Company: QXO-PB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040367
Chunk: 99

Company: QXO, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 99
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 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(177.8)(0.2)(169.3)(0.2)Restructuring costs35.3 2.8 35.3 2.8 Transaction costs65.6 — 75.5 — Transformation costs11.8 — 11.8 — Inventory fair value adjustments(2)80.3 — 80.3 — Adjusted EBITDA$204.6 $(1.2)$195.6 $(0.7)Net sales$1,906.4 $14.5 $1,919.8 $29.0 Net margin(3) (3.1)%(4.1)%(2.6)%(1.7)%Adjusted EBITDA Margin(3)10.7 %(8.3)%10.2 %(2.4)%(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) Net margin is calculated as net income (loss) divided by net sales. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by net sales.

Seasonality

The demand for exterior building materials is closely correlated to both seasonal changes and unpredictable weather patterns, therefore demand fluctuations are expected. In general, we expect our net sales and net income to be the highest in quarters ending June 30, September 30, and December 31, which represent the peak months of construction and re-roofing. Conversely, we expect low net income levels