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Business Wire
5 days ago
- Business
- Business Wire
QXO Reports Second Quarter 2025 Results
GREENWICH, Conn.--(BUSINESS WIRE)--QXO, Inc. ('QXO' or the 'Company') (NYSE: QXO) today announced its financial results for the second quarter 2025. The Company reported a basic and diluted loss per common share of $(0.15) and an Adjusted Diluted Earnings per Common Share ('Adjusted Diluted EPS'), a non-GAAP financial measure, of $0.11 for the three months ended June 30, 2025. Three Months Ended June 30, (in millions, except for per share data) 2025 2024 Net sales $ 1,906.4 $ 14.5 Gross profit $ 401.7 $ 5.8 Adjusted Gross Profit (1) $ 482.0 $ 5.8 Gross margin 21.1 % 40.0 % Adjusted Gross Margin (1) 25.3 % 40.0 % Net loss $ (58.5 ) $ (0.6 ) Net margin (3.1 )% (4.1 )% Adjusted EBITDA (1) $ 204.6 $ (1.2 ) Adjusted EBITDA Margin (1) 10.7 % (8.3 )% Adjusted Net Income (1) $ 109.2 N/M Basic and diluted loss per common share $ (0.15 ) N/M Adjusted Diluted EPS (1) $ 0.11 N/M N/M - Not meaningful (1) See the 'Non-GAAP Financial Measures' section of the press release. Expand Brad Jacobs, chairman and chief executive officer of QXO, said, 'The integration of Beacon is progressing well, and we've identified opportunities that exceed our initial expectations. We've made key strategic hires and launched a broad transformation initiative, focusing on pricing, procurement, sales, organizational structure, logistics, and other core drivers of performance. We're confident we will at least double legacy Beacon EBITDA organically. Looking ahead, we see strong momentum in both our acquisition pipeline and organic initiatives, reinforcing our long-term goal of reaching $50 billion in annual revenue within the next decade.' Second Quarter Highlights On April 29, 2025, QXO completed its acquisition of Beacon Roofing Supply, Inc. ('Beacon'). The acquisition was financed through cash from QXO's balance sheet and a combination of debt and equity raises for a total purchase price of $10.6 billion. QXO's second quarter operational financial results noted below only include legacy Beacon's operations for the period April 29, 2025 through June 30, 2025. Net sales were $1.91 billion for the three months ended June 30, 2025. Adjusted Gross Margin, a non-GAAP financial measure, for the three months ended June 30, 2025 was 25.3%. Adjusted Net Income, a non-GAAP financial measure, was $109.2 million for the three months ended June 30, 2025. Adjusted Diluted EPS, a non-GAAP financial measure, was $0.11 for the three months ended June 30, 2025. Adjusted EBITDA, a non-GAAP financial measure, was $204.6 million for the three months ended June 30, 2025. Adjusted EBITDA Margin, a non-GAAP financial measure, was 10.7% for the three months ended June 30, 2025. Financing During the second quarter, the Company raised $4.9 billion in debt, and an additional $4.8 billion through a combination of common equity and mandatory convertible preferred share issuances. Subsequently in the quarter, we paid down our Term Loan Facility by $1.4 billion. The Company's net debt position as of June 30, 2025 was approximately $1.2 billion. About QXO QXO is the largest publicly traded distributor of roofing, waterproofing and complementary building products in North America. The Company plans to become the tech-enabled leader in the $800 billion building products distribution industry and generate outsized value for shareholders. The Company is executing its strategy toward a target of $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth. Visit for more information. Non-GAAP Financial Measures As required by the rules of the Securities and Exchange Commission ('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 measures in this press release include: Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin. We calculate Adjusted Gross Profit as gross profit excluding inventory fair value adjustments, and we calculate Adjusted Gross Margin as Adjusted Gross Profit divided by net sales. We calculate Adjusted Net Income (Loss) as net income (loss) excluding amortization; stock-based compensation; loss on debt extinguishment; restructuring costs; transaction costs; transformation costs; inventory fair value adjustments; and the income tax associated with such adjusting items. We calculate Adjusted Diluted EPS as Adjusted Net Income (Loss) divided by the weighted-averaged number of common shares outstanding during the period plus the effect of dilutive common share equivalents based on the most dilutive result of the if-converted and two-class methods. We calculate Adjusted EBITDA as net income (loss) excluding depreciation; amortization; stock-based compensation; interest (income) expense, net; loss on debt extinguishment; provision for (benefit from) income taxes; restructuring costs; transaction costs; transformation costs; and inventory fair value adjustments that we do not consider representative of our underlying operations. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating QXO's ongoing performance. We believe these non-GAAP financial measures facilitate analysis of our ongoing business operations because they exclude 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 these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures of other companies. Forward-looking statements This release includes 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. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as 'anticipate,' 'estimate,' 'believe,' 'continue,' 'could,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'should,' 'will,' 'expect,' 'objective,' 'projection,' 'forecast,' 'goal,' 'guidance,' 'outlook,' 'effort,' 'target,' 'trajectory' or the negative of these terms or other comparable terms. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in our filings with the SEC, and the following: 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 and artificial intelligence use; 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 liabilities, costs, charges, expenses or accounting adjustments resulting from the Beacon Acquisition or any future acquisition or difficulties in integrating and operating acquired companies; risks related to our obligations under the indebtedness we incurred in connection with the Beacon Acquisition; 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 possible economic impact of the Company's outstanding warrants and preferred stock on the Company and the holders of its common stock, including market price volatility, dilution from the exercise or conversion of the warrants or preferred stock, or the impact of dividend payments from preferred stock that remains outstanding; 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. All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements except to the extent required by law. QXO, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in millions, except per share amounts) (Unaudited) June 30, 2025 2024 Assets Current assets: Cash and cash equivalents $ 2,278.5 $ 5,068.5 Accounts receivable, net 1,575.7 2.7 Inventories, net 1,849.6 — Vendor rebates receivable 468.7 — Income tax receivable 222.8 — Prepaid expenses and other current assets 99.5 18.4 Total current assets 6,494.8 5,089.6 Property and equipment, net 696.3 0.4 Goodwill 5,137.9 1.2 Intangibles, net 4,003.8 4.0 Operating lease right-of-use assets, net 747.3 0.3 Deferred income tax assets, net — 2.6 Other assets, net 34.1 0.2 Total assets $ 17,114.2 $ 5,098.3 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,426.9 $ 6.2 Accrued expenses 585.7 38.6 Current portion of operating lease liabilities 108.3 0.2 Current portion of finance lease liabilities 44.5 0.1 Total current liabilities 2,165.4 45.1 Borrowings under revolving lines of credit 199.9 — Long-term debt, net 3,051.5 — Deferred income tax liabilities, net 1,042.3 — Operating lease liabilities 571.5 0.1 Finance lease liabilities 139.5 0.2 Other long-term liabilities 28.8 — Total liabilities 7,198.9 45.4 Stockholders' equity: Mandatory Convertible Preferred Stock, $0.001 par value; 0.6 shares and 0.0 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 558.1 — Convertible Preferred Stock, $0.001 par value; authorized 10.0 shares, 1.0 shares issued and outstanding as of June 30, 2025 and December 31, 2024 498.6 498.6 Common stock; $0.00001 par value; authorized 2,000.0 shares; 671.6 and 409.4 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively — — Additional paid-in capital 8,965.8 4,560.5 Retained earnings (accumulated deficit) (104.1 ) (6.2 ) Accumulated other comprehensive loss (3.1 ) — Total stockholders' equity 9,915.3 5,052.9 Total liabilities and stockholders' equity $ 17,114.2 $ 5,098.3 Expand QXO, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (in millions) (Unaudited) Six Months Ended June 30, 2025 2024 Operating Activities Net loss $ (49.8 ) $ (0.5 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 27.3 0.2 Amortization 80.0 0.4 Stock-based compensation 85.2 — Amortization of debt issuance costs 2.3 — Loss on debt extinguishment 45.7 — Provision for credit losses 2.7 — Non-cash lease expense 27.9 0.1 Deferred income taxes 21.9 (0.2 ) Changes in operating assets and liabilities: Accounts receivable (226.1 ) (0.1 ) Inventories (15.6 ) — Vendor rebates receivable (228.5 ) — Income tax receivable (202.4 ) — Prepaid expenses and other current assets 1.1 (2.8 ) Accounts payable and accrued expenses 312.1 2.5 Other assets and liabilities (21.5 ) (0.3 ) Net cash used in operating activities (137.7 ) (0.7 ) Investing Activities Capital expenditures (19.7 ) (0.1 ) Acquisition of business, net of cash acquired (10,556.5 ) — Other 0.8 — Net cash used in investing activities (10,575.4 ) (0.1 ) Financing Activities Borrowings under revolving lines of credit 422.6 — Payments under revolving lines of credit (223.0 ) — Borrowings under term loan 2,250.0 — Payments under term loan (1,400.0 ) — Borrowings under senior notes 2,250.0 — Payment of debt issuance costs (114.4 ) — Payment of other debt — (0.3 ) Payments under equipment financing facilities and finance leases (7.2 ) (0.1 ) Proceeds from issuance of common stock related to equity awards 14.3 — Proceeds from issuance of common stock, net of issuance costs 4,218.4 — Proceeds from issuance of mandatory convertible preferred stock, net of issuance costs 558.1 — Proceeds from issuance of convertible preferred stock and warrants, net of issuance costs — 983.7 Payment of taxes related to net share settlement of equity awards (0.1 ) — Payment of common-stock dividend — (17.4 ) Payment of dividends on convertible preferred stock (45.0 ) — Net cash provided by financing activities 7,923.7 965.9 Effect of exchange rate changes on cash, cash equivalents and restricted cash (0.3 ) — Net (decrease) increase in cash, cash equivalents and restricted cash (2,789.7 ) 965.1 Cash, cash equivalents and restricted cash, beginning of period 5,072.0 6.2 Cash, cash equivalents and restricted cash, end of period $ 2,282.3 $ 971.3 Supplemental Cash Flow Information Cash paid during the period for: Interest $ 22.5 $ — Income taxes, net of refunds $ 35.1 $ — Expand QXO, INC. AND SUBSIDIARIES Consolidated Sales by Line of Business (in millions, except percentages) (Unaudited) Sales by Line of Business (1) Three Months Ended June 30, 2025 2024 Net Sales Mix % Net Sales Mix % Residential roofing products $ 929.8 48.7 % $ — 0.0 % Non-residential roofing products 535.5 28.1 % — 0.0 % Complementary building products 426.1 22.4 % — 0.0 % Software products and services 15.0 0.8 % 14.5 100.0 % Total net sales $ 1,906.4 100.0 % $ 14.5 100.0 % (1) Net sales mix percentages may not recalculate due to rounding. Expand Sales by Line of Business (1) Six Months Ended June 30, 2025 2024 Net Sales Mix % Net Sales Mix % Residential roofing products $ 929.8 48.5 % $ — 0.0 % Non-residential roofing products 535.5 27.9 % — 0.0 % Complementary building products 426.1 22.2 % — 0.0 % Software products and services 28.4 1.4 % 29.0 100.0 % Total net sales $ 1,919.8 100.0 % $ 29.0 100.0 % (1) Net sales mix percentages may not recalculate due to rounding. Expand QXO, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures (in millions, except percentages) (Unaudited) Adjusted Gross Profit and Adjusted Gross Profit Margin A reconciliation of gross profit and gross margin to Adjusted Gross Profit and Adjusted Gross Margin is as follows: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Gross profit $ 401.7 $ 5.8 $ 407.0 $ 11.5 Inventory fair value adjustments (1) 80.3 — 80.3 — Adjusted Gross Profit (2) $ 482.0 $ 5.8 $ 487.3 $ 11.5 Net sales $ 1,906.4 $ 14.5 $ 1,919.8 $ 29.0 Gross margin (3) 21.1 % 40.0 % 21.2 % 39.7 % Adjusted Gross Margin (2)(3) 25.3 % 40.0 % 25.4 % 39.7 % (1) Represents the inventory fair value adjustments related to recording the inventory of acquired businesses at fair value on the date of acquisition. We expect the inventory fair value adjustments to be fully recognized during the year ended December 31, 2025. (2) See the 'Non-GAAP Financial Measures' section of the press release. (3) Gross margin is calculated as gross profit divided by net sales. Adjusted Gross Margin is calculated as Adjusted Gross Profit divided by net sales. Expand QXO, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures (cont.) (in millions, except per share data) (Unaudited) Adjusted Net Income and Adjusted Diluted EPS A reconciliation of net loss and diluted loss per common share to Adjusted Net Income and Adjusted Diluted EPS is as follows: Three Months Ended June 30, Six Months Ended June 30, 2025 2025 Net loss $ (58.5 ) $ (49.8 ) Benefit from income taxes (177.8 ) (169.3 ) Loss before provision for income taxes (236.3 ) (219.1 ) Amortization 79.8 80.0 Stock-based compensation 65.0 85.2 Loss on debt extinguishment (1) 45.7 45.7 Restructuring costs 35.3 35.3 Transaction costs 65.6 75.5 Transformation costs 11.8 11.8 Inventory fair value adjustments (2) 80.3 80.3 Adjusted income before provision for income taxes 147.2 194.7 Income tax associated with the adjustments above (3) 38.0 50.3 Adjusted Net Income (4) $ 109.2 $ 144.4 Convertible Preferred Stock dividend (22.5 ) (45.0 ) Mandatory Convertible Preferred Stock dividend (3.1 ) (3.1 ) Undistributed income allocated to participating securities — — Adjusted Net Income attributable to common stockholders $ 83.6 $ 96.3 Basic and diluted loss per common share $ (0.15 ) $ (0.19 ) Adjusted Diluted EPS (4)(5) $ 0.11 $ 0.17 Adjusted diluted weighted-average common shares outstanding (5) 702.0 580.6 (1) Represents extinguishment costs resulting from the partial prepayment of borrowings under the Term Loan Facility. (2) Represents the inventory fair value adjustments related to recording the inventory of acquired businesses at fair value on the date of acquisition. We expect the inventory fair value adjustments to be fully recognized during the year ended December 31, 2025. (3) The effective tax rate to calculate Adjusted Net Income (Loss) for the three and six months ended June 30, 2025 is 25.84%, due to the impacts on certain tax deductions on adjusted income (loss) before provision for income taxes. (4) See the 'Non-GAAP Financial Measures' section of the press release. (5) Adjusted Diluted EPS is calculated as Adjusted Net Income (Loss) divided by the weighted-average number of common shares outstanding during the period plus the effect of dilutive common share equivalents based on the most dilutive result of the if-converted and two-class methods. Expand QXO, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures (cont.) (in millions, except percentages) (Unaudited) Adjusted EBITDA and Adjusted EBITDA Margin A reconciliation of net loss to Adjusted EBITDA and Adjusted EBITDA Margin is as follows: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net loss $ (58.5 ) $ (0.6 ) $ (49.8 ) $ (0.5 ) Depreciation 27.2 0.1 27.3 0.2 Amortization 79.8 0.2 80.0 0.4 Stock-based compensation 65.0 — 85.2 — Interest expense (income), net 30.2 (3.5 ) (26.4 ) (3.4 ) Loss on debt extinguishment (1) 45.7 — 45.7 — Benefit from income taxes (177.8 ) (0.2 ) (169.3 ) (0.2 ) Restructuring costs 35.3 2.8 35.3 2.8 Transaction costs 65.6 — 75.5 — Transformation costs 11.8 — 11.8 — Inventory fair value adjustments (2) 80.3 — 80.3 — Adjusted EBITDA (3) $ 204.6 $ (1.2 ) $ 195.6 $ (0.7 ) Net sales $ 1,906.4 $ 14.5 $ 1,919.8 $ 29.0 Net margin (4) (3.1 )% (4.1 )% (2.6 )% (1.7 )% Adjusted EBITDA Margin (3)(4) 10.7 % (8.3 )% 10.2 % (2.4 )% (1) Represents extinguishment costs resulting from the partial prepayment of borrowings under the Term Loan Facility. (2) Represents the inventory fair value adjustments related to recording the inventory of acquired businesses at fair value on the date of acquisition. We expect the inventory fair value adjustments to be fully recognized during the year ended December 31, 2025. (3) See the 'Non-GAAP Financial Measures' section of the press release. (4) Net margin is calculated as net income (loss) divided by net sales. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by net sales. Expand
National Post
5 days ago
- Business
- National Post
QXO Reports Second Quarter 2025 Results
Article content GREENWICH, Conn. — QXO, Inc. ('QXO' or the 'Company') (NYSE: QXO) today announced its financial results for the second quarter 2025. The Company reported a basic and diluted loss per common share of $(0.15) and an Adjusted Diluted Earnings per Common Share ('Adjusted Diluted EPS'), a non-GAAP financial measure, of $0.11 for the three months ended June 30, 2025. Article content SECOND QUARTER 2025 SUMMARY RESULTS Three Months Ended June 30, (in millions, except for per share data) 2025 2024 Net sales $ 1,906.4 $ 14.5 Gross profit $ 401.7 $ 5.8 Adjusted Gross Profit (1) $ 482.0 $ 5.8 Gross margin 21.1 % 40.0 % Adjusted Gross Margin (1) 25.3 % 40.0 % Net loss $ (58.5 ) $ (0.6 ) Net margin (3.1 )% (4.1 )% Adjusted EBITDA (1) $ 204.6 $ (1.2 ) Adjusted EBITDA Margin (1) 10.7 % (8.3 )% Adjusted Net Income (1) $ 109.2 N/M Basic and diluted loss per common share $ (0.15 ) N/M Adjusted Diluted EPS (1) $ 0.11 N/M N/M – Not meaningful (1) See the 'Non-GAAP Financial Measures' section of the press release. Article content Article content Brad Jacobs, chairman and chief executive officer of QXO, said, 'The integration of Beacon is progressing well, and we've identified opportunities that exceed our initial expectations. We've made key strategic hires and launched a broad transformation initiative, focusing on pricing, procurement, sales, organizational structure, logistics, and other core drivers of performance. We're confident we will at least double legacy Beacon EBITDA organically. Looking ahead, we see strong momentum in both our acquisition pipeline and organic initiatives, reinforcing our long-term goal of reaching $50 billion in annual revenue within the next decade.' Article content Second Quarter Highlights Article content On April 29, 2025, QXO completed its acquisition of Beacon Roofing Supply, Inc. ('Beacon'). The acquisition was financed through cash from QXO's balance sheet and a combination of debt and equity raises for a total purchase price of $10.6 billion. Article content QXO's second quarter operational financial results noted below only include legacy Beacon's operations for the period April 29, 2025 through June 30, 2025. Article content Net sales were $1.91 billion for the three months ended June 30, 2025. Article content Adjusted Gross Margin, a non-GAAP financial measure, for the three months ended June 30, 2025 was 25.3%. Article content Adjusted Net Income, a non-GAAP financial measure, was $109.2 million for the three months ended June 30, 2025. Adjusted Diluted EPS, a non-GAAP financial measure, was $0.11 for the three months ended June 30, 2025. Article content Adjusted EBITDA, a non-GAAP financial measure, was $204.6 million for the three months ended June 30, 2025. Adjusted EBITDA Margin, a non-GAAP financial measure, was 10.7% for the three months ended June 30, 2025. Article content Financing Article content During the second quarter, the Company raised $4.9 billion in debt, and an additional $4.8 billion through a combination of common equity and mandatory convertible preferred share issuances. Subsequently in the quarter, we paid down our Term Loan Facility by $1.4 billion. The Company's net debt position as of June 30, 2025 was approximately $1.2 billion. Article content About QXO Article content QXO is the largest publicly traded distributor of roofing, waterproofing and complementary building products in North America. The Company plans to become the tech-enabled leader in the $800 billion building products distribution industry and generate outsized value for shareholders. The Company is executing its strategy toward a target of $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth. Visit for more information. Article content Non-GAAP Financial Measures Article content As required by the rules of the Securities and Exchange Commission ('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. Article content QXO's non-GAAP financial measures in this press release include: Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin. Article content We calculate Adjusted Gross Profit as gross profit excluding inventory fair value adjustments, and we calculate Adjusted Gross Margin as Adjusted Gross Profit divided by net sales. We calculate Adjusted Net Income (Loss) as net income (loss) excluding amortization; stock-based compensation; loss on debt extinguishment; restructuring costs; transaction costs; transformation costs; inventory fair value adjustments; and the income tax associated with such adjusting items. We calculate Adjusted Diluted EPS as Adjusted Net Income (Loss) divided by the weighted-averaged number of common shares outstanding during the period plus the effect of dilutive common share equivalents based on the most dilutive result of the if-converted and two-class methods. We calculate Adjusted EBITDA as net income (loss) excluding depreciation; amortization; stock-based compensation; interest (income) expense, net; loss on debt extinguishment; provision for (benefit from) income taxes; restructuring costs; transaction costs; transformation costs; and inventory fair value adjustments that we do not consider representative of our underlying operations. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales. Article content Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating QXO's ongoing performance. We believe these non-GAAP financial measures facilitate analysis of our ongoing business operations because they exclude 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 these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures of other companies. Article content Forward-looking statements Article content This release includes 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. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as 'anticipate,' 'estimate,' 'believe,' 'continue,' 'could,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'should,' 'will,' 'expect,' 'objective,' 'projection,' 'forecast,' 'goal,' 'guidance,' 'outlook,' 'effort,' 'target,' 'trajectory' or the negative of these terms or other comparable terms. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. Article content These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in our filings with the SEC, and the following: Article content 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 and artificial intelligence use; 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 liabilities, costs, charges, expenses or accounting adjustments resulting from the Beacon Acquisition or any future acquisition or difficulties in integrating and operating acquired companies; risks related to our obligations under the indebtedness we incurred in connection with the Beacon Acquisition; 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 possible economic impact of the Company's outstanding warrants and preferred stock on the Company and the holders of its common stock, including market price volatility, dilution from the exercise or conversion of the warrants or preferred stock, or the impact of dividend payments from preferred stock that remains outstanding; 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. Article content All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements except to the extent required by law. Article content QXO, INC. AND SUBSIDIARIES (Unaudited) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 2,278.5 $ 5,068.5 Accounts receivable, net 1,575.7 2.7 Inventories, net 1,849.6 — Vendor rebates receivable 468.7 — Income tax receivable 222.8 — Prepaid expenses and other current assets 99.5 18.4 Total current assets 6,494.8 5,089.6 Property and equipment, net 696.3 0.4 Goodwill 5,137.9 1.2 Intangibles, net 4,003.8 4.0 Operating lease right-of-use assets, net 747.3 0.3 Deferred income tax assets, net — 2.6 Other assets, net 34.1 0.2 Total assets $ 17,114.2 $ 5,098.3 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,426.9 $ 6.2 Accrued expenses 585.7 38.6 Current portion of operating lease liabilities 108.3 0.2 Current portion of finance lease liabilities 44.5 0.1 Total current liabilities 2,165.4 45.1 Borrowings under revolving lines of credit 199.9 — Long-term debt, net 3,051.5 — Deferred income tax liabilities, net 1,042.3 — Operating lease liabilities 571.5 0.1 Finance lease liabilities 139.5 0.2 Other long-term liabilities 28.8 — Total liabilities 7,198.9 45.4 Stockholders' equity: Mandatory Convertible Preferred Stock, $0.001 par value; 0.6 shares and 0.0 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 558.1 — Convertible Preferred Stock, $0.001 par value; authorized 10.0 shares, 1.0 shares issued and outstanding as of June 30, 2025 and December 31, 2024 498.6 498.6 Common stock; $0.00001 par value; authorized 2,000.0 shares; 671.6 and 409.4 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively — — Additional paid-in capital 8,965.8 4,560.5 Total stockholders' equity 9,915.3 5,052.9 Article content Six Months Ended June 30, Operating Activities Net loss $ (49.8 ) $ (0.5 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 27.3 0.2 Amortization 80.0 0.4 Stock-based compensation 85.2 — Amortization of debt issuance costs 2.3 — Loss on debt extinguishment 45.7 — Provision for credit losses 2.7 — Non-cash lease expense 27.9 0.1 Deferred income taxes 21.9 (0.2 ) Changes in operating assets and liabilities: Accounts receivable (226.1 ) (0.1 ) Inventories (15.6 ) — Vendor rebates receivable (228.5 ) — Income tax receivable (202.4 ) — Prepaid expenses and other current assets 1.1 (2.8 ) Accounts payable and accrued expenses 312.1 2.5 Other assets and liabilities (21.5 ) (0.3 ) Net cash used in operating activities (137.7 ) (0.7 ) Investing Activities Capital expenditures (19.7 ) (0.1 ) Acquisition of business, net of cash acquired (10,556.5 ) — Other 0.8 — Net cash used in investing activities (10,575.4 ) (0.1 ) Financing Activities Borrowings under revolving lines of credit 422.6 — Payments under revolving lines of credit (223.0 ) — Borrowings under term loan 2,250.0 — Payments under term loan (1,400.0 ) — Borrowings under senior notes 2,250.0 — Payment of debt issuance costs (114.4 ) — Payment of other debt — (0.3 ) Payments under equipment financing facilities and finance leases (7.2 ) (0.1 ) Proceeds from issuance of common stock related to equity awards 14.3 — Proceeds from issuance of common stock, net of issuance costs 4,218.4 — Proceeds from issuance of mandatory convertible preferred stock, net of issuance costs 558.1 — Proceeds from issuance of convertible preferred stock and warrants, net of issuance costs — 983.7 Payment of taxes related to net share settlement of equity awards (0.1 ) — Payment of common-stock dividend — (17.4 ) Payment of dividends on convertible preferred stock (45.0 ) — Net cash provided by financing activities 7,923.7 965.9 Effect of exchange rate changes on cash, cash equivalents and restricted cash (0.3 ) — Net (decrease) increase in cash, cash equivalents and restricted cash (2,789.7 ) 965.1 Cash, cash equivalents and restricted cash, beginning of period 5,072.0 6.2 Cash, cash equivalents and restricted cash, end of period $ 2,282.3 $ 971.3 Supplemental Cash Flow Information Interest $ 22.5 $ — Income taxes, net of refunds $ 35.1 $ — Article content QXO, INC. AND SUBSIDIARIES Consolidated Sales by Line of Business (in millions, except percentages) (Unaudited) Sales by Line of Business (1) Three Months Ended June 30, 2025 2024 Net Sales Mix % Net Sales Mix % Residential roofing products $ 929.8 48.7 % $ — 0.0 % Non-residential roofing products 535.5 28.1 % — 0.0 % Complementary building products 426.1 22.4 % — 0.0 % Software products and services 15.0 0.8 % 14.5 100.0 % Total net sales $ 1,906.4 100.0 % $ 14.5 100.0 % (1) Net sales mix percentages may not recalculate due to rounding. Article content Sales by Line of Business (1) Six Months Ended June 30, 2025 2024 Net Sales Mix % Net Sales Mix % Residential roofing products $ 929.8 48.5 % $ — 0.0 % Non-residential roofing products 535.5 27.9 % — 0.0 % Complementary building products 426.1 22.2 % — 0.0 % Software products and services 28.4 1.4 % 29.0 100.0 % Total net sales $ 1,919.8 100.0 % $ 29.0 100.0 % (1) Net sales mix percentages may not recalculate due to rounding. Article content QXO, INC. AND SUBSIDIARIES Article content Reconciliation of Non-GAAP Measures Article content (in millions, except percentages) Article content (Unaudited) Article content A reconciliation of gross profit and gross margin to Adjusted Gross Profit and Adjusted Gross Margin is as follows: Article content Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Gross profit $ 401.7 $ 5.8 $ 407.0 $ 11.5 Inventory fair value adjustments (1) 80.3 — 80.3 — Adjusted Gross Profit (2) $ 482.0 $ 5.8 $ 487.3 $ 11.5 Net sales $ 1,906.4 $ 14.5 $ 1,919.8 $ 29.0 Gross margin (3) 21.1 % 40.0 % 21.2 % 39.7 % Adjusted Gross Margin (2)(3) 25.3 % 40.0 % 25.4 % 39.7 % (1) Represents the inventory fair value adjustments related to recording the inventory of acquired businesses at fair value on the date of acquisition. We expect the inventory fair value adjustments to be fully recognized during the year ended December 31, 2025. (2) See the 'Non-GAAP Financial Measures' section of the press release. (3) Gross margin is calculated as gross profit divided by net sales. Adjusted Gross Margin is calculated as Adjusted Gross Profit divided by net sales. Article content A reconciliation of net loss and diluted loss per common share to Adjusted Net Income and Adjusted Diluted EPS is as follows: Article content Three Months Ended June 30, Six Months Ended June 30, 2025 2025 Net loss $ (58.5 ) $ (49.8 ) Benefit from income taxes (177.8 ) (169.3 ) Loss before provision for income taxes (236.3 ) (219.1 ) Amortization 79.8 80.0 Stock-based compensation 65.0 85.2 Loss on debt extinguishment (1) 45.7 45.7 Restructuring costs 35.3 35.3 Transaction costs 65.6 75.5 Transformation costs 11.8 11.8 Inventory fair value adjustments (2) 80.3 80.3 Adjusted income before provision for income taxes 147.2 194.7 Income tax associated with the adjustments above (3) 38.0 50.3 Adjusted Net Income (4) $ 109.2 $ 144.4 Convertible Preferred Stock dividend (22.5 ) (45.0 ) Mandatory Convertible Preferred Stock dividend (3.1 ) (3.1 ) Undistributed income allocated to participating securities — — Adjusted Net Income attributable to common stockholders $ 83.6 $ 96.3 Basic and diluted loss per common share $ (0.15 ) $ (0.19 ) Adjusted Diluted EPS (4)(5) $ 0.11 $ 0.17 Adjusted diluted weighted-average common shares outstanding (5) 702.0 580.6 (1) Represents extinguishment costs resulting from the partial prepayment of borrowings under the Term Loan Facility. (2) Represents the inventory fair value adjustments related to recording the inventory of acquired businesses at fair value on the date of acquisition. We expect the inventory fair value adjustments to be fully recognized during the year ended December 31, 2025. (3) The effective tax rate to calculate Adjusted Net Income (Loss) for the three and six months ended June 30, 2025 is 25.84%, due to the impacts on certain tax deductions on adjusted income (loss) before provision for income taxes. (4) See the 'Non-GAAP Financial Measures' section of the press release. (5) Adjusted Diluted EPS is calculated as Adjusted Net Income (Loss) divided by the weighted-average number of common shares outstanding during the period plus the effect of dilutive common share equivalents based on the most dilutive result of the if-converted and two-class methods. Article content Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net loss $ (58.5 ) $ (0.6 ) $ (49.8 ) $ (0.5 ) Depreciation 27.2 0.1 27.3 0.2 Amortization 79.8 0.2 80.0 0.4 Stock-based compensation 65.0 — 85.2 — Interest expense (income), net 30.2 (3.5 ) (26.4 ) (3.4 ) Loss on debt extinguishment (1) 45.7 — 45.7 — Benefit from income taxes (177.8 ) (0.2 ) (169.3 ) (0.2 ) Restructuring costs 35.3 2.8 35.3 2.8 Transaction costs 65.6 — 75.5 — Transformation costs 11.8 — 11.8 — Inventory fair value adjustments (2) 80.3 — 80.3 — Adjusted EBITDA (3) $ 204.6 $ (1.2 ) $ 195.6 $ (0.7 ) Net sales $ 1,906.4 $ 14.5 $ 1,919.8 $ 29.0 Net margin (4) (3.1 )% (4.1 )% (2.6 )% (1.7 )% Adjusted EBITDA Margin (3)(4) 10.7 % (8.3 )% 10.2 % (2.4 )% (1) Represents extinguishment costs resulting from the partial prepayment of borrowings under the Term Loan Facility. (2) Represents the inventory fair value adjustments related to recording the inventory of acquired businesses at fair value on the date of acquisition. We expect the inventory fair value adjustments to be fully recognized during the year ended December 31, 2025. (3) See the 'Non-GAAP Financial Measures' section of the press release. Article content Article content Article content Article content Article content Contacts Article content Media Article content Article content Joe Checkler Article content Article content Article content Article content 203-609-9650 Article content Investor Article content Article content Mark Manduca Article content Article content Article content
Yahoo
08-08-2025
- Business
- Yahoo
William Blair Reiterates a Buy Rating on QXO, Inc. (QXO)
QXO, Inc. (NYSE:QXO) is one of the top NYSE stocks with the highest upside potential. William Blair analyst Ryan Merkel maintained a buy rating on QXO, Inc. (NYSE:QXO) on July 20 without assigning a price target. A close-up of a construction worker installing an electrochromic glass panel, showing the company's focus on modern building products. The analyst stated that QXO, Inc.'s (NYSE:QXO) recent business developments and strategic vision support the buy rating, as the company has recently completed the acquisition of Beacon. The acquisition aligns with the company's goal of becoming a tech-enabled leader in the substantial $800 billion building products distribution industry over the coming decade, according to the analyst. He expects the acquisition to lay the base for margin acceleration by 2026, suggesting an optimistic future for QXO, Inc. (NYSE:QXO). The expectation of another acquisition or merger deal suggests potential for further expansion and growth for the company, according to the analyst. QXO, Inc. (NYSE:QXO) distributes roofing, waterproofing, and complementary building products in the United States. The company has plans to become a tech-enabled player in the building products distribution industry. While we acknowledge the potential of QXO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
04-08-2025
- Business
- Yahoo
The Difference Between CEO and Employee Pay at 10 S&P 500 Companies
Chief executive officers (CEOs) famously make the big bucks, particularly if they're spearheading a large corporation. The highest-paid CEOS, like Brad Jacobs of QXO, Inc. and Peter Gassner of Veeva Systems Inc. make close to $200 million, respectively, per year. That's quite extreme and not at all common, but the pay gap between many CEOs of S&P 500 companies and their employees is astonishing. Check Out: Read Next: Research from the American Federation of Labor & Congress dug into the data and found that in 2024, the average CEO-to-worker pay ratio for S&P 500 companies was 285-to-1. It's highly worth noting that the median annual pay for U.S. employees in 2025 is $62,192 and that the median worker pay for all of these jobs is below — in some cases drastically — that number. 10. Carrier Global Corp CEO: David Gitlin Median worker pay: $51,001 Pay ratio between CEO and median worker: 1,289:1 Explore More: 9. Carnival Corp CEO: Josh Weinstein Median worker pay: $16,854 Pay ratio between CEO and median worker: 1,398:1 8. Yum! Brands Inc CEO: David Gibbs Median worker pay: $17,160 Pay ratio between CEO and median worker: 1,440:1 7. TJX Cos Inc CEO: Ernie Herman Median worker pay: $15,002 Pay ratio between CEO and median worker: 1,565:1 6. Western Digital Corp CEO: David Goeckeler Median worker pay: $10,726 Pay ratio between CEO and median worker: 1,649:1 5. Ross Stores Inc CEO: James G. Conroy Median worker pay: $9,602 Pay ratio between CEO and median worker: 1,770:1 4. Coca-Cola Co CEO: James Quincey Median worker pay: $14,144 Pay ratio between CEO and median worker: 1,980:1 3. ON Semiconductor Corp CEO: Hassane El-Khoury Median worker pay: $15,580 Pay ratio between CEO and median worker: 1,998:1 2. Aptiv PLC CEO: Kevin Clark Median worker pay: $9,052 Pay ratio between CEO and median worker: 2,072:1 1. Starbucks Corp CEO: Brian Niccol Median worker pay: $14,674 Pay ratio between CEO and median worker: 6,666:1 More From GOBankingRates Clever Ways To Save Money That Actually Work in 2025 This article originally appeared on The Difference Between CEO and Employee Pay at 10 S&P 500 Companies Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
28-07-2025
- Business
- Miami Herald
Expo Contratista Names QXO as Exhibitor at 2025 Conference
QXO and Expo Contratista Unite to Launch Roofero-Con: The Premier Roofing Conference for Hispanic Contractors IRVING, TEXAS / ACCESS Newswire / July 28, 2025 / Expo Contratista today announced that QXO, Inc. will participate as an exhibitor at Expo Contratista 2025, the largest national Hispanic construction trade show in the United States, to be held October 24-25 at the Irving Convention Center in Dallas, Texas. Expo Contratista, produced in collaboration with the National Hispanic Contractors Association (NAHICA), serves as a pivotal platform for brands seeking to connect with the fastest-growing and most influential demographic in the construction industry. With 61% of Texas' construction workforce identifying as Hispanic and over $800 billion in annual revenue generated by Hispanic-owned businesses nationwide, Expo Contratista is a critical hub for market engagement and relationship building. As part of its presence at Expo Contratista, QXO will demonstrate its ability to help Hispanic contractors to save time, be more efficient and stay organized. QXO is committed to developing practical tools and technologies that enable contractors to grow their business by winning and completing more construction projects across Texas and the U.S. Expo Contratista is expected to attract thousands of contractors, general contractors, and industry leaders, featuring over 250 exhibitors and a dynamic lineup of competitions, live product demonstrations and the prestigious HISPANHICA Awards recognizing Hispanic excellence in the construction sector. For more information on Expo Contratista 2025, visit About Expo Contratista Expo Contratista stands as the nation's leading Hispanic construction trade show, dedicated to connecting contractors and construction workers. With a mission to empower the Hispanic market with the knowledge to network and grow businesses in the roofing industry, Expo Contratista continues to be a catalyst for diversity, collaboration, and innovation. Media Contact Sergio TerrerosCEOgm@ SOURCE: Expo Contratista press release
