RXO, Inc. Reports Significant Financial Changes Following Coyote Acquisition, Including Increased Assets and Revenue, but Operating Loss and Net Loss

RXO, Inc. reported significant financial changes in its latest 10-Q filing for the period ending September 30, 2024. The company experienced a notable increase in total assets, which rose to $3,392 million from $1,825 million as of December 31, 2023. This increase was primarily driven by the acquisition of Coyote, a technology-driven truckload freight brokerage, for $1.038 billion in cash on September 16, 2024. As a result, total current assets also surged to $1,255 million, up from $796 million, and total long-term assets increased to $2,137 million from $1,029 million.

In terms of revenue, RXO reported $1,040 million for the three months ended September 30, 2024, a 6.6% increase from $976 million in the same period of 2023. This growth was partially attributed to a $105 million contribution from the Coyote acquisition, although it was offset by a $41 million decline in legacy RXO truck brokerage revenue due to a 5% decrease in load volume and a 3% decrease in revenue per load. For the nine months ended September 30, 2024, revenue decreased slightly to $2,883 million from $2,949 million in the prior year.

Despite the revenue growth in Q3, RXO reported an operating loss of $(20) million for the three months ended September 30, 2024, compared to an operating income of $6 million in the same period of 2023. The nine-month operating loss also widened to $(32) million from an operating income of $25 million in the previous year. The net loss for the third quarter was $(243) million, a significant increase from a net loss of $(1) million in Q3 2023, while the nine-month net loss reached $(265) million compared to a net income of $2 million in the same period last year.

The company’s restructuring efforts included severance and facility-related costs aimed at improving efficiency and profitability. Additionally, RXO incurred $30 million in transaction and integration costs related to the Coyote acquisition during Q3 2024.

Cash and cash equivalents increased to $55 million as of September 30, 2024, compared to $5 million at the end of 2023. The company raised approximately $1.1 billion through private placements and public offerings of common stock to finance the Coyote acquisition. As of the reporting date, RXO maintained a strong liquidity position, believing its existing resources are sufficient to support operations over the next 12 months.