QXO

QXO is a roll-up platform that transformed itself in 2025 by acquiring Beacon Roofing Supply, vaulting revenue from $56.9M in FY2024 to $6.84B in FY2025 and lifting gross profit to $1.57B at a 23.0% gross margin — the economics of a building-products distributor (roofing, siding, waterproofing). This is not organic growth; it is an acquisition step-change, and the financials reflect a company mid-integration: an operating loss of $245M, a net loss of $279M, and -$0.63 diluted EPS, driven by transaction/integration costs and amortization layered onto a thin-margin distribution model.

The balance sheet was rebuilt to fund the deal. Total assets jumped 212% to $15.9B, liabilities rose to $6.18B (including $3.06B long-term debt), and the company carries $2.36B cash, though that fell 53% as deal consideration was deployed and share count rose 73.1% to 709M from large equity issuance. Leverage at 0.64x liabilities/equity is moderate, and operating cash flow turned positive at $261M — encouraging for a first year, but small relative to the enterprise.