Company: QXO-PB
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001628280-25-009626
Chunk: 30

Company: QXO, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 16
Chunk 30
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—$— Granted13,47011.57 Balance at end of period13,470$11.57 As of December 31, 2024, total unrecognized compensation expense related to unvested RSUs was $143.1 million and is expected to be recognized over a weighted-average period of 4.93 years.pRSUsThe Company granted pRSUs which include a service-based vesting condition and a market condition for exercisability. The service condition is 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 %

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The following table summarizes the activity related to the Company’s pRSUs for the year ended December 31, 2024:(in thousands, except for weighted average grant date fair value)Number of pRSUsWeighted Average Grant Date Fair ValueBalance at beginning of period—$— Granted8,42020.24 Balance at end of period8,420$20.24 As of December 31, 2024, total unrecognized compensation expense related to unvested pRSUs was $148.5 million and is expected to be recognized over a weighted-average period of 3.52 years.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 p