QXO Q3 2026: Sales Jump 79% to $4.90B, Net Loss Narrows

QXO, Inc. reported preliminary third-quarter 2026 net sales of approximately $4.90 billion on November 9, 2026, a 79% increase from $2.73 billion in the same quarter a year earlier. The building products distributor also disclosed a preliminary GAAP net loss of approximately $123 million, narrower than the $139 million loss posted in the third quarter of 2025, and preliminary Adjusted EBITDA of approximately $557 million, up 85% from $301 million.

The company said it expects to report full third-quarter 2026 results on November 12, 2026.

Context — why QXO's Q3 2026 preliminary numbers matter now

QXO is executing an acquisition-led consolidation strategy in building products distribution, a market the company pegs at $800 billion. The third quarter is the first period in which two large deals contribute meaningfully to reported results, which is why the year-over-year comparisons are so wide.

The company said third-quarter 2026 results include Kodiak Building Partners, Inc. from April 1, 2026, and TopBuild Corp. from July 1, 2026, the respective acquisition dates. Neither business is included in the third-quarter 2025 comparison base, so the reported growth reflects acquired revenue as well as any organic change.

That distinction matters for how investors read the headline. A 79% sales increase against a base that excludes two acquired businesses is not a like-for-like growth rate, and the company did not break out organic versus acquired contribution in the preliminary release.

QXO describes itself as 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 said it is targeting $50 billion in annual revenue within the decade through acquisitions and organic growth, a forward-looking goal rather than a reported result.

The preliminary figures are unaudited and subject to completion, and the company cautioned that management's continued review and quarter-end accounting procedures could change the final numbers.

Data — what the Q3 2026 numbers show

The headline comparison is revenue: approximately $4.90 billion in the third quarter of 2026 versus $2.73 billion a year earlier. Net sales in the reconciliation table are stated as $4,895 million for 2026 and $2,728 million for 2025.

Metric (Q3)	2026 preliminary	2025	Change
Net sales	$4,895M	$2,728M	+79%
GAAP net loss	$(123)M	$(139)M	Loss narrowed
Adjusted EBITDA	$557M	$301M	+85%
Net margin	(2.5)%	(5.1)%	+2.6 pts
Adjusted EBITDA margin	11.4%	11.1%	+0.3 pts

The reconciliation shows the gap between GAAP and adjusted results is dominated by non-cash and deal-related items. Amortization of $288 million and depreciation of $83 million together exceed the reported net loss, and interest expense, net, rose to $163 million from $37 million as acquisition financing scaled up.

Stock-based compensation of $79 million, transaction costs of $40 million, transformation costs of $28 million, and restructuring costs of $9 million were also excluded from Adjusted EBITDA. The company recorded a benefit from income taxes of $27 million in the quarter, compared with a $128 million provision a year earlier.

Inventory fair value adjustments swung from a $51 million charge in the third quarter of 2025 to a $17 million benefit in 2026, a line the company attributes to recording acquired inventory at fair value on the acquisition date.

Net margin improved to negative 2.5% from negative 5.1%, while Adjusted EBITDA margin edged up to 11.4% from 11.1%. Percentages may not recalculate due to rounding, the company noted.

Analysis — what it means for building products and the M&A roll-up trade

The margin picture is the more informative signal than the revenue jump. Adjusted EBITDA margin expanded only 0.3 percentage points even as sales rose 79%, which indicates the acquired businesses carry roughly similar profitability to the legacy base rather than lifting the blended rate.

Interest expense is the line to watch. At $163 million for the quarter, net interest is now larger than Adjusted EBITDA less depreciation and amortization would suggest on a run-rate basis, and it reflects debt taken on to fund Kodiak and TopBuild. Amortization of $288 million is a direct consequence of paying above book value for acquired intangibles.

The counter-argument is that Adjusted EBITDA excludes precisely the costs a serial acquirer should be judged on: transaction costs, transformation costs, and the amortization of the intangibles it bought. A reader who treats $557 million as the true earnings power of the business is accepting the company's own definition, and the company acknowledges other issuers may calculate the measure differently.

On positioning, the report gives no ownership or flow data, so any statement about who is long or short QXO would be unsupported. What the structure does show is a company whose equity story depends on converting acquired revenue into GAAP profit before financing costs compound further.

Peers in building products distribution are exposed to the same insulation, roofing, and lumber demand cycle, but the report provides no peer figures, so no direct comparison is available here.

Outlook — what to watch next

The immediate catalyst is the full third-quarter 2026 report scheduled for November 12, 2026, three days after the preliminary release. That filing should show whether the preliminary estimates held and may add segment detail the preliminary release omits.

The second item is the reconciliation trajectory into the fourth quarter, which will include a full period of TopBuild versus a partial third quarter. Whether Adjusted EBITDA margin holds above the 11.1% year-ago level, or compresses as purchase accounting rolls off, is the clearest test of the integration.

The company's stated $50 billion annual revenue target within the decade is a forward-looking expectation, not a forecast the preliminary numbers confirm. The report does not disclose deal terms, financing structure, or a use target, and it gives no guidance for the fourth quarter.

Frequently Asked Questions

What does QXO's preliminary Q3 2026 result mean for retail investors?

It means the reported 79% sales growth is not comparable to prior periods on a like-for-like basis. Two acquisitions, Kodiak from April 1, 2026 and TopBuild from July 1, 2026, are included in 2026 but absent from the 2025 base. The company reported a $123 million GAAP net loss and $557 million in Adjusted EBITDA, and said final results come November 12, 2026.

Why did QXO's net loss narrow while sales nearly doubled?

The narrowing came mostly from below the operating line. QXO recorded a $27 million income tax benefit versus a $128 million tax provision a year earlier, a $155 million swing. Inventory fair value adjustments also flipped from a $51 million charge to a $17 million benefit. Those two items account for most of the $16 million reduction in the net loss.

What happens next for QXO stock after the preliminary release?

The company said it will report full third-quarter 2026 results on November 12, 2026. Investors will get the completed statements, which may differ from these management estimates. The report gives no earnings guidance, no fourth-quarter outlook, and no acquisition terms, so the next hard data point is that filing rather than anything in the preliminary release.

Bottom Line

QXO's preliminary quarter shows acquisition-driven scale, but GAAP profitability still hinges on items excluded from Adjusted EBITDA.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.