# Qxo (QXO.US)

Canonical: https://gigainvestors.com/s/QXO

Analysis as of: 2026-10-16T07:31:27.227Z. Financial observations: FY2016–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $11.18 per share; close as of 2026-10-15.

Estimated value: low $5.35 per share, central $5.74 per share, high $6.27 per share. Buy at or below the central value $5.74 per share. Valuation as of 2026-10-16T07:31:27.227Z; scenarios are not confidence intervals.

Expected annual return: 5.6% at the stated quote. About 5.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 5

- Operating margin variation: 2.86×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.03×

- FY2018: -0.03×

- FY2019: -0.05×

- FY2020: 0.01×

- FY2021: -0.01×

- FY2022: -0.01×

- FY2023: -0.02×

- FY2024: -1.25×

- FY2025: -0.01×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 22.1pp below the typical margin (limit 4pp)

- ROIC, median of available years: -2.4%

- ROIC, second-lowest year: -36.5%

- Typical minus recent gross margin: 22.1 pp

- Typical gross margin (annual median): 38.9%

- Recent gross margin (lower of latest and 3-year median): 16.8%

- Years with nonpositive capital: 1

- Capital spending / revenue: 0.3%

- ROIC including acquisitions, ten-year median: 20.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 32.5%

- FY2017: 27.3%

- FY2018: -28.3%

- FY2019: -95.5%

- FY2020: 6.5%

- FY2021: -3.9%

- FY2022: -10.9%

- FY2023: -36.5%

- FY2024: -0.9%

- FY2025: -0.7%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $97M

- Net income, five-year total: -$253M

- Return on incremental invested capital: -2.4%

- Working capital / revenue, annual change: 1.9 pp

- Working capital / revenue, change between three-year averages: 12.8 pp

- Working capital / revenue, final three-year average: 14.6%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $1.1M

- FY2022: $1.4M

- FY2023: -$190K

- FY2024: $29M

- FY2025: $66M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 27.3% vs -0.9%

- Per-share earnings: 0.00 to -0.00 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 16.9%

- Market cap gain: $12B

- Cumulative retained earnings: -$387M

- Diluted shares, 5-year annual growth: 16.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$0.00

- Per-share value, starting three-year median: $0.00

- Per-share value, ending three-year median: -$0.00

- Average buyback yield: 0.0%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: $11B

- Cumulative net income, 10 years: -$243M

- ROIC, first three-year median: 27.3%

- ROIC, last three-year median: -0.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.01

- FY2017: -$0.00

- FY2018: $0.00

- FY2019: $0.02

- FY2020: $0.00

- FY2021: -$0.00

- FY2022: -$0.00

- FY2023: -$0.00

- FY2024: $0.06

- FY2025: -$0.46

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -3.4%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 55.3%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.92×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 15.4%

- FY2017: -26.8%

- FY2018: -8.8%

- FY2019: 37.9%

- FY2020: -9.8%

- FY2021: -2.0%

- FY2022: -10.8%

- FY2023: -8.1%

- FY2024: -1.1%

- FY2025: -3.4%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Samantha McLemore](https://gigainvestors.com/PTNT): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Harry Burn](https://gigainvestors.com/SSHFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 84% since Jun 2024 · sales +11930.7%

Story as of 2026-10-16T09:59:28.419Z; price observation 2026-10-15.

Price needs cash profits to grow 13.3% a year for ten years

- 2025-06-19: GMS shares soar 17% on QXO takeover proposal for $5B in all-cash deal ([seekingalpha.com](https://seekingalpha.com/news/4459745-gms-shares-soar-17-on-qxo-takeover-proposal-for-5b-in-all-cash-deal?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-12: QXO to Acquire Kodiak for $2.25 Billion, Shares Jump 5.7% ([finance.yahoo.com](https://finance.yahoo.com/news/qxo-acquire-kodiak-2-25-141907246.html))

- 2026-04-01: QXO closes on its 'highly accretive' deal for Kodiak Building Partners ([seekingalpha.com](https://seekingalpha.com/news/4571140-qxo-closes-on-its-highly-accretive-deal-for-kodiak-building-partners?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales +11930.7%; source https://www.sec.gov/Archives/edgar/data/1236275/000162828026012601/qxo-20251231.htm; observed 2026-02-27.

- FY2016: $34M 

- FY2017: $35M 

- FY2018: $36M 

- FY2019: $39M 

- FY2020: $41M 

- FY2021: $42M 

- FY2022: $45M 

- FY2023: $55M 

- FY2024: $57M 

- FY2025: $6.8B 

### Gross margin · FY2025

gross margin 16.8%; source https://www.sec.gov/Archives/edgar/data/1236275/000162828026012601/qxo-20251231.htm; observed 2026-02-27.

- FY2016: 35.3% 

- FY2017: 38.0% 

- FY2018: 36.6% 

- FY2019: 38.1% 

- FY2020: 40.2% 

- FY2021: 41.3% 

- FY2022: 39.9% 

- FY2023: 39.6% 

- FY2024: 40.3% 

- FY2025: 16.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in industrial distribution; annual sales are USD 6.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1236275/000162828026012601/qxo-20251231.htm (filed 2026-02-27); FY2025: revenue 6842200000; grossProfit 1149600000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); QXO.US: QXO, Inc. distributes roofing, waterproofing and complementary building products in the United States and Canada. It offers roofing and siding materials for residential construction, such as asphalt shingles, metal roofing, wood roofing, tile roofing, slate roofing, roofing accessories, and roofing insulation; and siding materials, including vinyl siding aluminum siding, steel siding, fiber cement siding, wood and composite siding, trim and accessories, and gutters and accessories. The company also provides commercial roofing and siding products built-up roofing, modified roofing, EPDM roofing, PVC roofing, low-slope metal roofing TPO roofing, and commercial accessories; commercial waterproofing, concrete restoration and parking, public works, DOT and industrial, fire protection, wall systems, and safety and tools, as well as glass, glazing, and fenestration. In addition, it offers building materials; exterior and interior materials; and tools and equipment. The company provides its products under Atlas, Carlisle, CertainTeed, Elevate, Exterior Portfolio, GAF, IKO, James Hardie, LP SmartSide, Owens Corning, Royal, Tamko, TRI-BUILT, and Velux brands. It serves professional contractors, home builders, building owners, lumberyards, and retailers. The company was formerly known as SilverSun Technologies, Inc. and changed its name to QXO, Inc. in June 2024. QXO, Inc. is headquartered in Greenwich, Connecticut.

### Why customers stay

Margins ranged from 16.8% to 40.3% during 2023–25; it lost 2.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 39.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 40.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1236275/000162828026012601/qxo-20251231.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 16.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2016,0.3252209857274758],[2017,0.2725162623091609],[2018,-0.28319450992233114],[2019,-0.9546452598128828],[2020,0.06492335004922509],[2021,-0.039329238024811274],[2022,-0.10865769565293427],[2023,-0.3651939351198872],[2024,-0.009132326119224448],[2025,-0.007323856613102596]]; median -0.02423078207201786. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 40% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1236275/000162828026012601/qxo-20251231.htm (filed 2026-02-27); Gross margin observations: [[2021,0.4126496053607818],[2022,0.3992581039182687],[2023,0.39646348845314305]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 8 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2016: growth capex 0; upkeep 496719; owner earnings 3624340. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 0; upkeep 397822; owner earnings 514037. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 0; upkeep 152402; owner earnings 7574024. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 0; upkeep 124782; owner earnings 1172858. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 0; upkeep 114761; owner earnings 1145496. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 0; upkeep 38742; owner earnings 1434866. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: growth capex 0; upkeep 102000; cash acquisitions 0; owner earnings 28989000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1236275/000162828026012601/qxo-20251231.htm (filed 2026-02-27); FY2025: growth capex 0; upkeep 78200000; cash acquisitions 10556500000; owner earnings 65500000. Growth capex plus acquisitions / owner earnings = 161.1679389312977.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,264699],[2017,359014],[2018,0],[2019,225038],[2020,4051145],[2021,3081706],[2022,0],[2023,1051000],[2024,49650000],[2025,104800000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); QXO.US SharesStats.PercentInsiders = 0.22200000000000003 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 13.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate 0.1788562111029809. Price 11.18; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $3.35 per share

- 2016-11: $2.80 per share

- 2016-12: $3.00 per share

- 2017-01: $4.00 per share

- 2017-02: $3.95 per share

- 2017-03: $4.00 per share

- 2017-04: $4.06 per share

- 2017-05: $3.65 per share

- 2017-06: $3.90 per share

- 2017-07: $4.37 per share

- 2017-08: $4.40 per share

- 2017-09: $4.29 per share

- 2017-10: $4.10 per share

- 2017-11: $4.15 per share

- 2017-12: $4.23 per share

- 2018-01: $4.02 per share

- 2018-02: $3.76 per share

- 2018-03: $3.75 per share

- 2018-04: $3.88 per share

- 2018-05: $4.04 per share

- 2018-06: $4.15 per share

- 2018-07: $3.80 per share

- 2018-08: $4.14 per share

- 2018-09: $3.92 per share

- 2018-10: $3.51 per share

- 2018-11: $2.65 per share

- 2018-12: $2.32 per share

- 2019-01: $2.32 per share

- 2019-02: $4.29 per share

- 2019-03: $3.00 per share

- 2019-04: $2.74 per share

- 2019-05: $3.02 per share

- 2019-06: $2.95 per share

- 2019-07: $2.89 per share

- 2019-08: $3.35 per share

- 2019-09: $3.55 per share

- 2019-10: $3.62 per share

- 2019-11: $3.52 per share

- 2019-12: $4.35 per share

- 2020-01: $3.12 per share

- 2020-02: $2.99 per share

- 2020-03: $1.90 per share

- 2020-04: $2.30 per share

- 2020-05: $1.92 per share

- 2020-06: $2.01 per share

- 2020-07: $2.73 per share

- 2020-08: $3.28 per share

- 2020-09: $2.65 per share

- 2020-10: $2.77 per share

- 2020-11: $3.03 per share

- 2020-12: $2.86 per share

- 2021-01: $4.40 per share

- 2021-02: $5.61 per share

- 2021-03: $7.64 per share

- 2021-04: $6.71 per share

- 2021-05: $6.74 per share

- 2021-06: $12.17 per share

- 2021-07: $9.00 per share

- 2021-08: $7.18 per share

- 2021-09: $6.07 per share

- 2021-10: $5.88 per share

- 2021-11: $4.73 per share

- 2021-12: $4.47 per share

- 2022-01: $3.24 per share

- 2022-02: $3.58 per share

- 2022-03: $3.26 per share

- 2022-04: $2.65 per share

- 2022-05: $2.95 per share

- 2022-06: $2.71 per share

- 2022-07: $2.79 per share

- 2022-08: $3.62 per share

- 2022-09: $2.81 per share

- 2022-10: $4.37 per share

- 2022-11: $3.60 per share

- 2022-12: $2.96 per share

- 2023-01: $3.34 per share

- 2023-02: $3.39 per share

- 2023-03: $3.05 per share

- 2023-04: $3.16 per share

- 2023-05: $3.17 per share

- 2023-06: $3.37 per share

- 2023-07: $3.60 per share

- 2023-08: $3.78 per share

- 2023-09: $3.28 per share

- 2023-10: $3.14 per share

- 2023-11: $3.68 per share

- 2023-12: $17.11 per share

- 2024-01: $13.31 per share

- 2024-02: $15.04 per share

- 2024-03: $13.19 per share

- 2024-04: $14.31 per share

- 2024-05: $18.59 per share

- 2024-06: $71.76 per share

- 2024-07: $12.50 per share

- 2024-08: $13.81 per share

- 2024-09: $15.77 per share

- 2024-10: $15.22 per share

- 2024-11: $16.64 per share

- 2024-12: $15.90 per share

- 2025-01: $13.29 per share

- 2025-02: $12.74 per share

- 2025-03: $13.54 per share

- 2025-04: $13.34 per share

- 2025-05: $17.00 per share

- 2025-06: $21.54 per share

- 2025-07: $20.06 per share

- 2025-08: $20.13 per share

- 2025-09: $19.06 per share

- 2025-10: $17.67 per share

- 2025-11: $18.73 per share

- 2025-12: $19.29 per share

- 2026-01: $22.18 per share

- 2026-02: $23.95 per share

- 2026-03: $19.42 per share

- 2026-04: $20.07 per share

- 2026-05: $17.25 per share

- 2026-06: $17.28 per share

- 2026-07: $13.30 per share

- 2026-08: $13.28 per share

- 2026-09: $11.69 per share

- 2026-10: $10.81 per share

## Annual estimated value (USD per share)

- FY2020: low $0.05 per share, central $0.06 per share, high $0.07 per share

- FY2021: low $0.03 per share, central $0.03 per share, high $0.03 per share

- FY2022: low $0.03 per share, central $0.03 per share, high $0.03 per share

- FY2023: low $0.03 per share, central $0.03 per share, high $0.03 per share

- FY2024: low $11.21 per share, central $11.22 per share, high $11.22 per share

- FY2025: low $6.98 per share, central $7.44 per share, high $8.06 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1236275/000162828026012601/qxo-20251231.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Matthew McLennan](https://gigainvestors.com/FE): 662,894 QXO shares; USD 11,454,808 reported position value; 0.02% of portfolio; add; quarter 2026 Q2.
- [Samantha McLemore](https://gigainvestors.com/PTNT): 7,136,669 QXO shares; USD 123,322,000 reported position value; 4.1% of portfolio; add; quarter 2026 Q2.
- [Harry Burn](https://gigainvestors.com/SSHFX): 5,198,401 QXO shares; USD 89,828,000 reported position value; 2.77% of portfolio; add; quarter 2026 Q2.

# QXO — Qxo Inc

Held by 3 investors · USD 224,604,808 total · 2026 Q2 · reported price USD 17.28 (split-adjusted).
Page: https://gigainvestors.com/s/QXO

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Samantha McLemore (https://gigainvestors.com/PTNT) | USD 123,322,000 | 4.1% | add +5.29% |
| Harry Burn (https://gigainvestors.com/SSHFX) | USD 89,828,000 | 2.8% | add +32.28% |
| Matthew McLennan (https://gigainvestors.com/FE) | USD 11,454,808 | <0.1% | add +197.02% |

## Total held by quarter

- 2024 Q3: USD 122,088,927 · 1 holder · USD 15.77
- 2024 Q4: USD 122,955,177 · 1 holder · USD 15.90
- 2025 Q1: USD 98,636,558 · 1 holder · USD 13.54
- 2025 Q2: USD 143,945,621 · 2 holders · USD 21.55
- 2025 Q3: USD 128,398,205 · 2 holders · USD 19.06
- 2025 Q4: USD 206,375,338 · 3 holders · USD 19.29
- 2026 Q1: USD 212,287,457 · 3 holders · USD 19.42
- 2026 Q2: USD 224,604,808 · 3 holders · USD 17.28