QXO Reports Third Quarter 2026 Results
QXO, Inc. (QXO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 QXO Reports Third Quarter 2026 Results GREENWICH, Conn. — November 12, 2026 — QXO, Inc. (“QXO” or the “Company”) (NYSE: QXO) today reported financial results for the third quarter of 2026. For the three months ended September 30, 2026, basic and diluted loss per comm
Facts are quoted from the filing text and checked against it. Details that could not be matched to the text are left out.
How this was made
The 30-second read
Why it matters
The earnings release highlights integration progress and margin improvement, setting a baseline for future growth targets.
Market read
QXO's earnings provide fresh data for traders assessing exposure to the construction‑materials sector.
What to watch
The $500 M share‑repurchase authorization may provide floor support if earnings miss expectations.
QXO reports Q3 2026 net loss of $123 million with Adjusted EBITDA of $557 million, as acquired businesses lift net sales to $4,895 million
GAAP net loss narrowed to $(123) million from $(139) million and Adjusted EBITDA rose to $557 million from $301 million, with Adjusted Gross Margin up to 28.5% from 25.2%. Income from operations fell to $2 million from $25 million, interest expense rose to $(163) million from $(37) million, and nine-month net loss widened to $(405) million from $(189) million. Operating cash flow for the nine months was $(145) million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended Sep 30, 2026GAAP | $4.89B | – | – |
| Gross profit, three months ended Sep 30, 2026GAAP | $1.38B | – | – |
| Adjusted Gross Profit, three months ended Sep 30, 2026non-GAAP | $1.40B | – | – |
| Gross margin, three months ended Sep 30, 2026GAAP | 28.2% | – | – |
| Adjusted Gross Margin, three months ended Sep 30, 2026non-GAAP | 28.5% | – | – |
| Cost of sales, three months ended Sep 30, 2026GAAP | $3.52B | – | – |
| Selling, general and administrative, three months ended Sep 30, 2026GAAP | $1.02B | – | – |
| Depreciation (operating expense line), three months ended Sep 30, 2026GAAP | $66M | – | – |
| Amortization, three months ended Sep 30, 2026GAAP | $288M | – | – |
| Total operating expense, three months ended Sep 30, 2026GAAP | $1.38B | – | – |
| Income from operations, three months ended Sep 30, 2026GAAP | $2M | – | – |
| Interest expense, net, three months ended Sep 30, 2026GAAP | −$163M | – | – |
| Other income, net, three months ended Sep 30, 2026GAAP | $11M | – | – |
| (Benefit from) provision for income taxes, three months ended Sep 30, 2026GAAP | −$27M | – | – |
| Net loss, three months ended Sep 30, 2026GAAP | −$123M | – | – |
| Basic and diluted loss per common share, three months ended Sep 30, 2026GAAP | $(0.17) | – | – |
| Adjusted Net Income, three months ended Sep 30, 2026non-GAAP | $229M | – | – |
| Adjusted Diluted Earnings per Common Share, three months ended Sep 30, 2026non-GAAP | $0.13 | – | – |
| Adjusted EBITDA, three months ended Sep 30, 2026non-GAAP | $557M | – | – |
| Adjusted EBITDA Margin, three months ended Sep 30, 2026non-GAAP | 11.4% | – | – |
| Net margin, three months ended Sep 30, 2026GAAP | (2.5) % | – | – |
| Net sales, nine months ended Sep 30, 2026GAAP | $9.87B | – | – |
| Gross profit, nine months ended Sep 30, 2026GAAP | $2.59B | – | – |
| Adjusted Gross Profit, nine months ended Sep 30, 2026non-GAAP | $2.61B | – | – |
| Gross margin, nine months ended Sep 30, 2026GAAP | 26.3% | – | – |
| Adjusted Gross Margin, nine months ended Sep 30, 2026non-GAAP | 26.4% | – | – |
| Cost of sales, nine months ended Sep 30, 2026GAAP | $7.28B | – | – |
| Selling, general and administrative, nine months ended Sep 30, 2026GAAP | $2.17B | – | – |
| Depreciation (operating expense line), nine months ended Sep 30, 2026GAAP | $169M | – | – |
| Amortization, nine months ended Sep 30, 2026GAAP | $545M | – | – |
| Loss from operations, nine months ended Sep 30, 2026GAAP | −$292M | – | – |
| Interest expense, net, nine months ended Sep 30, 2026GAAP | −$232M | – | – |
| Net loss, nine months ended Sep 30, 2026GAAP | −$405M | – | – |
| Basic and diluted loss per common share, nine months ended Sep 30, 2026GAAP | $(0.64) | – | – |
| Adjusted Net Income, nine months ended Sep 30, 2026non-GAAP | $302M | – | – |
| Adjusted Diluted Earnings per Common Share, nine months ended Sep 30, 2026non-GAAP | $0.15 | – | – |
| Adjusted EBITDA, nine months ended Sep 30, 2026non-GAAP | $830M | – | – |
| Adjusted EBITDA Margin, nine months ended Sep 30, 2026non-GAAP | 8.4% | – | – |
| Net cash (used in) provided by operating activities, nine months ended Sep 30, 2026GAAP | −$145M | – | – |
| Capital expenditures, nine months ended Sep 30, 2026GAAP | −$111M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| TopBuild (legacy business, contribution to net sales)Filing states net sales for the three months ended September 30, 2026 include $1.64 billion from TopBuild, from the acquisition date of July 1, 2026. No prior-year or prior-quarter figure is printed for this contribution. | $1.64B | – | – |
| Kodiak (legacy business, contribution to net sales)Filing states net sales for the three months ended September 30, 2026 include $589 million from Kodiak, from the acquisition date of April 1, 2026. No prior-year or prior-quarter figure is printed for this contribution. | $589M | – | – |
Capital returns
- Board authorized a common share repurchase program of $500 million with no expiration date, used at management's discretion; the program does not obligate the Company to repurchase any shares and may be suspended or discontinued at any time.
- No share repurchases executed during the period are printed in the filing.
- Nine months ended Sep 30, 2026: payment of dividends on Convertible Preferred Stock $(67) million; on Mandatory Convertible Preferred Stock $(24) million; on Series C Preferred Stock $(59) million.
- Nine months ended Sep 30, 2026: proceeds from issuance of common stock, net of issuance costs $748 million; proceeds from Series C Preferred Stock, net of issuance costs $2,989 million.
- Common stock issued as consideration for acquisition, nine months ended Sep 30, 2026: $5,641 million (non-cash).
What drove it
- Company states that net sales for the three months ended Sep 30, 2026 include the legacy TopBuild ($1.64 billion, from July 1, 2026) and legacy Kodiak ($589 million, from April 1, 2026) operations; the nine-month comparison includes legacy Beacon only from April 29, 2025.
- CEO states organic daily revenue trends improved for the second consecutive quarter despite a soft construction market; the filing does not print an organic growth percentage.
- CEO states companywide pricing increased 2.2% year over year.
- CEO states complementary product sales in Roofing and Waterproofing grew 4.2%, and TRI-BUILT reached a record 10.6% of sales.
- CEO states mechanical insulation distribution revenue grew 16%, which the CEO attributes to strong data center demand.
- Adjusted Gross Profit excludes inventory fair value adjustments of $17 million (three months 2026) vs $51 million (three months 2025), and $17 million (nine months 2026) vs $131 million (nine months 2025), per the filing's reconciliation.
- Amortization rose to $288 million for the three months ended Sep 30, 2026 from $118 million, and to $545 million for the nine months from $198 million.
- Transaction costs were $40 million for the three months 2026 vs $4 million for 2025, and $111 million for the nine months 2026 vs $80 million for 2025, per the non-GAAP reconciliation.
- Interest expense, net rose to $(163) million for the three months from $(37) million; the filing does not state a cause in the release text beyond the reported figures.
- Management states it is connecting sales, inventory and warehouse systems and applying AI to identify cross-sell opportunities; these are described as planned initiatives.
Concerns
- GAAP net loss of $(123) million for the three months and $(405) million for the nine months, versus $(139) million and $(189) million in the prior-year periods; nine-month net loss widened.
- Income from operations was $2 million for the three months ended Sep 30, 2026, compared with $25 million in the prior-year quarter.
- Interest expense, net was $(163) million for the three months and $(232) million for the nine months, compared with $(37) million and $(11) million.
- Net cash used in operating activities was $(145) million for the nine months, compared with $75 million provided in the prior-year nine months.
- Adjusted Diluted Earnings per Common Share was $0.13 for the three months (vs $0.14) and $0.15 for the nine months (vs $0.32).
- Adjusted EBITDA Margin for the nine months was 8.4%, compared with 10.7% in the prior-year period.
- Goodwill and intangibles together were $25,303 million at Sep 30, 2026 (printed as $14,536 million and $10,767 million); the filing notes goodwill and intangibles represent a substantial portion of total assets and carry impairment risk.
- Filing risk factors cite dependence on Brad Jacobs as chairman and chief executive officer, indebtedness incurred for the Beacon and TopBuild acquisitions, and the effect of outstanding warrants and preferred stock.
What to watch
- Progress toward the stated target of $4 billion in adjusted EBITDA by 2030 from businesses already owned, as stated in the CEO quote.
- Progress toward the stated target of $50 billion in annual revenue within the decade through organic growth and acquisitions.
- Organic daily revenue trend, which management says improved for a second consecutive quarter; no organic percentage is printed.
- Adjusted Gross Margin trajectory (28.5% in Q3 2026 vs 25.2% in Q3 2025) as management prioritizes higher-margin products.
- Interest expense, net and amortization levels following the 2026 acquisitions, as printed in the statements of operations.
- Whether the $500 million repurchase authorization is used, and the pace of operating cash flow versus capital expenditures and acquisition spending.
- Reconciliation of Q3 2026 depreciation: the statement of operations shows $66 million while the Adjusted EBITDA table shows $83 million, including $17 million recognized within cost of sales.
Balance sheet and cash flow
- Cash and cash equivalents: $528 million at Sep 30, 2026 vs $2,362 million at Dec 31, 2025.
- Total assets: $34,470 million at Sep 30, 2026 vs $15,887 million at Dec 31, 2025.
- Goodwill: $14,536 million at Sep 30, 2026 vs $5,111 million at Dec 31, 2025. Intangibles, net: $10,767 million vs $3,819 million.
- Inventories: $2,542 million at Sep 30, 2026 vs $1,497 million at Dec 31, 2025. Accounts receivable, net: $2,817 million vs $1,145 million.
- Long-term debt, net: $8,948 million at Sep 30, 2026 vs $3,057 million at Dec 31, 2025. Current portion of long-term debt: $30 million vs $0 (printed as "—") at Dec 31, 2025.
- Total liabilities: $15,847 million at Sep 30, 2026 vs $6,180 million at Dec 31, 2025.
- Series C Preferred Stock (mezzanine equity): $2,942 million at Sep 30, 2026 vs none at Dec 31, 2025.
- Total stockholders' equity: $15,681 million at Sep 30, 2026 vs $9,707 million at Dec 31, 2025.
- Nine months ended Sep 30, 2026: acquisition of businesses, net of cash and restricted cash acquired and common stock issued, $(10,933) million vs $(10,557) million in the nine months ended Sep 30, 2025.
- Nine months ended Sep 30, 2026: borrowings under term loan $2,993 million; borrowings under senior notes $3,000 million; payment of debt issuance costs and other financing fees $(91) million.
- Nine months ended Sep 30, 2026: cash paid for interest $181 million vs $42 million; cash paid for income taxes, net of refunds $13 million vs $37 million.
- Cash, cash equivalents and restricted cash, end of period: $554 million at Sep 30, 2026 vs $2,311 million at Sep 30, 2025.
Analysis
QXO reported third quarter 2026 net sales of $4,895 million, against $2,728 million in the prior-year quarter. The filing states that the quarter includes $1.64 billion from legacy TopBuild (acquired July 1, 2026) and $589 million from legacy Kodiak (acquired April 1, 2026). Because the prior-year figures include only the legacy Beacon operations from April 29, 2025, the release does not print a like-for-like growth rate, and the CEO's organic commentary is qualitative only. Gross margin was 28.2% against 23.3%, and Adjusted Gross Margin was 28.5% against 25.2%. The CEO states that the company is prioritizing higher-margin products and cites complementary product sales in Roofing and Waterproofing up 4.2%, TRI-BUILT at a record 10.6% of sales, and mechanical insulation distribution revenue up 16%.
Below the gross profit line, the quarter shows a different picture. Selling, general and administrative expense rose to $1,024 million from $453 million, amortization to $288 million from $118 million, and income from operations was $2 million against $25 million. Interest expense, net was $(163) million against $(37) million, and the tax line was a benefit of $(27) million against a provision of $128 million. Net loss narrowed to $(123) million from $(139) million. Adjusted Net Income was $229 million against $166 million, and Adjusted EBITDA was $557 million against $301 million, with Adjusted EBITDA Margin at 11.4% against 11.1%. The non-GAAP reconciliation lists transaction costs of $40 million and transformation costs of $28 million in the quarter. Adjusted Diluted Earnings per Common Share was $0.13 against $0.14, and the filing's diluted share count rose to 1,192.9 million from 875.3 million on an adjusted basis, reflecting the share issuance disclosed in the financing and acquisition lines.
On a nine-month basis, net sales were $9,871 million against $4,648 million, gross margin was 26.3% against 22.4%, and net loss was $(405) million against $(189) million. Operating cash flow was $(145) million, compared with $75 million, with working capital lines absorbing cash, including accounts receivable of $(503) million and inventories of $(317) million. Capital expenditures were $(111) million. Acquisitions consumed $(10,933) million of cash net of stock issued, and financing included $2,993 million of term loan borrowings, $3,000 million of senior notes and $2,989 million of Series C Preferred Stock proceeds. Cash fell to $528 million at September 30, 2026 from $2,362 million at December 31, 2025, while long-term debt, net rose to $8,948 million from $3,057 million.
Capital allocation in the filing includes a newly authorized $500 million common share repurchase program with no expiration date, which the filing states is at management's discretion and not an obligation. No repurchases are printed as executed. The filing presents no guidance for the next period. Management's stated targets are $4 billion of adjusted EBITDA by 2030 from owned businesses and $50 billion of annual revenue within the decade, and the release notes that the adjusted EBITDA target is not reconciled to GAAP net income. The most important items to track are the gap between Adjusted EBITDA growth and GAAP operating income, the rise in interest expense and amortization, the operating cash outflow, and the reconciliation difference between depreciation in the statement of operations ($66 million) and in the Adjusted EBITDA table ($83 million).
Management, verbatim
Our organic daily revenue trends improved for the second consecutive quarter despite a soft construction market. Companywide pricing increased 2.2% year over year.
Brad Jacobs, Chairman and Chief Executive Officer, QXO
We're on track to reach $4 billion in adjusted EBITDA by 2030 from the businesses we already own and $50 billion in annual revenue within the decade through organic growth and disciplined acquisitions.
Brad Jacobs, Chairman and Chief Executive Officer, QXO
We serve 194,000 customers across the legacy Beacon, Kodiak, and TopBuild businesses, but typically supply only a portion of what they need for a project.
Brad Jacobs, Chairman and Chief Executive Officer, QXO
Not in the filing
stated, not guessed- No guidance for the next quarter or full year is printed in the filing; guidance is set to null.
- No prior outlook was provided, so vs_prior_guidance is empty.
- Year-over-year percentage changes for net sales, gross profit, operating lines and EPS are not printed; yoy_change fields are null.
- Sequential (prior quarter, Q2 2026) figures are not printed; qoq_change fields are null.
- Organic revenue growth percentage is not printed; the CEO describes organic trends only qualitatively.
- Revenue and results for legacy Beacon, Kodiak and TopBuild on a standalone or pro forma basis are not printed for prior periods.
- Prior-year contribution figures for TopBuild and Kodiak are not printed; segment yoy and qoq fields are null.
- Mechanical insulation revenue, Roofing and Waterproofing complementary product sales and TRI-BUILT share are given only as percentages or growth rates without dollar values, so they appear in drivers rather than segments.
- Free cash flow is not printed; only operating cash flow and capital expenditures appear as separate lines.
- Shares repurchased under the $500 million authorization are not printed; no repurchase activity is reported.
- Total assets and equity are printed only as balance sheet lines at the two balance sheet dates; they are listed in balance_sheet_cash_flow, not computed.
- Depreciation differs between the statement of operations ($66 million for the three months) and the Adjusted EBITDA reconciliation ($83 million, with a footnote on cost of sales depreciation of $17 million); no reconciliation of the two is printed beyond the footnote.
- Current period share price reaction and analyst consensus expectations are not in the filing and are not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
QXO is a leading distributor and installer of building products in North America, recently expanding through acquisitions of Beacon, Kodiak, and TopBuild.
Ticker impact
QXO filed its Q3 2026 earnings on Form 8‑K, reporting $4.90 B net sales and $557 M adjusted EBITDA.
modest upside as investors price in higher adjusted EBITDA and margin improvement
First‑report earnings with detailed financials; scale is material and guidance points to $4 B adjusted EBITDA by 2030.
Market effects
Building‑products distribution sector may see renewed interest in QXO's integration strategy.
North American construction supply market could benefit from QXO's technology rollout.
Limited to U.S. and Canadian construction supply chains.
Counterpoint
Despite revenue growth, the GAAP net loss and reliance on acquisitions could pressure the stock.
Key entities
- executiveBrad Jacobs
Chairman and CEO of QXO, provided commentary on results and growth strategy.
