QXO Reports First Quarter 2026 Results
QXO
Published on 05/12/2026 at 04:16 pm EDT
QXO, Inc. (“QXO” or the “Company”) (NYSE: QXO) today issued its financial results for the first quarter 2026. The Company reported a basic and diluted loss per common share of $(0.35) and an Adjusted Diluted Loss per Common Share, a non-GAAP financial measure, of $(0.12) for the three months ended March 31, 2026.
FIRST QUARTER 2026 SUMMARY RESULTS
Three Months Ended March 31,
(in millions, except for per share data)
2026
2025
Net sales
$
1,730.2
$
13.5
Net (loss) income
$
(227.1
)
$
8.8
Net margin
(13.1
)%
65.2
%
Adjusted EBITDA(1)
$
1.2
$
(9.0
)
Adjusted EBITDA Margin(1)
0.1
%
(66.7
)%
Adjusted Net Loss(1)
$
(57.2
)
N/M
Basic and diluted loss per common share
$
(0.35
)
N/M
Adjusted Diluted Loss per Common Share(1)
$
(0.12
)
N/M
N/M - Not meaningful
(1) See the “Non-GAAP Financial Measures” section of the press release.
Brad Jacobs, chairman and chief executive officer of QXO, said, “Our first quarter results reflect the softness we’re seeing in the building products industry, and our investments in the business, including people and technology. Operationally, we continue to execute our integration plan across the legacy Beacon business, supported by disciplined investments in technology, sales capacity, and other long-term initiatives. On M&A, we recently closed the $2.25 billion acquisition of Kodiak Building Partners, and announced the landmark $17 billion acquisition of TopBuild. Once we close the TopBuild deal, which is expected in the third quarter, QXO will be the second largest publicly traded building products distributor in North America. We remain firmly on track to achieve $50 billion in annual revenue within a decade.”
First Quarter Highlights
Operational Results
Net sales were $1.73 billion for the three months ended March 31, 2026.
Adjusted Net Loss, a non-GAAP financial measure, was $57.2 million for the three months ended March 31, 2026. Adjusted Diluted Loss per Common Share, a non-GAAP financial measure, was $(0.12) for the three months ended March 31, 2026.
Adjusted EBITDA, a non-GAAP financial measure, was $1.2 million for the three months ended March 31, 2026.
Acquisitions and Financings
In January 2026, we completed a registered common stock offering of 31.6 million shares and raised net proceeds of approximately $749 million. In addition, we received commitments from investors to invest up to $3.0 billion for the issuance of up to 300,000 shares of Series C Convertible Perpetual Preferred Stock with a stated value of $10,000 per share (the “Series C Preferred Stock”). The commitments are contingent upon the closing of one or more qualifying acquisitions (as defined in the related investment agreement).
On April 1, 2026, we completed our acquisition of Kodiak Building Partners (“Kodiak”) for a total purchase price of $2.25 billion. The purchase price comprised $2.0 billion of cash and 13.2 million shares of the Company’s common stock, with the Company retaining the right to repurchase these shares at $40 per share at any time. On April 1, 2026, in connection with the closing of the Kodiak acquisition, we issued 200,000 shares of Series C Preferred Stock for $2.0 billion in cash, which was used to fund the Kodiak acquisition.
On April 18, 2026, we entered into a definitive agreement to acquire TopBuild Corp. (“TopBuild”) for approximately $17.0 billion in a combination of cash and stock consideration. The transaction is subject to the satisfaction or waiver of customary closing conditions, including, among others, approval by the stockholders of TopBuild and QXO. The transaction is expected to close in the third quarter of 2026.
About QXO
QXO, Inc. (NYSE: QXO) is the largest publicly traded distributor of roofing, waterproofing, and related products and the second largest publicly traded distributor of lumber and building materials in North America. QXO is the fastest growing company in the $800 billion building products distribution industry and plans to become the tech-enabled leader by delivering best-in-class customer satisfaction and outsized returns for its shareholders. The company is targeting $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth. Visit QXO.com for more information.
Non-GAAP Financial Measures
As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this press release.
QXO’s non-GAAP financial measures in this press release include: Adjusted Net Loss, Adjusted Diluted Loss per Common Share, Adjusted EBITDA, and Adjusted EBITDA Margin.
We calculate Adjusted Net Loss as net (loss) income excluding amortization; stock-based compensation; restructuring costs; transaction costs; transformation costs; and the income tax associated with such adjusting items. We calculate Adjusted Diluted Loss per Common Share as Adjusted Net Loss divided by the weighted-averaged number of common shares outstanding during the period plus the effect of dilutive common share equivalents based on the most dilutive result of the if-converted and two-class methods. We calculate Adjusted EBITDA as net (loss) income excluding depreciation; amortization; stock-based compensation; interest (income) expense, net; provision for (benefit from) income taxes; restructuring costs; transaction costs; and transformation costs that we do not consider representative of our underlying operations. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales.
Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating QXO’s ongoing performance. We believe these non-GAAP financial measures facilitate analysis of our ongoing business operations because they exclude items that may not be reflective of, or are unrelated to, QXO’s core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying business. Other companies may calculate these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures of other companies.
Forward-looking statements
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in our filings with the SEC, and the following:
All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements except to the extent required by law.
QXO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in millions, except per share data)
(Unaudited)
Three Months Ended March 31,
2026
2025
Net sales
$
1,730.2
$
13.5
Cost of products sold
1,320.9
8.1
Gross profit
409.3
5.4
Operating expense:
Selling, general and administrative
497.0
44.4
Depreciation
47.3
0.1
Amortization
116.9
0.2
Total operating expense
661.2
44.7
Loss from operations
(251.9
)
(39.3
)
Interest (expense) income, net
(31.1
)
56.6
Other income, net
2.7
—
(Loss) income before (benefit from) provision for income taxes
(280.3
)
17.3
(Benefit from) provision for income taxes
(53.2
)
8.5
Net (loss) income
$
(227.1
)
$
8.8
Loss per common share - basic and diluted
$
(0.35
)
$
(0.03
)
Total weighted-average common shares outstanding:
Basic
744.4
451.4
Diluted
744.4
451.4
QXO, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in millions, except per share amounts)
(Unaudited)
March 31, 2026
December 31, 2025
Assets
Current assets:
Cash and cash equivalents
$
3,046.3
$
2,361.6
Accounts receivable, net
1,135.7
1,145.1
Inventories, net
1,668.2
1,497.3
Vendor rebates receivable
478.8
427.0
Income tax receivable
32.8
31.6
Prepaid expenses and other current assets
94.8
83.7
Total current assets
6,456.6
5,546.3
Property and equipment, net
659.7
688.6
Goodwill
5,129.4
5,111.3
Intangibles, net
3,704.5
3,819.1
Operating lease right-of-use assets, net
669.7
689.6
Other assets, net
40.3
32.4
Total assets
$
16,660.2
$
15,887.3
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
1,170.8
$
819.0
Accrued expenses
606.5
574.3
Current portion of operating lease liabilities
110.1
107.5
Current portion of finance lease liabilities
49.8
49.2
Total current liabilities
1,937.2
1,550.0
Long-term debt, net
3,058.6
3,057.3
Deferred income tax liabilities, net
789.4
847.2
Operating lease liabilities
554.4
561.8
Finance lease liabilities
129.6
138.7
Other long-term liabilities
26.1
25.5
Total liabilities
6,495.3
6,180.5
Stockholders’ equity:
Mandatory Convertible Preferred Stock, $0.001 par value; 0.6 shares authorized, issued and outstanding as of March 31, 2026 and December 31, 2025
558.1
558.1
Convertible Preferred Stock, $0.001 par value; authorized 10.0 shares, 1.0 shares issued and outstanding as of March 31, 2026 and December 31, 2025
498.6
498.6
Common stock; $0.00001 par value; authorized 2,000.0 shares; 710.8 and 674.5 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
—
—
Additional paid-in capital
9,760.2
9,046.9
Retained earnings (accumulated deficit)
(652.0
)
(394.5
)
Accumulated other comprehensive loss
—
(2.3
)
Total stockholders’ equity
10,164.9
9,706.8
Total liabilities and stockholders’ equity
$
16,660.2
$
15,887.3
QXO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in millions)
(Unaudited)
Three Months Ended March 31,
2026
2025
Operating Activities
Net (loss) income
$
(227.1
)
$
8.8
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation
47.3
0.1
Amortization
116.9
0.2
Stock-based compensation
39.2
20.2
Amortization of debt issuance costs
2.3
—
Provision for credit losses
11.5
—
Non-cash lease expense
32.3
—
Deferred income taxes
(53.3
)
—
Changes in operating assets and liabilities:
Accounts receivable
0.3
(0.5
)
Inventories
(183.9
)
—
Vendor rebates receivable
(56.0
)
—
Income tax receivable
(1.3
)
—
Prepaid expenses and other current assets
(11.2
)
(0.8
)
Accounts payable and accrued expenses
379.2
8.5
Other assets and liabilities
(25.6
)
—
Net cash provided by operating activities
70.6
36.5
Investing Activities
Capital expenditures
(22.5
)
(0.1
)
Other
3.0
(0.7
)
Net cash used in investing activities
(19.5
)
(0.8
)
Financing Activities
Payments under equipment financing facilities and finance leases
(12.2
)
—
Proceeds from issuance of common stock related to equity awards
0.9
—
Proceeds from issuance of common stock, net of issuance costs
749.5
—
Payment of taxes related to net share settlement of equity awards
(28.1
)
—
Payment of costs to obtain Series C Preferred Stock commitment
(45.8
)
—
Payment of dividends on Convertible Preferred Stock
(22.5
)
(22.5
)
Payment of dividends on Mandatory Convertible Preferred Stock
(7.9
)
—
Net cash provided by (used in) financing activities
633.9
(22.5
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(0.3
)
—
Net increase in cash, cash equivalents and restricted cash
684.7
13.2
Cash, cash equivalents and restricted cash, beginning of period
2,365.4
5,072.0
Cash, cash equivalents and restricted cash, end of period
$
3,050.1
$
5,085.2
Supplemental Cash Flow Information
Cash paid during the period for:
Interest
$
15.4
$
—
Income taxes, net of refunds
$
1.4
$
—
QXO, INC. AND SUBSIDIARIES
Consolidated Sales by Line of Business
(in millions, except percentages)
(Unaudited)
Sales by Line of Business(1)
Three Months Ended March 31,
2026
2025
Net Sales
Mix %
Net Sales
Mix %
Residential roofing products
$
799.1
46.2
%
$
—
—
%
Non-residential roofing products
463.6
26.8
%
—
—
%
Complementary building products
452.9
26.2
%
—
—
%
Software products and services
14.6
0.8
%
13.5
100.0
%
Total net sales
$
1,730.2
100.0
%
$
13.5
100.0
%
(1)
Net sales mix percentages may not recalculate due to rounding.
QXO, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures (in millions, except per share data) (Unaudited)
Adjusted Net Loss and Adjusted Diluted Loss per Common Share
A reconciliation of net loss and diluted loss per common share to Adjusted Net Loss and Adjusted Diluted Loss per Common Share is as follows:
Three Months Ended March 31, 2026
Net loss
$
(227.1
)
Benefit from income taxes
(53.2
)
Loss before benefit from income taxes
(280.3
)
Amortization
116.9
Stock-based compensation
39.2
Restructuring costs
16.3
Transaction costs
19.3
Transformation costs
11.4
Adjusted loss before benefit from income taxes
(77.2
)
Income tax associated with the adjustments above(1)
20.0
Adjusted Net Loss(2)
$
(57.2
)
Convertible Preferred Stock dividend
(22.5
)
Mandatory Convertible Preferred Stock dividend
(7.9
)
Undistributed income allocated to participating securities
—
Adjusted Net Loss attributable to common stockholders
$
(87.6
)
Basic and diluted loss per common share
$
(0.35
)
Adjusted Diluted Loss per Common Share(2)(3)
$
(0.12
)
Adjusted diluted weighted-average common shares outstanding(3)
744.4
(1)
The effective tax rate to calculate Adjusted Net Loss for the three months ended March 31, 2026 is 26.0% due to the tax calculated on adjusted loss before benefit from income taxes.
(2)
See the “Non-GAAP Financial Measures” section of the press release.
(3)
Adjusted Diluted Loss per Common Share is calculated as Adjusted Net Loss divided by the weighted-average number of common shares outstanding during the period plus the effect of dilutive common share equivalents based on the most dilutive result of the if-converted and two-class methods.
QXO, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures (cont.) (in millions, except percentages) (Unaudited)
Adjusted EBITDA and Adjusted EBITDA Margin
A reconciliation of net (loss) income and net margin to Adjusted EBITDA and Adjusted EBITDA Margin is as follows:
Three Months Ended March 31,
2026
2025
Net (loss) income
$
(227.1
)
$
8.8
Depreciation
47.3
0.1
Amortization
116.9
0.2
Stock-based compensation
39.2
20.2
Interest expense (income), net
31.1
(56.6
)
(Benefit from) provision for income taxes
(53.2
)
8.5
Restructuring costs
16.3
—
Transaction costs
19.3
9.8
Transformation costs
11.4
—
Adjusted EBITDA(1)
$
1.2
$
(9.0
)
Net sales
$
1,730.2
$
13.5
Net margin(2)
(13.1
)%
65.2
%
Adjusted EBITDA Margin(1)(2)
0.1
%
(66.7
)%
(1)
See the “Non-GAAP Financial Measures” section of the press release.
(2)
Net margin is calculated as net (loss) income divided by net sales. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by net sales.
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