A distributor of professional-grade exterior building products—asphalt shingles, waterproofing, siding, windows, and doors—sold to more than 110,000 residential and commercial customers from roughly 600 branches across the US and Canada under its QXO Building Products unit (formerly Beacon). It was born in December 2023 when serial entrepreneur Brad Jacobs invested in a small tech firm and renamed it QXO, then bought Beacon Roofing Supply in 2025 to become the largest publicly traded distributor of its kind. The "XO" echoes Jacobs' other ventures (XPO, GXO, RXO), and its house brand is TRI-BUILT.
QXO's Q2 revenue reached $3.25B with the addition of Kodiak, while a $42M operating loss persisted as amortization costs nearly doubled.
The Kodiak Building Partners acquisition closed, adding $595M in and marking the second major deal since QXO's transformation. Revenue rose 70% to $3.25B, and improved 3.7 points to 24.7% as a prior-year charge did not repeat, but a $140M expense kept the company in a $42M operating loss. The acquisition strategy is accelerating, but the underlying business remains unprofitable after accounting for deal costs.
Key takeaways
rose 70.3% to $3.25B, driven by the inclusion of Beacon Roofing Supply for a full quarter and the addition of Kodiak Building Partners, which contributed $595M in complementary building products.
Reported improved 3.7 percentage points to 24.7%, largely because the prior-year quarter included an $80.3M fair value adjustment from the Beacon acquisition that did not recur.
The operating loss narrowed to $42.0M from $163.0M a year ago, as the higher was partially offset by a near-doubling of expense to $140M from new tied to the Beacon and Kodiak acquisitions.
Section summaries
Management's Discussion and Analysis
QXO's Q2 2026 net sales surged to $3.25B driven by the Beacon and Kodiak acquisitions, while reported gross margin improved to 24.7%.
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increased to $3.25B for Q2 2026 from $1.91B in Q2 2025, primarily due to the inclusion of Beacon and Kodiak, with Kodiak contributing $595M in complementary building products.
Selling, general and administrative expenses rose to $649M from $457M, driven by costs to support the acquired operations and $12M in transformation costs, partially offset by lower and restructuring charges.
was $272M, up from $204M a year ago, though declined to 8.4% from 10.7%.
Total liquidity stood at $4.70B at quarter-end, with $2.77B in unrestricted cash and $1.93B available under the , and nearly doubled to $6.03B following the financing of the Kodiak acquisition.
What changed
The Kodiak Building Partners acquisition, flagged in the prior two quarters as a $2.25B definitive agreement, closed during Q2 2026, adding $595M in and contributing to the near-doubling of to $6.03B.
The adjusted trajectory, previously watched as a measure of underlying profitability, was not explicitly reported this quarter, but reported gross margin improved to 24.7% as the one-time fair value adjustment from the Beacon acquisition fully rolled off.
The run-rate of SG&A expenses shifted: and restructuring charges declined from prior quarters, but costs to support acquired operations and $12M in transformation costs kept the total elevated at $649M.
on the growing debt load remains a key factor, with rising to $6.03B from $3.06B in the prior quarter, though the specific interest expense figure for Q2 was not broken out in the provided material.
What to watch
Whether the $3.0B investment commitment and the recently closed TopBuild acquisition, disclosed in the risk factors, add further scale and debt, and whether management provides pro-forma financials for the combined entity.
The trajectory of adjusted , which was not explicitly reported this quarter, as a measure of the underlying profitability of the distribution business now that acquisition accounting adjustments are diminishing.
The run-rate of expense, which nearly doubled to $140M this quarter, and how long it will continue to weigh on as new are added with each acquisition.
The impact of the planned rebranding of TopBuild legacy brands under the QXO identity, flagged as a new risk factor that could erode customer loyalty and cause attrition.
Reported rose 3.6pp to 24.7%, largely because the prior-year period included an $80M fair value adjustment from the Beacon Acquisition that did not recur.
SG&A expense grew to $649M from $457M, driven by costs to support acquired operations and $12M in transformation costs, partially offset by lower and restructuring charges.
expense nearly doubled to $140M due to new from the Beacon and Kodiak acquisitions, contributing to a loss from operations of $42M.
Total liquidity stood at $4.70B as of June 30, 2026, with $2.77B in unrestricted cash and $1.93B available under the ABL Facility, which management believes is sufficient for the next 12 months.
was $272M for Q2 2026, up from $204M in Q2 2025, though declined to 8.4% from 10.7%.
Quantitative and Qualitative Disclosures About Market Risk
Our market risk disclosures set forth in Item 7A of Part II, “Quantitative and Qualitative Disclosures About Market Risk” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 have not changed materially during the six months ended June 30, 2026.
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Our market risk disclosures set forth in Item 7A of Part II, “Quantitative and Qualitative Disclosures About Market Risk” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 have not changed materially during the six months ended June 30, 2026.
For information related to our legal proceedings, refer to Note 11 – Commitments and Contingencies of Item 1 of Part I, “Condensed Consolidated Financial Statements” of this Quarterly Report.
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For information related to our legal proceedings, refer to Note 11 – Commitments and Contingencies of Item 1 of Part I, “Condensed Consolidated Financial Statements” of this Quarterly Report.
No material changes from prior 10-K except for newly disclosed risks tied to the recent Beacon, Kodiak, and TopBuild acquisitions and their integration.
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Integrating the large, recently completed acquisitions of Beacon, Kodiak, and TopBuild presents substantial execution risk, including potential failure to realize expected synergies, cultural clashes, and management distraction.
The planned rebranding of certain TopBuild legacy brands under the QXO identity could erode long-standing customer loyalty and cause attrition if not executed successfully.
Supply chain disruptions or allocation from key suppliers remain a core risk, with three suppliers representing nearly 35% of total purchases in fiscal 2025.
Volatile input costs, particularly for asphalt and steel, and the potential for new or retaliatory tariffs could compress gross margins if price increases cannot be passed on to customers.
The company's heavy reliance on Brad Jacobs as chairman and CEO creates a key-person risk, where his loss could materially impair the execution of the business strategy.
Cybersecurity threats, including AI-enhanced attacks, pose a growing risk of operational disruption, data breaches, and financial loss across the company's IT systems and those of acquired businesses.