QXO, Inc.
QXO Industrials Industrial Distribution
QXO, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $6.8 billion, up 11,925.0% from fiscal 2024. In the quarter to June 2026, revenue grew 70.3%, EPS grew 6.67%, free cash flow fell 27.6% and total debt rose 82.0%, each against the same quarter a year earlier. Revenue growth for ten consecutive years.
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QXO, Inc. (QXO) Altman Z-score
QXO, Inc.'s Altman Z-score for fiscal 2025 is 1.79, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 1.79 | (42.22) |
| FY2024 | 44.02 | 37.54 |
| FY2023 | 6.47 | 3.56 |
| FY2022 | 2.92 | (1.09) |
| FY2021 | 4.01 | 0.37 |
| FY2020 | 3.64 | 0.54 |
| FY2019 | 3.09 | 0.52 |
| FY2018 | 2.57 | (1.83) |
| FY2017 | 4.40 | 0.38 |
| FY2016 | 4.02 | 1.46 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.25 | — | 0.30 | |
| Retained earnings / total assets | (0.02) | — | −0.03 | |
| EBIT / total assets | (0.02) | — | −0.05 | |
| Market value of equity / total liabilities | 1.91 | — | 1.15 | |
| Sales / total assets | 0.43 | — | 0.43 | |
| Altman Z-score | Distress zone | 1.79 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.11 | ||
Z and Z″ put QXO, Inc. in different zones: distress zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| AIT Applied Industrial Technologies, Inc. compare | 10.5× |
| WSO.B Watsco, Inc. compare | 9.7× |
| WSO Watsco, Inc. compare | 9.6× |
| MSM MSC Industrial Direct Company, Inc. compare | 5.3× |
| POOL Pool Corporation compare | 4.6× |
| XMTR Xometry, Inc. compare | 4.6× |
| CNM Core & Main, Inc. compare | 3.6× |
| WCC WESCO International, Inc. compare | 3.1× |
| QXO QXO, Inc. | 1.8× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets