QXO Posts Q1 Loss Amid Beacon Acquisition

New kid on the block eyes long-term growth in roofing and building products distribution

Despite short-term losses during the first quarter of this year, QXO’s strategy — and deep cash reserves — point to long-term transformation across the building products supply chain. — Despite experiencing short-term losses in the first quarter, QXO’s strategy and substantial cash reserves indicate a long-term transformation throughout the building products supply chain.
— Bryan Gottlieb/Roofing Contractor | Elements: Adobe Stock

QXO (NYSE: QXO) reported a net loss of $0.03 per share for the first quarter of 2025 as the company integrates its recent $11 billion acquisition of Beacon.

The acquisition, finalized at the end of April, positions QXO as the largest publicly traded distributor of roofing, waterproofing, and complementary building products in the United States.

Financial Overview

For the quarter ended March 31, 2025, QXO reported total revenue of $13.5 million, a 6.4% decrease from $14.4 million in the same period last year.

Software product revenue remained relatively flat at $3.5 million, while service and other revenue declined 8.8% to $10.0 million.

Despite the revenue dip, QXO posted a net income of $8.8 million, bolstered by $56.6 million in interest income. However, adjusted EBITDA — a non-GAAP measure — was negative $8.9M, compared to $0.5 million in the prior-year quarter.

The decline in adjusted EBITDA was attributed to higher employee-related costs associated with onboarding a new senior management team to execute QXO’s expansive growth plan.

Strategic Acquisition

The completion of the Beacon acquisition marks a months-long effort by QXO. Chairman and CEO Brad Jacobs stated, “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.”

The acquisition was financed through cash on hand and secured financing commitments from major financial institutions, including Goldman Sachs, Morgan Stanley, Citi, Crédit Agricole, Wells Fargo, and Mizuho.

QXO had approximately $5.1 billion in cash and no debt as of December 31, 2024.

QXO Closes Beacon Acquisition, Rebrands Immediately; Jacobs to Ring NYSE Bell

Outlook and Implications

QXO aims to become a tech-forward leader in the building products distribution industry, targeting $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth.

The company plans to leverage Beacon’s extensive branch network and customer base to drive this growth.

For roofing contractors and building suppliers, QXO’s strategic moves signal a shift toward greater technology integration in distribution processes.

The company’s focus on becoming a tech-enabled leader suggests potential enhancements in supply chain efficiency, inventory management and customer service.

While QXO faces short-term financial challenges amid its aggressive expansion strategy, analysts agree that its substantial cash reserves and strategic acquisitions position it for significant growth in the building products distribution industry.

For more information, visit qxo.com.

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Bryan Gottlieb is the Managing Editor of Roofing Contractor. He previously worked for the Detroit Metro Times, the San Diego Daily Transcript and Adweek magazine. His beats include insurance markets, regulatory and legislative affairs, private equity, mergers and acquisitions and news analysis.

Reach him at gottliebb@bnpmedia.com | Follow Bryan on LinkedIn