QXO Reports First Quarter 2025 Results

Published: 2025-05-08 16:34:05 ET QXO

Published on 05/08/2025 at 16:34

QXO, Inc. (NYSE: QXO) today announced its financial results for the first quarter 2025. The company reported a loss of $(0.03) per basic and diluted share attributable to common shareholders.

FIRST QUARTER 2025 SUMMARY RESULTS

Three Months Ended March 31,

(in thousands)

2025

2024

Change %

Revenue:

Software product, net

3,517

3,480

1.1

Service and other, net

9,991

10,956

(8.8

Total revenue, net

13,508

14,436

(6.4

Net income

8,755

138

Adjusted EBITDA¹

(8,915

)

504

NM - Not Meaningful

¹ See "Non-GAAP Financial Measures” section for additional information.

Brad Jacobs, chairman and chief executive officer of QXO, said, “With our $11 billion acquisition of Beacon completed, we’re off to a good start toward becoming the leading tech-enabled company in the $800 billion building products distribution industry. Now it’s time to apply our proven playbook to make an already great business even better.”

First Quarter Highlights

Total revenue for the quarter was $13.5 million, compared with $14.4 million for the same period in 2024. Software product revenue was $3.5 million, compared with $3.5 million for the same period in 2024. Service and other revenue was $10.0 million, compared with $11.0 million for the same period in 2024.

Net income, inclusive of $56.6 million interest income, was $8.8 million.

Adjusted EBITDA, a non-GAAP measure, was negative $8.9 million, compared with positive $0.5 million for the same period in 2024. The decline in Adjusted EBITDA relates to higher employee-related costs, reflecting the introduction of a new senior management team to execute QXO’s expansive growth plan.

About QXO

QXO is the largest publicly traded distributor of roofing, waterproofing and complementary building products in the United States. The company plans to become the tech-enabled leader in the $800 billion building products distribution industry and generate outsized value for shareholders. QXO is targeting $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth. Visit QXO.com for more information.

Non-GAAP Financial Measures

As required by the rules of the SEC, we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this press release. QXO’s non-GAAP financial measure in this press release is adjusted EBITDA.

We believe that the above adjusted financial measure facilitates analysis of our ongoing business operations because it excludes items that may not be reflective of, or are unrelated to, QXO’s core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying business. Other companies may calculate this non-GAAP financial measure differently, and therefore our measure may not be comparable to similarly titled measures of other companies. This non-GAAP financial measure should only be used as a supplemental measure of our operating performance.

Adjusted EBITDA includes adjustments for share-based compensation, transaction, and severance costs as set forth in the attached reconciliation. Transaction adjustments are generally incremental costs that result from an actual or planned acquisition or divestiture and may include transaction costs, consulting fees, retention awards, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities) and certain costs related to integrating and converging IT systems. Management uses this non-GAAP financial measure in making financial, operating and planning decisions and evaluating QXO’s ongoing performance.

We believe that adjusted EBITDA improves comparability from period to period by removing the impact of our capital structure (interest and financing expenses), asset base (depreciation and amortization), tax impacts and other adjustments as set out in the attached tables that management has determined are not reflective of core operating activities and thereby assist investors with assessing trends in our underlying businesses.

Because of these limitations, you should consider adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net income (loss), and our other GAAP results.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical facts, including statements about beliefs, expectations, targets or goals are forward-looking statements. These statements are based on plans, estimates, expectations and/or goals at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as “may,” “will,” “should,” “expect,” “opportunity,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” or “continue,” or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Factors that could cause actual results to differ materially from those described herein include, among others:

Forward-looking statements should not be relied on as predictions of future events, and these statements are not guarantees of performance or results. Forward-looking statements herein speak only as of the date each statement is made. The company does not undertake any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law.

QXO, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(Unaudited)

March 31, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

5,081,672

5,068,504

Accounts receivable, net

3,237

2,736

Prepaid expenses and other current assets

19,135

18,339

Total current assets

5,104,044

5,089,579

Property and equipment, net

535

445

Operating lease right-of-use assets

212

259

Intangible assets, net

4,460

4,024

Goodwill

1,160

Deferred tax assets

2,603

Other non-current assets

182

192

Total assets

5,113,196

5,098,262

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

5,837

6,194

Accrued expenses

43,947

35,692

Deferred revenue

3,498

2,900

Operating lease liabilities, current portion

182

188

Finance lease obligations, current portion

131

128

Total current liabilities

53,595

45,102

Finance lease obligations, net of current portion

156

190

Operating lease liabilities, net of current portion

Total liabilities

53,782

45,363

Stockholders’ equity:

Preferred stock, $0.001 par value; authorized 10,000,000 shares, 1,000,000 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

498,621

Common stock, $0.00001 par value; authorized 2,000,000,000 shares, 409,430,195 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

Additional paid-in capital

4,580,763

4,560,503

Accumulated deficit

(19,974

)

(6,229

)

Total stockholders’ equity

5,059,414

5,052,899

Total liabilities and stockholders’ equity

5,113,196

5,098,262

QXO, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(Unaudited)

Three Months Ended March 31,

2025

2024

Revenue:

Software product, net

3,517

3,480

Service and other, net

9,991

10,956

Total revenue, net

13,508

14,436

Cost of revenue:

Software product

2,215

2,199

Service and other

5,907

6,579

Total cost of revenue

8,122

8,778

Operating expenses:

Selling, general and administrative expenses

44,421

5,190

Depreciation and amortization expenses

251

240

Total operating expenses

44,672

5,430

(Loss) income from operations

(39,286

)

228

Other income (expense), net:

Interest income (expense), net

56,553

(20

)

Total other income (expense)

56,553

(20

)

Income before taxes

17,267

208

Provision for income taxes

8,512

Net income

8,755

138

(Loss) earnings per common share – basic and diluted

(0.03

)

0.21

Total weighted average common shares outstanding:

Basic

451,430

664

Diluted

451,430

664

QXO, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

Three Months Ended March 31,

2025

2024

Cash flows from operating activities:

Net income

8,755

138

Adjustments to reconcile net income to net cash provided by operating activities:

Deferred income taxes

—

Depreciation

Amortization of intangibles

222

209

Non-cash lease expense

Provision for expected losses

—

Share-based compensation

20,260

—

Changes in assets and liabilities:

Accounts receivable

(517

)

307

Prepaid expenses and other current assets

(796

)

(900

)

Other assets

Accounts payable

(357

)

310

Accrued expenses

8,258

(311

)

Deferred revenue

598

475

Operating lease liabilities

(47

)

(81

)

Net cash provided by operating activities

36,504

365

Cash flows from investing activities:

Purchase of property and equipment

(146

)

(61

)

Purchase of intangibles

(659

)

—

Net cash used in investing activities

(805

)

(61

)

Cash flows from financing activities:

Payment of preferred stock dividend

(22,500

)

—

Payment of long-term debt

—

(120

)

Payment of finance lease obligations

(31

)

(49

)

Net cash used in financing activities

(22,531

)

(169

)

Net increase in cash, cash equivalents and restricted cash

13,168

135

Cash, cash equivalents and restricted cash, beginning of period

5,072,004

6,143

Cash, cash equivalents and restricted cash, end of period

5,085,172

6,278

Cash paid during period for:

Interest

Income taxes

—

QXO, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

(in thousands)

(Unaudited)

Three Months Ended

March 31, 2025

March 31, 2024

Net income

8,755

138

Add (deduct):

Depreciation and amortization

278

276

Share-based compensation

20,260

—

Interest (income) expense

(56,553

)

Provision for income taxes

8,512

Transaction costs

9,833

—

Adjusted EBITDA

(8,915

)

504

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