QXO earnings analysis
What we found in QXO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
QXO delivered strong acquisition-driven growth in Q2, with $3.246 billion of revenue, a 24.7% gross margin and $272 million of adjusted EBITDA. However, adjusted EPS fell to $0.08 from $0.11, reported GAAP diluted EPS remained negative at $(0.14), and adjusted EBITDA margin compressed to 8.4% from 10.7%. The filing provides no formal quarterly or annual guidance; the principal forward considerations are execution of the large acquisition integration, supplier concentration and labor, tariff and cybersecurity risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue exceeded consensus
- Q2 revenue was $3.246 billion, approximately 70% above the prior-year period and above the $3.173 billion consensus estimate by about 2.3%.
- Gross margin expanded
- Gross margin expanded to 24.7%, up 360 basis points year over year, indicating improved gross-profit conversion despite the substantial acquisition-related revenue increase.
- Adjusted EBITDA increased
- Adjusted EBITDA increased to $272 million, although adjusted EBITDA margin declined to 8.4% from 10.7% in the prior-year period.
- Adjusted EPS declined
- Adjusted diluted EPS was $0.08 versus $0.11 in the prior-year period, while reported GAAP diluted EPS was $(0.14), reflecting continued acquisition and transformation costs.
- Kodiak integration underway
- The Kodiak acquisition was completed on April 1, 2026; management is integrating policies, processes, people, technology and operations for the combined company.
- Disclosure controls effective
- Management concluded that disclosure controls and procedures were effective as of June 30, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Supplier concentration
- Three suppliers each represented at least 10% of total purchases and together accounted for nearly 35% of purchases during 2025, creating meaningful concentration risk if supply is disrupted or vendor terms change.
- Large-scale acquisition integration
- The company is integrating the April 1, 2026 Kodiak acquisition while also managing the broader Beacon, Kodiak and TopBuild combination; the filing states that integration may require significant management attention and resources and that anticipated synergies may not be realized.
- Labor availability and cost
- QXO states that its labor unions represented approximately 4.1% of the workforce as of December 31, 2025, while also warning that labor shortages, turnover and higher compensation costs could impair operations and margins.
- AI and cybersecurity exposure
- The filing adds or expands risks related to artificial intelligence-enabled cyberattacks, including increasingly sophisticated attacks and possible inadvertent disclosure of proprietary information or inaccurate AI output.
- Tariff and trade exposure
- QXO warns that tariffs and potential retaliatory measures could raise building-material costs and reduce supply, potentially causing distribution delays, higher costs and lower competitiveness.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.14
- Gross margin
- 24.7%
What they said about what is next.
No quarterly or annual numeric guidance was provided. Management retained long-term targets to more than double EBITDA by 2030 and reach $50 billion of annual revenue within the decade.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 12, 2026
- QXO's Q1 2026 results show a substantial revenue increase to $1.73 billion from $13.5 million in Q1 2025, primarily due to the Beacon Acquisition. However, the company reported a diluted EPS loss of $(0.35), which was…
- 10-K · February 27, 2026
- QXO completed the transformational acquisition of Beacon on April 29, 2025 and repositioned the company as the largest publicly-traded distributor of roofing, waterproofing and complementary building products in North…
- 10-Q · November 13, 2024
- QXO reported Q3 revenue of $13,155,000 (down from $13,423,000 a year earlier) and GAAP net income of $17,132,000 (versus a net loss of $(2,110,000) in Q3 2023). Operating performance weakened materially: loss from…
- 10-Q · August 8, 2023
- SilverSun reported quarterly revenue of $13,257,271 (Q2 2023) and GAAP net income of $343,361 (diluted EPS $0.07), reversing a prior-year quarter loss. Revenue and gross profit grew ~24.6% and ~25.6% YoY, service…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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