QXO Inc. disclosed a $750 million public offering of common stock, with shares priced at $23.80 each. The underwriter received an option to purchase an additional $112.5 million of shares at the same price, and the offering is expected to close on January 20, 2026.
The capital raise is part of QXO’s aggressive growth strategy, which aims to reach $50 billion in annual revenue within a decade. The proceeds will be used for general corporate purposes, including the pursuit of strategic acquisitions, and to support the company’s technology‑enabled transformation of the $800 billion building‑products distribution market.
QXO’s recent financial performance underscores the timing of the offering. In the fourth quarter of 2025, the company reported preliminary unaudited net sales of approximately $2.19 billion and adjusted EBITDA of about $150 million. In the third quarter of 2025, net sales were $2.73 billion, with a net loss of $139.4 million and adjusted EBITDA of $301.9 million, indicating a strong earnings‑quality trend and a solid foundation for further expansion.
Following the announcement, QXO’s shares fell, reflecting investor concerns about dilution and sector rotation. The market reaction was tempered by the company’s clear focus on long‑term value creation through acquisitions and technology investments, which are expected to drive future revenue growth and margin improvement.
Brad Jacobs, Chairman and CEO, emphasized that the offering provides the financial flexibility needed to accelerate the company’s M&A pipeline and to deepen its technology platform. He noted that the capital raise will help QXO consolidate the fragmented industry and accelerate the deployment of AI‑driven pricing and operational efficiencies across its distribution network.
The $750 million equity issuance strengthens QXO’s balance sheet, providing liquidity to pursue high‑quality acquisition targets while supporting ongoing technology initiatives. While the transaction dilutes existing shareholders, the strategic intent is to generate long‑term shareholder value through accelerated growth and margin expansion.
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