QXO completed a massive acquisition (likely Beacon Roofing Supply) that increased total assets by 212% but drove the company from profitability to a $279M loss.
The dramatic scale increase suggests QXO executed its strategy to build a tech-forward building products distribution leader, but integration challenges and acquisition costs created immediate profitability pressures. The 73% increase in outstanding shares (409M to 709M) indicates significant equity dilution to fund this transformational deal.
QXO's financials reflect a transformational acquisition that more than tripled total assets to $15.9B and grew gross profit 67x to $1.6B, establishing significant scale in building products distribution. However, the company swung from $28M profit to a $279M loss as SG&A expenses surged 14x faster than gross profit growth, while operating cash flow improved 208% to $261M, suggesting underlying operational strength despite near-term integration costs. The balance sheet shows both the opportunity (92% equity growth) and challenge (massive liability increase) of this scale transformation.
Receivables surged 41753.1% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.
Liabilities grew 13524.5% — significant increase in debt or obligations, assess impact on financial flexibility.
Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.
Current liabilities surged 3336.7% — significant near-term obligations; verify ability to meet short-term debt.
SG&A up 1400.7% — significant increase in sales or administrative costs, monitor impact on operating leverage.
Net income declined 1099% — review whether driven by operations, interest costs, or non-recurring items.
Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.
Asset base grew 211.6% — expansion through organic growth, acquisitions, or capital deployment.
Operating cash flow surged 208% — exceptional cash generation, highest quality earnings signal.
Equity base grew 92.1% — retained earnings accumulation or equity issuance strengthening the balance sheet.
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