Highlights

  • Second quarter 2026 net sales rose to $3.25 billion from $1.91 billion, and gross margin was 24.7% versus 21.1%.
  • Net loss was $55 million, or $0.14 per share, compared with $59 million, or $0.15, a year earlier.
  • QXO closed the roughly $15 billion TopBuild acquisition on July 1, issuing 312.0 million shares and paying $6.4 billion cash.
  • Liquidity totaled $4.70 billion at June 30, 2026, and net long-term debt was $6.03 billion before the TopBuild term loan.

QXO (NYSE:QXO) shares were trading near their 52-week low at USD 10.42 on October 21, 2026, down 0.38%. The building products distributor closed its $2.22 billion Kodiak acquisition on April 1, completed its $15 billion TopBuild acquisition on July 1 and reported second quarter 2026 results in a Form 10-Q filed August 14.

Based in Greenwich, Connecticut, QXO is a Delaware corporation and describes itself as the largest publicly traded distributor of roofing, waterproofing and complementary building products in North America, serving all 50 states and seven Canadian provinces. It bought Beacon Roofing Supply in April 2025 for a net purchase price of $10.64 billion; before then it was mainly a technology solutions and professional services company. It reports one segment, with sales across residential roofing, non-residential roofing, complementary products and software. The company says it plans to become the tech-enabled leader in an $800 billion industry and targets $50 billion in annual revenue within the next decade.

Net Sales Climb on Acquisitions While the Loss Persists

Net sales for the quarter ended June 30, 2026 reached $3.25 billion, up from $1.91 billion. The company attributed the increase mainly to the Kodiak and Beacon acquisitions, with the prior-year quarter including Beacon only from April 29. Kodiak added $595 million. Residential roofing contributed $1.27 billion, non-residential roofing $736 million and complementary building products $1.23 billion.

Gross profit doubled to $803 million, and gross margin rose 3.6 points to 24.7%. The company noted that the prior-year margin carried $80 million of inventory fair value adjustments, and that a weighted-average product cost increase exceeded the rise in selling prices. SG&A expense was $649 million, including $12 million of incremental transformation costs.

The operating loss narrowed to $42 million from $163 million. After $38 million of net interest expense and a $22 million tax benefit, the net loss was $55 million, or $0.14 per share, against $59 million, or $0.15. For the first six months, net sales were $4.98 billion and the net loss was $282 million, or $0.48 per share, versus $50 million, or $0.19. Operating activities used $146 million of cash over that period.

Financing the Deals: Equity, Preferred Stock and Debt

The acquisitions have come with sizable capital raising. Kodiak was funded with $2.0 billion from the sale of 200,000 shares of Series C Preferred Stock plus 13.3 million common shares issued to Kodiak holders. In January 2026, QXO also sold 31.6 million shares at $23.80 each for $748 million of net proceeds.

TopBuild, a distributor and installer of insulation and related products, was funded by issuing about 312.0 million shares, paying roughly $6.4 billion in cash and using $1.0 billion from 100,000 more Series C shares, a $3.0 billion incremental term loan and $3.0 billion of 6.500% and 6.875% senior notes released from escrow. The Series C stock is convertible at an initial $23.25 per share, which the company said could dilute common shareholders. Shares outstanding rose from 725.4 million at June 30 to 1,037,490,709 as of August 7, 2026.

At June 30, liquidity totaled $4.70 billion, made up of $2.77 billion of unrestricted cash and $1.93 billion of availability under its asset-based lending facility. Long-term debt, net, was $6.03 billion, up from $3.06 billion at year-end 2025, before the July term loan. In the quarter, it paid $23 million of dividends on its convertible preferred stock and $8 million on its mandatory convertible preferred stock.

Integration and Stated Targets

The filing contains no financial guidance. Management said existing liquidity should support operations over the next 12 months and that it may raise more equity or debt at any time for working capital, acquisitions or other investments. Accounting for the TopBuild deal is incomplete given the short time between closing and the filing, and the company expects to provide a preliminary purchase price allocation later.

Operationally, QXO continues transformation efforts aimed at simplifying and streamlining the business after the Beacon deal.