Company: QXO-PB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040367
Chunk: 164

Company: QXO, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 164
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3) The effective tax rate to calculate Adjusted Net Income (Loss) for the three and six months ended June 30, 2025 is 25.84%, due to the impacts on certain tax deductions on adjusted income (loss) before provision for income taxes.(4) Adjusted Diluted EPS is calculated as Adjusted Net Income (Loss) divided by the weighted-average number of common shares outstanding during the period plus the effect of dilutive common share equivalents based on the most dilutive result of the if-converted and two-class methods.

35

Adjusted EBITDA and Adjusted EBITDA Margin

A reconciliation of net loss to Adjusted EBITDA and Adjusted EBITDA Margin is as follows: 

Three Months Ended June 30,Six Months Ended June 30,(in millions, except percentages)2025202420252024Net loss$(58.5)$(0.6)$(49.8)$(0.5)Depreciation27.2 0.1 27.3 0.2 Amortization79.8 0.2 80.0 0.4 Stock-based compensation65.0 — 85.2 — Interest expense (income), net30.2 (3.5)(26.4)(3.4)Loss on debt extinguishment(1)45.7 — 45.7 — Benefit from income taxes(177.8)(0.2)(169.3)(0.2)Restructuring costs35.3 2.8 35.3 2.8 Transaction costs65.6 — 75.5 — Transformation costs11.8 — 11.8 — Inventory fair value adjustments(2)80.3 — 80.3 — Adjusted EBITDA$204.6 $(1.2)$195.6 $(0.7)Net sales$1,906.4 $14.5 $1,919.8 $29.0 Net margin(3) (3.1)%(4.1)%(2.6)%(1.7)%Adjusted EBITDA Margin(3)10.7 %(8.3)%10.2 %(2.4)%(1) Represents extinguishment costs resulting from the partial prepayment of borrowings under the Term Loan Facility (as defined below).(2) Represents the inventory