Second Quarter 2026
Filed Aug 13, 2026QXO Reports Second Quarter 2026 Results
Net sales, gross profit and Adjusted EBITDA increased from the prior-year period, while the company reported a GAAP net loss, a loss from operations, lower gross margin, lower Adjusted EBITDA Margin and lower Adjusted Diluted Earnings per Common Share.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $3,246 million | – | – |
| Gross profitGAAP | $803 million | – | – |
| Gross marginGAAP | 24.7% | – | – |
| Adjusted Gross Profitnon-GAAP | $803 million | – | – |
| Adjusted Gross Marginnon-GAAP | 24.7% | – | – |
| Selling, general and administrativeGAAP | $649 million | – | – |
| DepreciationGAAP | $56 million | – | – |
| AmortizationGAAP | $140 million | – | – |
| Total operating expenseGAAP | $845 million | – | – |
| Loss from operationsGAAP | $(42) million | – | – |
| Interest expense, netGAAP | $38 million | – | – |
| Loss before benefit from income taxesGAAP | $(77) million | – | – |
| Benefit from income taxesGAAP | $(22) million | – | – |
| Net lossGAAP | $(55) million | – | – |
| Net marginGAAP | (1.7)% | – | – |
| Basic and diluted loss per common shareGAAP | $(0.14) | – | – |
| Adjusted Net Incomenon-GAAP | $130 million | – | – |
| Adjusted Net Income attributable to common stockholdersnon-GAAP | $73 million | – | – |
| Adjusted Diluted Earnings per Common Sharenon-GAAP | $0.08 | – | – |
| Adjusted EBITDAnon-GAAP | $272 million | – | – |
| Adjusted EBITDA Marginnon-GAAP | 8.4% | – | – |
| Net cash used in operating activities for the six months ended June 30GAAP | $(146) million | – | – |
| Capital expenditures for the six months ended June 30GAAP | $(54) million | – | – |
| Cash and cash equivalentsGAAP | $2,774 million | – | – |
| Long-term debt, netGAAP | $6,029 million | – | – |
| Borrowings under revolving lines of creditGAAP | $11 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Residential roofing productsNet sales mix was 39.0%. | $1,266 million | – | – |
| Non-residential roofing productsNet sales mix was 22.7%. | $736 million | – | – |
| Complementary building productsNet sales mix was 37.9%. | $1,229 million | – | – |
| Software products and servicesNet sales mix was 0.4%. | $15 million | – | – |
Capital returns
- Payment of dividends on Convertible Preferred Stock for the six months ended June 30, 2026: $(45) million.
- Payment of dividends on Mandatory Convertible Preferred Stock for the six months ended June 30, 2026: $(16) million.
- Payment of dividends on Series C Preferred Stock for the six months ended June 30, 2026: $(23) million.
What drove it
- Net sales of $3,246 million included $595 million attributable to Kodiak.
- The three-month results include legacy Kodiak operational results from April 1, 2026 through June 30, 2026.
- The comparable 2025 three-month results include legacy Beacon operational results from April 29, 2025 through June 30, 2025.
- Management stated it has begun upgrading technology across the company to deliver best-in-class customer service and meaningful financial growth.
- The TopBuild acquisition was completed on July 1.
Concerns
- GAAP loss from operations was $(42) million and GAAP net loss was $(55) million.
- Adjusted Gross Margin was 24.7%, compared with 25.3% in the prior-year period.
- Adjusted EBITDA Margin was 8.4%, compared with 10.7% in the prior-year period.
- Adjusted Diluted Earnings per Common Share was $0.08, compared with $0.11 in the prior-year period.
- Net cash used in operating activities for the six months ended June 30, 2026 was $(146) million.
- Long-term debt, net was $6,029 million at June 30, 2026.
What to watch
- Integration of Kodiak and the TopBuild acquisition completed on July 1.
- Progress toward management's plan to more than double EBITDA by 2030.
- Progress toward the target of $50 billion in annual revenue within the decade through accretive acquisitions and organic growth.
- The effect of technology upgrades and transformation costs on customer service, operating performance and margins.
- Demand, supplier pricing, vendor rebates and gross-margin conditions in the building products distribution industry.
Balance sheet and cash flow
- Cash and cash equivalents at June 30, 2026: $2,774 million.
- Restricted cash included in prepaid expenses and other current assets at June 30, 2026: $3.0 billion.
- Long-term debt, net at June 30, 2026: $6,029 million.
- Borrowings under revolving lines of credit at June 30, 2026: $11 million.
- Net cash used in operating activities for the six months ended June 30, 2026: $(146) million.
- Net cash used in investing activities for the six months ended June 30, 2026: $(2,015) million.
- Net cash provided by financing activities for the six months ended June 30, 2026: $5,569 million.
- Capital expenditures for the six months ended June 30, 2026: $(54) million.
- Acquisition of business, net of cash acquired and common stock issued, for the six months ended June 30, 2026: $(1,965) million.
- Borrowings under senior notes for the six months ended June 30, 2026: $3,000 million.
- Proceeds from issuance of common stock, net of issuance costs, for the six months ended June 30, 2026: $748 million.
- Proceeds from the issuance of Series C Preferred Stock, net of issuance costs, for the six months ended June 30, 2026: $1,993 million.
Analysis
QXO reported second-quarter net sales of $3,246 million, compared with $1,906 million in the prior-year period. The company stated that $595 million of second-quarter net sales was attributable to Kodiak. The reporting-period comparison is affected by acquisition timing: 2026 results include Kodiak from April 1, 2026 through June 30, 2026, while 2025 results include Beacon from April 29, 2025 through June 30, 2025. Complementary building products represented $1,229 million of sales and 37.9% mix, while residential roofing products represented $1,266 million and 39.0% mix.
Gross profit was $803 million and GAAP gross margin was 24.7%, versus $401 million and 21.1% in the prior-year period. However, prior-year gross profit included an $80 million inventory fair value adjustment, resulting in Adjusted Gross Margin of 25.3% in 2025 compared with 24.7% in 2026. Selling, general and administrative expense was $649 million, depreciation was $56 million and amortization was $140 million. These expenses contributed to a GAAP loss from operations of $(42) million.
The company recorded a GAAP net loss of $(55) million, or $(0.14) basic and diluted loss per common share. Adjusted EBITDA was $272 million, compared with $204 million, but Adjusted EBITDA Margin was 8.4%, compared with 10.7%. Adjusted Net Income was $130 million, while Adjusted Net Income attributable to common stockholders was $73 million after preferred-stock dividends and undistributed income allocated to participating securities. Adjusted Diluted Earnings per Common Share was $0.08, compared with $0.11.
Cash flow remained an important focus. For the six months ended June 30, 2026, net cash used in operating activities was $(146) million and capital expenditures were $(54) million. The company used $(1,965) million for acquisitions, net of cash acquired and common stock issued, while financing activities provided $5,569 million, including $3,000 million of borrowings under senior notes and $1,993 million of Series C Preferred Stock proceeds. At June 30, cash and cash equivalents were $2,774 million and long-term debt, net was $6,029 million; prepaid expenses and other current assets included $3.0 billion of restricted cash held in escrow pending the TopBuild acquisition.
Management provided no quantitative forward guidance in the release. Its strategic update centered on technology upgrades, Kodiak integration and the TopBuild acquisition completed on July 1. Management said the company is focused on more than doubling EBITDA by 2030 and reaching $50 billion in revenue within the decade. With no prior-quarter figures or prior outlook supplied, the filing does not provide a documented sequential comparison or a basis to assess reported results against prior guidance.
Management, verbatim
Our second-quarter results reflect current market conditions and the progress we are making across the company.
Brad Jacobs, chairman and chief executive officer of QXO
We have begun upgrading technology across the company to deliver best-in-class customer service and meaningful financial growth.
Brad Jacobs, chairman and chief executive officer of QXO
We are focused on our plan to more than double EBITDA by 2030 and reach $50 billion in revenue within the decade.
Brad Jacobs, chairman and chief executive officer of QXO
Not in the filing
stated, not guessed- Quantitative forward revenue guidance was not provided.
- Quantitative forward gross-margin guidance was not provided.
- Quantitative forward operating-expense guidance was not provided.
- Quantitative forward tax-rate guidance was not provided.
- Prior-quarter revenue, profitability, margin and segment figures were not provided.
- Explicit year-over-year percentage changes for total revenue, profitability metrics and sales by line of business were not provided.
- Free cash flow was not reported.
- Share repurchases were not reported.
- A previous-quarter outlook was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.