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Acquisition
 9 Months Ended
Sep. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisition Acquisition
On September 16, 2024 (the “acquisition date”), the Company acquired the technology-driven, asset-light based truckload freight brokerage services business, as well as certain assets used to conduct haulage, dedicated transport and warehousing services in the United Kingdom (collectively, “Coyote”), from United Parcel Service of America, Inc. (“UPS”) and certain subsidiaries of UPS (the “Transaction”). We acquired Coyote for $1.038 billion in cash, subject to certain additional customary adjustments. The purchase price was subsequently increased by $10 million for working capital and other post-closing adjustments, which was paid in the first quarter of 2025. We believe the acquisition of Coyote enhances our competitive position with greater scale, a broader array of service offerings and strengths in a more diverse set of end markets.
The Transaction was accounted for under the acquisition method of accounting. The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the acquisition date.
The following table summarizes the final allocation of the purchase price to Coyote’s identifiable tangible and intangible assets acquired and liabilities assumed by the Company at the acquisition date. During the measurement period, adjustments to the preliminary purchase price allocation were made primarily to reflect the final valuation of acquired identifiable intangible assets, property  and equipment, self-insured liabilities and deferred tax liabilities.
(In millions)
Cash and cash equivalents$19 
Accounts receivable394 
Other current assets31 
Property and equipment25 
Identifiable intangible assets459 
Operating lease assets88 
Other long-term assets19 
Total assets$1,035 
Accounts payable$(209)
Accrued expenses(62)
Short-term operating lease liabilities(17)
Deferred tax liabilities(80)
Long-term operating lease liabilities(70)
Other long-term liabilities(41)
Total liabilities$(479)
Net assets acquired$556 
Purchase price$1,048 
Goodwill recorded$492 
The purchase price exceeded the estimated fair value of the net assets acquired, and, as such, the excess was allocated to goodwill. Goodwill will not be amortized but instead will be reviewed for impairment at least annually, absent any indicators of impairment. Goodwill is attributable to synergies expected to be achieved from the combined operations of the Company and Coyote and the assembled workforce. Goodwill recognized in the Transaction is not expected to be deductible for tax purposes.
The following table summarizes the purchase price allocated to the identifiable intangible assets acquired:
(In millions)Fair ValueWeighted Average Useful Life (Years)
Customer relationships$444 15
Trademarks15 4
Total$459 15
The following unaudited pro forma financial information presents the Company’s results of operations as if the Coyote acquisition occurred on January 1, 2023. The unaudited pro forma information includes adjustments for intangible assets acquired and elimination of historical intercompany transactions between RXO and Coyote. The unaudited pro forma financial information is for informational purposes only and is not necessarily indicative of our consolidated results of operations of the combined business had the acquisition been completed as of January 1, 2023 or of the results of our future operations of the combined business.
(In millions)Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
Revenue$1,574 $4,723 
Loss before income taxes(29)(61)