Shares of QXO, Inc.'s 5.50% Series B Mandatory Convertible Preferred Stock closed at $35.39 on November 2, 2026, a 29.22% discount to the security's $50 liquidation preference, according to the company's prospectus filed with the Securities and Exchange Commission and recent market pricing. The depositary shares, each representing a 1/20th interest in a preferred share, carry an annual dividend of $2.75 and a current yield of 7.77% at that price, well above the original 5.5% coupon set when the shares priced.
The gap between market price and par reflects how convertible preferred securities move with the underlying common stock as well as broader credit and rate conditions. QXO's mandatory convertible preferred will convert into common shares no later than May 15, 2028, at a conversion price ranging from $16.50 to $20.21 per common share, according to the prospectus, with a corresponding conversion ratio of between 49.4740 and 3.0303 common shares per preferred share depending on where QXO's common stock trades at conversion. With QXO common stock closing at $11.68 on November 2, below the low end of that conversion price range, the preferred is currently trading well under what its eventual conversion value would be if the common price stayed where it is.
For income-focused investors, the combination of a mandatory conversion feature and a price well below par means the security behaves differently from a traditional perpetual preferred. There is no call date and the shares are not redeemable at the company's option, and because conversion is mandatory rather than optional, holders will receive common stock (subject to the conversion formula) rather than cash at maturity in 2028, unless QXO elects an alternative permitted under the terms of the prospectus. The security remains cumulative, meaning any missed dividend payments would need to be paid before common shareholders receive dividends, a protection embedded in the original SEC filing.
The preferred's current pricing sits against the backdrop of QXO's rapid transformation. The company, formerly known as SilverSun Technologies, changed its name to QXO on June 6, 2024, and completed its acquisition of Beacon Roofing Supply, Inc. on April 29, 2025, according to the company's SEC disclosures. Beacon, renamed QXO Building Products, Inc., has operated in the building industry for more than 95 years and runs roughly 600 branches across all 50 U.S. states and seven Canadian provinces. QXO describes its ambition as building a technology-forward leader in the approximately $800 billion building products distribution sector. The Series B preferred offering, which raised proceeds from 10,000,000 depositary shares plus a 1,500,000-share overallotment option issued May 27, 2025, was used together with a concurrent common stock offering to repay indebtedness under the company's term loan facility and to strengthen its position for future acquisitions, per the prospectus's stated use of proceeds.
QXO's common stock has traded in a 52-week range of $27.61 to $10.04, and closed at $11.68 on November 2, up 5.80% on the day. The preferred has traded in a 52-week range of $75.00 to $33.84, meaning the November 2 close sits near the lower end of that band. Recent coverage of QXO has focused on earnings expectations: Zacks Investment Research published a note on October 29, 2026, titled "Analysts Estimate QXO, Inc. (QXO) to Report a Decline in Earnings," while Simply Wall St published separate pieces on October 30 and October 31, 2026, examining earnings trends and a new partnership alongside the company's valuation.
The preferred's discount to par comes amid broader market volatility. Equity markets have seen sharp moves in sectors ranging from semiconductors, with Oracle, Intel, AMD and Micron all posting declines on the day, to industrials, where GE Aerospace and Lowe's Companies posted gains. Materials-sector names like QXO sit at the intersection of building activity, interest rate expectations and credit spreads, all of which can influence how convertible preferred securities are priced relative to their stated liquidation value.
Investors tracking the security are likely to watch several factors into 2028: QXO's quarterly earnings reports, including any updates on Beacon integration costs and synergies; movements in QXO's common stock price relative to the $16.50 to $20.21 conversion band; and any changes in the cumulative dividend payment schedule, with the next payment dates falling on the company's standard quarterly cycle of February 15, May 15, August 15 and November 15. The mandatory conversion date of May 15, 2028, remains the fixed event that will determine how holders' preferred shares convert into QXO common stock, based on the price of that stock at the time.