QXO, Inc. recently released its 10-Q report. The company distributes roofing, waterproofing and related building products across the United States and Canada, serving contractors, home builders, building owners, lumberyards and retailers. Its product mix includes residential and commercial roofing, siding, waterproofing, concrete restoration, fire protection, wall systems, glass, glazing, fenestration, tools and equipment, sold under brands including Atlas, Carlisle, CertainTeed, Elevate, GAF, IKO, James Hardie, LP SmartSide, Owens Corning, Royal, Tamko, TRI-BUILT and Velux.
In Item 2, Management’s Discussion and Analysis, QXO said its unaudited condensed consolidated financial statements are prepared under GAAP and rely on estimates, judgments and assumptions that can affect reported assets, liabilities, revenues and expenses. The company said the discussion should be read with the financial statements and notes elsewhere in the report. QXO also said it is the largest publicly traded distributor of roofing, waterproofing and complementary building products in North America, with customers in all 50 states and seven Canadian provinces, and that it is targeting $50 billion in annual revenue within a decade through acquisitions and organic growth.
The filing also lays out the company’s acquisition-driven expansion. QXO completed its Beacon Roofing Supply acquisition on April 29, 2025 for a net purchase price of $10.64 billion. It then closed on Kodiak Building Partners on April 1, 2026 for a net purchase price of $2.22 billion, funded in part with $2.0 billion from 200,000 shares of Series C preferred stock and 13.3 million shares of common stock issued to Kodiak equityholders. On July 1, 2026, QXO completed its TopBuild acquisition for about $15 billion, using roughly 312.0 million common shares, another 100,000 shares of Series C preferred stock for $1.0 billion, a $3.0 billion incremental term loan and $3.0 billion released from escrow from senior notes due 2031 and 2034.
For the three months ended June 30, 2026, net sales rose to $3.246 billion from $1.906 billion a year earlier. Residential roofing products contributed $1.266 billion, non-residential roofing products $736 million, complementary building products $1.229 billion and software products and services $15 million. Gross profit increased to $803 million from $401 million, lifting gross margin to 24.7% from 21.1%. SG&A expense rose to $649 million from $457 million, while depreciation climbed to $56 million from $27 million and amortization to $140 million from $80 million.
For the six months ended June 30, 2026, net sales were $4.976 billion versus $1.920 billion a year earlier. Residential roofing products generated $2.064 billion, non-residential roofing products $1.200 billion, complementary building products $1.682 billion and software products and services $30 million. Gross profit was $1.212 billion, compared with $407 million in the prior-year period, and gross margin improved to 24.4% from 21.2%. SG&A expense increased to $1.146 billion from $501 million, depreciation to $103 million from $27 million and amortization to $257 million from $80 million.
QXO reported a loss from operations of $42 million for the quarter and $294 million for the six-month period. Net loss was $55 million for the quarter and $282 million for the six months. Interest expense, net was $38 million in the quarter and $69 million for the six months, compared with $30 million of expense and $26 million of income, respectively, in the prior-year periods. The company said higher debt balances tied to the Beacon and TopBuild acquisitions drove the increase in interest expense. Today the company's shares have moved -0.34% to a price of $14.84. Check out the company's full 10-Q submission here.
