Company: QXO-PB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040367
Chunk: 163

Company: QXO, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 163
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 %40.0 %25.4 %39.7 %(1) Represents the inventory fair value adjustments related to recording the inventory of acquired businesses at fair value on the date of acquisition. We expect the inventory fair value adjustments to be fully recognized during the year ended December 31, 2025.(2) Gross margin is calculated as gross profit divided by net sales. Adjusted Gross Margin is calculated as Adjusted Gross Profit divided by net sales.

34

Adjusted Net Income and Adjusted Diluted EPS

A reconciliation of net loss and diluted loss per common share to Adjusted Net Income and Adjusted Diluted EPS is as follows: 

Three Months Ended June 30,Six Months Ended June 30,(in millions, except per share amounts)20252025Net loss$(58.5)$(49.8)Benefit from income taxes(177.8)(169.3)Loss before provision for income taxes(236.3)(219.1)Amortization79.8 80.0 Stock-based compensation65.0 85.2 Loss on debt extinguishment(1)45.7 45.7 Restructuring costs35.3 35.3 Transaction costs65.6 75.5 Transformation costs11.8 11.8 Inventory fair value adjustments(2)80.3 80.3 Adjusted income before provision for income taxes147.2 194.7 Income tax associated with the adjustments above(3)38.0 50.3 Adjusted Net Income$109.2 $144.4 Convertible Preferred Stock dividend(22.5)(45.0)Mandatory Convertible Preferred Stock dividend(3.1)(3.1)Undistributed income allocated to participating securities— — Adjusted Net Income attributable to common stockholders$83.6 $96.3 Basic and diluted loss per common share$(0.15)$(0.19)Adjusted Diluted EPS(4)$0.11 $0.17 Adjusted diluted weighted-average common shares outstanding(4)702.0580.6(1) Represents extinguishment costs resulting from the partial prepayment of borrowings under the Term Loan Facility (as defined below).(2) Represents the inventory fair value adjustments related to recording the inventory of acquired businesses at fair value on the date of acquisition. We expect the inventory fair value adjustments to be fully recognized during the year ended December 31, 2025.(