CluenexQXO, Inc. QXO
QXO, Inc. scores weak on business quality (3.9 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What QXO, Inc. does
QXO distributes building products and industrial goods, collecting payments from contractors and builders across regional markets.
- What it does best
QXO scales top-line volume faster than traditional distributors, hitting top-decile revenue growth of 119% that dwarfs peers like FAST at 9%. This hyper-growth relies on aggressive roll-up tactics rather than organic product lock-in.
- The main risk
Interest coverage sits at -0.9x, meaning operating earnings fail to cover debt servicing costs. With $3.2 billion in total debt, any slowdown in the building sector strains liquidity and forces reliance on cash reserves.
Quality, check by check
Scored against its own industry, from company filings.
Gross margin sits at 24% while operating margin is -2.1%, resulting in a net loss of $657 million. Scale has not translated to profit yet, as heavy operating costs drag earnings deep into negative territory.
The moat is virtually non-existent, reflected in an operating margin sitting in the bottom quartile of its sector at 4%. Rivals like FAST maintain a 20% operating margin, proving QXO lacks pricing power or sticky ecosystems.
Revenue surged 119% to $9.9 billion, marking an explosive acceleration from historical figures near $57 million. Acquisitions are driving this massive top-line expansion, completely outpacing traditional distribution peers.
Debt-to-equity is manageable at 0.3x, and cash sits at $2.4 billion against $883 million in net debt. Free cash flow stands at $141 million, but negative interest coverage leaves the balance sheet softer than peers.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on QXO
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
QXO, Inc. scores weak on the Cluenex quality check (3.9 of 10), measured against its own industry. Profitability is weak, moat weak, growth fast and financial health weak.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 4, 2026.
See QXO today
- Today's verdict on QXO, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “QXO, Inc. (QXO)”, https://cluenex.com/stocks/qxo/, data as of Oct 10, 2026.