RXO, Inc. Morgan Stanley's 14th Annual Laguna Conference

Great. Even on day two, we are saving the best for last. Again, very happy to welcome back to Laguna, RXO, with Chief Strategy Officer, Jared Weisfeld, and Senior Market Strategist, Kevin Sterling. Gentlemen, thank you so much for being here.

Thanks for having us. Appreciate it, Ravi.

Thank you, Ravi. Tons going on in the world today.

Obviously, a lot of it has been covered at the conference, so would love your views on this. Maybe you can just open up with what you're seeing out there, lay of the land, and maybe give us a little bit of a market update.

For sure. I know there were some headlines at your conference.

I don't know what you're talking about.

Happy to report that we put out a pretty positive release last week in terms of what we're seeing in the business.

Yep. Let's expand on that, because the momentum in the business that we're seeing right now is quite impressive.

When you think about the update that we put out last week, we talked about our expectation that we're going to continue to grow our truckload volume in Q3 on a year-on-year basis, up low to mid-single digits.

despite overall freight market weakness. I think that's a testament to our share gains.

Yep which are continuing, and you're having an acceleration of volume growth slightly on a year-on-year basis, Q3 relative to Q2.

Underneath it, not only are we growing, we're growing profitably. When you look at the prior outlook that we gave from an adjusted EBITDA standpoint for Q3, from $35 million to $45 million, we talked about some pretty significantly positive updates as it relates to how gross profit per load is trending.

Our prior expectation was that gross profit per load would move lower in truckload from July through September.

In fact, not only did it not move lower, it was up by more than 10% month-on-month from July into August.