Robinson.

Jamie Harris, Chief Financial Officer

Jamie Harris previously served as chief financial officer and treasurer at global manufacturer SPX Technologies. He has held similar positions at Coca-Cola Consolidated and Elevated Textiles, Inc., where he also served as interim chief executive officer. Mr. Harris began his career with Ernst & Young LLP.

Heidi Ratti, Chief Human Resources Officer

Heidi Ratti’s career in human resources includes 16 years of executive experience in transportation-related industries. She joined RXO's predecessor company in 2014, where she led human resources for the North American transportation business. Ms. Ratti was later named senior vice president, overseeing human resources for approximately 21,000 employees. Prior to XPO and Pacer, Ratti worked with MAHLE, a global supplier to the automotive industry.

Jared Weisfeld, Chief Strategy Officer

Jared Weisfeld is responsible for RXO's strategy and analysis of growth opportunities, as well as overseeing engagement with the investor community. Prior to joining RXO, Mr. Weisfeld served as a managing director at Jefferies Financial Group, where he was ranked among the top three specialists in the technology, media and telecom sector on Institutional Investor's All-America Survey for 2020 and 2021. He was previously a partner at Margate Capital Management and worked as an associate portfolio manager with Balyasny Asset Management. Mr. Weisfeld began his career as a technology sector analyst with the investment banking division of Credit Suisse.

Sandeep Pisipati, President, Last Mile

Sandeep Pisipati leads RXO's last mile business. He joined RXO with the acquisition of Coyote Logistics, where he had been president and CEO since 2023. Prior to that, he served Coyote as chief financial officer from 2019 to 2023 after joining the company as senior vice president of finance and accounting in 2018. Before Coyote, Mr. Pisipati spent 14 years at Stericycle, a global leader in healthcare logistics.

The accelerated development and widespread adoption of advanced digital freight matching platforms and logistics technology solutions, particularly from well-funded competitors (e.g., Uber Freight, J.B. Hunt 360, C.H. Robinson's Navisphere) and tech-focused startups. These platforms are increasing market transparency, compressing brokerage margins, and enabling more direct shipper-carrier connections by streamlining and automating processes that traditionally required broker intervention. This technological advancement and aggressive market penetration of alternative digital solutions pose a clear emerging threat to RXO's market share and profitability by fundamentally altering the traditional freight brokerage value chain, similar to how online travel agencies pressured traditional travel agents by offering more direct and transparent booking options.

RXO (symbol: RXO) operates primarily in three main addressable markets: freight brokerage, managed transportation, and last-mile delivery.

Freight Brokerage

The global freight brokerage market was valued at approximately USD 51.7 billion in 2023 and is projected to reach USD 85.9 billion by 2032, growing at a compound annual growth rate (CAGR) of 6% between 2024 and 2032. Another estimate places the global market at USD 58.19 billion in 2025, expanding to around USD 98.73 billion by 2034 with a CAGR of 6.05%. The North American freight brokerage market constituted 32% of the global revenue share in 2023, with its size accounted for USD 18.11 billion in 2024 and projected to grow at a CAGR of 6.21% during the forecast period. Specifically, the U.S. freight brokerage market was valued at USD 12.67 billion in 2024 and is expected to reach about USD 23.32 billion by 2034.

Managed Transportation

The North America Managed Transportation Services market was estimated at $5,019.3 million in 2022, with a projected CAGR of 18.1% from 2024 to 2031. For the broader Transportation Management System (TMS) market, North America held a 38% share in 2024, representing approximately USD 4.04 billion in 2023. The U.S. transportation management system market generated USD 2,638.1 million in revenue in 2024 and is expected to reach USD 6,388.7 million by 2030, with a CAGR of 16% from 2025 to 2030.

Last-Mile Delivery

The North America last-mile delivery market generated approximately USD 43,835.0 million in revenue in 2023. It is projected to grow at a CAGR of 7.2% from 2024 to 2030, reaching an estimated USD 71,288.0 million by 2030. Another estimate for the North America market indicates a size of US$ 39.73 billion in 2022, expected to reach US$ 75.13 billion by 2030 with a CAGR of 8.3%. The market is also projected to grow from USD 32,979.90 million in 2023 to an estimated USD 61,205.75 million by 2032, at a CAGR of 7.47% from 2024 to 2032. Globally, the last-mile delivery market was valued at USD 175.3 billion in 2023 and is estimated to grow at a CAGR of over 6% between 2024 and 2032. North America accounted for more than 37% of the global last-mile delivery market share in 2023.

RXO (symbol: RXO) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market dynamics:

1. Integration and Synergies from Coyote Logistics Acquisition: The successful acquisition and ongoing integration of Coyote Logistics is a significant driver. This integration is not only expected to yield substantial cost synergies, estimated at over $40 million annually, but also expands RXO's scale, technological capabilities, and customer relationships, which are crucial for revenue generation in the brokerage segment.

2. Continued Expansion of Less-Than-Truckload (LTL) Volume: RXO has consistently demonstrated strong growth in its LTL volume, reporting increases of 13% in Q3 2024, 26% in Q1 2025, 45% in Q2 2025, and 43% in Q3 2025. This growth indicates market share gains in a segment identified as a consistent source of profits and one with a long runway for further expansion.

3. Growth in Last Mile Services: The Last Mile segment has shown robust performance with double-digit increases in stops, including 11% in Q3 2024, 24% in Q1 2025, 17% in Q2 2025, and 12% in Q3 2025. RXO is actively gaining market share in the "big and bulky" delivery category, signaling continued growth opportunities.

4. Conversion of Managed Transportation Sales Pipeline: RXO has a substantial sales pipeline in its Managed Transportation services, with over $1.3 billion in new freight under management in its sales pipeline as of Q3 2024. Converting this pipeline into active freight under management will directly contribute to future revenue growth, and this segment is also noted for providing synergy loads to brokerage.

5. Leveraging Technology for Market Share and Productivity: Investments in "best-in-class technology" and digital solutions are driving significant productivity gains (e.g., 38% over the last two years). This technological edge is expected to attract new customers, enhance existing relationships, improve efficiency, reduce cost per load, and ultimately enable RXO to capture profitable market share.

Share Repurchases

• RXO authorized a share repurchase program of up to $125 million on May 2, 2023.
• During the twelve months ended December 31, 2023, the company repurchased 100,000 shares of its common stock for $2 million.
• As of December 31, 2023, $123 million remained authorized for future share repurchases under the program.

Share Issuance

• In September 2024, RXO completed an upsized follow-on offering of 19,230,770 shares of its common stock, generating approximately $500.0 million in gross proceeds.
• In August 2024, RXO secured $550 million through a private financing, selling approximately 21 million shares of common stock and pre-funded warrants for about 6 million shares to MFN Partners and Orbis Investments.
• RXO became an independent publicly traded company on November 1, 2022, after its spin-off from XPO Logistics, with XPO stockholders receiving one share of RXO common stock for every XPO share held.

Inbound Investments

• In August 2024, RXO secured $550 million in private financing from MFN Partners and Orbis Investments, which included a $300 million equity investment from MFN Partners and a $250 million equity investment from Orbis Investments.
• These investments were made to finance a portion of the pending acquisition of Coyote Logistics.

Outbound Investments

• RXO completed the acquisition of Coyote Logistics from UPS for a purchase price of $1.025 billion on September 16, 2024.
• The acquisition of Coyote Logistics is central to RXO's strategy, enhancing its market position and offering significant cross-selling opportunities.

Capital Expenditures

• RXO's capital expenditures in 2024 were $45 million, primarily for strategic investments in technology, equipment, and real estate.
• The company estimates capital expenditures for the full year 2025 to be between $65 million and $75 million.
• Projected capital expenditures for 2026 are expected to be $45 million to $55 million.