Margin PressureGross margins were slightly worse, with RXO posting a gross margin of 15.5%, down year-over-year.
Market WeaknessConcerns stem from the speed and magnitude of decline in Legacy RXO/Coyote earnings and prolonged freight market weakness.
Valuation ConcernsNear term enthusiasm is tempered by valuation and a share price that is already up about 20% YTD, suggesting limited immediate upside.