QXO Adds TopBuild and Lifts Third-Quarter Sales

The Tip Desk · November 9, 2026 · 2 min read

Preliminary net sales were about $4.90 billion, up 79% from a year earlier, as Adjusted EBITDA reached about $557 million.

QXO, Inc. (QXO), a distributor and installer of building products, said preliminary net sales for the third quarter of 2026 were approximately $4.90 billion, up 79% from $2.73 billion in the third quarter of 2025.

The sequential step-up was larger than the prior quarter’s. Net sales were $3.25 billion in the three months ended June 30, 2026, after a $1.52 billion sequential increase from $1.73 billion in the first quarter. The second-quarter print already included Kodiak Building Partners from April 1, 2026. The third-quarter print added TopBuild Corp. from July 1, 2026. Neither Kodiak nor TopBuild is included in third-quarter 2025 results.

GAAP net loss was approximately $123 million, compared with a $139 million loss a year earlier. Net margin improved to (2.5)% from (5.1)%. Adjusted EBITDA, a non-GAAP measure, was approximately $557 million, up 85% from $301 million a year earlier. Adjusted EBITDA margin rose to 11.4% from 11.1%.

Adjusted EBITDA also rose sequentially to about $557 million from $272 million in the second quarter, after a $271 million sequential increase from $1.2 million in the first quarter. GAAP net loss widened sequentially to about $123 million from $55 million in the second quarter, after a $172 million sequential improvement from a $227.1 million loss in the first quarter.

The TopBuild Corp. acquisition closed July 1, 2026 and is included in third-quarter 2026 results. The company said it is the second-largest publicly traded building products distributor in North America after that close.

The reconciliation of net loss to Adjusted EBITDA for the three months ended September 30, 2026, showed depreciation of $83 million versus $40 million a year earlier, amortization of $288 million versus $118 million, stock-based compensation of $79 million versus $31 million, and interest expense, net of $163 million versus $37 million. Inventory fair value adjustments related to recording acquired inventory at fair value were $17 million versus $51 million a year earlier. Transaction costs were $40 million versus $4 million. Restructuring costs were $9 million versus $8 million, and transformation costs were $28 million versus $23 million.

QXO said it is a leading distributor and installer of building products serving an $800 billion market, North America’s 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 is targeting $50 billion in annual revenue within the decade through accretive acquisitions and organic growth.

The preliminary unaudited results for the quarter ended September 30, 2026, are subject to completion and may change as a result of management’s continued review. The company expects to report full third-quarter 2026 results on November 12, 2026.