Company: QXO-PB
Filing Date: 2025-04-18
Form Type: 424B5
Source: 0001140361-25-014598
Chunk: 37

Company: QXO, Inc.
Filing Date: 2025-04-18
Form: 424B5
Chunk 37
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 rebates could adversely affect our income and gross margins. The terms on which we purchase products from many of our vendors entitle us to receive a rebate based on the volume of our purchases. These rebates effectively reduce our costs for products. Vendors may adversely change the terms of some or all of these programs for a variety of reasons, including if market conditions change. Although these changes would not affect the net recorded costs of product already purchased, it may lower our gross margins on products we sell and therefore the income we realize on such sales in future periods. Risks Related to Acquisitions and our Growth Strategy We may not be able to identify potential acquisition targets or successfully complete acquisitions on acceptable terms, which could slow our inorganic growth rate. Our growth strategy includes acquiring other distributors of roofing materials and complementary building products, such as siding and waterproofing. We continually seek additional acquisition candidates in selected markets, which include engaging in exploratory discussions with potential acquisition candidates, as well as engaging in competitive bidding processes for potential acquisition candidates. We are unable to predict whether or when we will be able to identify any suitable acquisition candidates, or, if we do, the likelihood that any such potential acquisition will be completed. If we cannot complete acquisitions that we identify on acceptable terms, our inorganic growth rate may decline. In addition, our current and potential competitors have made and may continue to make acquisitions that include acquisition candidates in which we were, or would have been, interested in pursuing and such competitors may establish cooperative relationships among themselves or with third parties. In the event that our inorganic growth does not keep pace with any significant consolidation among distributors of roofing materials and complementary building products, our competitive position could be adversely affected. We may not be able to effectively integrate newly acquired businesses into our operations or achieve expected cost savings or profitability from our acquisitions. Acquisitions involve numerous risks, including:

| • | unforeseen difficulties or disruptions in integrating operations, technologies, services, accounting, and employees; |

| • | diversion of financial and management resources from existing operations; |

| • | unforeseen difficulties related to entering geographic regions where we do not have prior experience; |

| • | potential loss of key employees; |

| • | unforeseen cybersecurity risks related to the businesses acquired or to the manufacturers and vendors the acquired businesses rely on; |

| • | unforeseen liabilities and expenses associated with businesses acquired; and |

| • | inability to generate sufficient revenue or realize sufficient cost savings to offset acquisition or investment costs. |

As a result, if we fail to evaluate