Company: QXO-PB
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001628280-25-009626
Chunk: 75

Company: QXO, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 7
Chunk 75
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 cash position due to the cash infusion from the Equity Investment (as defined below) and the private placements that closed in July 2024. 

Non-GAAP Financial Measures

Adjusted EBITDA

To provide investors with additional information regarding our financial results, we have disclosed here and elsewhere in this Annual Report Adjusted EBITDA, a non-GAAP financial measure that we calculate as net income (loss) excluding depreciation and amortization; share-based compensation; income tax (benefit) provision; interest (income) expense; transaction costs; transformation costs; severance costs and other items that we do not consider representative of our underlying operations. We have provided a reconciliation below of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure. Management uses Adjusted EBITDA in making financial, operating and planning decisions and evaluating QXO’s ongoing performance.

We believe that Adjusted EBITDA facilitates analysis of our ongoing business operations because it excludes items that may not be reflective of, or are unrelated to, QXO’s core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying business. Other companies may calculate this non-GAAP financial measure differently, and therefore our measure may not be comparable to similarly titled measures of other companies. This non-GAAP financial measure should only be used as a supplemental measure of our operating performance. 

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, net income (loss), and our other GAAP results.

The following table presents a reconciliation of net income (loss) to Adjusted EBITDA.  

Year Ended December 31, (in thousands)20242023Reconciliation of net income (loss) to Adjusted EBITDANet income (loss)$27,969 $(1,070)Add (deduct):Depreciation and amortization1,122 1,001 Share-based compensation34,513 41 Interest (income) expense(121,812)56 Provision (benefit) for income taxes22,843 (297)Transaction costs12,765 2,986 Severance costs2,768 — Adjusted EBITDA$(19,832)$2,717 

The year-over-year decline for the year ended December 31, 2024 Adjusted EBITDA was due to higher employee-related costs, reflecting the introduction of a new senior management team to execute the Company’s expansive growth