The headline numbers landed essentially where the market expected. Q2 revenue was $3.246 billion versus published expectations of roughly $3.23-$3.24 billion, while adjusted diluted EPS was $0.08 against approximately $0.07-$0.08 consensus. The clean scorecard is therefore in line, not a beat simply because revenue and adjusted earnings rose sharply year over year.
| Q2 measure | Q2 2026 | Q2 2025 | Published expectation |
|---|---|---|---|
| Net sales | $3.246B (Financial Highlights) | $1.906B (Financial Highlights) | ~$3.23-$3.24B |
| Adjusted EBITDA | $272M (Financial Highlights) | $204M (Financial Highlights) | ~$276M |
| Adjusted EBITDA margin | 8.4% (Adjusted EBITDA reconciliation) | 10.7% (Adjusted EBITDA reconciliation) | — |
| Adjusted diluted EPS | $0.08 (Adjusted Net Income reconciliation) | $0.11 (Adjusted Net Income reconciliation) | ~$0.07-$0.08 |
| Net cash used in operating activities | $(146)M (Cash Flow statement) | $(138)M (Cash Flow statement) | — |
The underlying operating result was less impressive than the revenue growth. Adjusted EBITDA increased 33% to $272 million, but it appears modestly below the roughly $276 million analyst estimate, and the margin dropped to 8.4% from 10.7%. That means the acquisition-driven sales increase is not yet translating into equivalent operating leverage. (Adjusted EBITDA reconciliation)
Common-stockholder economics weakened despite higher adjusted net income. Adjusted net income rose to $130 million from $109 million, but new preferred-stock dividends and a larger diluted share count reduced adjusted diluted EPS to $0.08 from $0.11. Preferred dividends totaled $54 million in the quarter, including $23 million on the newly issued Series C shares, while adjusted diluted shares rose to 911.8 million from 702.0 million. (Adjusted Net Income reconciliation)
The balance sheet shows the cost of building the larger platform. QXO ended June with $6.029 billion of long-term debt and $2.0 billion of Series C preferred stock, while operating cash flow remained negative at $146 million. The company also spent $1.965 billion on acquisitions during the first half. (Balance Sheet; Cash Flow statement) A $3.0 billion restricted-cash balance was held in escrow for the TopBuild transaction, so the quarter’s liquidity picture includes deal financing that was not yet freely deployable. (Balance Sheet footnote)
Net: this was an expected integration quarter, not proof yet of accelerating profitability. Kodiak’s results were included from its April 1 acquisition date, and the TopBuild acquisition had already closed on July 1, making the scale-up direction largely known; the new information is the weaker margin profile and continued cash consumption. (Financial Highlights; Management commentary) The filing supports the growth thesis on revenue, but it does not deliver an earnings or margin surprise versus expectations.
Read the original 8-K on SEC EDGAR ↗