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Sep 30
QXO Q3 2025 Earnings Report
QXO reported its financial results for the third quarter of 2025, aligning with preliminary information provided during a recent term loan refinancing.
Key Takeaways
QXO reported net sales of $2.73 billion for the third quarter of 2025, a significant increase from the previous year. The company experienced a net loss of $139.4 million, but achieved an Adjusted Diluted EPS of $0.14. QXO is making progress in optimizing Beacon and is on track to grow legacy Beacon's EBITDA to over $2 billion, with a long-term goal of $50 billion in annual revenue within a decade.
Net sales for Q3 2025 reached $2.73 billion, a substantial increase compared to $13.1 million in Q3 2024.
The company reported a net loss of $139.4 million, resulting in a basic and diluted loss per common share of $(0.24).
Adjusted Diluted EPS, a non-GAAP measure, was $0.14 for the quarter, with Adjusted Net Income at $166.2 million.
Adjusted EBITDA for the quarter was $301.9 million, with an Adjusted EBITDA Margin of 11.1%.
QXO
QXO
QXO Revenue by Segment
Revenue by Segment
Residential roofing products Revenue
CapyFin.comNon-residential roofing products Revenue
CapyFin.comComplementary building products Revenue
CapyFin.comSoftware products and services Revenue
CapyFin.com Forward Guidance
QXO aims to become the tech-enabled leader in the $800 billion building products distribution industry, targeting $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth, specifically by growing legacy Beacon's EBITDA to over $2 billion.
Positive Outlook
- Outperformed the market this quarter, indicating strong operational execution.
- Firmly on track to organically grow legacy Beacon’s EBITDA to more than $2 billion.
- Very robust acquisition pipeline, suggesting future growth opportunities.
- Targeting $50 billion in annual revenue within a decade, demonstrating ambitious long-term vision.
- Focus on becoming the tech-enabled leader in the building products distribution industry.
Challenges Ahead
- Inability to obtain products could lead to lost revenues and damaged customer relationships.
- Changes in supplier pricing and demand could adversely affect income and gross margins.
- Changes in vendor rebates could negatively impact income and gross margins.
- Inability to identify or successfully complete acquisitions on acceptable terms could hinder growth strategy.
- Building products distribution industry demand may soften due to cyclicality or dependence on general economic conditions, including inflation, interest rates, and labor shortages.
Revenue & Expenses
Visualization of income flow from segment revenue to net income