Company: QXO-PB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050298
Chunk: 99

Company: QXO, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 99
---
)$(0.46)Adjusted Diluted EPS(4)$0.14 $0.32 Adjusted diluted weighted-average common shares outstanding(4)875.3679.6(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 nine months ended September 30, 2025 is 26.0% and 25.9%, respectively, due to the tax calculated 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 September 30,Nine Months Ended September 30,(in millions, except percentages)2025202420252024Net (loss) income$(139.4)$17.2 $(189.2)$16.7 Depreciation39.7 — 67.0 0.2 Amortization117.8 0.2 197.8 0.6 Stock-based compensation31.1 14.0 116.3 14.0 Interest expense (income), net37.7 (57.0)11.3 (60.4)Loss on debt extinguishment(1)— — 45.7 — Provision for (benefit from) income taxes128.9 6.1 (40.4)5.9 Restructuring costs7.2 — 42.5 2.8 Transaction costs4.3 8.1 79.8 8.1 Transformation costs23.2 — 35.0 — Inventory fair value adjustments(2)51.4 — 131.7 — Adjusted EBITDA$301