QXO reported third‑quarter 2025 results that included net sales of $2.73 billion, a jump of more than 20,000 % from the $13.16 million reported in Q3 2024. The dramatic increase is a direct consequence of the company’s $11 billion acquisition of Beacon Roofing Supply, which added a large, high‑margin distribution network to QXO’s portfolio and immediately expanded its top line.
Adjusted net income for the quarter was $166.2 million, translating to an adjusted earnings per share of $0.14. This figure beat consensus estimates of $0.12–$0.13, a margin of $0.01–$0.02. The earnings beat was driven by disciplined cost management and the ability to maintain pricing power in the face of integration expenses. While the company incurred significant transaction costs related to the Beacon deal, it offset those with efficient operational execution and a favorable mix of high‑margin sales.
The company posted a net loss of $139.4 million, largely attributable to the transaction costs of the Beacon acquisition. Adjusted EBITDA reached $301.9 million, giving an adjusted EBITDA margin of 11.1 %. This margin is a sharp improvement over the negative $11.47 million EBITDA reported in Q3 2024, but it is still a contraction from the 25.3 % margin seen in Q2 2025. The compression is largely due to inventory fair‑value adjustments and the costs of scaling the newly acquired operations.
Adjusted gross margin fell to 25.2 % from 42 % in 2024, reflecting the impact of inventory adjustments and integration costs. The lower margin indicates that the company is still absorbing the upfront costs of the Beacon acquisition, but the margin level is consistent with the company’s strategy of investing in technology and operational efficiencies to drive long‑term profitability.
CEO Brad Jacobs emphasized that QXO is on track to grow legacy Beacon EBITDA beyond $2 billion and that the company’s acquisition pipeline positions it to reach $50 billion in annual revenue within a decade. The comments underscore the company’s aggressive growth strategy, its focus on leveraging technology to unlock margin expansion, and its confidence in the scalability of its distribution model.
Market participants responded cautiously positive to the results, with the EPS beat and the ambitious revenue target driving the most favorable sentiment. Investors noted the margin compression and the significant integration costs, but they also recognized the company’s ability to generate a profit after a net loss and the potential upside from the expanded distribution network.
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