QXO, Inc. Reports $13.5 Million Revenue, Acquires Beacon Roofing Supply for $11 Billion

QXO, Inc. reported a net revenue of $13.5 million for the three months ended March 31, 2025, a decrease of 6.4% compared to $14.4 million in the same period of the previous year. The decline in revenue was attributed to the phasing out of legacy systems and the migration of customers to new applications and services. The company's cost of revenue also decreased by 7.5% to $8.1 million, resulting in a gross margin of 39.9%, slightly up from 39.2% year-over-year. However, QXO experienced a significant increase in operating expenses, which surged to $44.7 million, primarily due to costs associated with a new senior management team and transaction expenses related to the recent acquisition of Beacon Roofing Supply, Inc.

The company reported a net income of $8.8 million for the quarter, a substantial increase from $138,000 in the prior year, largely driven by a notable rise in interest income, which reached $56.6 million compared to a loss of $20,000 in the previous year. This increase in interest income was attributed to the cash influx from recent equity investments and private placements. Despite the positive net income, QXO's loss per share was $(0.03), reflecting the impact of preferred stock dividends and the company's recent financial restructuring.

Strategically, QXO completed the acquisition of Beacon Roofing Supply on April 29, 2025, in a transaction valued at approximately $11 billion. This acquisition marks a significant shift for QXO, transitioning it into the largest publicly traded distributor of roofing and complementary building products in the United States. The company aims to leverage this acquisition to target $50 billion in annual revenues within the next decade through both organic growth and further acquisitions. Following the acquisition, QXO's stock was transferred from Nasdaq to the New York Stock Exchange, enhancing its market presence.

Operationally, QXO's cash position improved to $5.1 billion as of March 31, 2025, up from $5.07 billion at the end of the previous year. The company also reported a significant increase in cash provided by operating activities, which rose to $36.5 million compared to $365,000 in the prior year. This increase was primarily due to higher interest income and effective management of working capital. The company’s employee headcount and customer engagement metrics were not disclosed in the filing, but the focus on integrating Beacon is expected to drive future growth and operational efficiencies.

Looking ahead, QXO's management expressed confidence in the company's ability to navigate the challenges associated with the integration of Beacon and to capitalize on the opportunities within the $800 billion building products distribution market. The company plans to continue its focus on strategic acquisitions and organic growth to achieve its ambitious revenue targets. However, the management also acknowledged the potential risks associated with the integration process and the need to maintain strong relationships with customers and suppliers during this transition.