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QXO Inc (QXO)
NYSE:QXO
US Market

QXO Inc (QXO) AI Stock Analysis

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QXO

QXO Inc

(NYSE:QXO)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
$26.00
▲(9.20% Upside)
The score is driven by strong technical uptrend and supportive corporate financing flexibility, partially offset by weak profitability/cash-flow conversion in financials and unattractive earnings-based valuation due to losses (negative P/E).
Positive Factors
Exceptional revenue growth
TTM revenue growth of ~139% indicates strong demand for QXO’s software, subscription and services mix. Sustained top-line expansion improves scale economics, funds R&D and integrations, and strengthens competitive positioning over the next several quarters if execution remains consistent.
Low leverage and strong equity position
A very low debt-to-equity ratio gives QXO financial flexibility, lowering interest burden and refinancing risk. This durable balance-sheet strength supports organic investment and acquisition activity while preserving liquidity through industry cycles.
Committed acquisition financing capacity
A $3bn committed convertible-preferred facility (and earlier preferred commitments) creates durable capacity for large, acquisition-led consolidation. That financing alignment with strategic buyers enables accelerated inorganic growth and scale benefits if deal discipline is maintained.
Negative Factors
Negative profitability and shrinking gross margin
Persistent negative EBIT/net margins and a declining gross margin indicate structural cost or pricing pressure. Without sustained margin recovery, profitability will remain weak, limiting ability to self-fund growth, reduce reliance on external capital, and deliver long-term shareholder returns.
Volatile free cash flow and weak cash conversion
Volatile FCF and poor operating-cash-to-net-income conversion reduce resilience to shocks and constrain reinvestment capacity. Over months, this elevates dependence on external financing for capex, acquisitions, or working capital, increasing execution risk for strategic initiatives.
Dilution and governance impacts from large financings
Large convertible-preferred commitments and a $750M common offering materially alter capital structure. Conversion and registration rights can dilute existing equity and create resale overhang; investor voting/standstill terms may constrain corporate flexibility and influence long-term governance.

QXO Inc (QXO) vs. SPDR S&P 500 ETF (SPY)

QXO Inc Business Overview & Revenue Model

Company DescriptionQXO, Inc. distributes roofing, waterproofing, and other building products in the United States. It offers asphalt, metal roofing, wood roofing, tile roofing, slate roofing, roofing accessories, and roofing insulation products; vinyl siding, aluminum siding, steel siding, fiber cement siding, wood and composite siding, trim and accessories, and gutters and accessories; built-up roofing, modified roofing, EPDM roofing, PVC roofing, and low-slope metal roofing; as well as air and vapor barriers, fluid-applied products, repair and protection solutions, and membrane waterproofing products. The company also provides building materials and supplies, such as exterior materials, interior materials, and tools and equipment; and roof hatches and other tri-built building products. It serves contractors, distributors, and suppliers to streamline operations. QXO, Inc. was formerly known as SilverSun Technologies, Inc. and changed its name to QXO, Inc. in June 2024. The company is based in Greenwich, Connecticut.
How the Company Makes MoneyQXO generates revenue through a combination of software licensing fees, subscription-based services, and professional consulting engagements. The primary revenue stream comes from the sale of software licenses for its ERP and CRM solutions, which are offered as both on-premises installations and cloud-based subscriptions. Additionally, QXO monetizes its data analytics tools through a subscription model, allowing businesses to access advanced analytics features for a recurring fee. The company also earns income from consulting services, assisting clients with software implementation, customization, and ongoing support. Strategic partnerships with key technology providers enhance QXO's offerings, allowing it to integrate complementary services and expand its market reach, thereby contributing to its overall revenue growth.

QXO Inc Earnings Call Summary

Earnings Call Date:Mar 04, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted Beacon's strong fourth quarter performance and strategic initiatives leading to record results. However, the company faced notable challenges, including weather-related sales impacts and market headwinds. While Beacon has plans to sustain growth and manage costs, the uncertain market conditions present ongoing risks.
Q4-2024 Updates
Positive Updates
Record Fourth Quarter Results
Beacon set fourth quarter records for net sales, adjusted EBITDA, and cash flow. Sales per day increased approximately 3% year-over-year to $2.4 billion, driven by recent acquisitions.
Strong Cash Flow Management
Fourth quarter cash flow reached nearly $360 million, enabling investments in growth initiatives such as greenfield locations and acquisitions.
Operational Excellence and Cost Savings
The company achieved significant operational efficiencies, contributing to a 6% year-over-year increase in sales per hour worked and $30 million in expected cost savings for 2025.
Digital Sales Growth
Digital sales rose approximately 20% year-over-year, contributing to a nearly 200 basis point improvement in digital sales as a percentage of total sales.
Acquisitions and Share Buybacks
In 2024, Beacon completed 12 acquisitions, contributing over $400 million to net sales, and repurchased over 2.4 million shares, demonstrating a commitment to shareholder returns.
Negative Updates
Weather-Related Sales Impact
A slowdown in sales during November and December impacted residential roofing, particularly in North and West regions, resulting in fourth quarter sales per day being less than expected.
Challenging Market Conditions
The company faced significant headwinds, including sluggish housing starts, historically low existing home sales, and lower commercial new construction.
Inventory Management Issues
Inventory management was a challenge, with year-end inventory levels increasing by $180 million due to acquisitions, greenfield load-ins, and inflation.
Expected Market Headwinds in 2025
The company anticipates continued headwinds in the first half of 2025, including higher interest rates, potential tariffs, and labor availability concerns.
Company Guidance
In the fourth quarter of fiscal year 2024, Beacon achieved record net sales of $2.4 billion, representing a year-over-year increase of approximately 3% driven by acquisitions. The company's adjusted EBITDA reached $223 million, supported by an increase in average selling prices and a strategic focus on operating efficiency. Beacon also generated nearly $360 million in cash flow, facilitating investments in growth initiatives like greenfield locations and acquisitions. Gross margin remained strong at 25.7%, with adjusted operating expenses totaling $434 million, marking a 20 basis point increase to 18% of sales. The company's bottom quintile branch initiative added more than $7 million in EBITDA year-over-year, while digital sales grew by 20%, reaching 16% of total sales. Additionally, the private label TRI-BUILT brand saw a 7% sales increase. Beacon's strategic focus on operational excellence and shareholder value was evident in its continued share repurchase program, retiring over 2.4 million shares throughout the year.

QXO Inc Financial Statement Overview

Summary
Strong TTM revenue growth (139.4%) and a low debt-to-equity ratio (0.09) support the outlook, but negative net/EBIT margins and volatile free cash flow (with weak cash conversion) meaningfully limit the score.
Income Statement
65
Positive
QXO Inc. shows impressive revenue growth with a TTM (Trailing-Twelve-Months) increase of 139.4%. However, profitability metrics such as net profit margin and EBIT margin are negative, indicating challenges in cost management or operational efficiency. The gross profit margin has decreased over time, suggesting increased cost pressures.
Balance Sheet
72
Positive
The company maintains a strong equity position with a low debt-to-equity ratio of 0.09 in the TTM period, indicating low leverage and financial stability. However, the return on equity is negative, reflecting profitability challenges. The equity ratio is robust, highlighting a solid asset base.
Cash Flow
58
Neutral
Cash flow metrics reveal volatility, with a significant decline in free cash flow growth in the TTM period. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. Despite this, the free cash flow to net income ratio remains relatively healthy.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.66B56.87M54.52M44.99M41.70M41.22M
Gross Profit1.05B22.93M21.61M17.96M17.21M16.58M
EBITDA118.42M51.99M-290.00K1.37M1.49M1.36M
Net Income-177.86M27.97M-1.07M-282.22K-134.43K175.65K
Balance Sheet
Total Assets16.64B5.10B20.50M21.44M18.00M15.90M
Cash, Cash Equivalents and Short-Term Investments2.31B5.07B6.14M8.01M6.81M6.60M
Total Debt3.95B577.00K2.62M2.40M2.29M3.04M
Total Liabilities6.82B45.36M13.02M11.89M8.64M8.62M
Stockholders Equity9.82B5.05B7.47M9.55M9.36M7.28M
Cash Flow
Free Cash Flow78.92M84.78M463.00K2.00M111.27K1.60M
Operating Cash Flow128.76M84.88M584.00K2.04M226.03K1.73M
Investing Cash Flow-10.60B-102.00K-400.00K-188.74K-510.46K839.81K
Financing Cash Flow7.75B4.98B-2.05M-655.13K503.13K-4.63M

QXO Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price23.81
Price Trends
50DMA
20.43
Positive
100DMA
20.04
Positive
200DMA
19.10
Positive
Market Momentum
MACD
1.25
Negative
RSI
57.38
Neutral
STOCH
66.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QXO, the sentiment is Positive. The current price of 23.81 is above the 20-day moving average (MA) of 22.79, above the 50-day MA of 20.43, and above the 200-day MA of 19.10, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 66.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QXO.

QXO Inc Risk Analysis

QXO Inc disclosed 50 risk factors in its most recent earnings report. QXO Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

QXO Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$12.02B23.9220.57%18.50%207.45%
75
Outperform
$10.44B49.2273.58%4.10%-0.21%
71
Outperform
$11.36B39.6915.22%8.45%-69.85%
71
Outperform
$11.88B47.2824.16%0.72%11.12%-26.24%
66
Neutral
$16.06B-53.92-2.39%8103.75%-567.07%
65
Neutral
$17.52B-39.01-13.64%-8.23%48.57%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QXO
QXO Inc
23.81
10.13
74.05%
MANH
Manhattan Associates
173.28
-108.80
-38.57%
DOCU
DocuSign
56.71
-34.65
-37.93%
DT
Dynatrace
39.88
-13.34
-25.07%
U
Unity Software
40.95
18.77
84.63%
BSY
Bentley Systems
39.14
-6.76
-14.73%

QXO Inc Corporate Events

Business Operations and StrategyPrivate Placements and Financing
QXO Inc Announces Major Common Stock Offering
Positive
Jan 20, 2026

On January 15, 2026, QXO Inc. entered into an underwriting agreement with BofA Securities to sell 31,645,570 shares of common stock at a public offering price of $23.80 per share, with an additional option for the underwriter to purchase up to 4,746,835 more shares, and the offering was expected to close on January 20, 2026 subject to customary conditions. The company expects to raise approximately $750 million in net proceeds from the deal, or up to about $862.5 million if the underwriter’s option is fully exercised, and plans to use the capital for general corporate purposes, including funding future acquisitions, underscoring QXO’s acquisition-driven growth strategy and its efforts to strengthen its financial position within the competitive building products distribution sector.

The most recent analyst rating on (QXO) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on QXO Inc stock, see the QXO Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
QXO Inc Announces $750 Million Public Equity Offering
Positive
Jan 15, 2026

On January 15, 2026, QXO Inc. announced plans to offer $750 million of its common stock to the public, with an additional option for the underwriter, BofA Securities, to purchase up to $112.5 million more at the public offering price, less underwriting discounts and commissions. The company said it intends to use the net proceeds for general corporate purposes, including funding future acquisitions, signaling continued consolidation ambitions in the building products distribution sector and adding equity capital that could support its expansion plans following the Beacon Roofing Supply acquisition and its broader growth strategy.

The most recent analyst rating on (QXO) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on QXO Inc stock, see the QXO Stock Forecast page.

Financial DisclosuresM&A TransactionsRegulatory Filings and Compliance
QXO Inc Announces Preliminary Fourth-Quarter 2025 Financial Results
Neutral
Jan 15, 2026

On April 29, 2025, QXO completed its acquisition of QXO Building Products, Inc., formerly known as Beacon Roofing Supply, Inc., and has now filed unaudited pro forma combined financial information to illustrate how the merged businesses would have performed as a single entity for the year ended December 31, 2024 and the nine months ended September 30, 2025. On January 15, 2026, the company released summarized preliminary fourth-quarter 2025 results, reporting estimated net sales of approximately $2.19 billion and adjusted EBITDA of roughly $150 million, though it cautioned that these figures are unaudited, subject to final accounting procedures and may differ materially from the final results to be included in its forthcoming 2025 annual report expected by February 26, 2026.

The most recent analyst rating on (QXO) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on QXO Inc stock, see the QXO Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
QXO Inc Upsizes Convertible Preferred Financing to $3 Billion
Positive
Jan 12, 2026

On January 12, 2026, QXO Inc. announced it had upsized its previously disclosed convertible preferred equity financing, boosting the total committed investment to $3 billion from $1.2 billion. Under an investment agreement led by Apollo funds and joined by Temasek and other investors, the group has committed through July 15, 2026 to purchase up to 300,000 shares of QXO’s Series C Convertible Perpetual Preferred Stock, with issuances tied to closing one or more qualifying acquisitions. The private placement strengthens QXO’s balance sheet and enhances its financial flexibility to pursue strategic, acquisition-led expansion in building products distribution, underscoring investor confidence in its consolidation strategy and growth ambitions following its Beacon Roofing Supply acquisition.

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.

Business Operations and StrategyPrivate Placements and Financing
QXO Secures Major Preferred Investment for Acquisition Strategy
Positive
Jan 5, 2026

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.

Private Placements and Financing
QXO Inc Amends Credit Agreement with Goldman Sachs
Positive
Nov 5, 2025

On November 5, 2025, QXO Inc.’s subsidiaries, Queen HoldCo, LLC and QXO Building Products, Inc., amended their existing credit agreement with Goldman Sachs Bank USA. The amendment reduces the interest margins on an $850 million senior secured term loan, potentially lowering borrowing costs and improving financial flexibility for the company.

The most recent analyst rating on (QXO) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on QXO Inc stock, see the QXO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 20, 2026