📊 AI Stock Rating — Summary

For the quarter ending September 30, 2025, QXO reported revenues of $2.73 billion but incurred a net loss of $139 million, resulting in an EPS of -$0.24. This indicates downward pressure on profitability as the company navigates challenging economic conditions or operational hurdles. Free cash flow was generated at $182.4 million, showcasing resilience in cash generation after deducting $30.1 million in capital expenditures. The firm's balance sheet remains robust, with total assets of $16.64 billion, liabilities measured at $6.82 billion, thus preserving a substantial equity base of $9.82 billion. Despite holding net debt of $1.65 billion, cash reserves are healthy at over $2.31 billion, indicating liquidity strength. Over the past year, QXO's share price has shown impressive resilience amid a volatile market. Buy-side analyst sentiments remain positive with price targets reaching up to $35, pointing toward potential valuation upside. Although no stock repurchases were made, a significant dividend was paid earlier, reflecting a focus on planned shareholder distributions.

AI Score Breakdown

Revenue Growth — Score: 6/10

Revenue growth remains stable, with quarterly revenues of $2.73 billion. However, growth drivers have not evidently translated into net income improvements, requiring focus on cost efficiency.

Profitability — Score: 4/10

The firm's net income of -$139 million and negative EPS highlight operational challenges. Enhanced strategies for improving gross margins and cost controls are necessary to restore profitability.

Cash Flow Quality — Score: 7/10

The generation of $182.4 million in free cash flow demonstrates solid operational cash capabilities. Coupled with substantial liquidity of $2.31 billion, QXO shows adeptness in maintaining cash inflow amid profit strains.

Leverage & Balance Sheet — Score: 7/10

QXO's balance sheet is strong with equity totaling $9.82 billion. Net debt appears manageable at $1.65 billion, with cash reserves covering more than total debt obligations, indicating high financial resilience.

Shareholder Returns — Score: 5/10

Shareholder returns are mixed; while large dividends have been paid, shares remain absent from repurchase activities. Market price performance data is missing, affecting comprehensive return evaluation.

Analyst Sentiment & Valuation — Score: 6/10

With price targets reaching $35, analysts suggest room for appreciation. Valuation appears balanced given industry trends, though lacking metrics limits more detailed assessment.

⚠ AI-generated — informational only, not financial advice.