Company: QXO-PB
Filing Date: 2025-04-16
Form Type: 424B5
Source: 0001140361-25-014221
Chunk: 55

Company: QXO, Inc.
Filing Date: 2025-04-16
Form: 424B5
Chunk 55
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 in 2024, up from $1.45 billion in 2023. The increase in SG&A expense was primarily driven by acquisitions, greenfields, as well as an increase in one-time acquisition integration costs and restructuring costs. The increase in organic SG&A expense was mainly influenced by the following factors:

| • | a $61.1 million increase in payroll and employee benefit costs, primarily due to inflationary wage increases and higher average headcount in 2024 largely driven by greenfields, which contributed $16.5 million to the increase. To a lesser extent, the increase in payroll and employee benefit costs was due to one-time severance and employee benefit costs for employees impacted by Beacon’s operating cost reduction initiative. At the end of the third quarter of 2024, in response to market conditions, Beacon reduced its headcount. These actions are expected to yield annualized cost savings of $45 million, approximately $30 million of which will be realized in 2025; |

| • | a $25.3 million increase in warehouse operating costs, primarily due to higher rent expense across Beacon’s existing locations coupled with greenfields opened during the year, which contributed $10.2 million to the increase; and |

| • | a $10.3 million increase in general and administrative expenses, primarily due to an increase in acquisition-related costs of $5.1 million, costs attributable to greenfields of $2.7 million, and higher professional fees. |

Total SG&A expense as a percent of net sales was higher in 2024 when compared to 2023 primarily as a result of the above factors. The impact of recent greenfields that have not yet fully matured and acquired branches that are not yet fully synergized also negatively affected Beacon’s operating leverage. Depreciation Expense Depreciation expense was $109.9 million in 2024, compared to $91.2 million in 2023. The comparative increase was primarily due to an increase in property and equipment as a result of new and acquired branches in 2024. Amortization Expense Amortization expense was $91.9 million in 2024, compared to $85.0 million in 2023. The comparative increase was primarily due to amortization expense associated with new intangible assets as a result of recent acquisitions.

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Interest Expense, Financing Costs and Other Interest expense, financing costs and other expense was $177.3 million in 2024, compared to $126.