Company: QXO-PB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040367
Chunk: 203

Company: QXO, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 203
---
.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.(3) The effective tax rate to calculate Adjusted Net Income (Loss) for the three and six months ended June 30, 2025 is 25.84%, due to the impacts on certain tax deductions on adjusted income (loss) before provision for income taxes.(4) Adjusted Diluted EPS is calculated as Adjusted Net Income (Loss) divided by the weighted-average number of common shares outstanding during the period plus the effect of dilutive common share equivalents based on the most dilutive result of the if-converted and two-class methods.

35

Adjusted EBITDA and Adjusted EBITDA Margin

A reconciliation of net loss to Adjusted EBITDA and Adjusted EBITDA Margin is as follows: 

Three Months Ended June 30,Six Months Ended June 30,(in millions, except percentages)2025202420252024Net loss$(58.5)$(0.6)$(49.8)$(0.5)Depreciation27.2 0.1 27.3 0.2 Amortization79.8 0.2 80.0 0.4 Stock-based compensation65.0 — 85.2 — Interest expense (income), net30.2 (3.5)(26.4)(3.4)Loss on debt extinguishment(1)45.7 — 45.7 — Benefit from income taxes