$QXO · QXO, Inc.
QXO filed its Q3 FY2026 10-Q. Net sales rose 79.4% YoY to $4.895B (nine months $9.871B vs $4.648B), driven by the Beacon, Kodiak, and TopBuild acquisitions. Gross margin improved to 28.2% from 23.3%, but operating income fell to $2M from $25M as SG&A more than doubled to $1.024B and amortization rose to $288M. Net loss was $123M vs $139M a year ago, with interest expense up to $163M from $37M. Total debt climbed to $9.07B principal from $3.1B at year-end.
- Revenue +79.4% YoY to $4.895B, nine-month revenue $9.871B vs $4.648B.
- Gross margin improved to 28.2% from 23.3% a year earlier.
- Net loss $123M ($0.17/share) vs $139M loss a year ago.
- Interest expense surged to $163M from $37M on acquisition debt.
- Total debt principal $9.07B vs $3.1B at December 31, 2025.
Shares closed down 7.24% to $12.81 in the regular session, though extended-hours trading showed a +1.56% bounce to $13.01. The mixed reaction reflects strong top-line growth offset by persistent losses and heavy acquisition debt.
QXO's aggressive acquisition spree is scaling revenue fast but has yet to produce profits, with debt and interest costs mounting.
QXO's roll-up of Beacon, Kodiak, and TopBuild makes it a consolidator in building products distribution, with roofing products at $1.996B and insulation/services at $1.644B in the quarter.
Goodwill of $14.5B and intangibles of $10.8B carry impairment risk if integration or demand softens. Heavy debt ($9.07B) and rising interest expense pressure profitability.