RXO Inc. (NYSE:RXO) Faces Financial Challenges Amid Industry Competition

Font: Financial Modeling Prep  • Feb 09, 2026

• RXO Inc. (NYSE:RXO) maintains a Neutral rating from UBS with a revised price target, indicating potential stability in its stock value.
• The company reported an operating loss and nearly negative EBITDA in Q4 2025, highlighting significant financial challenges and margin pressures.
• Despite facing difficulties in covering debt costs due to low EBITDA guidance for Q1 2026, RXO's stock shows signs of volatility with a slight increase in price.

RXO Inc. (NYSE:RXO), a key player in the logistics and transportation sector, continues to navigate through a competitive landscape. On February 8, 2026, UBS maintained its Neutral rating on RXO, suggesting investors hold their positions. The firm adjusted its price target for RXO from $15 to $17, as reported by TheFly, reflecting a cautiously optimistic outlook on the stock's future performance.

The company is currently grappling with financial hurdles, notably a squeeze on its margins. In the fourth quarter of 2025, RXO disclosed an operating loss of $42 million and nearly negative EBITDA, underscoring the challenges in covering its operating expenses. This situation is exacerbated by near-term margin risks stemming from contracted revenue exposure and increasing spot rates.

Looking ahead to the first quarter of 2026, RXO anticipates its EBITDA to range between $5 million and $12 million. This forecast falls short of covering the company's interest expenses, posing concerns over its ability to manage debt costs effectively. Although there's a hint of a potential turnaround in the trucking cycle due to rising upstream spot rates, the recovery remains uncertain with persistently weak shipment volumes.

Despite these challenges, RXO's stock has exhibited some volatility, recently experiencing a price increase of $0.32, or approximately 1.93%. The stock has varied between a low of $15.03 and a high of $17.42 during the trading day. Over the past year, RXO has seen a peak of $22.17 and a trough of $10.42. With a market capitalization of roughly $2.77 billion and a trading volume of 6.24 million shares, the company's financial performance and stock activity continue to draw attention from investors and analysts alike.