Company: QXO-PB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050298
Chunk: 201

Company: QXO, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 201
---
 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$301.9 $(11.4)$497.5 $(12.1)Net sales$2,728.3 $13.1 $4,648.1 $42.1 Net margin(3) (5.1)%131.3 %(4.1)%39.7 %Adjusted EBITDA Margin(3)11.1 %(87.0)%10.7 %(28.7)%(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) Net margin is calculated as net income (loss) divided by net sales. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by net sales.

Seasonality

The demand for exterior building materials is closely correlated to both seasonal changes and unpredictable weather patterns, therefore demand fluctuations are expected. In general, we expect our net