QXO (QXO) Q1 2025 earnings summary

Executive summary

• Completed $11.0 billion acquisition of Beacon Roofing Supply, becoming a tech-enabled leader in the $800 billion building products distribution industry.

• Strategic goal to reach $50 billion in annual revenues within a decade through acquisitions and organic growth.

• Q1 2025 results reflect legacy technology business; Beacon results to be consolidated in future periods.

• Introduction of a new senior management team to drive growth and integration.

Financial highlights

• Q1 2025 net revenue decreased 6.4% year-over-year to $13.5 million, driven by legacy business transition.

• Gross margin improved to 39.9% from 39.2% year-over-year due to product mix.

• Net income was $8.8 million, up from $0.1 million in Q1 2024, aided by $56.6 million in interest income.

• Adjusted EBITDA was $(8.9) million, compared to $0.5 million in Q1 2024, reflecting higher operating expenses and transaction costs.

• EPS was $(0.03) compared to $0.21 year-over-year, impacted by preferred stock dividends.

Outlook and guidance

• Company expects significant revenue and scale increase from Beacon integration, aiming for industry leadership and $50 billion annual revenue target over the next decade.

• Focus on accretive acquisitions and organic growth to drive long-term shareholder value.