Company: QXO-PB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050298
Chunk: 94

Company: QXO, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 94
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 30, 2024. The comparative increase was primarily due to higher cost of products sold associated with increased net sales as a result of the Beacon Acquisition. Cost of products sold was also negatively impacted by the inventory fair value adjustments as a result of recording Beacon’s inventory at fair value on the acquisition date. 

Cost of products sold for the nine months ended September 30, 2025 increased to $3.61 billion, up from $25.1 million for the nine months ended September 30, 2024. The comparative increase was primarily due to higher cost of products sold associated with increased net sales as a result of the Beacon Acquisition. Cost of products sold was also negatively impacted by the inventory fair value adjustments as a result of recording Beacon’s inventory at fair value on the acquisition date. 

Selling, General and Administrative (“SG&A”) Expense

SG&A expense for the three months ended September 30, 2025 increased to $452.5 million, up from $39.0 million for the three months ended September 30, 2024. The increase in SG&A expense was primarily driven by costs incurred to support the ongoing operations of our business subsequent to the Beacon Acquisition as well as incremental costs of $23.2 million related to our transformation efforts, which are directed at simplifying, streamlining, and optimizing the Company’s operations. The increase in SG&A expense was also attributable to an increase in stock-based compensation expense of $17.1 million.

SG&A expense for the nine months ended September 30, 2025 increased to $953.7 million, up from $54.0 million for the nine months ended September 30, 2024. The increase in SG&A expense was primarily driven by costs incurred to support the ongoing operations of our business subsequent to the Beacon Acquisition as well as increases in stock-based compensation expense of $102.3 million, acquisition-related transaction costs of $71.7 million and restructuring charges of $39.7 million.

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Depreciation Expense

Depreciation expense was $39.7 million for the three months ended September 30, 2025, compared to a de minimis amount of depreciation expense for the three months ended September 30, 2024. The comparative increase was primarily due to an increase in property and equipment as a result of the Beacon Acquisition.

Depreciation expense was $67.0 million for the nine months ended September 30, 2025, compared to $0.2 million for the nine