Company: QXO-PB
Filing Date: 2025-04-16
Form Type: 424B5
Source: 0001140361-25-014221
Chunk: 61

Company: QXO, Inc.
Filing Date: 2025-04-16
Form: 424B5
Chunk 61
---
 | customer payment history; |

| • | review of the customer’s financial statements when available; |

| • | independent credit reports; and |

| • | discussions with customers. |

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**Beacon still pursues collection of amounts written off in certain circumstances and credit the allowance for any subsequent recoveries. Over the past three fiscal years, bad debt expense has been, on average, 0.12% of net sales. The continued limitation of bad debt expense is primarily attributable to the strengthening of the collections process and the overall credit environment.

Quantitative and Qualitative Disclosures about Market Risk

Beacon is exposed to certain market risks as part of its on-going business operations, including foreign currency exchange rate risk and commodity price risk.

Foreign Currency Exchange Rate Risk

Beacon has exposure to foreign currency exchange rate fluctuations for net sales generated by its operations outside of the U.S., which can adversely impact its net income and cash flows. Approximately 3.0% of its net sales in 2024 were derived from sales to customers in Canada. This business is primarily conducted in the local currency. This exposes Beacon to risks associated with changes in foreign currency that can adversely affect net sales, net income, and cash flows. A 10% fluctuation of foreign currency exchange rates would not have a material impact on the results of operations or cash flows; therefore, Beacon currently does not enter into financial instruments to manage this minimal foreign currency exchange risk.

Commodity Price Risk

Beacon is exposed to changes in prices of commodities used in its operations, primarily associated with energy, such as crude oil, and raw materials, such as asphalt and lumber. Beacon generally manages the risk of changes in commodity prices that impact its costs by seeking to pass commodity-related inflation on to its customers. Beacon may enter into derivative financial instruments to mitigate the potential impact of commodity price fluctuations on the results of operations or cash flows. As of December 31, 2024, Beacon had no such derivative financial instruments in place.**

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### BUSINESS OF BEACON
Unless otherwise indicated or the context otherwise requires, in this Business section, references to “Beacon” and the “Company” refer to Beacon and its consolidated subsidiaries before giving effect to the Acquisition.

### Overview
Beacon is the leading publicly-traded specialty wholesale distributor of roofing and complementary building products, including waterproofing products, in North America. Beacon has served the building industry