Is the business good?
How good a business is QXO?
QXO, Inc. earns −2.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−2.0%
Return on invested capital · cost of capital 9.0% · 11 points below what the capital costs: growth destroys value
- Operating margin
- −3.4%
Operating margin · Industrial Distribution median 8.5% · 12 months to Q2 2026
- Share count, year on year
- +36%
Share count, year on year · shareholders own a smaller slice than a year ago
- Gross margin
- 24%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 0.54% |
| FY2021 | −0.55% |
| FY2022 | −0.86% |
| FY2023 | −2.4% |
| FY2024 | −125% |
| FY2025 | −3.6% |
Details›
- Gross margin12 months to Q2 2026
- 24%
- Operating margin12 months to Q2 2026
- −3.4%
- Net margin12 months to Q2 2026
- −5.2%
- Free cash flow margin
- 1.4%
- Revenue, trailing twelve months
- $9.90B
- Free cash flow, trailing twelve months
- $141M
- Net income, trailing twelve months
- −$512M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −2.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Industrial Distribution
Ranks #14 of 17 by Smart Score