EX-99.1 2 qxo-20250508xexx991.htm EX-99.1 Document
Exhibit 99.1

QXO Reports First Quarter 2025 Results
GREENWICH, Conn. — May 8, 2025 — 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)20252024Change %
Revenue:
Software product, net$3,517 $3,480 1.1 %
Service and other, net9,991 10,956 (8.8)%
Total revenue, net$13,508 $14,436 (6.4)%
Net income$8,755 $138 NM
Adjusted EBITDA¹$(8,915)$504 NM
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:

•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.
Media Contact:
Joe Checkler
joe.checkler@qxo.com
203-609-9650
Investor Contact:
Mark Manduca
mark.manduca@qxo.com
203-321-3889


QXO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
(Unaudited)
March 31, 2025December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents$5,081,672 $5,068,504 
Accounts receivable, net3,237 2,736 
Prepaid expenses and other current assets19,135 18,339 
Total current assets5,104,044 5,089,579 
Property and equipment, net535 445 
Operating lease right-of-use assets212 259 
Intangible assets, net4,460 4,024 
Goodwill1,160 1,160 
Deferred tax assets2,603 2,603 
Other non-current assets182 192 
Total assets$5,113,196 $5,098,262 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$5,837 $6,194 
Accrued expenses43,947 35,692 
Deferred revenue3,498 2,900 
Operating lease liabilities, current portion182 188 
Finance lease obligations, current portion131 128 
Total current liabilities53,595 45,102 
Finance lease obligations, net of current portion156 190 
Operating lease liabilities, net of current portion31 71 
Total liabilities53,782 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, respectively498,621 498,621 
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, respectively4 4 
Additional paid-in capital4,580,763 4,560,503 
Accumulated deficit(19,974)(6,229)
Total stockholders’ equity5,059,414 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,
20252024
Revenue:
Software product, net$3,517 $3,480 
Service and other, net9,991 10,956 
Total revenue, net13,508 14,436 
Cost of revenue:
Software product2,215 2,199 
Service and other5,907 6,579 
Total cost of revenue8,122 8,778 
Operating expenses:
Selling, general and administrative expenses44,421 5,190 
Depreciation and amortization expenses251 240 
Total operating expenses44,672 5,430 
(Loss) income from operations(39,286)228 
Other income (expense), net:
Interest income (expense), net56,553 (20)
Total other income (expense)56,553 (20)
Income before taxes17,267 208 
Provision for income taxes8,512 70 
Net income$8,755 $138 
(Loss) earnings per common share – basic and diluted$(0.03)$0.21 
Total weighted average common shares outstanding:
Basic451,430664
Diluted451,430664


QXO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Three Months Ended March 31,
20252024
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— 70 
Depreciation56 67 
Amortization of intangibles222 209 
Non-cash lease expense47 81 
Provision for expected losses15 — 
Share-based compensation20,260 — 
Changes in assets and liabilities:
Accounts receivable(517)307 
Prepaid expenses and other current assets(796)(900)
Other assets10 - 
Accounts payable(357)310 
Accrued expenses8,258 (311)
Deferred revenue598 475 
Operating lease liabilities(47)(81)
Net cash provided by operating activities36,504 365 
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 cash13,168 135 
Cash, cash equivalents and restricted cash, beginning of period5,072,004 6,143 
Cash, cash equivalents and restricted cash, end of period$5,085,172 $6,278 
Cash paid during period for:
Interest$6 $23 
Income taxes$— $1 


QXO, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(in thousands)
(Unaudited)
Three Months Ended
March 31, 2025March 31, 2024
Net income$8,755 $138 
Add (deduct):
Depreciation and amortization
278 276 
Share-based compensation
20,260 — 
Interest (income) expense
(56,553)20 
Provision for income taxes
8,512 70 
Transaction costs
9,833 — 
Adjusted EBITDA$(8,915)$504