Company: QXO-PB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023834
Chunk: 51

Company: QXO, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 subject to the employee’s continued employment with the Company through the applicable vesting date. The vesting of certain pRSUs is also subject to achievement of performance goals relating to the Company’s TSR compared to the TSR 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 three months ended March 31, 2025:(in thousands, except for weighted average grant date fair value)Number of pRSUsWeighted Average Grant Date Fair ValueBalance at beginning of period8,420 $20.24 Granted — — Balance at end of period8,420 $20.24 As of March 31, 2025, total unrecognized compensation expense related to unvested pRSUs was $135.9 million and is expected to be recognized over a weighted-average period of 3.33 years.

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The fair value of the RSUs with a market condition was determined on the date of grant using a Monte Carlo model to simulate total stockholder return for the Company and peer companies with the following assumptions:Performance Period4.42 yearsWeighted-average risk-free interest rate4.03 %Weighted-average expected volatility40 %Weighted-average dividend yield0 %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. As of March 31, 2025, there were 26.8 million additional shares of the Company’s common stock reserved for future issuance under the 2024 Plan.Share-Based Compensation ExpenseShare-based compensation expense is included within selling, general and administrative expenses in the condensed consolidated statements of operations. The Company recognized share-based compensation