Executive Summary

Q4 revenue was $14.7M (+0.2% YoY; +12% QoQ) while GAAP net income was $11.3M, driven by $61.4M of interest income on a ~$5.1B cash balance; diluted EPS was a loss of $(0.02) given share dynamics and preferred dividend effects .
Non-GAAP Adjusted EBITDA loss improved sequentially to $(7.7)M from $(11.5)M in Q3 but declined YoY from $0.7M, reflecting costs from building a new senior leadership team to execute QXO’s growth plan .
No formal forward guidance was issued in the Q4 press release/8-K; management emphasized balance sheet strength (>$5B cash, no debt) and an M&A-led strategy in building products distribution .
Key near-term catalyst: the definitive agreement to acquire Beacon Roofing Supply for ~$11B (antitrust cleared; financing secured), positioning QXO for step-change scale pending shareholder tender and closing conditions .

What Went Well and What Went Wrong

What Went Well
- Balance sheet firepower: ~$5.1B cash and no debt at 12/31/24 supports an “expansive growth plan” and M&A strategy .
- Interest income tailwind: $61.4M of net interest income in Q4 produced $11.3M GAAP net income despite operating losses .
- Strategic momentum: Management messaging remained consistent about building a “tech‑forward leader” in the $800B building products distribution industry, reinforced by the Beacon deal announcement in March .
What Went Wrong
- Underlying operating performance: Loss from operations was $(33.1)M in Q4 vs $0.4M in Q4’23, as SG&A and D&A stepped up with leadership build-out; EBIT margin fell to −224% vs +3% YoY .
- Non-GAAP deterioration YoY: Adjusted EBITDA swung to $(7.7)M from +$0.7M in Q4’23 (transaction and hiring-related costs), though sequentially better than Q3 .
- Limited top-line growth: Total revenue was flat YoY (+0.2%); services declined 3% YoY, partially offset by 7% growth in software product revenue .

P&L snapshot and margins (oldest → newest)

Metric	Q4 2023	Q3 2024	Q4 2024
Total Revenue ($M)	14.709	13.155	14.743
Gross Profit ($M)	5.721 (14.709−8.988)	5.442 (13.155−7.713)	6.038 (14.743−8.705)
Gross Margin (%)	38.9% (5.721/14.709)	41.4% (5.442/13.155)	41.0% (6.038/14.743)
EBIT / (Loss from ops) ($M)	0.422	(33.826)	(33.101)
EBIT Margin (%)	2.9% (0.422/14.709)	−257.3% ((33.826)/13.155)	−224.4% ((33.101)/14.743)
Net Income ($M)	0.419	17.132	11.289
Net Margin (%)	2.8% (0.419/14.709)	130.3% (17.132/13.155)	76.6% (11.289/14.743)
Diluted EPS ($)	0.64	(0.01)	(0.02)
Adjusted EBITDA ($M)	0.684	(11.469)	(7.655)

Segment revenue (oldest → newest)

Segment ($M)	Q4 2023	Q3 2024	Q4 2024
Software product, net	4.640	3.028	4.977
Service and other, net	10.069	10.127	9.766
Total revenue, net	14.709	13.155	14.743

KPIs and balance sheet (period-end or period values as noted)

KPI	Q4 2023	Q3 2024	Q4 2024
Interest income (expense), net ($M, quarterly)	(0.014)	56.989	61.374
Cash & cash equivalents ($M, period-end)	6.143	5,037.112	5,068.504
Long-term debt (period-end)	0.994	—	—
Weighted avg shares – Diluted (000s)	659	358,813	451,430

Notes:

Sequential revenue growth Q4 vs Q3: +$1.59M (~+12.1%) .
YoY revenue growth Q4: +$0.03M (~+0.2%) .
Sequential Adjusted EBITDA improvement: +$3.8M (from $(11.47)M to $(7.66)M) .
Operating expense step-up continued with SG&A $38.9M in Q4 vs $5.1M in Q4’23 (leadership build-out, transaction-related costs) .

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance	FY/Q1 outlook	N/A	No formal quantitative guidance provided in Q4 materials	Maintained no formal guidance

Management commentary focused on balance sheet strength and M&A strategy rather than issuing financial targets .

Note: No Q4’24 earnings call transcript was found in the document set; themes reflect management press releases/8-Ks.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
M&A pipeline / Building products distribution	Q3’24: “Poised to make QXO a leader” with >$5B cash, no debt . Q2’24: Not available in document set.	Reiterated goal to be a tech-forward leader; later announced definitive Beacon acquisition (~$11B) in March .	Accelerating toward large-scale platform via Beacon .
Balance sheet / financing	Q3’24: ~$5.04B cash post capital raises .	~$5.07B cash at 12/31/24; no debt .	Stable very strong liquidity .
Operating profitability	Q3’24: Adj. EBITDA $(11.47)M; costs tied to leadership build-out .	Adj. EBITDA $(7.66)M; sequential improvement but YoY deterioration .	Gradual sequential improvement; still negative .
Interest income tailwind	Q3’24: $57.0M drove GAAP net income .	$61.4M drove GAAP net income .	Tailwind persisting while cash remains high .
Regulatory/antitrust	Q3’24: N/A.	For Beacon transaction, antitrust cleared U.S./Canada (announced March) .	Clearance reduces deal risk .

“We are making significant strides in establishing QXO as a tech-forward leader in the $800 billion building products distribution industry. Our strong balance sheet, including more than $5 billion of cash and no debt, is enabling our world-class leadership team to pursue high-value M&A opportunities.” — Brad Jacobs, Chairman & CEO .
“Acquiring Beacon is a key milestone in our plan to create substantial shareholder value and establish QXO as a leader in the $800 billion building products distribution industry.” — Brad Jacobs, Chairman & CEO (M&A release) .
Adjusted EBITDA decline YoY reflects “costs related to the introduction of a new senior management team to execute QXO’s expansive growth plan.” — Company commentary .

No Q4’24 earnings call transcript was available in the document set; no Q&A details to report from company materials [ListDocuments results show no transcript in the period].

Wall Street consensus (S&P Global) for Q4’24 EPS and revenue was not retrievable at this time due to data access limits; as a result, we cannot quantify beats/misses versus consensus for this quarter (we attempted to pull “Primary EPS Consensus Mean” and “Revenue Consensus Mean” for Q4’24) [Values retrieved from S&P Global but unavailable due to API limits].

Where estimates may need to adjust:

Given the sequential improvement in Adjusted EBITDA and continuing interest income tailwind on a very large cash balance, near-term GAAP EPS estimates may remain highly sensitive to treasury yield assumptions and cash deployment timing rather than core operations .

Liquidity narrative dominates near term: ~$5.1B cash with no debt underpins M&A strategy; GAAP profitability is currently a function of interest income on this cash rather than operating profit .
Core operations remain loss-making: EBIT of $(33.1)M and Adjusted EBITDA of $(7.7)M indicate underlying business investment phase; sequential EBITDA improvement is encouraging but YoY comp is tougher due to stepped-up SG&A/transactions .
Revenue base stable: Q4 revenue +12% QoQ to $14.7M, essentially flat YoY; software revenue grew 7% YoY, while services declined 3% YoY .
Deal catalyst: The definitive agreement to acquire Beacon (antitrust cleared; financing secured) is the primary catalyst; path to close requires tender success and other customary conditions .
What moves the stock: Updates on Beacon tender/closing, capital deployment cadence, and visibility to operating leverage as leadership hires normalize OpEx should be key drivers .
Risk framing: Execution risk on large-scale M&A/integration and potential dilution from financing were acknowledged in forward-looking statements; macro demand in building products is cyclical .
Monitoring list: Watch for any formal guidance post-deal, updated pro forma leverage/interest assumptions, and cadence of operating margin improvement as the strategy scales .