Executive Summary

Q1 2025 revenue was $13.51M, down 6.4% year over year, with GAAP diluted EPS of -$0.03; net income was $8.76M aided by $56.6M interest income, while Adjusted EBITDA fell to -$8.92M due to higher employee-related costs tied to building the new leadership team .
Versus S&P Global consensus, QXO beat on both revenue ($13.51M vs $12.00M) and EPS (-$0.03 vs -$0.05), reflecting smaller-than-feared loss and revenue outperformance; non-GAAP adjustments were significant and should temper interpretation of underlying operating performance (Values retrieved from S&P Global).
Strategic catalyst: QXO completed the ~$11B acquisition of Beacon on April 29, 2025, becoming the largest publicly traded distributor of roofing, waterproofing and complementary building products in the U.S., with management emphasizing execution of a transformation playbook to improve margins and growth .
Balance sheet and funding: cash and cash equivalents ended Q1 at ~$5.09B; subsequent financing in Q2 raised ~$4.9B debt and ~$4.8B equity/mandatory converts, then paid down $1.4B of term loan; net debt stood at ~$1.2B as of June 30, 2025 .

What Went Well and What Went Wrong

What Went Well

Beacon acquisition closed, making QXO the largest publicly traded distributor in its category; Jacobs: “Acquiring Beacon is a major step forward... apply our proven playbook to accelerate growth, expand margins” .
Top-line beat vs consensus and less-negative EPS than expected in Q1 2025 (Values retrieved from S&P Global).
Interest income of $56.6M boosted net income to $8.8M in Q1 despite operating loss, demonstrating cash yield as a near-term earnings support .

What Went Wrong

Adjusted EBITDA turned negative (-$8.9M) vs +$0.5M YoY, driven by higher employee-related costs from the introduction of a new senior management team, highlighting near-term integration and investment drag .
Operating loss widened to -$39.29M in Q1 (from -$33.10M in Q4), indicating underlying operating pressure pre-Beacon integration benefits .
Q1 revenue declined 6.4% YoY, with service and other revenue down 8.8%, reflecting transitional dynamics and spend prioritization ahead of scale-up .

Financial Results

Quarterly Trend (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$13.16	$14.74	$13.51
Diluted EPS ($USD)	-$0.01	-$0.02	-$0.03
Gross Margin (%)	41.98%*	40.96%	39.87%
EBITDA Margin (%)	-255.73%*	-222.68%*	-288.78%*
Net Income ($USD Millions)	$17.13*	$11.29	$8.76
Operating Income ($USD Millions)	-$33.83	-$33.10	-$39.29

Values with * retrieved from S&P Global.

Q1 2025 vs Prior Periods and Estimates

Metric	Q1 2025 Actual	Q4 2024	Q1 2024	S&P Consensus	Surprise
Revenue ($USD Millions)	$13.51	$14.74	$14.44	$12.00 (S&P Global)	Beat ($+1.51M, +12.6%) (S&P Global)
Diluted EPS ($USD)	-$0.03	-$0.02	$0.21	-$0.05 (S&P Global)	Beat ($+0.02) (S&P Global)
Gross Margin (%)	39.87%	40.96%	40.50%†	n/a	Lower vs Q4; Lower YoY
Adjusted EBITDA ($USD Millions)	-$8.92	-$7.66	$0.50	n/a	Deteriorated QoQ, YoY

† Derived from Q1 2024 financials reported; margin not explicitly stated in release; directional comparison from revenue/cost context .

Segment Breakdown (Q1 2025)

Segment	Q1 2025 ($USD Millions)	Q1 2024 ($USD Millions)	YoY Change
Software product, net	$3.52	$3.48	+1.1%
Service and other, net	$9.99	$10.96	-8.8%
Total revenue, net	$13.51	$14.44	-6.4%

KPIs and Cash

KPI	Q1 2025	Q4 2024	Q1 2024
Net income ($USD Millions)	$8.76	$11.29	$0.14
Adjusted EBITDA ($USD Millions)	-$8.92	-$7.66	$0.50
Interest income ($USD Millions)	$56.55	$61.37	$0.02
Cash and cash equivalents ($USD Millions)	$5,085.17	$5,072.00	$6.28

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	Not provided	Not provided	Maintained (no formal guidance)
Margins (Gross/EBITDA)	FY/Quarter	Not provided	Not provided	Maintained (no formal guidance)
OpEx	FY/Quarter	Not provided	Not provided	Maintained (no formal guidance)
OI&E / Interest	FY/Quarter	Not provided	Not provided	Maintained (no formal guidance)
Tax Rate	FY/Quarter	Not provided	Not provided	Maintained (no formal guidance)

No formal quantitative guidance was disclosed in the Q1 2025 press release or 8-K; management emphasized strategy and integration priorities .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was found in the document catalog (none listed for QXO). The narrative below reflects management’s press release commentary and prior-quarter disclosures.

Topic	Previous Mentions (Q-2: Q3’24; Q-1: Q4’24)	Current Period (Q1’25)	Trend
M&A strategy / Beacon	Strong cash position; targeted M&A; raised ~$4.1B via private placements; positioning for distribution leadership	Beacon acquisition completed; QXO becomes largest publicly traded distributor; transformation playbook to improve margins	Accelerating to execution
Operating investment / leadership build	Higher SG&A; Adjusted EBITDA negative due to leadership build	Adjusted EBITDA negative; cited employee-related costs tied to new senior team	Continued near-term drag
Balance sheet strength	~$5.04B cash, no debt at Q3; ~$5.1B cash, no debt at Q4	$5.09B cash at Q1; interest income sizable; subsequent Q2 financing and net debt ~$1.2B (post-deal)	Transitioning to funded integration
Technology enablement	Plans to be tech-forward leader	“Tech-enabled leader” vision reiterated post-Beacon	Consistent strategic emphasis
Macro/supply chain risks	Broad macro, industry cyclicality and trade risks noted	Similar risk disclosures including pricing, vendor rebates, seasonality, IT/cyber	Ongoing risk framework

Management Commentary

“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.” — Brad Jacobs, Chairman & CEO .
“Acquiring Beacon is a major step forward… apply our proven playbook to accelerate growth, expand margins, and create an unmatched customer experience.” — Brad Jacobs .
Adjusted EBITDA decline “relates to higher employee-related costs, reflecting the introduction of a new senior management team to execute QXO’s expansive growth plan.” .

Q&A Highlights

No Q1 2025 earnings call transcript or Q&A was available in the document catalog for QXO. No management Q&A clarifications were found for the quarter [List: earnings-call-transcript none].

Estimates Context

Consensus comparison (S&P Global): Revenue $12.00M vs actual $13.51M (beat by $1.51M, +12.6%); EPS -$0.05 vs actual -$0.03 (beat by $0.02). Values retrieved from S&P Global.
Implications: Consensus likely needs to reflect lower-than-expected GAAP loss magnitude driven by interest income, while underlying operating loss widened; near-term non-GAAP adjustments and integration costs should bias 2025 operating forecasts more conservative on margins (Values retrieved from S&P Global; operating dynamics from 8-K and press release) .

Key Takeaways for Investors

Beacon acquisition is the principal catalyst; QXO now controls the largest publicly traded roofing and waterproofing distribution platform and plans to deploy a “proven playbook” to improve pricing, procurement, logistics and organizational leverage .
Q1 beat vs consensus on revenue and EPS, but underlying operations showed wider operating loss and negative Adjusted EBITDA tied to leadership build and transformation costs; watch for operating leverage as integration milestones hit through 2025 (Values retrieved from S&P Global; operating metrics from filings) .
Interest income remains a material contributor to GAAP net income in the near term; as financing and acquisition-related cash flows normalize post-Q2 raises and paydown, expect earnings mix to shift toward operating performance .
Balance sheet transitioned in Q2 to funded integration (net debt ~$1.2B, expanded equity/preferred); monitor leverage, covenant headroom and cash conversion amid inventory and vendor rebate dynamics in distribution .
Near-term narrative drivers: integration progress updates, non-GAAP adjustments cadence (transaction, transformation, stock comp), and early margin signals; medium-term thesis hinges on doubling legacy Beacon EBITDA organically and scaling to ~$50B revenues over the next decade .
No formal guidance was provided in Q1; expect investors to focus on Q2/Q3 disclosures for segment detail (residential/non-residential/complementary) and margin expansion path as playbook actions mature .
Risk monitor: macro cyclicality in building products, pricing/rebate changes, seasonality/weather, IT/cybersecurity, and talent retention—explicitly flagged by management and embedded in forward-looking statements .

Notes:

Consensus and starred values retrieved from S&P Global.
All other figures and quotes sourced from Q1 2025 8-K and press releases, Q4 2024 press release, Q3 2024 8-K.

QXO, Inc. (QXO)·Q1 2025 Earnings Summary