QXO — Second Quarter 2026 Earnings Summary

Financial Performance

• Net sales for the three months ended June 30, 2026, were $3,246 million, compared to $1,906 million in the same period in 2025.
• Net sales for the six months ended June 30, 2026, were $4,976 million, compared to $1,920 million in the same period in 2025.
• Net loss for the three months ended June 30, 2026, was $55 million, compared to a net loss of $59 million in the prior year period.
• Net loss for the six months ended June 30, 2026, was $282 million, compared to a net loss of $50 million in the prior year period.
• Adjusted EBITDA for the three months ended June 30, 2026, was $272 million, compared to $204 million in the prior year period.
• Adjusted EBITDA for the six months ended June 30, 2026, was $273 million, compared to $196 million in the prior year period.
• Adjusted EBITDA margin for the three months ended June 30, 2026, was 8.4%, compared to 10.7% in the prior year period.
• Adjusted EBITDA margin for the six months ended June 30, 2026, was 5.5%, compared to 10.2% in the prior year period.
• Adjusted Net Income for the three months ended June 30, 2026, was $130 million, compared to $109 million in the prior year period.
• Adjusted Net Income for the six months ended June 30, 2026, was $73 million, compared to $145 million in the prior year period.
• Basic and diluted loss per common share for the three months ended June 30, 2026, was $(0.14), compared to $(0.15) in the prior year period.
• Basic and diluted loss per common share for the six months ended June 30, 2026, was $(0.48), compared to $(0.19) in the prior year period.
• Adjusted Diluted Earnings per Common Share for the three months ended June 30, 2026, was $0.08, compared to $0.11 in the prior year period.
• Adjusted Diluted Earnings per Common Share for the six months ended June 30, 2026, was $(0.02), compared to $0.17 in the prior year period.
• Gross profit for the three months ended June 30, 2026, was $803 million, compared to $401 million in the prior year period.
• Gross profit for the six months ended June 30, 2026, was $1,212 million, compared to $407 million in the prior year period.
• Adjusted Gross Margin for the three months ended June 30, 2026, was 24.7%, compared to 25.3% in the prior year period.
• Adjusted Gross Margin for the six months ended June 30, 2026, was 24.4%, compared to 25.4% in the prior year period.
• Cash and cash equivalents as of June 30, 2026, were $2,774 million, compared to $2,362 million as of December 31, 2025.
• Total assets as of June 30, 2026, were $22,665 million, compared to $15,887 million as of December 31, 2025.
• Long-term debt, net, as of June 30, 2026, was $6,029 million, compared to $3,057 million as of December 31, 2025.
• Borrowings under revolving lines of credit as of June 30, 2026, were $11 million, compared to $0 as of December 31, 2025.
• Net cash used in operating activities for the six months ended June 30, 2026, was $146 million, compared to $138 million in the prior year period.
• Net cash used in investing activities for the six months ended June 30, 2026, was $2,015 million, compared to $10,576 million in the prior year period.
• Net cash provided by financing activities for the six months ended June 30, 2026, was $5,569 million, compared to $7,924 million in the prior year period.

Guidance and Future Outlook

• QXO is focused on a plan to more than double EBITDA by 2030.
• The Company targets reaching $50 billion in revenue within the decade.
• The Company aims to achieve $50 billion in annual revenue through accretive acquisitions and organic growth.

Business Segments and Product Lines

• Net sales for the three months ended June 30, 2026, included $595 million attributable to Kodiak.
• Residential roofing products net sales for the three months ended June 30, 2026, were $1,266 million (39.0% mix), compared to $930 million (48.7% mix) in the prior year period.
• Non-residential roofing products net sales for the three months ended June 30, 2026, were $736 million (22.7% mix), compared to $536 million (28.1% mix) in the prior year period.
• Complementary building products net sales for the three months ended June 30, 2026, were $1,229 million (37.9% mix), compared to $426 million (22.4% mix) in the prior year period.
• Software products and services net sales for the three months ended June 30, 2026, were $15 million (0.4% mix), compared to $14 million (0.8% mix) in the prior year period.
• Residential roofing products net sales for the six months ended June 30, 2026, were $2,064 million (41.5% mix), compared to $930 million (48.5% mix) in the prior year period.
• Non-residential roofing products net sales for the six months ended June 30, 2026, were $1,200 million (24.1% mix), compared to $536 million (27.9% mix) in the prior year period.
• Complementary building products net sales for the six months ended June 30, 2026, were $1,682 million (33.8% mix), compared to $426 million (22.2% mix) in the prior year period.
• Software products and services net sales for the six months ended June 30, 2026, were $30 million (0.6% mix), compared to $28 million (1.4% mix) in the prior year period.
• QXO is North America's largest distributor and installer of insulation.
• QXO is the second-largest distributor of roofing products.
• QXO is the second-largest publicly traded distributor of lumber and building materials.
• QXO is the largest distributor of waterproofing products.

Market and Competitive Landscape

• QXO serves an $800 billion market.
• Following the completion of the TopBuild acquisition on July 1, 2026, QXO is the second-largest publicly traded building products distributor in North America.
• The Company has greater scale and a broader presence at customers' job sites following the TopBuild acquisition.

Risks and Challenges

• Risks include an inability to obtain products, changes in supplier pricing, demand, or vendor rebates.
• Risks related to identifying acquisition targets, completing acquisitions on acceptable terms, and successfully integrating acquired businesses.
• Risks include the possibility that cost and revenue initiatives may not be effective.
• Risks related to maintaining safety records and liability exposure from construction defect and warranty claims.
• Risks related to product quality, performance issues, and industry demand softening due to cyclicality, economic conditions, inflation, interest rates, or labor shortages.
• Risks related to trade barriers, seasonality, weather, and natural disasters.
• Risks related to IT systems, cybersecurity, and digital transformation.
• Risks related to talent retention, labor disputes, and dependence on CEO Brad Jacobs.
• Risks that anticipated benefits of the Beacon, Kodiak, and TopBuild acquisitions may not be fully realized or may take longer than expected.
• Risks related to obligations under indebtedness incurred for acquisitions and the impact of preferred stock and warrants.
• Risks related to litigation, regulatory proceedings, and changes in building codes or consumer preferences.

Management Commentary and Tone

• Brad Jacobs, chairman and chief executive officer, stated that second-quarter results reflect current market conditions and progress across the company.
• Management noted they have begun upgrading technology to deliver best-in-class customer service and meaningful financial growth.
• The tone emphasizes a focus on modernizing the building products industry through advanced technology and a best-in-class customer experience.

Other Key Points

• The TopBuild acquisition was completed on July 1, 2026.
• The legacy Kodiak Building Partners, Inc. ("Kodiak") operational results are included from the date of acquisition on April 1, 2026.
• The legacy Beacon Roofing Supply, Inc. ("Beacon") operational results are included from the date of acquisition on April 29, 2025.
• Proceeds from the issuance of Series C Preferred Stock, net of issuance costs, were $1,993 million for the six months ended June 30, 2026.
• Proceeds from the issuance of common stock, net of issuance costs, were $748 million for the six months ended June 30, 2026.
• Borrowings under senior notes were $3,000 million for the six months ended June 30, 2026.
• Acquisition of business, net of cash acquired and common stock issued, was $1,965 million for the six months ended June 30, 2026.
• Common stock issued as consideration for acquisition was $257 million for the six months ended June 30, 2026.
• Prepaid expenses and other current assets included restricted cash of $3.0 billion as of June 30, 2026, representing gross proceeds from the issuance of 6.500% Senior Notes due 2031 and 6.875% Senior Notes due 2034 placed into a segregated escrow account pending the TopBuild acquisition.
• Inventory fair value adjustments were fully recognized during the year ended December 31, 2025.
• Transaction costs for the three months ended June 30, 2026, were $52 million; for the six months, they were $71 million.
• Transformation costs for the three months ended June 30, 2026, were $24 million; for the six months, they were $36 million.
• Restructuring costs for the three months ended June 30, 2026, were $8 million; for the six months, they were $24 million.
• Stock-based compensation for the three months ended June 30, 2026, was $29 million; for the six months, it was $68 million.
• Amortization for the three months ended June 30, 2026, was $140 million; for the six months, it was $257 million.
• Depreciation for the three months ended June 30, 2026, was $58 million; for the six months, it was $105 million.
• Payments of dividends on Convertible Preferred Stock were $45 million for the six months ended June 30, 2026.
• Payments of dividends on Mandatory Convertible Preferred Stock were $16 million for the six months ended June 30, 2026.
• Payments of dividends on Series C Preferred Stock were $23 million for the six months ended June 30, 2026