Company: QXO-PB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050298
Chunk: 161

Company: QXO, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 161
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 $5.5 $1,042.8 $17.0 Inventory fair value adjustments(1)51.4 — 131.7 — Adjusted Gross Profit$687.2 $5.5 $1,174.5 $17.0 Net sales$2,728.3 $13.1 $4,648.1 $42.1 Gross margin(2)23.3 %42.0 %22.4 %40.4 %Adjusted Gross Margin(2)25.2 %42.0 %25.3 %40.4 %(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 September 30,Nine Months Ended September 30,(in millions, except per share amounts)20252025Net loss$(139.4)$(189.2)Provision for (benefit from) income taxes128.9 (40.4)Loss before provision for income taxes(10.5)(229.6)Amortization117.8 197.8 Stock-based compensation31.1 116.3 Loss on debt extinguishment(1)— 45.7 Restructuring costs7.2 42.5 Transaction costs4.3 79.8 Transformation costs23.2 35.0 Inventory fair value adjustments(2)51.4 131.7 Adjusted income before provision for income taxes224.5 419.2 Income tax associated with the adjustments above(3)(58.3)(108.6)Adjusted Net Income$166.2 $310.6 Convertible Preferred Stock dividend(22.5)(67.5)Mandatory Convertible Preferred Stock dividend(7.9)(11.0)Undistributed income allocated to participating securities(14.6)(17.8)Adjusted Net Income attributable to common stockholders$121.