Company: QXO-PB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050298
Chunk: 144

Company: QXO, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 144
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 the Company’s total stock return compared to the total stock return ranking of each company that is in the S&P 500 index. The performance goals for a portion of the PRSUs will be measured over a cumulative performance period ending on December 31, 2028, and the performance goals for the remainder of the PRSUs will be measured based on designated performance periods that occur within such cumulative period.The following table summarizes the market-based conditions: Percentile Position vs.S&P 500 Index CompaniesUnits Earned as aPercentage of TargetBelow 55th Percentile— %55th Percentile100 %65th Percentile150 %75th Percentile175 %80th Percentile200 %90th Percentile225 %The following table summarizes the activity related to the Company’s PRSUs for the nine months ended September 30, 2025:(in millions, except for weighted average grant date fair value)Number of PRSUsWeighted Average Grant Date Fair ValueBalance at beginning of period8.4 $20.24 Granted 0.4 $18.66 Balance at end of period8.8 $20.17 As of September 30, 2025, total unrecognized stock-based compensation expense related to unvested PRSUs was $116.4 million and is expected to be recognized over a weighted-average period of 3.0 years.

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The fair value of PRSUs with a market condition is determined on the date of grant using a Monte Carlo model to simulate total stockholder return for the Company and peer companies. The following weighted-average assumptions were used in the Monte Carlo model in determining the fair value of PRSUs granted during the nine months ended September 30, 2025 and 2024:Nine Months Ended September 30,20252024Performance period3.66 years4.42 yearsRisk-free interest rate3.8 %4.0 %Expected volatility42.3 %40.0 %Dividend yield— %— %The risk-free interest rate is based on the U.S. Treasury yield curve with a term equal to the expected term of the PRSU in effect at the time of grant. Expected volatility is based on historical volatility of the stock of the Company’s peer industry group. The RSUs and PRSUs may vest in whole or in part before the applicable vesting date if the grantee’s employment is terminated by the Company without cause or by the grant