Tickers

1. Composite Trajectory Verdict

Given QXO's transformation into a highly leveraged building products distributor, all three statements carry weight: the income statement shows whether the acquired operations generate earnings, the cash flow statement reveals if operations fund the heavy debt service and working capital needs, and the balance sheet tracks leverage, goodwill concentration, and liquidity.

Composite Trajectory: Insufficient Data

The filings do not provide two comparable periods of the same type for any statement after the April 2025 Beacon Acquisition. The only year-over-year comparisons available mix pre- and post-acquisition results (FY 2025 vs. FY 2024; Q2 2025 includes only two months of Beacon). Sequential comparisons (e.g., June 30, 2026 vs. December 31, 2025) are not year-over-year and reflect further acquisitions (Kodiak, TopBuild). Without at least two clean comparable periods for the post-acquisition entity, a trajectory cannot be determined.

2. Red Flags

• GAAP losses vs. adjusted EBITDA divergence: FY 2025 net loss $(279.4)M vs. adjusted EBITDA $647.8M (10-K FY 2025, Consolidated Statements of Operations; Non-GAAP reconciliation); six months ended June 30, 2026 net loss $(282)M vs. adjusted EBITDA $273M (10-Q 2026-06-30, MD&A). The gap is driven by $314.7M amortization (FY 2025), $144.5M stock-based compensation (FY 2025), $257M amortization (six months 2026), and rising interest expense.
• Debt more than doubled in six months: Long-term debt, net rose from $3.06B (Dec 31, 2025) to $6.03B (June 30, 2026) (10-Q 2026-06-30, Consolidated Balance Sheets), reflecting $3.0B incremental term loan and $3.0B senior notes for TopBuild (10-Q 2026-06-30, MD&A).
• Negative operating cash flow despite positive adjusted EBITDA: Six months ended June 30, 2026 operating cash flow $(146)M vs. adjusted EBITDA $273M (10-Q 2026-06-30, Consolidated Statements of Cash Flows; MD&A), driven by working capital increases (inventory +$575M, vendor rebates receivable +$104M, accounts payable/accrued -$247M vs. Dec 31, 2025).
• Recurring "non-recurring" charges: Restructuring costs $100.7M (FY 2025, Note 4) and $24M (six months 2026, MD&A); transaction costs $83.7M (FY 2025) and $71M (six months 2026, MD&A); transformation costs $44.9M (FY 2025) and $36M (six months 2026, MD&A).
• Goodwill concentration: Goodwill $6.21B (June 30, 2026) represents 60% of total stockholders' equity $10.38B (10-Q 2026-06-30, Consolidated Balance Sheets).
• Mezzanine equity with redemption triggers: Series C Preferred Stock $1.96B classified as mezzanine equity, redeemable at holder option upon fundamental change (10-Q 2026-06-30, Note 6).
• Rising interest burden: Net interest expense $47.7M (FY 2025) vs. $69M (six months 2026) (10-K FY 2025, Consolidated Statements of Operations; 10-Q 2026-06-30, MD&A), annualizing to ~$138M.

3. Earnings Assessment (Income Statement)

Earnings Trajectory: Insufficient Data

Only one clean year-over-year quarterly comparison exists (Q2 2026 vs. Q2 2025), but Q2 2025 includes only two months of Beacon while Q2 2026 includes full Beacon plus three months of Kodiak. That comparison shows revenue $3,246M vs. $1,906M, gross profit $803M vs. $401M, operating loss $(42)M vs. $(163)M, and net loss $(55)M vs. $(59)M (10-Q 2026-06-30, Consolidated Statements of Operations). The six-month comparison shows revenue $4,976M vs. $1,920M but net loss widening to $(282)M from $(50)M (10-Q 2026-06-30, Consolidated Statements of Operations). With only two overlapping interim comparisons and no comparable full-year or additional quarterly data for the post-acquisition entity, a trajectory cannot be established.

4. Cash Generation Assessment (Statement of Cash Flows)

Cash Trajectory: Insufficient Data

The only year-over-year cash flow comparison is six months ended June 30, 2026 vs. 2025: operating cash flow $(146)M vs. $(138)M; investing $(2,015)M vs. $(10,576)M (lower acquisition spend); financing $5,569M vs. $7,924M; net cash change +$3,408M vs. $(2,790)M (10-Q 2026-06-30, Consolidated Statements of Cash Flows). FY 2025 operating cash flow $261.4M vs. FY 2024 $84.8M is not comparable due to the acquisition (10-K FY 2025, Consolidated Statements of Cash Flows). No other comparable periods are provided.

5. Balance Sheet Assessment

Balance Sheet Trajectory: Insufficient Data

No year-over-year balance sheet comparison is available in the filings. The 10-Q 2026-06-30 provides June 30, 2026 vs. December 31, 2025 (sequential): cash $2,774M vs. $2,362M; total assets $22.7B vs. $15.9B; long-term debt $6.03B vs. $3.06B; goodwill $6.21B vs. $5.11B; Series C Preferred Stock $1.96B mezzanine equity vs. $0 (10-Q 2026-06-30, Consolidated Balance Sheets). The June 30, 2025 balance sheet is not presented in the provided 10-Q 2026-06-30, and the 10-Q 2025-06-30 is truncated. Without a June 30, 2025 comparator, YoY balance sheet trends cannot be assessed.

6. Data Gaps

• Q1 2026 vs. Q1 2025 income statement, cash flow, and balance sheet (10-Q 2026-03-31 truncated)
• Q3 2025 vs. Q3 2024 income statement, cash flow, and balance sheet (10-Q 2025-09-30 truncated)
• Q2 2025 standalone balance sheet (June 30, 2025) for YoY comparison with June 30, 2026
• Q4 2025 standalone quarterly results (only included in FY 2025 10-K)
• Organic revenue growth rates for Beacon and Kodiak (not disclosed)
• Full-year 2026 cash flow and balance sheet projections
• Detailed breakdown of "transformation costs" and "transaction costs" by acquisition