StockNews.AI
QXO
StockNews.AI
103 days

QXO Reports First Quarter 2025 Results

1. QXO reported Q1 2025 loss of $(0.03) per share. 2. Total revenue decreased to $13.5 million from $14.4 million. 3. Adjusted EBITDA was negative $8.9 million due to higher employee costs. 4. The $11 billion Beacon acquisition aims to dominate building products distribution. 5. CEO Brad Jacobs emphasizes application of growth strategies post-acquisition.

11m saved
Insight
Article

FAQ

Why Neutral?

While the acquisition is promising, the initial losses and declining EBITDA may concern investors. Historical performances in similar situations suggest cautious optimism surrounding merger strategies, but poor quarterly results often dampen enthusiasm.

How important is it?

The financial results and strategic acquisition are pivotal for QXO's near-term performance, shaping investor sentiment. QXO's share price can fluctuate significantly based on implementation success post-acquisition.

Why Short Term?

The immediate release of poor quarterly results will likely create short-term volatility. Long-term growth depends on successful implementation of current strategies, which will take time to materialize.

Related Companies

BECNHDLOW
GREENWICH, Conn.--(BUSINESS WIRE)--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. 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: an inability to obtain the products we distribute resulting in lost revenues and reduced margins and damaging relationships with customers; a change in supplier pricing and demand adversely affecting our income and gross margins; a change in vendor rebates adversely affecting our income and gross margins; our inability to identify potential acquisition targets or successfully complete acquisitions on acceptable terms; risks related to maintaining our safety record; the possibility that building products distribution industry demand may soften or shift substantially due to cyclicality or dependence on general economic and political conditions, including inflation or deflation, interest rates, governmental subsidies or incentives, consumer confidence, labor and supply shortages, weather and commodity prices; the possibility that regional or global barriers to trade or a global trade war could increase the cost of products in the building products distribution industry, which could adversely impact the competitiveness of such products and the financial results of businesses in the industry; seasonality, weather-related conditions and natural disasters; risks related to the proper functioning of our information technology systems, including from cybersecurity threats; loss of key talent or our inability to attract and retain new qualified talent; risks related to work stoppages, union negotiations, labor disputes and other matters associated with our labor force or the labor force of our suppliers or customers; the risk that the anticipated benefits of our acquisition of Beacon Roofing Supply, Inc. (the “Beacon Acquisition”) or any future acquisition may not be fully realized or may take longer to realize than expected; the effect of the Beacon Acquisition or any future acquisition on our business relationships with employees, customers or suppliers, operating results and business generally; unexpected costs, charges or expenses resulting from the Beacon Acquisition or any future acquisition or difficulties in integrating and operating acquired companies; the risk that the Company is or becomes highly dependent on the continued leadership of Brad Jacobs as chairman and chief executive officer and the possibility that the loss of Mr. Jacobs in these roles could have a material adverse effect on the Company’s business, financial condition and results of operations; the possibility that the Company’s outstanding warrants and preferred stock may or may not be converted or exercised, and the economic impact on the Company and the holders of common stock of the Company that may result from either such exercise or conversion, including dilution, or the continuance of the preferred stock remaining outstanding, and the impact its terms, including its dividend, may have on the Company and the common stock of the Company; challenges raising additional equity or debt capital from public or private markets to pursue the Company’s business plan and the effects that raising such capital may have on the Company and its business; the possibility that new investors in any future financing transactions could gain rights, preferences and privileges senior to those of the Company’s existing stockholders; risks associated with periodic litigation, regulatory proceedings and enforcement actions, which may adversely affect the Company’s business and financial performance; the impact of legislative, regulatory, economic, competitive and technological changes; unknown liabilities and uncertainties regarding general economic, business, competitive, legal, regulatory, tax and geopolitical conditions; and other factors, including those set forth in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q. 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. More News From QXO, INC.

Related News