Company: VRT
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001674101-25-000024
Chunk: 121

Company: Vertiv Holdings Co
Filing Date: 2025-10-22
Form: 10-Q
Item: Part I, Item 2
Chunk 121
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 & Spares sales increased $50.3, which included positive impacts from foreign currency of $4.2.

Excluding intercompany sales, net sales were $1,712.4 in the Americas, $519.8 in Asia Pacific, and $443.6 in Europe, Middle East & Africa. Movements in net sales by segment and offering are each detailed in the Business Segment section below.

Cost of Sales

Cost of sales were $1,665.1 in the third quarter of 2025, an increase of $348.0, or 26.4% compared to the third quarter of 2024. The increase in cost of sales was primarily driven by the impact of higher sales volumes. Gross profit was $1,010.7 in the third quarter of 2025, or 37.8% of sales, compared to $756.4, or 36.5% of sales in the third quarter of 2024. Margin expansion in the third quarter of 2025 was primarily driven by the mix of product and service sales. 

Selling, General and Administrative Expenses

Selling, general and administrative expenses (“SG&A”) were $414.3 in the third quarter of 2025, an increase of $79.7 compared to the third quarter of 2024. The increase in SG&A was primarily driven by increased compensation costs. SG&A as a percentage of sales were 15.5% in the third quarter of 2025 compared with 16.1% in the third quarter of 2024.

Other Operating Expense

The remaining other operating expenses includes amortization of intangibles, restructuring costs, foreign currency (gain) loss, and other operating expense (income). These remaining operating expenses were $79.7 for the third quarter of 2025, which was a $29.5 increase from the third quarter of 2024. The increase was primarily due to a $24.4 increase in restructuring costs and a $6.6 increase in other operating expense (income) primarily due to mark-to-market losses associated with the economic hedges.

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Change in Fair Value of Warrant Liabilities

Change in fair value of warrant liabilities represents the mark-to-market fair value adjustments to the then outstanding warrants. The change in fair value of outstanding private warrants during the third quarter of 2024 resulted in a loss of $67.2. The change in fair value of these warrants is the result of changes in market prices of our common stock