Company: VRT
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001674101-25-000024
Chunk: 62

Company: Vertiv Holdings Co
Filing Date: 2025-10-22
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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8 in the nine months of 2025, or 35.3% of sales, compared to $2,064.0, or 36.4% of sales in the third quarter of 2024. Margin was slightly down in the first nine months of 2025 due primarily to the mix of product and service sales in addition to tariffs.

Selling, General and Administrative Expenses 

Selling, general and administrative expenses (“SG&A”) were $1,156.2 in the first nine months of 2025, an increase of $143.8, or 14.2% compared to the first nine months of 2024. The increase in SG&A was primarily driven by increased compensation costs. SG&A as a percentage of sales were 15.7% in the first nine months of 2025 compared with 17.9% in the first nine months 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 $187.8 for the first nine months of 2025, which was a $46.4 increase from the first nine months of 2024. The increase was primarily due to a $29.6 increase in restructuring costs and a $15.7 decrease in other operating expense (income) primarily due to the 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 private warrants. The change in fair value of the outstanding private warrants during the first nine months of 2024 resulted in a loss of $269.2. The change in fair value of these warrants was the result of changes in market prices of our common stock, and other observable inputs deriving the value of the financial instruments. On December 6, 2024, Cote SPAC I LLC elected to exercise the remaining 5,266,667 outstanding private warrants on a cashless basis pursuant to the agreement governing the warrants, in exchange for which the Company issued 4,812,521 shares of Class A common stock. As of September 30, 2025, there were no private warrants outstanding.

Interest Expense

Interest expense, net, was $69.4 in the first nine months of 2025 compared to $119.7 in the first nine months of 202