QXO Reports Second Quarter 2025 Results (Form 8-K)

QXO Reports Second Quarter 2025 Results

GREENWICH, Conn. - August 14, 2025 - 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.

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.

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.

-1-

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 QXO.com 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.