Company: QXO-PB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023834
Chunk: 59

Company: QXO, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 %(0.1 %)Income before taxes17,267 208 NM127.9 %1.5 %Provision for income taxes8,512 70 NM63.0 %0.5 %Net income$8,755 $138 NM64.8 %1.0 %NM = Not Meaningful

19

Revenue, net

Our consolidated net revenue for three months ended March 31, 2025 decreased $928,000 or 6.4%, compared with the same period in the prior year. Net revenue for the three months decreased compared with the prior year period. Revenue declined in the period as legacy systems are phased out and customers are migrated to new applications and implementation services. 

Cost of revenue

Cost of revenue for the three months ended March 31, 2025 decreased $656,000 or 7.5%, compared with the same period in the prior year consistent with the decline in service revenue. As a percentage of revenue, margin was 39.9%, compared with 39.2% for the same period in the prior year. Gross margin improved slightly due to a change in product mix.

Operating expenses

Selling, general and administrative expenses for the three months ended March 31, 2025 increased $39.2 million or 755.9%, compared with the same period in the prior year. The increase in operating expenses is primarily due to salary, expense and share-based compensation associated with the Company’s new senior management team along with transaction costs associated with the Beacon Roofing acquisition.

Depreciation and amortization expense for the three months ended March 31, 2025 remained relatively consistent, slightly increasing $11,000 or 4.6%, compared with the same period in the prior year.

Interest income (expense), net

Interest income increased $56.6 million for the three months ended March 31, 2025, compared with the same periods in the prior year. The increase is attributed to the interest earned on our cash position due to the cash infusion from the Equity Investment and the private placements that closed in July 2024.

Non-GAAP Financial Measures

Adjusted EBITDA

To provide investors with additional information regarding our financial results, we have disclosed here and elsewhere in this Quarterly Report Adjusted EBITDA, a non-GAAP financial measure that we calculate as net income (loss) excluding depreciation and amortization; share-based compensation; income tax (benefit) provision; interest