QXO Secures Major Preferred Investment for Acquisition Strategy

The latest announcement is out from QXO Inc ( (QXO) ).

On January 5, 2026, QXO Inc. announced that funds managed by Apollo Global Management and other investors agreed to invest up to $1.2 billion in a new Series C convertible perpetual preferred stock, structured as a private placement, to finance one or more large acquisitions. Under the investment agreement, investors have committed through July 15, 2026, with a possible 12‑month extension if a definitive deal is signed, to purchase up to $1.145 billion (with capacity to increase) of preferred shares paying a 4.75% annual dividend and initially convertible into common stock at $23.25 per share, ranking senior to common equity and pari passu with QXO’s existing Series B preferred. The capital, which closes concurrently with qualifying acquisitions above $1.5 billion, enhances QXO’s financial flexibility for its roll‑up strategy while imposing transfer, hedging, voting and standstill restrictions on the Apollo-led investor group, and includes registration rights for eventual resale of the preferred and underlying common shares, thereby shaping both the company’s future capital structure and governance dynamics.

The most recent analyst rating on (QXO) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on QXO Inc stock, see the QXO Stock Forecast page.

Spark’s Take on QXO Stock

According to Spark, TipRanks’ AI Analyst, QXO is a Neutral.

QXO Inc. has strong revenue growth and a solid balance sheet, but faces profitability and cash flow challenges. The technical analysis shows a bullish trend, though caution is advised due to overbought signals. Valuation is a concern with a negative P/E ratio. Positive corporate events, including a credit agreement amendment and a transformation program, support the stock’s potential.

To see Spark’s full report on QXO stock, click here.

More about QXO Inc

QXO Inc., listed on the NYSE, is the largest publicly traded distributor of roofing, waterproofing and complementary building products in North America. The company aims to become a tech-enabled leader in the roughly $800 billion building products distribution market and is targeting $50 billion in annual revenue within the next decade through a combination of accretive acquisitions and organic growth.

Average Trading Volume: 7,121,414

Technical Sentiment Signal: Sell

Current Market Cap: $13.3B

See more data about QXO stock on TipRanks’ Stock Analysis page.