QXO — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales reached approximately $4.90 billion, a 79% increase from $2.73 billion in the third quarter of 2025.
• GAAP net loss was approximately $123 million, improving from a $139 million loss in the third quarter of 2025.
• Adjusted EBITDA was approximately $557 million, representing an 85% increase from $301 million in the third quarter of 2025.
• Net margin improved to (2.5)% from (5.1)% in the prior year period.
• Adjusted EBITDA margin increased to 11.4% from 11.1% in the third quarter of 2025.
• Depreciation expense was $83 million compared to $40 million in the prior year period.
• Amortization expense was $288 million compared to $118 million in the prior year period.
• Stock-based compensation was $79 million compared to $31 million in the prior year period.
• Interest expense, net, was $163 million compared to $37 million in the prior year period.
• Restructuring costs were $9 million compared to $8 million in the prior year period.
• Transaction costs were $40 million compared to $4 million in the prior year period.
• Transformation costs were $28 million compared to $23 million in the prior year period.
• Inventory fair value adjustments were $17 million compared to $51 million in the prior year period.

Business Segments and Product Lines:

• Third quarter 2026 results include the financial performance of Kodiak Building Partners, Inc. from April 1, 2026, and TopBuild Corp. from July 1, 2026.
• QXO is the largest distributor and installer of insulation, the second-largest distributor of roofing products, the second-largest publicly traded distributor of lumber and building materials, and the largest distributor of waterproofing products.
• The company serves an $800 billion market with a mission to modernize the building products industry through advanced technology and customer experience.

Other Key Points:

• The preliminary financial results are unaudited and subject to completion, with final results expected on November 12, 2026.
• The company targets $50 billion in annual revenue within the decade through accretive acquisitions and organic growth.
• Adjusted EBITDA excludes depreciation, amortization, stock-based compensation, interest, tax provisions, restructuring costs, transaction costs, transformation costs, and inventory fair value adjustments.
• Transformation costs include rebranding, employee retention, IT infrastructure, and investments in new technologies such as artificial intelligence.
• Transaction costs are impacted by the timing and size of acquisitions.
• Inventory fair value adjustments relate to recording acquired business inventory at fair value on the date of acquisition.