QXO’s Revenue Growth Faces Tests From Losses and Acquisition Debt

QXO shares traded at $10.81 as of Friday’s close, down 2.79% from the previous close. The stock was down almost 43% in 2026 through October 8, despite a 70.3% rise in second-quarter fiscal 2026 revenue.

That growth brought QXO’s trailing 12-month revenue to $9.9 billion. But the company reported a negative 3.4% trailing operating margin and a negative 5.2% net margin, leaving investors looking for evidence that sales growth can turn into profits.

Acquisitions add to the challenge. QXO had about $6.03 billion in long-term debt as of June 30, 2026, and took on an additional $3 billion term loan when it completed its TopBuild acquisition on July 1. The company generated about $141 million in trailing free cash flow, which the article said could face pressure from integration costs and working capital needs.

Consensus estimates point to potential earnings growth over the next year, while the stock’s forward price-to-earnings multiple was 19.19, according to the article. It also reported that 83 hedge funds held QXO at the end of the second quarter, compared with 65 at the end of the first.