QXO, Inc. Reports 4.3% Revenue Growth to $56.9 Million Despite Significant Operational Loss

QXO, Inc., formerly known as SilverSun Technologies, Inc., reported a consolidated net revenue of $56.9 million for the fiscal year ending December 31, 2024, marking a 4.3% increase from $54.5 million in 2023. The growth was driven by an expansion in both software product and service revenues, which rose to $15.3 million and $41.6 million, respectively. Despite the revenue increase, the company experienced a significant loss from operations of $71 million, compared to a loss of $1.3 million in the previous year. This decline was primarily attributed to a substantial rise in selling, general, and administrative expenses, which surged by 320.6% to $92.9 million, largely due to costs associated with a new senior management team and transaction costs related to recent financing activities.

In June 2024, QXO completed a $1 billion cash investment from Jacobs Private Equity II, LLC, which led to a rebranding and a change in its ticker symbol from SSNT to QXO. The company also executed an 8-for-1 reverse stock split and subsequently transferred its stock listing from Nasdaq to the New York Stock Exchange in January 2025. These strategic moves are part of QXO's plan to position itself as a leader in the $800 billion building products distribution industry, with a target of achieving tens of billions in annual revenue over the next decade.

Operationally, QXO has focused on expanding its customer base through strategic acquisitions and enhancing its service offerings, which include enterprise resource planning software and managed IT services. As of December 31, 2024, the company reported a total of 211 full-time employees, with a significant portion dedicated to sales and service fulfillment. The company has also emphasized the importance of customer retention and recurring revenue through subscription-based services, which have contributed to its revenue growth.

Looking ahead, QXO's management expressed optimism about future growth, supported by a strong cash position of $5.1 billion as of year-end 2024. The company plans to leverage this liquidity for further acquisitions and operational enhancements. However, management also cautioned about potential risks, including market volatility, competition, and the challenges associated with integrating acquired businesses. The company is actively pursuing opportunities to expand its market presence and enhance its service offerings, aiming to capitalize on the growing demand in the building products distribution sector.