Financial Trends -- 3/10
Financials dominated by a transformative reverse-takeover, not operating momentum. The Daloopa series
(company_id 7272) stitches two companies together: Beacon Roofing standalone through 2025Q1 (profitable,
~62M shares, positive FCF), then QXO consolidated from 2025Q2 (share count ~674M+, deeply GAAP
loss-making, capital structure in flux). Like-for-like Beacon was decelerating into the deal; QXO-era
Adj. EBITDA margin deteriorated to ~0.1% by 2026Q1, GAAP losses widened, net debt rose to ~$3.06B, and
shares diluted +7.7% in three quarters with more issuance pending. Revenue scale is being bought, not
grown. FCF is positive but thin and erratic -- the only thing keeping the score off the floor.
Weight: 25%
Adj. EBITDA Margin
~0.1%
2026Q1, off ~11% peak | Deteriorating
GAAP Net Income
$(227)M
2026Q1 loss; $(334)M to common | Deep losses
Share Count
Diluting
61.6M to 725.2M | Severe dilution
Critical structural caveat -- read first. QXO maps to Daloopa
company_id 7272 ("Beacon Roofing Supply"). The historical series is two different companies stitched
together: 2021FY-2025Q1 is Beacon standalone; 2025Q2 onward is QXO consolidated (Beacon acquired
4/29/2025, so 2025Q2 is a ~2-month stub and 2025Q3 is the first clean full consolidated quarter). YoY
growth comparisons across the 2025Q2 transition are not meaningful -- they compare Beacon-standalone
against QXO-consolidated.
Quarterly Metrics -- QXO Consolidated Era ($M)
| Metric | 2025Q2* | 2025Q3 | 2025Q4 | 2026Q1 |
|---|---|---|---|---|
| Net sales | $1,906.4 | $2,728.3 | $2,194.1 | $1,730.2 |
| Gross profit | $401.7 | $635.8 | $529.9 | $409.3 |
| Gross margin (%) | 21.1% | 23.3% | 24.2% | 23.7% |
| Adj. EBITDA | $204.6 | $301.9 | $150.3 | $1.2 |
| Adj. EBITDA margin (%) | 10.7% | 11.1% | 6.9% | 0.1% |
| GAAP net income (loss) | $(58.5) | $(139.4) | $(90.2) | $(227.1) |
| Diluted EPS | $(0.15) | $(0.24) | $(0.17) | $(0.35) |
| Free cash flow | $(9.1) | $182.4 | $158.2 | $48.1 |
| Shares O/S (M) | 673.6 | 674.4 | 708.6 | 725.2 |
| Long-term debt, net | $3,051.5 | $3,052.9 | $3,057.3 | $3,058.6 |
*2025Q2 reflects only ~2 months of Beacon ownership -- margins/FCF understated vs. a full quarter.
Adjusted EBITDA margin deteriorated within the QXO era to a
near-zero 0.1% in 2026Q1. Adj. EBITDA of just $1.2M on $1,730M of sales, roughly -1,100bps
off the Q3 peak. GAAP profitability is deeply negative every consolidated quarter, worsening to a
$(227.1)M net loss (-$0.35 EPS); net loss to common was $(334.4)M once preferred dividends are
included. Revenue is scaling while operating and GAAP income go the wrong way. (Q1 is a seasonal
winter trough for roofing distribution, which amplifies the latest reading.)
Annual (5-Year) Summary ($M) -- 2021-2024 Beacon Standalone, 2025 QXO Partial-Year (NOT Comparable)
| Metric | 2021FY | 2022FY | 2023FY | 2024FY | 2025FY† |
|---|---|---|---|---|---|
| Net sales | $6,642 | $8,429.7 | $9,119.8 | $9,763.2 | $6,842.2 |
| Revenue YoY (%) | — | +26.9% | +8.2% | +7.1% | n/m† |
| Gross profit | $1,757.7 | $2,235.5 | $2,342.7 | $2,504.8 | $1,572.7 |
| Gross margin (%) | 26.5% | 26.5% | 25.7% | 25.7% | 23.0% |
| Adj. EBITDA | $654.7 | $910.0 | $929.6 | $930.2 | $647.8 |
| Adj. EBITDA margin (%) | 9.9% | 10.8% | 10.2% | 9.5% | 9.5% |
| Free cash flow | $11.5 | $311.0 | $664.9 | $292.8 | $183.2 |
| Diluted EPS | $(0.57) | $5.55 | $(0.43) | $5.68 | $(0.63) |
| Shares O/S (M) | 70.1 | 64.3 | 63.4 | 61.6 | 708.6‡ |
| Long-term debt, net | $1,614.5 | $1,606.4 | $2,192.3 | $2,481.2 | $3,057.3‡ |
†2025FY consolidates Beacon only from 4/29/2025 (~8 months) -- partial-year and not comparable to full-year 2024. ‡Share count exploded from 61.6M (Beacon) to 708.6M (QXO) -- a >10x increase from the reverse-takeover structure, not organic operations.
Key trends
- Revenue is bought, not grown: On a like-for-like Beacon basis the top line was already decelerating into the deal (FY22 +26.9% to FY23 +8.2% to FY24 +7.1%); Beacon 2025Q1 sales were essentially flat YoY. Headline QXO revenue growth from here is acquired.
- Gross margin step-down: Running 21-24% post-deal vs. Beacon's 25.7% -- a structural ~200-400bps decline tied to acquisition accounting and mix. The modest recovery off the stub trough is not a true expansion.
- Adj. EBITDA margin deteriorating: 11.1% peak to ~0.1% in 2026Q1 (Adj. EBITDA of just $1.2M) -- a major red flag even allowing for Q1 winter seasonality.
- Severe dilution: Beyond the 61.6M to 708.6M reverse-takeover jump, the QXO entity itself diluted +7.7% in three quarters (673.6M to 725.2M), with more pending (Jan-2026 +31.6M, Kodiak +13.2M, TopBuild stock consideration, and up to $3.0B Series C convertible preferred).
Segment / Line-of-Business Mix (Beacon Standalone, Last Clean 2024)
End-market mix is ~80% repair-and-remodel / ~20% new construction. QXO has not yet re-segmented post-deal.
Penalty Modifiers Applied
| Modifier | Detail | Penalty |
|---|---|---|
| Share dilution >25% YoY | 725.2M vs. 62.2M a year ago; even on QXO-only basis +7.7% in 3 quarters with more issuance pending | -2 |
| Revenue up, income down | Consolidated revenue scaling while GAAP losses deepen to -$227M and Adj. EBITDA collapses to ~$1M | -1 |
| Negative-FCF penalty | Does NOT apply -- consolidated FCF is positive (just thin/volatile). The only thing keeping the score off the floor. | None |
Score Rationale
Score of 3/10 reflects financials dominated by a reverse-takeover rather than operating momentum.
Why 3/10 (base ~5-6, then penalties):
- Like-for-like Beacon revenue decelerating into the deal; QXO revenue growth is acquired, not organic (the rubric states revenue growth alone is not a financial strength)
- Gross margin structural step-down to 21-24% from Beacon's 25.7%
- Adj. EBITDA margin deteriorating to ~0.1% in 2026Q1; GAAP deeply loss-making every consolidated quarter
- Net debt rising to ~$3.06B alongside an acquired revenue base
- Share dilution penalty -2; revenue-up/income-down penalty -1
What keeps it off the floor:
- Consolidated FCF is positive ($182M, $158M, $48M in the last three quarters), avoiding the -2 negative-FCF penalty
- Sequential gross-margin recovery off the stub trough
- Gross-margin step-down is partly accounting-driven
Composite quality gate -- positiveGrowingFcf: NO. FCF is positive but thin and erratic, with the Adj. EBITDA margin collapsing to ~0.1% -- not a clean positive-and-growing profile.
Data sourced from Daloopa (company_id: 7272, mapped to Beacon Roofing Supply). Fiscal year ends December 31. QXO acquired Beacon 4/29/2025; series splices Beacon-standalone onto QXO-consolidated. All financials in USD.