QXO
Qxo, INC
NYSE
10-K: QXO Inc. Reports Strong Interest Income Amid Strategic Shift to Building Products Distribution
Sentiment:
Annual Report
4 March 2025 8:19 AM
QXO Inc.'s 10-K filing reveals a year of strategic transformation, marked by a significant cash infusion, leadership changes, and a focus on becoming a tech-forward leader in the building products distribution industry.
Capital raise
The company issued and sold 1,000,000 shares of Convertible Perpetual Preferred Stock for $1.0 billion.
The company issued warrants exercisable for 219,010,074 shares of common stock.
The company issued 340,932,212 shares of common stock and pre-funded warrants to purchase 42,000,000 shares in a private placement for approximately $3.5 billion.
The company issued an additional 67,833,699 shares of common stock in a private placement for approximately $620 million.
Summary
- QXO Inc., formerly SilverSun Technologies, underwent a name change and ticker symbol change on June 6, 2024, following a $1.0 billion cash investment.
- The company transferred its stock listing from Nasdaq to the New York Stock Exchange on January 17, 2025.
- QXO is focusing on becoming a tech-forward leader in the $800 billion building products distribution industry, targeting tens of billions of dollars in annual revenue within the next decade.
- The company's net revenue for 2024 increased by $2.4 million, or 4.3%, compared to 2023, driven by growth in software product and service revenue.
- Selling, general, and administrative expenses increased significantly by $70.8 million, or 320.6%, due to new senior management compensation, severance payments, and transaction costs.
- Interest income increased by $121.9 million due to the cash infusion from equity investments and private placements.
- The company's cash balance as of December 31, 2024, was $5.1 billion.
- A special cash dividend of $17.4 million was paid to stockholders on June 12, 2024.
- The company announced a cash tender offer to acquire Beacon Roofing Supply, Inc. for $124.25 per share in January 2025.
Sentiment
Score: 6
Explanation: The document presents a mixed sentiment. While the company has a strong cash position and is pursuing growth opportunities, there are concerns about rising expenses and the dependence on key personnel. The strategic shift and acquisition plans introduce both potential and risks.
Highlights
- QXO Inc. completed a $1.0 billion cash investment on June 6, 2024, leading to a name and ticker symbol change.
- The company's strategy is to become a tech-forward leader in the $800 billion building products distribution industry.
- Net revenue increased by 4.3% to $56.873 million in 2024.
- Selling, general, and administrative expenses rose by 320.6% due to strategic investments in management and growth initiatives.
- Interest income surged by $121.9 million due to a substantial cash position.
- The company's cash balance stood at $5.1 billion as of December 31, 2024.
- A $17.4 million special cash dividend was paid to stockholders.
- QXO announced a tender offer to acquire Beacon Roofing Supply, Inc. for $124.25 per share.
Positives
- The $1.0 billion cash investment significantly strengthens the company's financial position.
- The strategic focus on the building products distribution industry presents a substantial growth opportunity.
- The increase in net revenue indicates positive momentum in the company's core operations.
- The company has a strong cash position of $5.1 billion, providing ample resources for acquisitions and growth initiatives.
- The company is actively pursuing acquisitions, as evidenced by the tender offer for Beacon Roofing Supply, Inc.
Negatives
- The significant increase in selling, general, and administrative expenses raises concerns about cost management.
- The company reported an Adjusted EBITDA loss of $(19.832) million for the year ended December 31, 2024.
- The company is dependent on Brad Jacobs as Chairman and Chief Executive Officer.
- The company faces competition for businesses that fit its acquisition strategy.
Risks
- The market price of the company's common stock may be highly volatile.
- Raising additional equity capital may cause substantial dilution to existing stockholders.
- The company is highly dependent on the continued leadership of Brad Jacobs.
- The failure to consummate acquisitions expeditiously could have a material adverse effect on the company's business prospects.
- The building products distribution industry is highly cyclical and competitive.
- The company could be affected by cyberattacks or breaches of its information systems.
Future Outlook
The company aims to become a tech-forward leader in the $800 billion building products distribution industry, targeting tens of billions of dollars in annual revenue within the next decade through acquisitions, organic growth, and operational transformation.
Management Comments
- The company is executing its strategy toward a target of tens of billions of dollars of annual revenue in the next decade.
- The company grows its legacy business with a multi-pronged plan that fosters recurring revenue, customer retention and the steady expansion of our installed customer base, accomplished via sales and acquisitions.
Industry Context
The company is positioning itself to capitalize on the fragmented and competitive building products distribution industry, leveraging technology and strategic acquisitions to gain market share and improve profitability.
Comparison to Industry Standards
- The document does not provide enough information to make a detailed comparison to industry standards.
- However, the company's focus on technology and acquisitions aligns with trends observed in other industries undergoing digital transformation and consolidation.
- Comparable companies in the building products distribution industry include Beacon Roofing Supply, ABC Supply, and SRS Distribution.
- A detailed comparison would require analyzing QXO's financial metrics against these companies' performance, considering factors like revenue growth, profitability, and market share.
Stakeholder Impact
- Shareholders may experience dilution from future equity issuances.
- Employees may be affected by changes in management and strategic direction.
- Customers may benefit from the company's focus on technology and improved service offerings.
- Suppliers may see increased demand as the company expands its operations.
- Creditors may be impacted by the company's debt levels and acquisition strategy.
Next Steps
- The company will continue to execute its strategy of acquisitions and organic growth in the building products distribution industry.
- The company will focus on integrating acquired businesses and improving operational efficiency.
- The company will monitor market conditions and adjust its strategy as needed.
- The company will continue to evaluate potential acquisition opportunities.
Legal Proceedings
- The company is involved in lawsuits, regulatory proceedings and enforcement actions in the ordinary course of business.
- The company believes that it has adequately accrued for the potential impact of loss contingencies that are probable and reasonably estimable.
Related Party Transactions
- The company reimbursed JPE for certain transactional, market research and employee costs related to establishing the foundation for QXO to move forward, totaling $15.3 million.
- Mark Meller received a lump-sum payment of $2.8 million in connection with his new employment agreement as President of SWK Technologies.
- Certain directors and officers of the company purchased an aggregate of 262,585 shares of common stock for $2.4 million in a private placement.
Key Dates
- 2023-11-13: SWK Technologies, Inc. acquired the customer list and prepaid time from clients of JCS Computer Resource Corporation
- 2024-04-14: The company entered into the Amended and Restated Investment Agreement
- 2024-06-06: The company changed its name from SilverSun Technologies to QXO and completed the $1.0 billion equity investment.
- 2024-06-12: The Board paid a $17.4 million special cash dividend to its stockholders of record.
- 2024-06-13: The company entered into purchase agreements with certain institutional and accredited investors to issue and sell in a private placement an aggregate of 340,932,212 shares of our common stock at a price of $9.14 per share, and pre-funded warrants
- 2024-07-19: The closing of the issuance and sale of these securities was consummated, and generated gross proceeds of approximately $3.5 billion
- 2024-07-22: The company entered into additional purchase agreements with certain institutional and accredited investors to issue and sell in a private placement an aggregate of 67,833,699 shares of our common stock at a price of $9.14 per share.
- 2024-07-25: The closing of the issuance and sale of these securities was consummated, and generated gross proceeds of approximately $620 million
- 2025-01-17: The company transferred the listing of its common stock from Nasdaq to the New York Stock Exchange.
- 2025-01: The Company and its wholly owned subsidiary, Queen MergerCo, Inc., announced a cash tender offer to acquire all outstanding shares of Beacon Roofing Supply, Inc.
- 2025-03-10: The offer is subject to several conditions and is scheduled to expire at 5:00 p.m., New York City time, on March 10, 2025, unless further extended.
- 2025-05-12: 2025 Annual Meeting of Stockholders
Keywords
QXO
Qxo, INC
NYSE
Sector: TBD
Filings with Classifications
Worse than expected
8 May 2025 4:12 PM
Earnings Release
- The company's revenue decreased compared to the same period last year.
- The adjusted EBITDA was significantly lower than the same period last year.
Capital raise
29 April 2025 5:06 PM
Merger Announcement
- QXO closed its previously announced $830 million equity private placement in conjunction with the acquisition.
Capital raise
24 April 2025 1:12 AM
Debt Offering Announcement
- Queen MergerCo, Inc. priced its offering of $2.25 billion of 6.75% Senior Secured Notes due 2032.
- The size of the offering was increased from the previously announced offering size of $2.0 billion.
- The proceeds from the offering will be used to fund the acquisition of Beacon Roofing Supply, Inc.
Capital raise
21 April 2025 7:33 AM
Capital Raise Announcement
- QXO, through its subsidiary Queen MergerCo, Inc., intends to offer $2 billion in Senior Secured Notes due 2032.
- The notes will be offered privately to qualified institutional buyers and non-U.S. persons.
- The proceeds will be used to fund the acquisition of Beacon Roofing Supply, Inc. and related expenses, along with borrowings under new senior secured credit facilities, proceeds from QXO's previously announced equity offerings, and available balance sheet cash.
Capital raise
21 April 2025 7:16 AM
Capital Raise Announcement
- QXO is offering 37,735,850 shares of common stock at a price of $13.25 per share.
- The underwriters have an option to purchase up to an additional 5,660,377 shares.
- The company expects to receive net proceeds of approximately $490 million, or $564.2 million if the underwriters fully exercise their option.
- The proceeds will be used to partially finance the acquisition of Beacon Roofing Supply, Inc.
Capital raise
16 April 2025 5:14 PM
Capital Raise Announcement
- QXO intends to offer for sale to the public $500,000,000 of shares of its common stock.
- QXO intends to grant the underwriters of the offering an option to purchase up to an additional $75,000,000 of shares of Common Stock at the same price per share as the other shares of our Common Stock purchased by the underwriters in this offering.
- The net proceeds from the Offering to finance a portion of the consideration for the pending acquisition of Beacon Roofing Supply, Inc.
Capital raise
16 April 2025 4:59 PM
Merger Announcement
- QXO plans to finance the acquisition through a combination of debt and equity financing.
- The debt financing includes a new senior secured term facility and senior secured notes totaling \$4.55 billion.
- The equity financing includes a private placement of approximately 67.5 million shares of QXO's common stock at \$12.30 per share, expected to generate approximately \$830.6 million.
- QXO also intends to issue additional shares of common stock in a public offering for gross proceeds of \$600 million.
Capital raise
2 April 2025 4:43 PM
Proxy Statement
- The company issued to the Investors, in the aggregate, (i) 1,000,000 shares of Convertible Preferred Stock that, in aggregate, are convertible into 219,010,074 shares of our common stock at an initial conversion price of $4.566 per share, subject to customary anti-dilution adjustments; and (ii) the Warrants to purchase an additional 219,010,074 shares of our common stock at initial exercise prices of $4.566 per share with respect to 50% of the Warrants, $6.849 per share with respect to 25% of the Warrants, and $13.698 per share with respect to the remaining 25% of the Warrants, in each case subject to customary anti-dilution adjustments.
- On July 25, 2024, the company issued and sold an aggregate of 67,833,699 shares of common stock at a price of $9.14 per share in a private placement.
Better than expected
2 April 2025 4:43 PM
Proxy Statement
- The company delivered an increase of approximately 400% in stockholder value between the announcement of the Equity Investment in December 2023 and the formal grant of equity awards at the end of July 2024.
Capital raise
20 March 2025 8:52 AM
Merger Announcement
- QXO has secured financing commitments covering the full purchase price.
- QXO has entered into purchase agreements with certain institutional investors for an $830 million private placement financing, subject to the completion of the Beacon acquisition.
Capital raise
17 March 2025 5:25 PM
Capital Raising Announcement
- QXO, Inc. is raising $830 million through a private placement of approximately 67.5 million shares at $12.30 per share.
- The funds are earmarked for the acquisition of Beacon Roofing Supply, Inc.
- The closing of the private placement is contingent upon the concurrent consummation of QXO's all-cash tender offer to acquire all outstanding shares of Beacon Roofing Supply, Inc.
Capital raise
4 March 2025 8:19 AM
Annual Report
- The company issued and sold 1,000,000 shares of Convertible Perpetual Preferred Stock for $1.0 billion.
- The company issued warrants exercisable for 219,010,074 shares of common stock.
- The company issued 340,932,212 shares of common stock and pre-funded warrants to purchase 42,000,000 shares in a private placement for approximately $3.5 billion.
- The company issued an additional 67,833,699 shares of common stock in a private placement for approximately $620 million.
Worse than expected
4 March 2025 8:09 AM
Earnings Release
- Adjusted EBITDA decreased year-over-year, from a gain of $0.7 million to a loss of $(7.7) million.
- The company reported a loss of $(0.11) per basic and diluted shares attributable to common shareholders for the full year 2024.
Better than expected
27 January 2025 7:15 AM
Tender Offer Announcement
- The offer price of $124.25 per share represents a significant premium over Beacon's unaffected share price and historical trading multiples, indicating a better than expected outcome for shareholders.
Delay expected
27 January 2025 7:15 AM
Tender Offer Announcement
- QXO's attempts to engage with Beacon have been met with delays and cancellations, leading to a hostile tender offer.
- Beacon has imposed unreasonable preconditions for discussions, including a long-term standstill agreement.
Better than expected
27 January 2025 7:14 AM
Tender Offer Statement
- The offer price represents a significant premium over Beacon's unaffected share price and historical trading multiples.
Delay expected
27 January 2025 7:14 AM
Tender Offer Statement
- QXO's attempts to engage with Beacon's management have been met with delays, cancellations, and unreasonable preconditions.
Delay expected
15 January 2025 8:35 AM
Merger Announcement
- QXO's attempts to engage with Beacon have been met by delays, cancellations, and unreasonable preconditions.
- Beacon conditioned a meeting on QXO agreeing to a months-long delay before they could present their proposal to shareholders.
Better than expected
15 January 2025 8:35 AM
Merger Announcement
- QXO's offer of $124.25 per share represents a 37% premium over Beacon's 90-day unaffected share price, which is significantly better than the current market valuation.
- QXO highlights that Beacon's operating environment and capital markets have weakened since their initial proposal in November, making their offer more attractive.
Capital raise
6 January 2025 7:39 PM
Current Report
- The document mentions risks associated with raising additional equity or debt capital from public or private markets.
- It also notes the possibility of one or more additional private placements of common stock.
Better than expected
13 November 2024 8:03 AM
Quarterly Report
- The company's net income for the quarter and nine-month period was significantly better than the same periods last year, which had net losses.
- The company's cash position improved dramatically due to the capital raises.
- The company extinguished all long-term debt obligations.
Capital raise
13 November 2024 8:03 AM
Quarterly Report
- The company completed a $1 billion cash investment from Jacobs Private Equity II, LLC and certain minority co-investors.
- The company issued and sold 1,000,000 shares of Convertible Perpetual Preferred Stock and warrants exercisable for 219,010,074 shares of common stock.
- The company completed private placements of common stock and pre-funded warrants, generating approximately $4.12 billion in gross proceeds.
Worse than expected
13 November 2024 7:02 AM
Quarterly Report
- The company's Adjusted EBITDA was significantly worse than the same period last year, moving from a positive $665,000 to a negative $11.47 million.
Capital raise
13 November 2024 7:02 AM
Quarterly Report
- The company completed two private placements during the quarter, raising approximately $4.1 billion.
- The capital raise increased the number of common shares outstanding to 409.4 million.
Capital raise
5 November 2024 6:22 AM
Proxy Statement
- On June 6, 2024, the company issued 1,000,000 shares of Convertible Preferred Stock and warrants to purchase common stock to investors for $1,000,000,000 in cash.
- On July 25, 2024, the company issued and sold an aggregate of 67,833,699 shares of common stock at a price of $9.14 per share in a private placement.
Worse than expected
14 August 2024 8:47 AM
Quarterly Report
- The company reported a net loss for the quarter, compared to a net income in the same period last year, indicating worse than expected results.
Capital raise
14 August 2024 8:47 AM
Quarterly Report
- The company completed a $1 billion cash investment from Jacobs Private Equity II, LLC and minority co-investors.
- The company issued 1,000,000 shares of Convertible Perpetual Preferred Stock and warrants exercisable for 219,010,074 shares of common stock.
- The company completed private placements of common stock and pre-funded warrants, generating approximately $4.12 billion in gross proceeds.
Worse than expected
14 August 2024 8:34 AM
Quarterly Report
- The company's net income decreased to a net loss, and adjusted EBITDA also declined to a loss, indicating worse financial performance compared to the same period last year.
Capital raise
14 August 2024 8:34 AM
Quarterly Report
- The company completed two private placements in July 2024, increasing its cash position to approximately $5 billion.
- The document mentions the risk of raising additional equity or debt capital from public or private markets to pursue the company's business plan, including potentially one or more additional private placements of common stock.
Capital raise
29 July 2024 5:15 PM
Prospectus Supplement
- The company is registering the potential issuance of up to 261,010,074 shares of common stock upon the exercise of warrants.
- This includes 219,010,074 warrants and 42,000,000 pre-funded warrants.
Capital raise
22 July 2024 8:11 AM
Capital Raise Announcement
- QXO has raised $620 million through a new private placement of 67,833,699 shares at $9.14 per share.
- The company also closed a previously announced $3.5 billion private placement.
- The company may raise additional capital in the future to pursue its business plan.
Capital raise
5 July 2024 4:05 PM
8-K Filing
- QXO plans to issue 340,932,212 shares of its common stock through a private placement.
- The private placement is intended to bring the company back into compliance with Nasdaq listing rules.
Worse than expected
5 July 2024 4:05 PM
8-K Filing
- The company received a delisting notice from Nasdaq for not meeting the minimum publicly held shares requirement, which is a negative development.
Capital raise
27 June 2024 6:03 AM
Information Statement
- QXO Inc. is undertaking a private placement to raise approximately $3.5 billion.
- The private placement involves the issuance of 340,932,212 shares of common stock at $9.14 per share.
- The company is also issuing warrants to purchase 42,000,000 shares of common stock at $9.13999 per warrant, exercisable at $0.00001 per share.
Capital raise
14 June 2024 6:01 AM
Private Placement Announcement
- QXO has entered into purchase agreements for a $3.5 billion private placement.
- The company is selling 340,932,212 shares of common stock at $9.14 per share.
- The company is also selling 42,000,000 pre-funded warrants at $9.13999 per warrant.
- The private placement is expected to close early in the third quarter of 2024.
Capital raise
6 June 2024 4:46 PM
Merger Announcement
- The document mentions the possibility of raising additional equity or debt capital from public or private markets to pursue the Companys business plan following the closing of the equity investment.
- The document states that the amount of additional capital raised may significantly exceed the amount of the equity investment.
Better than expected
6 June 2024 4:46 PM
Merger Announcement
- The company completed a $1 billion equity investment, which is a significant positive development.
- The appointment of Brad Jacobs as CEO and Chairman is a strong signal of the company's commitment to growth.
- The company has a clear strategy for growth through acquisitions and organic expansion.
Capital raise
30 May 2024 11:59 AM
Special Meeting Results
- The document details a $1 billion equity investment from JPE and minority co-investors.
- The document mentions the possibility of raising additional equity or debt capital in the future.
Capital raise
28 May 2024 8:37 AM
Definitive Additional Materials
- The announcement is related to the equity investment contemplated by the Amended and Restated Investment Agreement by and among SilverSun Technologies, Inc. (to be renamed QXO, Inc.), JPE and other investors.
Capital raise
28 May 2024 6:05 AM
Supplement to Proxy Statement
- The document references an Amended and Restated Investment Agreement, indicating an equity investment.
- Jacobs Private Equity II, LLC is identified as the Principal Investor.
- The investment is contingent upon stockholder approvals and other customary closing conditions.
Capital raise
28 May 2024 6:02 AM
Current Report
- The document details a $1 billion equity investment from Jacobs Private Equity II, LLC and other investors.
- The document also mentions the possibility of raising additional equity or debt capital in the future.
Capital raise
24 May 2024 8:00 AM
Current Report
- The document mentions the possibility of raising additional equity or debt capital from public or private markets after the closing of the Equity Investment.
- The company may need to raise capital in an amount that may significantly exceed the amount of the Equity Investment.
Capital raise
7 May 2024 4:21 PM
Quarterly Report
- The company entered into an Amended and Restated Investment Agreement with JPE for an aggregate investment of $1,000,000,000 in cash.
- The company's stockholders will receive an aggregate cash dividend of $17,400,000 from the proceeds of the Equity Investment.
- The transactions are subject to approval by the company's stockholders at a special meeting to be held May 30, 2024.
Worse than expected
7 May 2024 4:21 PM
Quarterly Report
- Although revenue increased, net income from operations decreased, indicating that the company's profitability declined compared to the same period last year.
Capital raise
30 April 2024 9:42 AM
Proxy Statement
- The Company also intends to pursue capital-raising transactions, including through issuances of Common Stock, other equity securities and/or debt securities, which may be substantial in amount, and at prices which may be less than the trading price of the Common Stock, and otherwise on such terms as may be agreed by the Company.
Capital raise
17 April 2024 5:30 PM
Proxy Statement
- The document discusses an equity investment in SilverSun Technologies.
- Brad Jacobs has raised $30 billion of debt and equity capital in his career.
- The company anticipates raising additional equity or debt capital from public or private markets to pursue its business plan following the closing of the Equity Investment.
Worse than expected
15 April 2024 8:47 AM
Merger Announcement
- The spin-off of the existing business will no longer occur, which may be viewed negatively by some investors who were anticipating the separation.
Worse than expected
15 April 2024 8:46 AM
Merger Announcement
- The original plan for a spin-off of the company's existing business has been scrapped, which may be viewed negatively by some investors who were anticipating the spin-off.
Better than expected
15 March 2024 8:00 AM
Annual Results
- The company reported record revenue and a significant increase in EBITDA plus share-based compensation, indicating better than expected financial performance.
Delay expected
15 March 2024 8:00 AM
Annual Results
- The merger with Rhodium Enterprises was terminated after a year of failing to clear regulatory hurdles.
Capital raise
15 March 2024 8:00 AM
Annual Results
- The company has entered into an investment agreement with Jacobs Private Equity II, LLC (JPE) and minority co-investors, resulting in a $1 billion cash investment.
- The investment agreement also includes a $2.5 million aggregate cash dividend to stockholders.
Capital raise
15 March 2024 7:30 AM
Merger Announcement
- The document details a $1 billion equity investment from JPE and minority co-investors.
- It also mentions the possibility of raising additional equity or debt capital in the future to pursue acquisitions.
Worse than expected
14 March 2024 3:31 PM
Annual Results
- The company reported a net loss of $1,070,095 for the year ended December 31, 2023, which is worse than the net loss of $282,219 for the year ended December 31, 2022.
Capital raise
14 March 2024 3:31 PM
Annual Results
- SilverSun entered into an Investment Agreement with Jacobs Private Equity II, LLC, providing for an aggregate investment of $1,000,000,000 in cash in SilverSun.
- The Investors will receive 1,000,000 shares of Convertible Perpetual Preferred Stock and warrants to purchase approximately 219 million shares of SilverSun common stock.
- Following the Closing, the Investors will own approximately 99.85% of SilverSun common stock on an as-converted, as-exercised basis.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.