# EDGAR Filing Document

**Accession Number:** 0001236275
**File Stem:** 0001628280-26-034130
**Filing Date:** 2026-5
**Character Count:** 387355
**Document Hash:** 6351f133338aa843349fe1621a17a4fc
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-034130.hdr.sgml**: 20260512

**ACCESSION NUMBER**: 0001628280-26-034130

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 88

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260512

**DATE AS OF CHANGE**: 20260512

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** QXO, Inc.
- **CENTRAL INDEX KEY:** 0001236275
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-LUMBER & OTHER CONSTRUCTION MATERIALS [5030]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 161633636
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38063
- **FILM NUMBER:** 26968872

**BUSINESS ADDRESS:**
- **STREET 1:** FIVE AMERICAN LANE
- **CITY:** GREENWICH
- **STATE:** CT
- **ZIP:** 06831
- **BUSINESS PHONE:** 888-998-6000

**MAIL ADDRESS:**
- **STREET 1:** FIVE AMERICAN LANE
- **CITY:** GREENWICH
- **STATE:** CT
- **ZIP:** 06831

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SilverSun Technologies, Inc.
- **DATE OF NAME CHANGE:** 20110803

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TREY RESOURCES INC
- **DATE OF NAME CHANGE:** 20050923

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TREY INDUSTRIES INC
- **DATE OF NAME CHANGE:** 20030528

?xml version='1.0' encoding='ASCII'? qxo-20260331

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549**

____________

**FORM 10-Q**

____________

⌧ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

For the quarterly period ended: **March 31, 2026** 

or

**☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Commission File Number**: <u>001-</u><u>38063</u>**

![QXO_logo.jpg](qxo-20260331_g1.jpg)

**<u>QXO, INC.</u>**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **<u>Delaware</u>**<br>(State or other jurisdiction of incorporation) | **<u>16-1633636</u>**<br>(IRS Employer Identification No.) |

---

**Five American Lane**

**<u>Greenwich</u>**<u>,</u> **<u>CT 06831</u>**

(Address of principal executive offices)

**<u>(888)</u> <u>998-6000</u>**

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading Symbol(s)</u>** | **<u>Name of each exchange on which registered</u>** |
| Common Stock, par value $0.00001 per share | QXO | New York Stock Exchange |
| Depositary Shares, each representing a 1/20th interest in a share of 5.50% Series B Mandatory Convertible Preferred Stock, par value $0.001 per share | QXO.PRB | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | □ | Accelerated filer | □ |
| Non-accelerated filer | ⌧ | Smaller Reporting Company | □ |
| | | Emerging Growth Company | □ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

As of May 5, 2026, there were 725,168,030 shares outstanding of the registrant's common stock.

------

**QXO, INC. AND SUBSIDIARIES**

**FORM 10-Q**

**For the Quarter Ended March 31, 2026** 

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
| **<u>[PART I.](#i894afd661f7d48ab9b55770eff101255_10)</u>** | **<u>[FINANCIAL INFORMATION](#i894afd661f7d48ab9b55770eff101255_10)</u>** | **<u>Page</u>** |
| <u>[Item 1.](#i894afd661f7d48ab9b55770eff101255_13)</u> | <u>[Condensed Consolidated Financial Statements (Unaudited)](#i894afd661f7d48ab9b55770eff101255_13)</u> | <u>[5](#i894afd661f7d48ab9b55770eff101255_13)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Balance Sheets](#i894afd661f7d48ab9b55770eff101255_16)</u> | <u>[5](#i894afd661f7d48ab9b55770eff101255_16)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Operations](#i894afd661f7d48ab9b55770eff101255_19)</u> | <u>[6](#i894afd661f7d48ab9b55770eff101255_19)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Comprehensive (Loss) Income](#i894afd661f7d48ab9b55770eff101255_22)</u> | <u>[7](#i894afd661f7d48ab9b55770eff101255_22)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Stockholders' Equity](#i894afd661f7d48ab9b55770eff101255_25)</u> | <u>[8](#i894afd661f7d48ab9b55770eff101255_25)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Cash Flows](#i894afd661f7d48ab9b55770eff101255_28)</u> | <u>[9](#i894afd661f7d48ab9b55770eff101255_28)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to the Condensed Consolidated Financial Statements](#i894afd661f7d48ab9b55770eff101255_31)</u> | <u>[10](#i894afd661f7d48ab9b55770eff101255_31)</u> |
| <u>[Item 2.](#i894afd661f7d48ab9b55770eff101255_88)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i894afd661f7d48ab9b55770eff101255_88)</u> | <u>[33](#i894afd661f7d48ab9b55770eff101255_88)</u> |
| <u>[Item 3.](#i894afd661f7d48ab9b55770eff101255_112)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i894afd661f7d48ab9b55770eff101255_112)</u> | <u>[45](#i894afd661f7d48ab9b55770eff101255_112)</u> |
| <u>[Item 4.](#i894afd661f7d48ab9b55770eff101255_115)</u> | <u>[Controls and Procedures](#i894afd661f7d48ab9b55770eff101255_115)</u> | <u>[45](#i894afd661f7d48ab9b55770eff101255_115)</u> |
| **<u>[PART II.](#i894afd661f7d48ab9b55770eff101255_118)</u>** | **<u>[OTHER INFORMATION](#i894afd661f7d48ab9b55770eff101255_118)</u>** |  |
| <u>[Item 1.](#i894afd661f7d48ab9b55770eff101255_121)</u> | <u>[Legal Proceedings](#i894afd661f7d48ab9b55770eff101255_121)</u> | <u>[46](#i894afd661f7d48ab9b55770eff101255_121)</u> |
| <u>[Item 1A.](#i894afd661f7d48ab9b55770eff101255_549755814430)</u> | <u>[Risk Factors](#i894afd661f7d48ab9b55770eff101255_549755814430)</u> | <u>[46](#i894afd661f7d48ab9b55770eff101255_549755814430)</u> |
| <u>[Item 2.](#i894afd661f7d48ab9b55770eff101255_130)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i894afd661f7d48ab9b55770eff101255_130)</u> | <u>[47](#i894afd661f7d48ab9b55770eff101255_130)</u> |
| <u>[Item 3.](#i894afd661f7d48ab9b55770eff101255_136)</u> | <u>[Defaults Upon Senior Securities](#i894afd661f7d48ab9b55770eff101255_136)</u> | <u>[47](#i894afd661f7d48ab9b55770eff101255_136)</u> |
| <u>[Item 4.](#i894afd661f7d48ab9b55770eff101255_139)</u> | <u>[Mine Safety Disclosures](#i894afd661f7d48ab9b55770eff101255_139)</u> | <u>[47](#i894afd661f7d48ab9b55770eff101255_139)</u> |
| <u>[Item 5.](#i894afd661f7d48ab9b55770eff101255_142)</u> | <u>[Other Information](#i894afd661f7d48ab9b55770eff101255_142)</u> | <u>[48](#i894afd661f7d48ab9b55770eff101255_142)</u> |
| <u>[Item 6.](#i894afd661f7d48ab9b55770eff101255_145)</u> | <u>[Exhibits](#i894afd661f7d48ab9b55770eff101255_145)</u> | <u>[49](#i894afd661f7d48ab9b55770eff101255_145)</u> |
| <u>[Signatures](#i894afd661f7d48ab9b55770eff101255_148)</u> | <u>[Signatures](#i894afd661f7d48ab9b55770eff101255_148)</u> | <u>[50](#i894afd661f7d48ab9b55770eff101255_148)</u> |

---

------

<u>[**Table of Contents**](#i894afd661f7d48ab9b55770eff101255_7)</u>

**PART I. FINANCIAL INFORMATION**

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

*This Quarterly Report on Form 10-Q (this "Quarterly Report") contains forward-looking statements. Statements that are not historical facts, including statements about beliefs, expectations, targets or goals are forward-looking statements. These statements are based on plans, estimates, expectations and/or goals at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as "may," "will," "should," "expect," "opportunity," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential," "target," "goal," or "continue," or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Factors that could cause actual results to differ materially from those described herein include, among others:*

&nbsp;&nbsp;&nbsp;&nbsp;*• an inability to obtain the products we distribute resulting in lost revenues and reduced margins and damaging relationships with customers;*

&nbsp;&nbsp;&nbsp;&nbsp;*• a change in supplier pricing and demand adversely affecting our income and gross margins;*

&nbsp;&nbsp;&nbsp;&nbsp;*• a change in vendor rebates adversely affecting our income and gross margins;*

&nbsp;&nbsp;&nbsp;&nbsp;*• our inability to identify potential acquisition targets, successfully complete acquisitions on acceptable terms, or successfully integrate acquired businesses into our operations;*

&nbsp;&nbsp;&nbsp;&nbsp;*• risks related to maintaining our safety record;*

&nbsp;&nbsp;&nbsp;&nbsp;*• the possibility that building products distribution industry demand may soften or shift substantially due to cyclicality or dependence on general economic and political conditions, including inflation or deflation, interest rates, governmental subsidies or incentives, consumer confidence, labor and supply shortages, weather and commodity prices;*

&nbsp;&nbsp;&nbsp;&nbsp;*• risks related to fragmentation in our industry and the possibility that regional or global barriers to trade or a global trade war could increase the cost of products in the building products distribution industry, which could adversely impact the competitiveness of such products and the financial results of businesses in the industry;*

&nbsp;&nbsp;&nbsp;&nbsp;*• seasonality, weather-related conditions and natural disasters;*

&nbsp;&nbsp;&nbsp;&nbsp;*• risks related to the effective development and proper functioning of our information technology systems, including from cybersecurity threats, artificial intelligence use, and digital transformation initiatives;*

&nbsp;&nbsp;&nbsp;&nbsp;*• loss of key talent or our inability to attract and retain new qualified talent;*

&nbsp;&nbsp;&nbsp;&nbsp;*• risks related to work stoppages, union negotiations, labor disputes and other matters associated with our labor force or the labor force of our suppliers or customers;*

&nbsp;&nbsp;&nbsp;&nbsp;*• our dependence on Brad Jacobs as chairman and chief executive officer and the impact of the loss of Mr. Jacobs in these roles;*

&nbsp;&nbsp;&nbsp;&nbsp;*• the risk that Mr. Jacobs' past performance may not be representative of future results;* 

&nbsp;&nbsp;&nbsp;&nbsp;*• the risk that the anticipated benefits of our acquisition of Beacon Roofing Supply, Inc. (the "Beacon Acquisition"), Kodiak Building Partners (the "Kodiak Acquisition"), TopBuild Corp. (the "TopBuild Acquisition") or any future acquisition may not be fully realized or may take longer to realize than expected;* 

&nbsp;&nbsp;&nbsp;&nbsp;*• the effect of the Beacon Acquisition and Kodiak Acquisition, the pendency of the TopBuild Acquisition or any future acquisition on our business relationships with employees, customers or suppliers, operating results and business generally;*

&nbsp;&nbsp;&nbsp;&nbsp;*• risks related to our obligations under the indebtedness we incurred in connection with the Beacon Acquisition and intend to incur in connection with the TopBuild Acquisition;*

&nbsp;&nbsp;&nbsp;&nbsp;*• the possible economic impact of the Company's outstanding warrants and preferred stock on the Company and the holders of its common stock, including market price volatility, dilution from the exercise or conversion of the warrants or preferred stock, or the impact of dividend payments or liquidation preferences from preferred stock that remains outstanding;*

&nbsp;&nbsp;&nbsp;&nbsp;*• challenges raising additional equity or debt capital from public or private markets to pursue the Company's business plan and the effects that raising such capital may have on the Company and its business;*

&nbsp;&nbsp;&nbsp;&nbsp;*• the possibility that new investors in any future financing transactions could gain rights, preferences and privileges senior to those of the Company's existing stockholders;*

&nbsp;&nbsp;&nbsp;&nbsp;*• risks associated with periodic litigation, regulatory proceedings and enforcement actions, which may adversely affect the Company's business and financial performance;*

&nbsp;&nbsp;&nbsp;&nbsp;*• the impact of legislative, regulatory, economic, competitive and technological changes;* 

&nbsp;&nbsp;&nbsp;&nbsp;*• unknown liabilities and uncertainties regarding general economic, business, competitive, legal, regulatory, tax and geopolitical conditions;* 

&nbsp;&nbsp;&nbsp;&nbsp;*• the risk that the TopBuild Acquisition may not be completed on the anticipated terms or timeline, or at all, including as a result of the failure to obtain required regulatory or stockholder approvals;*

&nbsp;&nbsp;&nbsp;&nbsp;*• the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the TopBuild Merger Agreement (as defined herein), including in circumstances requiring us to pay a termination fee;*

&nbsp;&nbsp;&nbsp;&nbsp;*• the possibility that the TopBuild Acquisition may be more expensive to complete than anticipated, including as a result of unexpected factors or events, significant transaction costs or unknown liabilities;*

&nbsp;&nbsp;&nbsp;&nbsp;*• potential litigation and/or regulatory action relating to the TopBuild Acquisition; and*

&nbsp;&nbsp;&nbsp;&nbsp;*• other factors, including those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), including its most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q.*

------

<u>[**Table of Contents**](#i894afd661f7d48ab9b55770eff101255_7)</u>

*Forward-looking statements should not be relied on as predictions of future events, and these statements are not guarantees of performance or results. Forward-looking statements herein speak only as of the date each statement is made. The Company does not undertake any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law.*

------

<u>[**Table of Contents**](#i894afd661f7d48ab9b55770eff101255_7)</u>

**Item 1. Condensed Consolidated Financial Statements**

**QXO, INC. AND SUBSIDIARIES**

**Condensed Consolidated Balance Sheets** 

(in millions, except per share amounts)

(Unaudited)

---

| | | |
|:---|:---|:---|
| | **March 31,<br>2026** | **December 31,<br>2025** |
| | **March 31,<br>2026** | **December 31,<br>2025** |
| **Assets** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $3046.3 | $2361.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 1135.7 | 1145.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 1668.2 | 1497.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vendor rebates receivable | 478.8 | 427.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax receivable | 32.8 | 31.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 94.8 | 83.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 6456.6 | 5546.3 |
| Property and equipment, net | 659.7 | 688.6 |
| Goodwill | 5129.4 | 5111.3 |
| Intangibles, net | 3704.5 | 3819.1 |
| Operating lease right-of-use assets, net | 669.7 | 689.6 |
| Other assets, net | 40.3 | 32.4 |
| Total assets | $16660.2 | $15887.3 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $1170.8 | $819 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 606.5 | 574.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 110.1 | 107.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of finance lease liabilities | 49.8 | 49.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 1937.2 | 1550.0 |
| Long-term debt, net | 3058.6 | 3057.3 |
| Deferred income tax liabilities, net | 789.4 | 847.2 |
| Operating lease liabilities | 554.4 | 561.8 |
| Finance lease liabilities | 129.6 | 138.7 |
| Other long-term liabilities | 26.1 | 25.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 6495.3 | 6180.5 |
| Commitments and contingencies (Note 11) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mandatory Convertible Preferred Stock, $0.001 par value; 0.6 shares authorized, issued and outstanding as of March 31, 2026 and December 31, 2025 | 558.1 | 558.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertible Preferred Stock, $0.001 par value; authorized 10.0 shares, 1.0 shares issued and outstanding as of March 31, 2026 and December 31, 2025 | 498.6 | 498.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.00001 par value; authorized 2,000.0 shares; 710.8 and 674.5 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 9760.2 | 9046.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings (accumulated deficit) | (652.0) | (394.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss |  | (2.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 10164.9 | 9706.8 |
| Total liabilities and stockholders' equity | $16660.2 | $15887.3 |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.*

------

<u>[**Table of Contents**](#i894afd661f7d48ab9b55770eff101255_7)</u>

**QXO, INC. AND SUBSIDIARIES**

**Condensed Consolidated Statements of Operations** 

(in millions, except per share amounts)

(Unaudited)

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Net sales | $1730.2 | $13.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold | 1320.9 | 8.1 |
| Gross profit | 409.3 | 5.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 497.0 | 44.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 47.3 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 116.9 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expense | 661.2 | 44.7 |
| Loss from operations | (251.9) | (39.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest (expense) income, net | (31.1) | 56.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 2.7 |  |
| (Loss) income before (benefit from) provision for income taxes | (280.3) | 17.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Benefit from) provision for income taxes | (53.2) | 8.5 |
| Net (loss) income | $(227.1) | $8.8 |
| Loss per common share - basic and diluted (Note 7) | $(0.35) | $(0.03) |
| Total weighted-average common shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 744.4 | 451.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 744.4 | 451.4 |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.*

------

<u>[**Table of Contents**](#i894afd661f7d48ab9b55770eff101255_7)</u>

**QXO, INC. AND SUBSIDIARIES**

**Condensed Consolidated Statements of Comprehensive (Loss) Income** 

(in millions)

(Unaudited)

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Net (loss) income | $(227.1) | $8.8 |
| Other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | 2.3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income | 2.3 |  |
| Comprehensive (loss) income | $(224.8) | $8.8 |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.*

------

<u>[**Table of Contents**](#i894afd661f7d48ab9b55770eff101255_7)</u>

**QXO, INC. AND SUBSIDIARIES**

**Condensed Consolidated Statements of Stockholders**' **Equity** 

(in millions)

(Unaudited)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Mandatory Convertible Preferred Stock** | **Mandatory Convertible Preferred Stock** | **Convertible Preferred Stock** | **Convertible Preferred Stock** | **Common Stock** | **Common Stock** | **Additional Paid-in Capital** | **Retained Earnings (Accumulated Deficit)** | **Accumulated Other Comprehensive Loss** | |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional Paid-in Capital** | **Retained Earnings (Accumulated Deficit)** | **Accumulated Other Comprehensive Loss** |<br>**Total** |
| **Three Months Ended March 31, 2026** | | | | | | | | | | |
| Balance as of December 31, 2025 | 0.6 | $558.1 | 1.0 | $498.6 | 674.5 | $— | $9046.9 | $(394.5) | $(2.3) | $9706.8 |
| &nbsp;&nbsp;Series C Preferred Stock commitment |  |  |  |  |  |  | (47.3) |  |  | (47.3) |
| &nbsp;&nbsp;Mandatory Convertible Preferred Stock dividend |  |  |  |  |  |  |  | (7.9) |  | (7.9) |
| &nbsp;&nbsp;Convertible Preferred Stock dividend |  |  |  |  |  |  |  | (22.5) |  | (22.5) |
| &nbsp;&nbsp;Issuance of common stock, net of issuance costs |  |  |  |  | 31.6 |  | 748.6 |  |  | 748.6 |
| &nbsp;&nbsp;Proceeds from stock option exercises |  |  |  |  | 0.2 |  | 0.9 |  |  | 0.9 |
| &nbsp;&nbsp;Vesting of stock-based compensation awards |  |  |  |  | 4.5 |  |  |  |  |  |
| &nbsp;&nbsp;Tax withholdings for stock-based compensation awards |  |  |  |  |  |  | (28.1) |  |  | (28.1) |
| &nbsp;&nbsp;Stock-based compensation |  |  |  |  |  |  | 39.2 |  |  | 39.2 |
| &nbsp;&nbsp;Other comprehensive income |  |  |  |  |  |  |  |  | 2.3 | 2.3 |
| &nbsp;&nbsp;Net loss |  |  |  |  |  |  |  | (227.1) |  | (227.1) |
| Balance as of March 31, 2026 | 0.6 | $558.1 | 1.0 | $498.6 | 710.8 | $— | $9760.2 | $(652.0) | $— | $10164.9 |
| **Three Months Ended March 31, 2025** |  |  |  |  |  |  |  |  |  |  |
| Balance as of December 31, 2024 |  | $— | 1.0 | $498.6 | 409.4 | $— | $4560.5 | $(6.2) | $— | $5052.9 |
| &nbsp;&nbsp;Convertible Preferred Stock dividend |  |  |  |  |  |  |  | (22.5) |  | (22.5) |
| &nbsp;&nbsp;Stock-based compensation |  |  |  |  |  |  | 20.2 |  |  | 20.2 |
| &nbsp;&nbsp;Net income |  |  |  |  |  |  |  | 8.8 |  | 8.8 |
| Balance as of March 31, 2025 |  | $— | 1.0 | $498.6 | 409.4 | $— | $4580.7 | $(19.9) | $— | $5059.4 |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.*

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**QXO, INC. AND SUBSIDIARIES**

**Condensed Consolidated Statements of Cash Flows**

(in millions)

(Unaudited)

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| **Operating Activities** |  |  |
| Net (loss) income | $(227.1) | $8.8 |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 47.3 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | 116.9 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 39.2 | 20.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 2.3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 11.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash lease expense | 32.3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (53.3) |  |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 0.3 | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | (183.9) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Vendor rebates receivable | (56.0) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax receivable | (1.3) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (11.2) | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 379.2 | 8.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets and liabilities | (25.6) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 70.6 | 36.5 |
| **Investing Activities** |  |  |
| Capital expenditures | (22.5) | (0.1) |
| Other | 3.0 | (0.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (19.5) | (0.8) |
| **Financing Activities** |  |  |
| Payments under equipment financing facilities and finance leases | (12.2) |  |
| Proceeds from issuance of common stock related to equity awards | 0.9 |  |
| Proceeds from issuance of common stock, net of issuance costs | 749.5 |  |
| Payment of taxes related to net share settlement of equity awards | (28.1) |  |
| Payment of costs to obtain Series C Preferred Stock commitment | (45.8) |  |
| Payment of dividends on Convertible Preferred Stock | (22.5) | (22.5) |
| Payment of dividends on Mandatory Convertible Preferred Stock | (7.9) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 633.9 | (22.5) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (0.3) |  |
| Net increase in cash, cash equivalents and restricted cash | 684.7 | 13.2 |
| Cash, cash equivalents and restricted cash, beginning of period | 2365.4 | 5072.0 |
| Cash, cash equivalents and restricted cash, end of period | $3050.1 | $5085.2 |
| **Supplemental Cash Flow Information** |  |  |
| Cash paid during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest | $15.4 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes, net of refunds | $1.4 | $— |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.*

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**QXO, INC. AND SUBSIDIARIES**

**Notes to the Condensed Consolidated Financial Statements**

(Unaudited)

**1. Description of Business**

Prior to the Beacon Acquisition (as defined below), QXO, Inc. ("QXO" or the "Company") was primarily a technology solutions and professional services company, providing critical software applications, consulting and other professional services, including specialized programming, training and technical support to small and mid-size companies in the manufacturing, distribution and services industries.

***Beacon Acquisition***

On March 20, 2025, QXO entered into an Agreement and Plan of Merger (the "Merger Agreement") with Beacon Roofing Supply, Inc., a Delaware corporation ("Beacon"), and Queen MergerCo, Inc., a Delaware corporation and wholly owned subsidiary of QXO ("Merger Sub"), pursuant to which QXO agreed to acquire Beacon for a purchase price of $124.35 per share of common stock (the "Merger Consideration") of Beacon (the "Beacon Acquisition"). On April 29, 2025 (the "Closing Date"), pursuant to the Merger Agreement, Merger Sub merged with and into Beacon, with Beacon remaining as the surviving entity and being renamed QXO Building Products, Inc. ("QXO Building Products"), and the Company completed its acquisition of Beacon in a transaction that valued Beacon at $10.6 billion.

QXO is the largest publicly-traded distributor of roofing, waterproofing and complementary building products in North America. The Company plans to become the tech-enabled leader in the $800 billion building products distribution industry and generate outsized value for shareholders. The Company is executing its strategy toward a target of $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth.

The Company serves customers in all 50 states throughout the United States (the "U.S.") and seven provinces in Canada. The Company's material subsidiary is QXO Building Products.

**2. Basis of Presentation and Significant Accounting Policies**

***Basis of Presentation and Principles of Consolidation***

The accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to state fairly the financial position of the Company as of March 31, 2026 and December 31, 2025 and the results of operations and cash flows for the three months ended March 31, 2026 and 2025 in accordance with accounting principles generally accepted in the U.S. ("GAAP"). These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and consequently have been condensed and do not include all required disclosures in an Annual Report on Form 10-K. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 27, 2026. All inter-company transactions and accounts have been eliminated in consolidation.

The Beacon Acquisition has been accounted for using the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") Topic 805 ("ASC 805"), Business Combinations. As the legacy Beacon business now comprises substantially all of the Company and has significantly larger operations compared to the Company prior to the Beacon Acquisition, QXO determined that Beacon is the predecessor entity ("predecessor") for financial reporting purposes. The Company also determined that the Beacon Acquisition represented a fundamental change in QXO's operations.

***Reclassifications***

The Company has reclassified certain prior period amounts to conform with the current period presentation in the unaudited condensed consolidated statements of operations related to revenue, cost of sales, depreciation and amortization, which are now presented to conform with the predecessor's historical presentation.

***Use of Estimates***

The preparation of unaudited financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these unaudited condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates include inventories, purchase price allocations, income taxes and vendor rebates receivable. Actual results could differ from those estimates.

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***Business Combinations***

The Company records acquisitions resulting in the consolidation of a business using the acquisition method of accounting. Under this method, the Company records the assets acquired, including intangible assets that can be identified, and liabilities assumed based on their estimated fair values at the date of acquisition. Various Level 3 (as hereinafter defined) fair value assumptions are used in the determination of these estimated fair values, including items such as sales growth rates, cost synergies, customer attrition rates, discount rates, and other prospective financial information. The purchase price in excess of the fair value of the assets acquired and liabilities assumed is recorded as goodwill. Estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed. While management believes these estimates are based on reasonable assumptions, they are inherently uncertain and unpredictable; therefore, actual results may differ. During the measurement period, which is up to one year from the acquisition date, the Company may adjust provisional amounts that were recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date. Transaction costs associated with acquisitions are expensed as incurred and are included as a component of selling, general and administrative expense within the condensed consolidated statements of operations.

***Cash, Cash Equivalents and Restricted Cash***

The following table provides a reconciliation of cash, cash equivalents and restricted cash:

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| *(in millions)* | **March 31,<br>2026** | **December 31,<br>2025** |
| Cash and cash equivalents | $3046.3 | $2361.6 |
| Restricted cash included in prepaid expenses and other current assets | 3.8 | 3.8 |
| Total cash, cash equivalents and restricted cash | $3050.1 | $2365.4 |

---

***Accounts Receivable***

The following table represents the roll-forward of the allowance for credit losses for the three months ended March 31, 2026 and the year ended December 31, 2025:

---

| | | |
|:---|:---|:---|
| *(in millions)* | **March 31,<br>2026** | **December 31,<br>2025** |
| Balance at beginning of period | $13.0 | $0.5 |
| Current period provision for expected credit losses | 11.5 | 13.8 |
| Write-offs, net of recoveries | (3.1) | (1.3) |
| Balance at end of period | $21.4 | $13.0 |

---

***Property and Equipment***

The following table presents the components of property and equipment, net:

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **March 31,<br>2026** | **December 31,<br>2025** |
| *(in millions)* | **March 31,<br>2026** | **December 31,<br>2025** |
| Equipment | $309.1 | $259.5 |
| Finance lease assets | 220.4 | 216.9 |
| Leasehold improvements | 129.8 | 124.5 |
| Furniture and fixtures | 23.7 | 29.7 |
| Software | 30.7 | 31.2 |
| Land and buildings | 54.9 | 59.6 |
| Construction in progress | 48.7 | 55.1 |
| Total property and equipment | 817.3 | 776.5 |
| Accumulated depreciation | (157.6) | (87.9) |
| &nbsp;&nbsp;Total property and equipment, net | $659.7 | $688.6 |

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***Goodwill***

The following table sets forth the change in the carrying amount of goodwill during the three months ended March 31, 2026:

---

| | |
|:---|:---|
| *(in millions)* | |
| Balance as of December 31, 2025 | $5111.3 |
| &nbsp;&nbsp;Measurement period adjustments | 16.2 |
| &nbsp;&nbsp;Translation adjustments | 1.9 |
| Balance as of March 31, 2026 | $5129.4 |

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***Intangible Assets***

The Company amortizes certain identifiable intangible assets that have finite lives, currently consisting of customer relationships and trade names. The following table summarizes intangible assets by category:

---

| | | | |
|:---|:---|:---|:---|
| | **As of** | **As of** | **Weighted-Average Remaining Life**<sup>(1)</sup><br>**(Years)** |
| *(in millions, except time periods)* | **March 31,<br>2026** | **December 31,<br>2025** | **Weighted-Average Remaining Life**<sup>(1)</sup><br>**(Years)** |
| Amortizable intangible assets: |  |  |  |
| &nbsp;&nbsp;Customer relationships and other | $3910.9 | $3908.7 | 9.1 |
| &nbsp;&nbsp;Trade names | 230.0 | 229.9 | 2.1 |
| Total amortizable intangible assets | 4140.9 | 4138.6 | 8.7 |
| &nbsp;&nbsp;&nbsp;Accumulated amortization | (437.1) | (320.2) |  |
| Total amortizable intangible assets, net | 3703.8 | 3818.4 |  |
| Indefinite-lived domain names | 0.7 | 0.7 |  |
| Total intangibles, net | $3704.5 | $3819.1 |  |
| <sup>(1)</sup> As of March 31, 2026. |  |  |  |

---

The following table summarizes the estimated future amortization expense for intangible assets for each of the next five years ending December 31 and thereafter:

---

| | |
|:---|:---|
| *(in millions)* | |
| 2026 (April - December) | $350.9 |
| 2027 | 467.8 |
| 2028 | 415.8 |
| 2029 | 390.5 |
| 2030 | 390.3 |
| Thereafter | 1688.5 |
| &nbsp;&nbsp;&nbsp;Total future amortization expense | $3703.8 |

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***Accrued Expenses***

The following table presents the components of accrued expenses:

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| *(in millions)* | **March 31,<br>2026** | **December 31,<br>2025** |
| Inventory | $205.7 | $170.0 |
| Other selling, general and administrative | 131.7 | 100.1 |
| Payroll and employee benefit costs | 100.8 | 66.5 |
| Interest expense | 64.9 | 27.1 |
| Customer rebates | 44.6 | 148.4 |
| Sales returns | 27.6 | 26.6 |
| Customer advances | 24.9 | 20.1 |
| Other | 6.3 | 15.5 |
| &nbsp;&nbsp;Total accrued expenses | $606.5 | $574.3 |

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***Financial Instruments***

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:

&nbsp;&nbsp;&nbsp;&nbsp;• *Level 1*: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

&nbsp;&nbsp;&nbsp;&nbsp;• *Level 2*: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

&nbsp;&nbsp;&nbsp;&nbsp;• *Level 3*: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

The Company's current financial assets and liabilities approximate fair value due to their short-term nature and include cash and cash equivalents, accounts receivable, vendor rebates receivable, income tax receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities.

***Net Sales***

Net sales represent the consideration the Company expects to be entitled to in exchange for transferring products to customers. Performance obligations are satisfied at a point in time, and net sales are recognized when control of the product transfers to the customer, which occurs when the customer accepts the delivery of our product or takes possession of our product with rights and rewards of ownership. Substantially all of the Company's contracts have a single performance obligation—to deliver products—and are short-term in nature.

The Company does not provide extended payment terms, and payment is due shortly after control transfers. The Company generally does not require prepayments; however, to the extent customers make payments in advance of delivery, the Company records a liability. Total customer advances as of March 31, 2026 were $24.9 million and are expected to be recognized as revenue within the next 12 months due to the short-term nature of the contracts. Total customer advances as of December 31, 2025 were $20.1 million.

Net sales are presented net of variable consideration, including estimated product returns, customer sales incentives (including volume rebates), and early payment discounts taken.

The Company estimates product returns based on historical return rates and records accrued sales returns and defers the related cost of products sold. Total accrued sales returns as of March 31, 2026 and December 31, 2025 were $27.6 million and $26.6 million, respectively, and total cost of products sold deferred were $21.2 million and $20.4 million, respectively. Provisions for early payment discounts are accrued in the same period in which the sale occurs based on historical experience. Commissions paid to internal sales teams to obtain contracts are expensed as incurred because the related contracts have a duration of one year or less. Sales taxes collected from customers and remitted to governmental authorities are excluded from net sales.

The Company offers sales incentives to customers, primarily volume rebates based on achieving specified sales levels. These volume rebates are not in exchange for a distinct good or service and therefore reduce net sales when the related revenue is recognized. The Company estimates volume rebate accruals based on contract terms, historical experience and performance levels. Total customer rebates as of March 31, 2026 and December 31, 2025 were $44.6 million and $148.4 million, respectively.

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Shipping and handling amounts billed to customers are included in net sales. Related shipping and handling costs are accounted for as fulfillment activities and are recognized in cost of products sold when control of the products transfers to the customer.

Customer advances, sales returns and sales incentives are included in accrued expenses, early payment discounts are included in accounts receivable, net, and cost of products sold deferred are included in prepaid and other current assets in the condensed consolidated balance sheets.

***Interest (Expense) Income, Net***

The following table presents the components of interest (expense) income, net:

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| *(in millions)* | **2026** | **2025** |
| Interest income | $25.4 | $56.6 |
| Interest expense | (56.5) |  |
| Interest (expense) income, net | $(31.1) | $56.6 |

---

***Recent Accounting Pronouncements — Adopted***

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets". The standard provides a practical expedient to assume that conditions as of the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC Topic 606. This standard should be applied prospectively and is effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years, with early adoption permitted. The standard became effective for the Company on January 1, 2026. Upon adoption, the Company elected to apply the practical expedient on a prospective basis. The adoption of this standard did not have a material impact on the Company's consolidated financial statements and related disclosures.

***Recent Accounting Pronouncements — Not Yet Adopted***

In November 2024, the FASB issued ASU 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses." The standard requires disclosure of disaggregated information about certain financial statement expense line items presented on the consolidated statements of operations in the notes to the financial statements on an interim and annual basis. The standard can be applied either prospectively or retrospectively and is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures.

In September 2025, the FASB issued ASU 2025-06, "Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software." The standard modernizes the recognition and disclosure framework for internal-use software costs, removing all references to software development stages and introducing a more judgment-based approach. This standard can be applied either prospectively, retrospectively, or utilizing a modified transition approach and is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures.

**3. Acquisitions**

**<u>Beacon Roofing Supply, Inc. Acquisition</u>**

On March 20, 2025, QXO entered into a Merger Agreement with Beacon and Merger Sub, pursuant to which QXO agreed to acquire Beacon for a purchase price of $124.35 per share of common stock of Beacon. On the Closing Date, pursuant to the Merger Agreement, Merger Sub merged with and into Beacon, with Beacon remaining as the surviving entity and being renamed QXO Building Products, Inc., and the Company completed its acquisition of Beacon.

The Company was determined to be the accounting acquirer in the Beacon Acquisition in accordance with ASC 805 primarily due to having board and common share voting control over the combined company, and its managers, including the chief executive officer, directing the activities of the newly merged entity. Furthermore, the Beacon Acquisition was initiated by QXO, and the Company retained the QXO name subsequent to the Beacon Acquisition. The historical financial statements of QXO prior to April 29, 2025 are reflected in this Quarterly Report as QXO's historical financial statements. Accordingly, the financial results of QXO as of and for any periods prior to April 29, 2025 do not include the financial results of Beacon and current and future results will not be comparable to historical results.

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Additionally, in considering the foregoing principles of predecessor determination and in light of the Company's specific facts and circumstances, the Company determined that Beacon is the predecessor entity for financial reporting purposes.

***Purchase Price***

The following table summarizes the components of the preliminary aggregate purchase consideration paid to acquire Beacon and is subject to adjustments:

---

| | |
|:---|:---|
| *(in millions)* | |
| Cash paid for outstanding Beacon common stock<sup>(1)</sup> | $7736.6 |
| Converted Beacon restricted stock units ("RSUs") and options attributable to pre-combination service<sup>(2)</sup> | 103.5 |
| Payment of Beacon debt, including accrued interest<sup>(3)</sup> | 2947.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Preliminary aggregate acquisition consideration | 10787.9 |
| Less: cash acquired | 143.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Preliminary aggregate acquisition consideration, net of cash acquired | $10644.0 |
| <sup>(1)</sup> The cash component of the preliminary aggregate acquisition consideration represents 62.2 million shares of outstanding common stock of Beacon multiplied by the $124.35 per share cash portion of the acquisition consideration. | <sup>(1)</sup> The cash component of the preliminary aggregate acquisition consideration represents 62.2 million shares of outstanding common stock of Beacon multiplied by the $124.35 per share cash portion of the acquisition consideration. |
| <sup>(2)</sup> This amount represents the value of outstanding equity awards held by Beacon employees that were converted into replacement QXO instruments with identical terms. The conversion was based on the volume-weighted average trading price of QXO common stock for the five consecutive trading days ending on the trading day immediately preceding the Closing Date. The fair value of replacement equity-based awards attributable to pre-acquisition service was recorded as part of the consideration transferred. This amount also includes cash paid by QXO of $16.0 million to settle RSUs for non-employee members of the board of directors of Beacon, which were accelerated in full, cancelled and paid in cash for $124.35 per share. See Note 8 for additional information.  | <sup>(2)</sup> This amount represents the value of outstanding equity awards held by Beacon employees that were converted into replacement QXO instruments with identical terms. The conversion was based on the volume-weighted average trading price of QXO common stock for the five consecutive trading days ending on the trading day immediately preceding the Closing Date. The fair value of replacement equity-based awards attributable to pre-acquisition service was recorded as part of the consideration transferred. This amount also includes cash paid by QXO of $16.0 million to settle RSUs for non-employee members of the board of directors of Beacon, which were accelerated in full, cancelled and paid in cash for $124.35 per share. See Note 8 for additional information.  |
| <sup>(3)</sup> This amount represents the cash paid by QXO to settle Beacon's senior secured term loan B facility, senior secured notes, and outstanding line of credit borrowings of $1.26 billion, $1.25 billion and $370.8 million, respectively. Additionally, accrued interest expense of $30.1 million and a breakage fee of $37.8 million was paid for early termination of Beacon's debt at the closing of the Beacon Acquisition. | <sup>(3)</sup> This amount represents the cash paid by QXO to settle Beacon's senior secured term loan B facility, senior secured notes, and outstanding line of credit borrowings of $1.26 billion, $1.25 billion and $370.8 million, respectively. Additionally, accrued interest expense of $30.1 million and a breakage fee of $37.8 million was paid for early termination of Beacon's debt at the closing of the Beacon Acquisition. |

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***Preliminary Purchase Price Allocation***

The Company applied the acquisition method of accounting in accordance with ASC 805, Business Combinations, and recognized assets acquired and liabilities assumed at their fair values as of the effective date of the Beacon Acquisition, with the excess purchase consideration recorded to goodwill. Goodwill reflects the assembled workforce of Beacon as well as operating synergies that are expected to result from the Beacon Acquisition. All preliminary goodwill is not deductible for tax purposes.

The purchase price allocation is preliminary and subject to change. The Company is continuing to obtain information to complete its valuation of certain assets and liabilities, in addition to ensuring all other assets and liabilities and contingencies have been identified and recorded. The Company has estimated the preliminary fair value of assets acquired and liabilities assumed based on information currently available and will continue to adjust those estimates as additional information pertaining to events or circumstances present at the Closing Date becomes available during the measurement period. The Company will reflect measurement period adjustments, if any, in the period in which the adjustments occur, and the Company will finalize its accounting for the Beacon Acquisition within one year of the Closing Date.

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The following table presents the preliminary allocation of the purchase price to the assets acquired and liabilities assumed, and a reconciliation to total consideration transferred. The allocation of the purchase price is ongoing, and the Company continues to ascertain the reasonableness of the fair value of the assets acquired and liabilities assumed. Subsequent to the determination of the preliminary purchase price allocation, the Company recorded certain measurement period adjustments primarily related to accounts receivable, inventories, vendor rebates receivable, property and equipment, accounts payable, accrued expenses and deferred income taxes. The measurement period adjustments recorded during the three months ended March 31, 2026 had a net impact of increasing goodwill by $16.2 million.

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| | |
|:---|:---|
| *(in millions)* | **Preliminary**<br>**Allocation** |
| **Assets:** |  |
| &nbsp;&nbsp;Accounts receivable | $1319.1 |
| &nbsp;&nbsp;Inventories | 1772.6 |
| &nbsp;&nbsp;Vendor rebates receivable | 235.8 |
| &nbsp;&nbsp;Income tax receivable | 19.9 |
| &nbsp;&nbsp;Prepaid expenses and other current assets | 81.0 |
| &nbsp;&nbsp;Property and equipment | 683.6 |
| &nbsp;&nbsp;Goodwill | 5127.5 |
| &nbsp;&nbsp;Intangibles | 4130.6 |
| &nbsp;&nbsp;Operating lease right-of-use assets | 708.0 |
| &nbsp;&nbsp;Other non-current assets | 17.5 |
| **Liabilities:** |  |
| &nbsp;&nbsp;Accounts payable | (1135.8) |
| &nbsp;&nbsp;Accrued expenses | (532.6) |
| &nbsp;&nbsp;Deferred income taxes | (906.0) |
| &nbsp;&nbsp;Other long-term liabilities | (27.5) |
| &nbsp;&nbsp;Operating lease liabilities | (668.2) |
| &nbsp;&nbsp;Finance lease liabilities | (181.5) |
| &nbsp;&nbsp;**Preliminary aggregate acquisition consideration** | $10644.0 |

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The following table presents a summary of intangible assets acquired and the weighted-average useful life of these assets:

---

| | | |
|:---|:---|:---|
| *(in millions, except weighted-average useful life)* | **Fair Value** | **Weighted-Average Useful Life in Years** |
| Customer relationships | $3900.6 | 10.0 |
| Trade names | 230.0 | 3.0 |
| Total intangible assets acquired | $4130.6 | 9.6 |

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The fair value estimate of the customer relationships intangible asset was determined using the multi-period excess earnings method. The excess earnings methodology is an income approach methodology that estimates the projected cash flows of the business attributable to the customer relationships intangible asset, net of charges for the use of other identifiable assets of the business including working capital, fixed assets and other intangible assets. The fair value estimate of the trade names intangible asset was determined using the relief-from-royalty method, which presumes the owner of the asset avoids hypothetical royalty payments that would need to be made for the use of the asset if the asset was not owned.

A key assumption in the fair value measurement of the customer relationships intangible asset is the customer attrition rate, which projects the percentage of customer revenue from an existing customer base that is lost over the customer relationships intangible asset's estimated useful life. Other key inputs used in the discounted cash flow analyses and other areas of judgment include projected financial information, discount rates used to present value future cash flows, royalty rates, economic useful life of assets and tax rates, as relevant, that market participants would consider when estimating fair values.

During the year ended December 31, 2025, the Company incurred transaction costs of approximately $74.8 million related to the Beacon Acquisition. These costs were associated with legal and professional services and were recognized in selling, general and administrative expenses on the consolidated statements of operations for the year ended December 31, 2025.

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**<u>Kodiak Building Partners Acquisition</u>**

On February 10, 2026, QXO entered into an Agreement and Plan of Merger (the "Kodiak Merger Agreement") with Kodiak Building Partners Inc., a Delaware corporation ("Kodiak"), Court Square Capital Partners, and Juno Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of QXO ("Juno Merger Sub"), pursuant to which QXO agreed to acquire Kodiak from Court Square Capital Partners.

On April 1, 2026 (the "Kodiak Closing Date"), pursuant to the Kodiak Merger Agreement, Juno Merger Sub merged with and into Kodiak, with Kodiak remaining as the surviving entity, and the Company completed its acquisition of Kodiak for a purchase price of $2.25 billion (the "Kodiak Acquisition"). The purchase price comprised $2.0 billion of cash and 13.2 million shares of the Company's common stock, with the Company retaining the right to repurchase these shares at $40 per share at any time.

Kodiak is a U.S. distributor of lumber, trusses, windows and doors, construction supplies, waterproofing, roofing, and complementary exterior products, as well as value-added assembly, fabrication, and installation services. The integration of Kodiak's structural and exterior construction product offerings with QXO's existing offerings will better position the Company to grow market share and advance the Company's plan to become the tech-enabled leader in the building products distribution industry.

Due to the limited time between the Kodiak Closing Date and the Company's filing of this Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, initial accounting for the business combination is incomplete and the Company is not yet able to disclose the provisional amounts to be recognized as of the acquisition date for assets acquired and liabilities assumed. The Company expects to provide preliminary purchase price allocation information in the Quarterly Report on Form 10-Q for the quarter ending June 30, 2026.

**<u>TopBuild Corp. Acquisition</u>**

On April 18, 2026, QXO entered into an Agreement and Plan of Merger (the "TopBuild Merger Agreement") with TopBuild Corp., a Delaware corporation ("TopBuild"), Titanium MergerCo, Inc., a Delaware corporation a wholly owned subsidiary of QXO ("Titanium Merger Sub"), and Titanium MergerCo 2, LLC, a Delaware limited liability company and a wholly owned subsidiary of QXO ("Forward Merger Sub"), pursuant to which QXO agreed to acquire TopBuild for approximately $17.0 billion in a combination of cash and stock consideration.

Pursuant to the TopBuild Merger Agreement, each share of common stock of TopBuild issued and outstanding immediately prior to the effective time, subject to certain customary exceptions, will be automatically converted into the right to receive, subject to certain terms and conditions: (i) an amount in cash equal to $505.00 (the "Cash Consideration") or (ii) 20.200 QXO shares of common stock (the "Stock Consideration"). The maximum number of TopBuild shares to be converted into the right to receive the Cash Consideration will be equal to forty-five percent (45%) of the aggregate number of TopBuild shares issued and outstanding immediately prior to the effective time (other than cancelled shares). The maximum number of TopBuild shares to be converted into the right to receive the Stock Consideration will be equal to fifty-five percent (55%) of the aggregate number of TopBuild shares issued and outstanding immediately prior to the effective time (other than cancelled shares), which maximum number may be increased by the Company in its sole discretion.

The transaction is subject to the satisfaction or waiver of customary closing conditions, including, among others, approval by the stockholders of TopBuild and QXO. The transaction is expected to close in the third quarter of 2026.

The TopBuild Acquisition is subject to a number of risks and uncertainties and there is no assurance that the TopBuild Acquisition will occur.

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**4. Restructuring**

Subsequent to the Beacon Acquisition, the Company developed a restructuring plan to streamline and simplify the organization, improve efficiency and reduce costs. During the three months ended March 31, 2026, the Company recorded $17.2 million in pre-tax restructuring charges, comprised of $6.5 million of severance and employee-related costs associated with corporate workforce optimization, a $0.9 million stock-based compensation charge associated with the impacted employees, and $9.8 million of lease abandonment costs. These restructuring charges are reflected in selling, general and administrative expenses on the condensed consolidated statements of operations. The severance and employee-related costs were recorded in accrued expenses as payroll and employee benefit costs, while the stock-based compensation charge was reflected as an adjustment to common stock and additional paid-in capital on the condensed consolidated balance sheets. The severance and employee-related restructuring charge liability is expected to be substantially paid by September 2026.

The following table shows the change in the restructuring charge liability during the three months ended March 31, 2026:

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| | | |
|:---|:---|:---|
| *(in millions)* | **Severance and Employee-related Costs** | **Lease Abandonment Costs** |
| Restructuring charge liability as of December 31, 2025 | $26.2 | $— |
| &nbsp;&nbsp;Restructuring charges | 6.5 | 9.8 |
| &nbsp;&nbsp;Payments | (5.8) | (1.0) |
| &nbsp;&nbsp;Non-cash settlement |  | (8.8) |
| Restructuring charge liability as of March 31, 2026 | $26.9 | $— |

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Severance and employee-related costs consist primarily of salary continuation benefits, prorated annual incentive compensation, continuation of health care benefits, outplacement services and retention awards issued to certain key employees. Severance and employee-related benefits are determined pursuant to the Company's written severance plans and are recognized when the benefits are determined to be probable of being paid and are reasonably estimable. Retention awards are recognized on a straight-line basis from the communication date to the end of the requisite retention period.

Lease abandonment costs primarily represent the write-off of the remaining carrying value of operating lease ROU assets for branch facilities that were abandoned in connection with the Company's restructuring plan. These lease abandonment charges are recognized as of the cease-use date. Other exit-related costs, including costs to close branch facilities, are recognized as incurred.

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**5. Segment Reporting and Geographic Information**

***Segment Reporting***

Operating segments are defined as components of an entity for which separate discrete financial information is available and regularly reviewed by the Chief Operating Decision Maker ("CODM") in deciding how to allocate resources to an individual segment and in assessing performance. The Company's CODM, the chief executive officer, reviews consolidated results of operations to make decisions, therefore the Company views its operations and manages its business as a single operating segment.

The Company's revenues for its single operating segment are primarily derived from the sale of residential and non-residential roofing products, as well as complementary products, such as siding and waterproofing. The CODM evaluates performance for the Company's single operating segment and decides how to allocate resources based on the Company's consolidated net income that is reported in the condensed consolidated statements of operations as net (loss) income. The measure of segment assets is reported on the condensed consolidated balance sheets as total assets. These results are used to assess segment performance and determine the compensation of certain employees.

The operating segment financial information regularly reviewed by the CODM, inclusive of assets, revenue, expenses, profit or loss and noncash items are presented on a consolidated basis. Other segment items included in consolidated net income are depreciation, amortization, interest income (expense), net, other income, net, and (benefit from) provision for income taxes, which are reflected on the condensed consolidated statements of operations.

The following table presents information regarding the components of revenue, significant segment expenses and consolidated net (loss) income representative of the significant categories regularly provided to the CODM when managing the Company's one operating segment:

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| *(in millions)* | **2026** | **2025** |
| Net sales: |  |  |
| Residential roofing products | $799.1 | $— |
| Non-residential roofing products | 463.6 |  |
| Complementary building products | 452.9 |  |
| Software products and services | 14.6 | 13.5 |
| &nbsp;&nbsp;&nbsp;Total net sales | $1730.2 | $13.5 |
| Less: |  |  |
| &nbsp;&nbsp;Cost of products sold | $1320.9 | $8.1 |
| &nbsp;&nbsp;Selling, general administrative expenses<sup>(1)</sup> | 457.8 | 24.2 |
| &nbsp;&nbsp;Stock-based compensation | 39.2 | 20.2 |
| &nbsp;&nbsp;Other segment items | 139.4 | (47.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (loss) income | $(227.1) | $8.8 |
| <sup>(1)</sup> Excludes stock-based compensation. | <sup>(1)</sup> Excludes stock-based compensation. | <sup>(1)</sup> Excludes stock-based compensation. |

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***Geographic Information***

Net sales in the U.S. accounted for approximately 98% of total net sales for the three months ended March 31, 2026, and approximately 94% of the Company's long-lived assets were in the U.S. as of March 31, 2026. All of the Company's net sales were derived from the U.S. for the three months ended March 31, 2025, and approximately 96% of the Company's long-lived assets were in the U.S. as of December 31, 2025. The CODM does not review geographic asset information when assessing performance or allocating resources.

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**6. Equity**

**April 2024 Investment Agreement**

On April 14, 2024, the Company entered into the Amended and Restated Investment Agreement (the "Investment Agreement") among the Company, JPE and the other investors party thereto (collectively, the "Investors"), providing for, among other things, an aggregate investment by the Investors of $1.0 billion in cash in the Company. Pursuant to the Investment Agreement, the Company issued and sold an aggregate of 1,000,000 shares of Convertible Perpetual Preferred Stock, par value $0.001 per share (the "Convertible Preferred Stock"), which are initially convertible into an aggregate of 219.0 million shares of common stock at an initial conversion price of $4.566 per share and issued and sold warrants exercisable for an aggregate of 219.0 million shares of common stock (the "Warrants"). The Investment Agreement and related transactions closed on June 6, 2024 (the "Equity Investment") and generated gross proceeds of $1.0 billion before deducting fees and offering expenses.

***Issuance of Convertible Preferred Stock***

On June 6, 2024, under the terms of the Investment Agreement, the Company issued 1.0 million shares of Convertible Preferred Stock. The Convertible Preferred Stock has an initial liquidation preference of $1,000 per share, for an aggregate initial liquidation preference of $1.0 billion. The Convertible Preferred Stock is convertible at any time, in whole or in part and from time to time, at the option of the holder thereof into a number of shares of common stock equal to the then-applicable liquidation preference divided by the conversion price, which initially is $4.566 per share of common stock (subject to customary anti-dilution adjustments). Shares of Convertible Preferred Stock are initially convertible into an aggregate of 219.0 million shares of common stock (after giving effect to the Reverse Stock Split). The Convertible Preferred Stock is not redeemable or subject to any required offer to purchase.

The Convertible Preferred Stock ranks, with respect to dividend rights and distribution of assets upon liquidation, winding-up or dissolution, senior to the Company's common stock and Mandatory Convertible Preferred Stock (as defined below). Holders of Convertible Preferred Stock will vote together with the holders of the Company's common stock on an "as-converted" basis on all matters, except as otherwise required by law. In addition, the approval of holders of at least a majority of the outstanding shares of the Convertible Preferred Stock, voting separately as a single class, will be required for certain matters set forth in the Certificate of Designation for the Convertible Preferred Stock.

Dividends on the Convertible Preferred Stock are payable quarterly, when, as and if declared by the Company's board of directors at the rate per annum of 9% per share on the then-applicable liquidation preference (subject to certain exceptions in the event that the Company pays dividends on shares of its common stock). During the three months ended March 31, 2026, the Company paid $22.5 million of dividends to holders of Convertible Preferred Stock. Subsequent to the close of the quarter ended March 31, 2026, the Company paid $22.5 million of quarterly dividends to holders of Convertible Preferred Stock.

***Warrants***

The aggregate number of shares of the Company's common stock subject to the Warrants is 219.0 million shares. The Warrants are exercisable at the option of the holder at any time until June 6, 2034. The Warrants have an exercise price of $4.566 per share of common stock with respect to 50% of the Warrants, $6.849 per share of common stock with respect to 25% of the Warrants, and $13.698 per share of common stock with respect to the remaining 25% of the Warrants.

Each Warrant may be exercised, in whole or in part, at any time or times on or after the issuance date and on or before the expiration date at the election of the holder (in such holder's sole discretion) by means of a "cashless exercise" in which the holder will be entitled to receive a number of shares of the Company's common stock equal to the quotient of the product of the Closing Sale Price (as defined in the Warrant Certificate) of a share of the Company's common stock on the trading day immediately preceding the date on which the holder elects to exercise its Warrant, less the adjusted exercise price, multiplied by the number of shares of the Company's common stock issuable upon exercise of such Warrant, divided by the aforementioned Closing Sale Price of a share of the Company's common stock on the trading day immediately preceding the date on which the holder elects to exercise its Warrant.

**Private Placements**

On June 13, 2024, the Company entered into purchase agreements with certain institutional and accredited investors to issue and sell in a private placement an aggregate of 340.9 million shares of the Company's common stock at a price of $9.14 per share, and pre-funded warrants (the "Pre-Funded Warrants") to purchase 42.0 million shares of the Company's common stock at a price of $9.13999 per Pre-Funded Warrant. Each Pre-Funded Warrant has an exercise price of $0.00001 per share, is exercisable immediately and until the Pre-Funded Warrant is exercised in full. The closing of the private placement was completed on July 19, 2024.

On July 22, 2024, the Company entered into purchase agreements with certain institutional and accredited investors to privately place 67.8 million shares of its common stock at a price of $9.14 per share. The closing of the private placement was completed on July 25, 2024.

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On March 17, 2025, the Company entered into purchase agreements with certain institutional investors to privately place 67.5 million shares of its common stock at a price of $12.30 per share. The closing of the private placement was contingent upon the completion of the Beacon Acquisition and was completed on April 29, 2025. As a result of the closing, the Company raised $823.8 million in net proceeds, after deducting offering costs of $6.8 million, to partially fund the Beacon Acquisition and related costs.

**Issuance of Mandatory Convertible Preferred Stock** 

On May 27, 2025, the Company completed a preferred stock offering, through which QXO issued and sold 11.5 million depositary shares ("Depositary Shares"), each representing a 1/20th interest in a share of the Company's 5.50% Series B Mandatory Convertible Preferred Stock, liquidation preference $1,000 per share, par value $0.001 per share (the "Mandatory Convertible Preferred Stock"). The amount issued included 1.5 million Depositary Shares issued pursuant to the exercise in full of the option granted to the underwriters to purchase additional Depositary Shares. The Company received net proceeds from the offering of $558.1 million, after deducting underwriting discounts, commissions and offering expenses of $16.9 million.

*Dividends* 

The Mandatory Convertible Preferred Stock will accumulate dividends (which may be paid in cash or, subject to certain limitations, in shares of common stock or in any combination of cash and common stock) at a rate per annum equal to 5.50% on the liquidation preference of $1,000 per share, payable when, as and if declared by the Company's board of directors (or an authorized committee thereof), on February 15, May 15, August 15 and November 15 of each year, beginning on August 15, 2025 and ending on, and including, May 15, 2028. Given the requirement to pay dividends in any settlement outcome of the Mandatory Convertible Preferred Stock, the Company accrues dividends whether or not they are formally declared by the Company's board of directors. During the three months ended March 31, 2026, the Company paid $7.9 million of dividends to holders of Mandatory Convertible Preferred Stock.

*Mandatory Conversion*

The following table illustrates the conversion rate per share of the Mandatory Convertible Preferred Stock, subject to certain anti-dilution adjustments, based on the applicable market value of the common stock:

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| | |
|:---|:---|
| **Applicable Market Value of Common Stock** | **Conversion Rate per Share of Mandatory Convertible Preferred Stock** |
| Greater than $20.2126 (the "Threshold Appreciation Price") | 49.4740 shares of common stock |
| Equal to or less than the Threshold Appreciation Price but greater than or equal to the Initial Price | Between 49.4740 and 60.6060 shares of common stock, determined by dividing $1,000 by the applicable market value |
| Less than $16.50 (the "Initial Price") | 60.6060 shares of common stock |

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The following table illustrates the conversion rate per Depositary Share, subject to certain anti-dilution adjustments, based on the applicable market value of the common stock:

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| | |
|:---|:---|
| **Applicable Market Value of Common Stock** | **Conversion Rate per Depository Share Representing a 1/20th interest in a share of the Mandatory Convertible Preferred Stock**  |
| Greater than the Threshold Appreciation Price | 2.4737 shares of common stock |
| Equal to or less than the Threshold Appreciation Price but greater than or equal to the Initial Price | Between 2.4737 and 3.0303 shares of common stock, determined by dividing $50 by the applicable market value |
| Less than the Initial Price | 3.0303 shares of common stock |

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*Optional Conversion*

Other than the occurrence of a fundamental change (as defined in the Company's Certificate of Designations relating to the Mandatory Convertible Preferred Stock) at any time prior to May 15, 2028, a holder of Mandatory Convertible Preferred Stock may elect to convert such holder's shares of Mandatory Convertible Preferred Stock, in whole or in part, at the minimum conversion rate of 49.4740 shares of common stock per share of Mandatory Convertible Preferred Stock (equivalent to 2.4737 shares of common stock per Depositary Share), subject to certain anti-dilution and other adjustments. Because each Depositary Share represents a 1/20th fractional interest in a share of Mandatory Convertible Preferred Stock, a holder of Depositary Shares may convert its Depositary Shares only in lots of 20 Depositary Shares.

*Fundamental Change Conversion* 

If a fundamental change occurs on or prior to May 15, 2028, holders of the Mandatory Convertible Preferred Stock will have the right to convert their shares of Mandatory Convertible Preferred Stock, in whole or in part, into shares of common stock at the fundamental change conversion rate during the period beginning on, and including, the effective date of such fundamental change and ending on, and including, the earlier of (a) the date that is 20 calendar days after such effective date (or, if later, the date that is 20 calendar days

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after holders receive notice of such fundamental change) and (b) May 15, 2028. For the avoidance of doubt, the period described in the immediately preceding sentence may not end on a date that is later than May 15, 2028.

*Ranking* 

The Mandatory Convertible Preferred Stock ranks, with respect to dividend rights and distribution of assets upon liquidation, winding-up or dissolution, (i) senior to the Company's common stock and each other class or series of capital stock, whether outstanding or established after the date of issuance of the Mandatory Convertible Preferred Stock, the terms of which do not expressly provide that it ranks senior to or on a parity with the Mandatory Convertible Preferred Stock as to payment of dividends and distribution of assets upon liquidation, winding-up or dissolution, and (ii) junior to the Convertible Preferred Stock. The Mandatory Convertible Preferred Stock ranks on a parity with or junior to each class or series of capital stock, the terms of which expressly provide for a pari passu or senior ranking, respectively, relative to the Mandatory Convertible Preferred Stock.

*Voting Rights*

Holders of Mandatory Convertible Preferred Stock will not have voting rights, except with respect to issuances of securities senior to the Mandatory Convertible Preferred Stock, amendments to the Company's Fifth Amended and Restated Certificate of Incorporation that would materially and adversely affect the rights of the holders of Mandatory Convertible Preferred Stock, or in the event of a merger, consolidation, exchange or reclassification involving the Mandatory Convertible Preferred Stock, or non-payment of dividends for six consecutive quarters.

**Registered Equity Offerings**

In April 2025, the Company sold 37.7 million shares of the Company's common stock in an underwritten public offering at a price of $13.25 per share. The closing of the equity offering was completed on April 21, 2025 and the Company raised $487.7 million in net proceeds from the equity offering, after deducting offering costs of $12.3 million. The Company also granted the underwriters in the public offering a 30-day option to purchase up to an additional 5.7 million shares of the Company's common stock at a price of $13.25 per share less underwriting discounts and commissions. On May 5, 2025, the option was partially exercised with respect to 4.0 million shares resulting in an additional $51.8 million of net proceeds. The remaining option to purchase additional shares expired unexercised at the end of the 30-day period.

In May 2025, the Company sold 48.5 million shares of the Company's common stock in an underwritten public offering at a price of $16.50 per share. The Company also granted the underwriters in the public offering a 30-day option to purchase up to an additional 7.3 million shares of the Company's common stock at a price of $16.50 per share less underwriting discounts and commissions. On May 21, 2025, the option was exercised in full. The closing of the equity offering was completed on May 23, 2025 and the Company raised $892.4 million in net proceeds from the equity offering, after deducting offering costs of $27.6 million.

In June 2025, the Company sold 89.9 million shares of the Company's common stock in an underwritten public offering at a price of $22.25 per share. The closing of the equity offering was completed on June 26, 2025 and the Company raised $1.96 billion in net proceeds from the equity offering, after deducting offering costs of $37.8 million. The Company also granted the underwriters in the public offering a 30-day option to purchase up to an additional 13.5 million shares of the Company's common stock at a price of $22.25 per share less underwriting discounts and commissions. On July 24, 2025, the option was partially exercised with respect to 1.7 million shares resulting in additional net proceeds of $38.1 million. The remaining option to purchase additional shares expired unexercised at the end of the 30-day period.

In January 2026, the Company sold 31.6 million shares of the Company's common stock in an underwritten public offering at a price of $23.80 per share. The closing of the equity offering was completed on January 20, 2026 and the Company raised $748.6 million in net proceeds from the equity offering, after deducting offering costs of $4.6 million. The Company also granted the underwriters in the public offering a 30-day option to purchase up to an additional 4.7 million shares of the Company's common stock at a price of $23.80 per share less underwriting discounts and commissions. The option to purchase additional shares expired unexercised at the end of the 30-day period.

**January 2026 Investment Agreement**

In January 2026, the Company entered into an investment agreement (the "January 2026 Investment Agreement") with AP Quince Holdings, L.P., a fund managed by affiliates of Apollo Global Management, Inc., and the other investors party thereto (collectively, the "Series C Investors"). Pursuant to the January 2026 Investment Agreement, the Series C Investors committed until July 15, 2026 (the "Initial Commitment Period") to purchase up to 300,000 shares of a new series of Series C Convertible Perpetual Preferred Stock, par value $0.001 per share (the "Series C Preferred Stock"), for an aggregate purchase price of $3.0 billion to fund one or more acquisitions of assets, equity or businesses (or portions thereof) for a purchase price in excess of $1.5 billion or as otherwise determined by the Company (each, a "Qualifying Acquisition"). The Initial Commitment Period will be extended with respect to the commitment for a Qualifying Acquisition up to an additional 12 months if a definitive acquisition agreement for such Qualifying Acquisition is executed before the expiration of the Initial Commitment Period.

On April 1, 2026, the Company completed its acquisition of Kodiak, which constitutes a Qualifying Acquisition, for a total purchase price of $2.25 billion.

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***Issuance of Series C Preferred Stock***

On April 1, 2026, the Company issued 200,000 shares of the Company's Series C Preferred Stock to finance the Kodiak Acquisition. The Series C Preferred Stock has an initial liquidation preference of $10,000 per share (the "Stated Value"). The Company received proceeds from the issuance of approximately $2.0 billion. Following such issuance, the Series C Investors have commitments to purchase an additional 100,000 shares of Series C Preferred Stock for $1.0 billion in cash.

*Dividends*

The holders of the Series C Preferred Stock (each, a "Holder" and collectively, the "Holders") will be entitled to dividends on the Series C Preferred Stock at a rate of 4.75% per annum. The Holders will be entitled to participate in dividends declared or paid on the common stock on an as-converted basis; provided that any such dividends on the common stock on an as-converted basis received by Holders will reduce, on a dollar-for-dollar basis, the dividends such Holders are entitled to receive on the Series C Preferred Stock. Dividends on the Series C Preferred Stock will be payable on a quarterly basis in cash and/or by delivery of shares of registered (or freely tradeable) common stock, in each case at the sole discretion of the Company. Any dividends not declared and paid in cash or shares of common stock on any dividend payment date will accrue and be compounded quarterly in arrears on the then Stated Value of such shares of Series C Preferred Stock on such dividend payment date.

*Conversion and Redemption*

The Series C Preferred Stock are, at the option of the holders thereof at any time and from time to time, convertible into common stock at an initial conversion price of $23.25 per share of Common Stock, subject to customary anti-dilution protections (the "Conversion Price").

At any time after the second anniversary of the initial issuance of the Series C Preferred Stock (the "Initial Issue Date"), the Company will have the option to require that all or any portion of the then-outstanding shares of Series C Preferred Stock be converted into common stock at the then applicable Conversion Price if the closing price per share of common stock exceeds (i) from and after the second anniversary and prior to the third anniversary of the Initial Issue Date, 175% of the Conversion Price and (ii) from and after the third anniversary of the Initial Issue Date, 150% of the Conversion Price, in each case, then in effect for at least 20 trading days in any period of 30 consecutive trading days immediately prior to the Holders' receipt of the conversion notice.

At any time on or following the seventh anniversary of the Initial Issue Date, the Company may redeem all or any portion of the outstanding Series C Preferred Stock at the applicable redemption price (the "Optional Redemption Price") plus accrued and unpaid dividends thereon. The Optional Redemption Price will be an amount in cash equal to the greater of (a) (i) 107% of the Stated Value, with respect to a redemption date on or following the seventh anniversary of the Initial Issue Date but prior to the eighth anniversary of the Initial Issue Date, (ii) 104% of the Stated Value, with respect to a redemption date on or following the eighth anniversary of the Initial Issue Date but prior to the ninth anniversary of the Initial Issue Date and (iii) 100% of the Stated Value, with respect to a redemption date on or following the ninth anniversary of the Initial Issue Date and (b) the as-converted value.

*Fundamental Change Conversion and Redemption*

Upon the occurrence of a fundamental change of the Company (i) in certain circumstances, the Company will be obligated to pay a customary fundamental change make-whole premium on the Series C Preferred Stock converted in connection with such fundamental change by increasing the conversion rate on such Series C Preferred Stock and (ii) the Company will be obligated to offer to redeem all of the Series C Preferred Stock for a price in cash equal to the greater of (a) the Stated Value, plus accrued and unpaid dividends thereon and (b) the as-converted value.

*Ranking*

The Series C Preferred Stock will rank junior to the Company's Convertible Preferred Stock, pari passu with the Company's Mandatory Convertible Preferred Stock and senior to the Company's common stock, with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company.

*Voting Rights*

The Series C Investors, as Holders, will be entitled to vote with the holders of the common stock on an as-converted basis, voting together as a single class, on all matters presented to the holders of common stock, except as required by Delaware law, subject to certain requirements as described in the January 2026 Investment Agreement.

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**7. Earnings (Loss) Per Common Share** 

Basic earnings (loss) per common share is computed using the two-class method, which is an earnings allocation method that determines earnings (loss) per share for common shares and participating securities. Basic net income (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common share equivalents or the conversion of the Company's Convertible Preferred Stock and Mandatory Convertible Preferred Stock. The weighted-average number of common shares outstanding used in the basic and diluted net loss per share calculation include the Pre-Funded Warrants as the Pre-Funded Warrants are exercisable at any time for nominal consideration. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock unit awards.

Diluted net income (loss) per common share is calculated by utilizing the most dilutive result of the if-converted and two-class methods. In both methods, net income (loss) attributable to common stockholders and the weighted-average common shares outstanding are adjusted to account for the impact of the assumed issuance of potential common shares that are dilutive, subject to dilution sequencing rules.

The following table presents the components and calculations of basic and diluted net income (loss) per common share attributable to common stockholders:

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| | | |
|:---|:---|:---|
| *(in millions, except per share amounts; certain amounts may not recalculate due to rounding)* | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| *(in millions, except per share amounts; certain amounts may not recalculate due to rounding)* | **2026** | **2025** |
| **Basic and diluted earnings (loss) per common share computation:** |  |  |
| Net (loss) income | $(227.1) | $8.8 |
| &nbsp;&nbsp;Less: Convertible Preferred Stock dividend | (22.5) | (22.5) |
| &nbsp;&nbsp;Less: Mandatory Convertible Preferred Stock dividend | (7.9) |  |
| &nbsp;&nbsp;Less: Undistributed earnings allocated to participating securities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss attributable to common shareholders | $(257.5) | $(13.7) |
| Weighted-average common shares | 702.4 | 409.4 |
| Weighted-average Pre-Funded Warrants | 42.0 | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total weighted-average common shares outstanding | 744.4 | 451.4 |
| Basic and diluted loss per common share | $(0.35) | $(0.03) |

---

The following table includes the number of shares that may be dilutive common shares in the future. These shares were not included in the computation of diluted net income (loss) per common share because the effect was either anti-dilutive or the requisite performance conditions were not met:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| *(in millions)* | **2026** | **2025** |
| Convertible Preferred Stock | 219.0 | 219.0 |
| Mandatory Convertible Preferred Stock | 28.4 |  |
| Warrants | 219.0 | 219.0 |
| Stock-based awards | 25.6 | 22.1 |
| Total potential dilutive securities not included in loss per common share | 492.0 | 460.1 |

---

Subsequent to the quarter ended March 31, 2026, the Company issued 200,000 shares of Series C Preferred Stock with a stated value of $10,000 per share, the conversion of which may result in dilutive common shares in the future. The stated value of the Series C Preferred Stock is, at the option of the holders, convertible into the Company's common stock at an initial conversion price of $23.25 per share.

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**8. Stock-based Compensation**

At the special meeting of the Company's stockholders on May 30, 2024, the stockholders approved the QXO, Inc. 2024 Omnibus Incentive Plan (the "2024 Plan"). The 2024 Plan provides for the grant of options intended to qualify as incentive stock options ("ISOs"), nonqualified stock options ("NSOs"), stock appreciation rights ("SARs"), restricted share awards, RSUs, performance-based restricted stock units ("PRSUs"), cash incentive awards, deferred share units and other equity-based and equity-related awards, as well as cash-based awards.

Subject to adjustment for changes in capitalization, the maximum aggregate number of shares of common stock that may be delivered pursuant to awards granted under the 2024 Plan shall be equal to 30,000,000 (the "Plan Share Limit"), of which 30,000,000 shares of common stock may be delivered pursuant to ISOs granted under the 2024 Plan (such amount, the "Plan ISO Limit"). The 2024 Plan provides that the Plan Share Limit shall automatically increase on January 1 of each calendar year commencing on January 1, 2025 and ending on January 1, 2034 in an amount equal to three percent (3%) of the sum of: i) the number of shares of common stock outstanding as of December 31 of the preceding calendar year, and ii) the number of shares of common stock into which the Convertible Preferred Stock outstanding on December 31 of the preceding calendar year are convertible. The Company may act prior to the first day of any calendar year to provide that there shall be no increase in the Plan Share Limit for such calendar year or that the increase in the Plan Share Limit for such calendar year shall be a lesser number of shares than would otherwise occur. The Compensation and Talent Committee took no action to alter the automatic increase effective January 1, 2026 in the Plan Share Limit under the 2024 Plan. The automatic renewal increased the Plan Share Limit to 62.0 million shares, including shares available for issuance as a result of the Converted Beacon Stock Plan (as defined below), for the calendar year commencing on January 1, 2026.

As part of the Beacon Acquisition, the Company assumed the remaining shares authorized and available for future issuance under the Beacon Roofing Supply, Inc. 2024 Stock Plan into the 2024 Plan as of the Closing Date (the "Converted Beacon Stock Plan"), which was adjusted based on the equity award exchange ratio discussed below and subject to certain regulatory limits. As a result, 21.5 million additional shares were added to the 2024 Plan's Plan Share Limit as of the Closing Date and may only be used to grant equity awards to employees that were former Beacon employees on the Closing Date or QXO employees hired after the Closing Date. A portion of the additional shares were used to grant the Converted RSUs and Converted NSOs (as defined and further discussed below).

As of March 31, 2026, there were 58.1 million additional shares of the Company's common stock reserved for future issuance under the 2024 Plan.

***Beacon Equity Awards***

On the Closing Date of the Beacon Acquisition, the Company converted outstanding Beacon stock-based incentive awards issued to Beacon employees under the Beacon Roofing Supply, Inc. 2024 Stock Plan at a 9.8380 equity award exchange ratio. In accordance with the terms of the Merger Agreement, the equity award exchange ratio was determined as the Merger Consideration divided by the volume-weighted average closing sale price of one share of QXO's common stock for the five consecutive trading days ended April 28, 2025 of $12.64 per share.

Employee-held outstanding Beacon RSUs were converted into corresponding QXO RSUs, subject to the same service-based vesting terms as immediately prior to the Beacon Acquisition. All RSUs held by a non-employee member of the board of directors of Beacon, whether vested or unvested, were accelerated in full and cancelled in exchange for a cash payment equal to the product of (i) the Merger Consideration and (ii) the number of Beacon shares underlying such RSUs. Each outstanding Beacon PRSU was also converted into QXO RSUs, with the performance-based vesting condition deemed satisfied at target and the resulting award subject solely to time-based vesting (collectively, the "Converted RSUs"). All outstanding stock option awards were converted into corresponding QXO NSOs (the "Converted NSOs"). The exercise price of Converted NSOs was adjusted using the equity award exchange ratio such that the award holders maintained the same economic benefit as of the Closing Date.

The total fair value of the Converted RSUs and Converted NSOs was $176.8 million as of the Beacon Acquisition's Closing Date, of which $87.5 million was related to pre-combination expense and was included as a component of purchase price. The remaining fair value of $89.3 million relates to post-combination expense. As of March 31, 2026, the future unrecognized stock-based compensation expense related to the outstanding Converted RSUs was $18.1 million, which will be recognized over a weighted-average remaining service period of 1.3 years. As of March 31, 2026, the future unrecognized stock-based compensation expense related to the outstanding Converted NSOs was $0.5 million, which will be recognized over a weighted-average remaining service period of 0.9 years.

***Converted NSOs***

Converted NSOs generally expire 10 years after the grant date and, except under certain conditions, the options are subject to continued employment and vest in three annual installments over the three-year period following the grant date. In connection with the Beacon Acquisition, the Company issued 5.1 million of Converted NSOs with a weighted-average exercise price of $5.04. There were 1.3 million Converted NSOs outstanding at the beginning of the period, and 0.2 million were exercised during the period at a weighted-average exercise price of $4.80. There was no other activity related to NSOs during the three months ended March 31, 2026.

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***RSUs***

The Company grants RSUs which vest subject to the employee's continued employment with the Company through the applicable vesting date.

The following table summarizes the activity related to the Company's RSUs for the three months ended March 31, 2026:

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| | | |
|:---|:---|:---|
| *(in millions, except for weighted-average grant date fair value)* | **Number of RSUs** | **Weighted-Average Grant Date Fair Value** |
| Balance at beginning of period | 16.1 | $12.69 |
| &nbsp;&nbsp;Granted | 3.7 | $21.83 |
| &nbsp;&nbsp;Vested<sup>(1)</sup> | (3.1) | $14.55 |
| &nbsp;&nbsp;Forfeited | (0.1) | $13.94 |
| Balance at end of period | 16.6 | $14.37 |
| <sup>(1)</sup> The number of RSUs vested includes 0.9 million RSUs that vested in March 2026, but were not legally settled until April 2026. | <sup>(1)</sup> The number of RSUs vested includes 0.9 million RSUs that vested in March 2026, but were not legally settled until April 2026. | <sup>(1)</sup> The number of RSUs vested includes 0.9 million RSUs that vested in March 2026, but were not legally settled until April 2026. |

---

The following table summarizes additional information regarding RSUs:

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| *(in millions, except per share amounts)* | **2026** | **2025** |
| Weighted-average fair value per share of RSUs granted | $21.83 | $13.07 |
| Total grant date fair value of RSUs vested | $45.3 | $— |
| Total intrinsic value of RSUs released | $66.3 | $— |

---

As of March 31, 2026, total unrecognized stock-based compensation expense related to unvested RSUs was $199.5 million and is expected to be recognized over a weighted-average period of 2.7 years.

***PRSUs***

The Company grants PRSUs which include a service-based vesting condition and a market condition or performance 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 total stock return compared to the total stock return 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:

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| | |
|:---|:---|
| **Percentile Position vs.<br>S&P 500 Index Companies** | **Units Earned as a<br>Percentage of Target** |
| Below 55th Percentile | —% |
| 55th Percentile | 100% |
| 65th Percentile | 150% |
| 75th Percentile | 175% |
| 80th Percentile | 200% |
| 90th Percentile | 225% |

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The following table summarizes the activity related to the Company's PRSUs for the three months ended March 31, 2026:

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| | | |
|:---|:---|:---|
| *(in millions, except for weighted-average grant date fair value)* | **Number of PRSUs** | **Weighted-Average Grant Date Fair Value** |
| Balance at beginning of period | 8.8 | $20.17 |
| &nbsp;&nbsp;Granted | 0.1 | $20.79 |
| &nbsp;&nbsp;Added by performance factor<sup>(1)</sup> | 1.4 | $15.66 |
| &nbsp;&nbsp;Vested<sup>(1)</sup> | (2.4) | $15.66 |
| Balance at end of period | 7.9 | $20.78 |
| <sup>(1)</sup> Includes PRSUs that vested above target based on achievement of applicable performance goals. | <sup>(1)</sup> Includes PRSUs that vested above target based on achievement of applicable performance goals. | <sup>(1)</sup> Includes PRSUs that vested above target based on achievement of applicable performance goals. |

---

The following table summarizes additional information regarding PRSUs:

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| *(in millions, except per share amounts)* | **2026** | **2025** |
| Weighted-average fair value per share of PRSUs granted | $20.79 | $— |
| Total grant date fair value of PRSUs vested | $37.1 | $— |
| Total intrinsic value of PRSUs released | $60.4 | $— |

---

As of March 31, 2026, total unrecognized stock-based compensation expense related to unvested PRSUs was $94.3 million and is expected to be recognized over a weighted-average period of 2.7 years.

The fair value of PRSUs with a market condition is determined on the date of grant using a Monte Carlo model to simulate total stockholder return for the Company and peer companies. There were no PRSUs with a market condition granted during the three months ended March 31, 2026 and 2025.

The RSUs and PRSUs may vest in whole or in part before the applicable vesting date if the grantee's employment is terminated by the Company without cause or by the grantee with good reason (as defined in the grant agreement), upon death or disability of the grantee or in the event of a change in control of the Company. Upon vesting, the RSUs and PRSUs result in the issuance of shares of the Company's common stock. The holders of the RSUs and PRSUs do not have the rights of a stockholder and do not have voting rights until shares are issued and delivered in settlement of the awards.

***Stock-Based Compensation Expense***

Stock-based compensation expense is included within selling, general and administrative expenses in the condensed consolidated statements of operations. The Company recognized stock-based compensation expense as follows:

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| *(in millions)* | **2026** | **2025** |
| NSOs | $0.2 | $— |
| RSUs | 27.5 | 7.5 |
| PRSUs | 11.5 | 12.7 |
| Total stock-based compensation expense | $39.2 | $20.2 |

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**9. Debt**

The following table summarizes all outstanding debt:

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of** | **As of** | **As of** | **As of** | **As of** | **As of** | **As of** | **As of** | **As of** | **As of** | **As of** | **As of** |
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| *(in millions)* | **Principal Balance** | **Principal Balance** | **Carrying Value** | **Carrying Value** | **Fair Value** | **Fair Value** | **Principal Balance** | **Principal Balance** | **Carrying Value** | **Carrying Value** | **Fair Value** | **Fair Value** |
| **Long-term Debt, net** |  |  |  |  |  |  |  |  |  |  |  |  |
| Term Loan Facility<sup>(1)</sup> | $| 850.0 | $| 828.5 | $| 848.9 | $| 850.0 | $| 827.8 | $| 852.1 |
| Notes<sup>(2)</sup> | 2250.0 | 2250.0 | 2230.1 | 2230.1 | 2278.1 | 2278.1 | 2250.0 | 2250.0 | 2229.5 | 2229.5 | 2356.9 | 2356.9 |
| Long-term debt, net | $| 3100.0 | $| 3058.6 | $| 3127.0 | $| 3100.0 | $| 3057.3 | $| 3209.0 |
| <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. | <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. | <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. | <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. | <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. | <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. | <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. | <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. | <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. | <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. | <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. | <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. | <sup>(1)</sup> Interest rate of 5.67% and 5.72% as of March 31, 2026 and December 31, 2025, respectively. |
| <sup>(2)</sup> Interest rate of 6.75% for all periods presented. | <sup>(2)</sup> Interest rate of 6.75% for all periods presented. | <sup>(2)</sup> Interest rate of 6.75% for all periods presented. | <sup>(2)</sup> Interest rate of 6.75% for all periods presented. | <sup>(2)</sup> Interest rate of 6.75% for all periods presented. | <sup>(2)</sup> Interest rate of 6.75% for all periods presented. | <sup>(2)</sup> Interest rate of 6.75% for all periods presented. | <sup>(2)</sup> Interest rate of 6.75% for all periods presented. | <sup>(2)</sup> Interest rate of 6.75% for all periods presented. | <sup>(2)</sup> Interest rate of 6.75% for all periods presented. | <sup>(2)</sup> Interest rate of 6.75% for all periods presented. | <sup>(2)</sup> Interest rate of 6.75% for all periods presented. | <sup>(2)</sup> Interest rate of 6.75% for all periods presented. |

---

As of March 31, 2026, all outstanding debt was classified as Level 2 in the fair value hierarchy. The fair values of QXO Building Products' Notes and Term Loan Facility were based upon recent trading prices.

***Senior Secured Notes***

On April 29, 2025, Merger Sub (the "Issuer") completed the issuance and sale of $2.25 billion in aggregate principal amount of 6.75% Senior Secured Notes due 2032 (the "Notes"). The Notes were issued pursuant to an Indenture, dated as of April 29, 2025 (as supplemented, the "Indenture"), and, upon consummation of the Beacon Acquisition, QXO Building Products assumed the obligations under the Notes and the Indenture and certain of QXO Building Products' subsidiaries (collectively, the "Subsidiary Guarantors") guaranteed QXO Building Products' obligations under the Notes and the Indenture. The Notes are secured by first-priority liens on substantially all assets of the Issuer and the Subsidiary Guarantors, other than the ABL Priority Collateral (as defined below) (the "Notes Priority Collateral") and by second-priority liens on substantially all of the Issuer's and the Subsidiary Guarantors' inventory, receivables and related assets (the "ABL Priority Collateral"), in each case, subject to certain exceptions and permitted liens. The Notes will mature on April 30, 2032. Interest on the Notes accrues at 6.75% per annum and will be paid semi-annually, in arrears, on April 30 and October 30 of each year, beginning October 30, 2025. Proceeds from the Notes were used to partially fund the Beacon Acquisition and related transaction expenses.

On or after April 30, 2028, the Issuer may redeem the Notes at its option, in whole at any time or in part from time to time, at the redemption prices set forth in the Indenture. In addition, prior to April 30, 2028, the Issuer may redeem the Notes at its option, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus a "make-whole" premium and accrued and unpaid interest, if any. Notwithstanding the foregoing, at any time prior to April 30, 2028, the Issuer may also redeem up to 50% of the aggregate principal amount of the Notes with funds in an aggregate amount not to exceed the net cash proceeds from certain equity offerings at a redemption price equal to 106.75% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any. In addition, prior to April 30, 2028, the Issuer may redeem during each twelve-month period up to 10% of the original aggregate principal amount of the Notes at a redemption price equal to 103%, plus accrued and unpaid interest, if any.

The Indenture includes customary affirmative and negative covenants with respect to the Issuer and its restricted subsidiaries. These covenants are subject to a number of important qualifications and exceptions. Additionally, upon the occurrence of specified change of control events, the Issuer must offer to repurchase the Notes at 101% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the purchase date. The Indenture also provides for customary events of default. As of March 31, 2026, the Issuer and its restricted subsidiaries were in compliance with these covenants.

Debt issuance costs of $22.2 million related to the Notes were capitalized and are being amortized over the term of the financing arrangement.

As of March 31, 2026, the outstanding balance on the Notes, net of $19.9 million of unamortized debt issuance costs, was $2.23 billion.

***Term Loan Facility***

On April 29, 2025, Merger Sub, as initial borrower, entered into a Term Loan Credit Agreement (the "Term Loan Credit Agreement") with Queen HoldCo, LLC ("Holdings"), the lenders party thereto and Goldman Sachs Bank USA, as administrative agent, which provides for senior secured financing consisting of a term loan facility (the "Term Loan Facility") in an aggregate principal amount of $2.25 billion. Upon the consummation of the Beacon Acquisition, QXO Building Products entered into a joinder to the Term Loan Credit Agreement as the surviving borrower (the "Borrower"). The facility matures on April 30, 2032. Proceeds from the Term Loan Facility were used to partially fund the Beacon Acquisition and related transaction expenses.

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Borrowings under the Term Loan Facility bear interest at variable rates based on Term SOFR or a base rate, in each case plus an applicable margin. The facility requires scheduled quarterly amortization payments in an annual amount equal to 1.0% of the original principal amount of borrowings under the Term Loan Facility, with the remaining balance due at maturity. The Term Loan Facility also requires the Borrower to make certain mandatory prepayments. The Borrower can make voluntary prepayments at any time without penalty, except in connection with a repricing event in respect of the Term Loan Facility, subject to customary breakage costs. Any refinancing through the issuance of certain debt or any repricing amendment, in either case, that constitutes a "repricing event" applicable to the term loans resulting in a lower yield occurring at any time during the first six months after the closing date of the Term Loan Facility will be accompanied by a 1.00% prepayment premium or fee, as applicable.

The Term Loan Facility is unconditionally guaranteed by Holdings on a limited-recourse basis and secured by a first-priority lien on the equity interests of the Borrower held by Holdings. The Term Loan Facility is also guaranteed by each Subsidiary Guarantor and secured by a first-priority lien with respect to the Notes Priority Collateral and a second-priority lien with respect to the ABL Priority Collateral. The Term Loan Facility is secured on a ratable basis with the Notes with respect to the Notes Priority Collateral and the ABL Priority Collateral.

The Term Loan Credit Agreement includes customary affirmative and negative covenants with respect to the Borrower and its restricted subsidiaries. These covenants are subject to a number of important qualifications and exceptions. The Term Loan Credit Agreement contains certain customary events of default, including relating to a change of control. As of March 31, 2026, the Borrower and its restricted subsidiaries were in compliance with these covenants.

The principal amount of borrowing under the Term Loan Facility was reduced by an original issue discount ("OID") of 1%. OID costs of $22.5 million and debt issuance costs of $50.9 million related to the Term Loan Facility were capitalized and are being amortized over the term of the financing arrangement.

On May 29, 2025, the Borrower made a voluntary principal prepayment of $1.40 billion under the Term Loan Facility. As a result, the Borrower was relieved of its obligation to make quarterly amortization payments in an annual amount equal to 1.0% of the original principal amount of borrowings under the Term Loan Facility. Additionally, as a result of the principal prepayment, the Borrower recognized a loss on debt extinguishment of $45.7 million during the three months ended June 30, 2025, which is comprised of $14.0 million of unamortized OID costs and $31.7 million of unamortized debt issuance costs related to the Term Loan Facility.

On November 5, 2025, the Borrower amended the Term Loan Credit Agreement in order to refinance the Term Loan Facility. The amendment reduced the applicable margin for borrowings under the Term Loan Facility from 3.00% to 2.00% for Term SOFR borrowings and from 2.00% to 1.00% for base rate borrowings. (the "Term Loan Refinancing"). As a result of the Term Loan Refinancing, the Borrower recognized a loss on debt extinguishment of $4.0 million during the three months ended September 30, 2025, which is comprised of $0.9 million of unamortized OID costs, $2.2 million of unamortized debt issuance costs, and $0.9 million of third-party fees associated with the modification of the Term Loan Facility. Additionally, new debt issuance costs of $0.1 million were capitalized and are being amortized over the term of the financing arrangement.

The loss on debt extinguishment resulting from the principal prepayment and the subsequent Term Loan Refinancing was separately recognized on the consolidated statements of operations for the year ended December 31, 2025.

As of March 31, 2026, the outstanding balance on the Term Loan Facility, net of $6.6 million of unamortized OID costs and $14.9 million of unamortized debt issuance costs, was $828.5 million.

***ABL Credit Agreement***

On April 29, 2025, Merger Sub, as initial borrower, entered into the Asset-Based Revolving Credit Agreement (the "ABL Credit Agreement"), with Holdings, the lenders party thereto and Citibank, N.A., as administrative agent and collateral agent, which provides for an asset-based revolving credit facility (the "ABL Facility"), with an aggregate borrowing availability equal to the lesser of $2.0 billion, and the borrowing base. Upon the consummation of the Beacon Acquisition, the Borrower entered into a joinder to the ABL Credit Agreement as the surviving borrower. The ABL Facility matures on April 29, 2030. Based on the Borrower's borrowing base as of March 31, 2026, the Borrower had $1.98 billion borrowing capacity under the ABL Facility.

Borrowings under the ABL Facility bear interest at a rate equal to, at the Borrower's option, either (a) (x) Term SOFR determined by reference to the secured overnight financing rate published by the Federal Reserve Bank of New York, which rate shall be no less than zero or (y) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50% per annum, (ii) the prime rate quoted by the Wall Street Journal as the "Prime Rate" and (iii) the sum of one-month adjusted Term SOFR plus 1.00% per annum, which base rate shall be no less than 1.00%, or (b) (x) with respect to borrowings of Canadian dollars, Term CORRA determined by reference to the interbank offered rate administered by the CORRA Administrator, which rate shall be no less than zero or (y) a base rate determined by reference to the highest of (i) zero (0%), (ii) the one-month Term CORRA plus 1.00% per annum or (iii) the prime rate reported by Reuters, in each case plus an applicable margin based on excess availability set forth in the ABL Credit Agreement. The Borrower is also required to pay a commitment fee equal to 0.20% per annum (depending on the average utilization of the commitments) to the lenders under the ABL Facility in respect of the unutilized commitments thereunder. The Borrower can make voluntary prepayments at any time without penalty, subject to customary breakage costs.

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The ABL Facility (and at the Borrower's option certain hedging, cash management and bank product obligations secured under the ABL Facility) is unconditionally guaranteed by Holdings on a limited-recourse basis and secured by a second-priority lien on the equity interests of the Borrower held by Holdings. The ABL Facility is also guaranteed by each Subsidiary Guarantor and secured by a second-priority lien with respect to the Notes Priority Collateral and a first-priority lien with respect to the ABL Priority Collateral.

The ABL Credit Agreement includes customary affirmative and negative covenants with respect to the Borrower and its restricted subsidiaries. These covenants are subject to a number of important qualifications and exceptions. The ABL Credit Agreement contains certain customary events of default, including relating to a change of control.

The ABL Facility requires that the Borrower, commencing on or after the last day of the first full fiscal quarter ending after the closing date of the ABL Facility, maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 at any time that availability is less than the greater of (x) $120 million and (y) 10% of the lesser of (i) the borrowing base at such time and (ii) the aggregate amount of ABL Facility commitments at such time. As of March 31, 2026, the Borrower and its restricted subsidiaries were in compliance with these covenants.

Debt issuance costs of $18.8 million related to the ABL Facility were capitalized and are being amortized ratably over the term of the financing arrangement. The debt issuance costs related to the ABL Facility are presented as an asset, included in other assets, net on the condensed consolidated balance sheets. As of March 31, 2026, there were $15.4 million of unamortized debt issuance costs related to the ABL Facility.

As of March 31, 2026, there was no outstanding balance on the ABL Facility. The Borrower and its restricted subsidiaries had $21.2 million in outstanding standby letters of credit issued under the ABL Facility as of March 31, 2026.

***Other Information***

All required principal payments on outstanding debt are due after December 31, 2030.

Under the terms of the ABL Facility, the Term Loan Facility and the Notes, QXO Building Products is limited in making certain restricted payments, including dividends on its common stock. Based on the provisions in the respective debt agreements and given the Company's intention to not pay common stock dividends in the foreseeable future, the Company does not believe that the restrictions are significant.

**10. Leases**

The Company primarily operates in leased branch facilities and corporate offices, which are accounted for as operating leases. The real estate leases expire between 2026 and 2037. The Company also leases equipment, such as trucks and forklifts. Equipment leases are accounted for as either operating or finance leases. The equipment leases expire between 2026 and 2033.

The following table presents components of lease costs recognized in the condensed consolidated statements of operations:

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| *(in millions)* | **2026** | **2025** |
| Operating lease costs | $43.3 | $— |
| Finance lease costs: |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 13.3 | 0.1 |
| &nbsp;&nbsp;&nbsp;Interest on lease obligations | 3.0 |  |
| Variable lease costs | 5.4 | 0.1 |
| &nbsp;&nbsp;Total lease costs | $65.0 | $0.2 |

---

The following table presents supplemental cash flow information related to the Company's leases:

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| *(in millions)* | **2026** | **2025** |
| Cash paid for amounts included in measurement of lease obligations: |  |  |
| &nbsp;&nbsp;&nbsp;Operating cash outflows from operating leases | $41.3 | $0.1 |
| &nbsp;&nbsp;&nbsp;Operating cash outflows from finance leases | $3.0 | $— |
| &nbsp;&nbsp;&nbsp;Financing cash outflows from finance leases | $12.2 | $— |
| Right-of-use assets obtained in exchange for new finance lease liabilities | $3.7 | $— |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $10.3 | $— |

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As of March 31, 2026, the Company's operating leases had a weighted-average remaining lease term of 6.0 years and a weighted-average discount rate of 6.56%, and the Company's finance leases had a weighted-average remaining lease term of 4.0 years and a weighted-average discount rate of 6.57%.

The following table summarizes future lease payments for each of the next five years ending December 31 and thereafter:

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| | | |
|:---|:---|:---|
| *(in millions)* | **Operating Leases** | **Finance Leases** |
| 2026 (April - December) | $109.2 | $45.4 |
| 2027 | 154.3 | 55.6 |
| 2028 | 136.7 | 44.3 |
| 2029 | 115.9 | 31.3 |
| 2030 | 94.2 | 19.7 |
| Thereafter | 199.0 | 7.1 |
| &nbsp;&nbsp;Total future lease payments | 809.3 | 203.4 |
| Imputed interest | (144.8) | (24.0) |
| Total lease liabilities | $664.5 | $179.4 |

---

**11. Commitments and Contingencies**

Various legal claims arise from time to time in the normal course of business. In assessing loss contingencies related to legal proceedings that are pending against the Company, or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

The Company believes that it has adequately accrued for the potential impact of loss contingencies that are probable and reasonably estimable, and does not believe that the ultimate resolution of any matters to which it is presently a party will have a material adverse effect on the Company's results of operations, financial condition or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on the Company's financial condition, results of operations or cash flows.

**12. Income Taxes**

The Company's interim provision for income taxes is determined based on its annual estimated effective tax rate, applied to the actual year-to-date income, and adjusted for the tax effects of any discrete items. The Company's effective tax rate for the three months ended March 31, 2026, excluding discrete items, was 17.0%, compared to 49.3% for the three months ended March 31, 2025. The Company's effective tax rates for the three months ended March 31, 2026 and 2025 were based on the U.S. federal statutory tax rate of 21% and state jurisdictional income tax rates, adjusted for permanent items including compensation above $1 million, inclusive of equity awards, paid to covered employees under Internal Revenue Code Section 162(m), coupled with the pre-tax loss during the three months ended March 31, 2026.

**13. Subsequent Events**

***Kodiak Building Partners Acquisition***

On April 1, 2026, pursuant to the Kodiak Merger Agreement, the Company completed its acquisition of Kodiak for a purchase price of $2.25 billion. The purchase price comprised $2.0 billion of cash and 13.2 million shares of the Company's common stock, with the Company retaining the right to repurchase these shares at $40 per share at any time.

***Issuance of Series C Preferred Stock***

On April 1, 2026, the Company issued 200,000 shares of the Company's Series C Preferred Stock to finance the Kodiak Acquisition. The Series C Preferred Stock have an initial liquidation preference of $10,000 per share. The Company received proceeds from the issuance of approximately $2.0 billion.

***TopBuild Corp. Acquisition***

On April 18, 2026, QXO entered into the TopBuild Merger Agreement with TopBuild, Titanium Merger Sub and Forward Merger Sub, pursuant to which QXO agreed to acquire TopBuild for approximately $17.0 billion in a combination of cash and stock consideration. The transaction is subject to the satisfaction or waiver of customary closing conditions, including, among others, approval by the stockholders of TopBuild and QXO. The transaction is expected to close in the third quarter of 2026. For additional

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details regarding the TopBuild Acquisition, refer to Note 3 – *Acquisitions* of Item I of Part I, "Condensed Consolidated Financial Statements" of this Quarterly Report.

The TopBuild Acquisition is subject to a number of risks and uncertainties and there is no assurance that the TopBuild Acquisition will occur.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations** 

Our unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the unaudited condensed consolidated financial statements as well as the reported amounts of revenues and expenses during the periods presented. Our unaudited condensed consolidated financial statements would be affected to the extent that there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management's judgment in its application. There are also areas in which management's judgment in selecting any available alternative would not produce a materially different result. The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and notes appearing elsewhere in this report.

**Overview**

Prior to the Beacon Acquisition (as defined below), QXO, Inc. ("QXO", "we", "our", or the "Company") was primarily a technology solutions and professional services company, providing critical software applications, consulting and other professional services, including specialized programming, training and technical support to small and mid-size companies in the manufacturing, distribution and services industries. On January 17, 2025, the Company transferred the listing of its common stock, par value $0.00001 per share (the "common stock"), from Nasdaq to the New York Stock Exchange (the "NYSE"). The Company's listing and trading of the common stock on Nasdaq ended at market close on January 16, 2025. The Company's common stock began trading on the NYSE on January 17, 2025.

***Beacon Acquisition***

On March 20, 2025, QXO entered into an Agreement and Plan of Merger (the "Merger Agreement") with Beacon Roofing Supply, Inc., a Delaware corporation ("Beacon"), and Queen MergerCo, Inc., a Delaware corporation and wholly owned subsidiary of QXO ("Merger Sub"), pursuant to which QXO agreed to acquire Beacon for a purchase price of $124.35 per share of common stock (the "Merger Consideration") of Beacon (the "Beacon Acquisition"). On April 29, 2025 (the "Closing Date"), pursuant to the Merger Agreement, Merger Sub merged with and into Beacon, with Beacon remaining as the surviving entity and being renamed QXO Building Products, Inc. ("QXO Building Products"), and the Company completed its acquisition of Beacon in a transaction that valued Beacon at $10.6 billion.

QXO is the largest publicly-traded distributor of roofing, waterproofing, and complementary building products in North America. We plan to become the tech-enabled leader in the $800 billion building products distribution industry and generate outsized value for shareholders. We are executing our strategy toward a target of $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth.

***Kodiak Acquisition***

On February 10, 2026, QXO entered into an Agreement and Plan of Merger (the "Kodiak Merger Agreement") with Kodiak Building Partners Inc., a Delaware corporation ("Kodiak"), Court Square Capital Partners, and Juno Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of QXO ("Juno Merger Sub"), pursuant to which QXO agreed to acquire Kodiak from Court Square Capital Partners. On April 1, 2026 (the "Kodiak Closing Date"), pursuant to the Kodiak Merger Agreement, Juno Merger Sub merged with and into Kodiak, with Kodiak remaining as the surviving entity, and the Company completed its acquisition of Kodiak for a purchase price of $2.25 billion (the "Kodiak Acquisition"). The purchase price comprised $2.0 billion of cash and 13.2 million shares of the Company's common stock, with the Company retaining the right to repurchase these shares at $40 per share at any time.

***Proposed Acquisition of TopBuild***

On April 18, 2026, QXO entered into an Agreement and Plan of Merger (the "TopBuild Merger Agreement") with TopBuild Corp., a Delaware corporation ("TopBuild"), Titanium MergerCo, Inc., a Delaware corporation and wholly owned subsidiary of QXO ("Titanium Merger Sub"), and Titanium MergerCo 2, LLC, a Delaware limited liability company and wholly owned subsidiary of QXO ("Forward Merger Sub"), pursuant to which QXO agreed to acquire TopBuild for approximately $17.0 billion in a combination of cash and stock consideration. The transaction is subject to the satisfaction or waiver of customary closing conditions, including, among others, approval by the stockholders of TopBuild and QXO. The transaction is expected to close in the third quarter of 2026. For additional details regarding the TopBuild Acquisition, refer to Note 3 – *Acquisitions* of Item I of Part I, "Condensed Consolidated Financial Statements" of this Quarterly Report.

The TopBuild Acquisition is subject to a number of risks and uncertainties and there is no assurance that the TopBuild Acquisition will occur. See "Risks Related to the Proposed Acquisition of TopBuild" in Item 1A of Part II, "Risk Factors" of this Quarterly Report.

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**Results of Consolidated Operations**

The following tables set forth our results of operations for the periods presented. The period-to-period comparison of financial results is not necessarily indicative of future results.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **% of net sales**<sup>(1)</sup> | **% of net sales**<sup>(1)</sup> |
| *(in millions, except percentages)* | **2026** | **2025** | **2026** | **2025** |
| Net sales | $1730.2 | $13.5 | 100.0% | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold | 1320.9 | 8.1 | 76.3% | 60.0% |
| Gross profit | 409.3 | 5.4 | 23.7% | 40.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 497.0 | 44.4 | 28.7% | 328.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 47.3 | 0.1 | 2.7% | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 116.9 | 0.2 | 6.8% | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expense | 661.2 | 44.7 | 38.2% | 331.1% |
| Loss from operations | (251.9) | (39.3) | (14.6)% | (291.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest (expense) income, net | (31.1) | 56.6 | (1.8)% | 419.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 2.7 |  | 0.2% | —% |
| (Loss) income before (benefit from) provision for income taxes | (280.3) | 17.3 | (16.2)% | 128.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;(Benefit from) provision for income taxes | (53.2) | 8.5 | (3.1)% | 63.0% |
| Net (loss) income | $(227.1) | $8.8 | (13.1)% | 65.2% |
| <sup>(1)</sup> Percent of net sales may not foot due to rounding. | <sup>(1)</sup> Percent of net sales may not foot due to rounding. | <sup>(1)</sup> Percent of net sales may not foot due to rounding. | <sup>(1)</sup> Percent of net sales may not foot due to rounding. | <sup>(1)</sup> Percent of net sales may not foot due to rounding. |

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**Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025**

***Net Sales***

The following table summarizes net sales by line of business for the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **% of net sales** | **% of net sales** |
| *(in millions, except percentages)* | **2026** | **2025** | **2026** | **2025** |
| Residential roofing products | $799.1 | $— | 46.2% | —% |
| Non-residential roofing products | 463.6 |  | 26.8% | —% |
| Complementary building products | 452.9 |  | 26.2% | —% |
| Software products and services | 14.6 | 13.5 | 0.8% | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $1730.2 | $13.5 | 100.0% | 100.0% |

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Net sales for the three months ended March 31, 2026 increased to $1.73 billion compared to $13.5 million for the three months ended March 31, 2025. The increase in net sales was primarily driven by the Beacon Acquisition as Beacon's net sales are included in net sales for the three months ended March 31, 2026. Beacon's sales for the three months ended March 31, 2026 were down relative to Beacon's sales for the three months ended March 31, 2025 primarily due to macroeconomic headwinds consistent with the broader building products industry.

***Cost of Products Sold***

Cost of products sold for the three months ended March 31, 2026 increased to $1.32 billion, up from $8.1 million for the three months ended March 31, 2025. The comparative increase was primarily due to higher cost of products sold associated with increased net sales as a result of the Beacon Acquisition.

***Selling, General and Administrative ("SG&A") Expense***

SG&A expense for the three months ended March 31, 2026 increased to $497.0 million, up from $44.4 million for the three months ended March 31, 2025. 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, including payroll and employee benefit costs, warehouse operating costs, and general and administrative costs. The increase in SG&A expense was also attributable to increases in stock-based compensation expense of $19.0 million, restructuring charges of $16.3 million, and incremental costs of $11.4 million related to our transformation efforts, which are directed at simplifying, streamlining, and optimizing the Company's operations.

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***Depreciation Expense***

Depreciation expense was $47.3 million for the three months ended March 31, 2026, compared to $0.1 million for the three months ended March 31, 2025. The comparative increase was primarily due to an increase in property and equipment as a result of the Beacon Acquisition.

***Amortization Expense***

Amortization expense was $116.9 million for the three months ended March 31, 2026, compared to $0.2 million for the three months ended March 31, 2025. The comparative increase was primarily due to amortization expense associated with new customer relationships and trade names intangible assets recognized as a result of the Beacon Acquisition.

***Interest (Expense) Income, Net***

Interest (expense) income, net was $(31.1) million for the three months ended March 31, 2026, compared to $56.6 million for the three months ended March 31, 2025. The comparative increase in interest expense was primarily due to additional debt that was issued by QXO Building Products in connection with the Beacon Acquisition, resulting in higher interest expense. Interest (expense) income, net for the three months ended March 31, 2026 was partially offset by interest income of $25.4 million recognized on interest-bearing cash accounts. Interest (expense) income, net for the three months ended March 31, 2025 was $56.6 million, consisting of $56.6 million of interest income recognized on interest-bearing cash accounts and de minimis interest expense.

***Income Taxes***

The Company's interim provision for income taxes is determined based on its annual estimated effective tax rate, applied to the actual year-to-date income, and adjusted for the tax effects of any discrete items. The Company's effective tax rate for the three months ended March 31, 2026, excluding discrete items, was 17.0%, compared to 49.3% for the three months ended March 31, 2025. The Company's effective tax rates for the three months ended March 31, 2026 and 2025 were based on the U.S. federal statutory tax rate of 21% and state jurisdictional income tax rates, adjusted for permanent items including compensation above $1 million, inclusive of equity awards, paid to covered employees under Internal Revenue Code Section 162(m), coupled with the pre-tax loss during the three months ended March 31, 2026.

Benefits for income taxes consists of federal and state taxes in the United States and income in certain foreign jurisdictions, as well as deferred income taxes and changes in valuation allowance, reflecting net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Realization of our deferred tax assets depends on the generation of future taxable income. In considering our need for a valuation allowance, we consider our historical and future projected taxable income, as well as other objectively verifiable evidence, including our realization of tax attributes and utilization of net operating loss carryforwards.

We believe that it is at least more likely than not that the benefit of the year-to-date losses will be realized in future periods. However, our future effective tax rate may be affected by our ongoing assessment of the need for a valuation allowance on our deferred tax assets or liabilities, or changes in tax laws, regulations, or accounting principles, tax planning initiatives, as well as certain discrete items.

**Non-GAAP Financial Measures**

To provide investors with additional information regarding our financial results, we have disclosed here and elsewhere in this Quarterly Report Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) per Common Share, Adjusted EBITDA and Adjusted EBITDA Margin, which represent non-GAAP financial measures.

We calculate Adjusted Net Income (Loss) as net income (loss) excluding amortization; stock-based compensation; restructuring costs; transaction costs; transformation costs; and the income tax associated with such adjusting items. We calculate Adjusted Diluted Earnings (Loss) per Common Share as Adjusted Net Income (Loss) divided by the weighted-averaged 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. We calculate Adjusted EBITDA as net income (loss) excluding depreciation; amortization; stock-based compensation; interest (income) expense, net; provision for (benefit from) income taxes; restructuring costs; transaction costs; and transformation costs that we do not consider representative of our underlying operations. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales.

We have provided a reconciliation below of Adjusted Net Income (Loss) to net income (loss), the most directly comparable financial measure as measured in accordance with GAAP, as well as a calculation of diluted earnings (loss) per common share and Adjusted Diluted Earnings (Loss) per Common Share. We have also provided a reconciliation below of Adjusted EBITDA to net income (loss), the most directly comparable financial measure as measured in accordance with GAAP, as well as a calculation of net margin and Adjusted EBITDA Margin.

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Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating QXO's ongoing performance. We believe these non-GAAP financial measures facilitate analysis of our ongoing business operations because they exclude items that may not be reflective of, or are unrelated to, QXO's core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying business. Other companies may calculate these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures of other companies.

***Adjusted Net Loss and Adjusted Diluted Loss per Common Share***

A reconciliation of net loss and diluted loss per common share to Adjusted Net Loss and Adjusted Diluted Loss per Common Share is as follows:

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| | | |
|:---|:---|:---|
| *(in millions, except per share amounts)* | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| Net loss | $| (227.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefit from income taxes | (53.2) | (53.2) |
| Loss before benefit from income taxes | (280.3) | (280.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | 116.9 | 116.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 39.2 | 39.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring costs | 16.3 | 16.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction costs | 19.3 | 19.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transformation costs | 11.4 | 11.4 |
| Adjusted loss before benefit from income taxes | (77.2) | (77.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax associated with the adjustments above<sup>(1)</sup> | 20.0 | 20.0 |
| Adjusted Net Loss | $| (57.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertible Preferred Stock dividend | (22.5) | (22.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Mandatory Convertible Preferred Stock dividend | (7.9) | (7.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Undistributed income allocated to participating securities |  |  |
| Adjusted Net Loss attributable to common stockholders | $| (87.6) |
| Basic and diluted loss per common share | $| (0.35) |
| Adjusted Diluted Loss per Common Share<sup>(2)</sup> | $| (0.12) |
| Adjusted diluted weighted-average common shares outstanding<sup>(2)</sup> | 744.4 | 744.4 |
| <sup>(1)</sup> The effective tax rate to calculate Adjusted Net Loss for the three months ended March 31, 2026 is 26.0% due to the tax calculated on adjusted loss before benefit from income taxes. | <sup>(1)</sup> The effective tax rate to calculate Adjusted Net Loss for the three months ended March 31, 2026 is 26.0% due to the tax calculated on adjusted loss before benefit from income taxes. | <sup>(1)</sup> The effective tax rate to calculate Adjusted Net Loss for the three months ended March 31, 2026 is 26.0% due to the tax calculated on adjusted loss before benefit from income taxes. |
| <sup>(2)</sup> Adjusted Diluted Loss per Common Share is calculated as Adjusted Net 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. | <sup>(2)</sup> Adjusted Diluted Loss per Common Share is calculated as Adjusted Net 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. | <sup>(2)</sup> Adjusted Diluted Loss per Common Share is calculated as Adjusted Net 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. |

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***Adjusted EBITDA and Adjusted EBITDA Margin***

A reconciliation of net (loss) income and net margin to Adjusted EBITDA and Adjusted EBITDA Margin is as follows:

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| *(in millions, except percentages)* | **2026** | **2025** |
| Net (loss) income | $(227.1) | $8.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 47.3 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | 116.9 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 39.2 | 20.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense (income), net | 31.1 | (56.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Benefit from) provision for income taxes | (53.2) | 8.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring costs | 16.3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction costs | 19.3 | 9.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transformation costs | 11.4 |  |
| Adjusted EBITDA | $1.2 | $(9.0) |
| Net sales | $1730.2 | $13.5 |
| *Net margin*<sup>(1)</sup>  | (13.1)% | 65.2% |
| *Adjusted EBITDA Margin*<sup>(1)</sup> | 0.1% | (66.7)% |
| <sup>(1)</sup> Net margin is calculated as net (loss) income divided by net sales. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by net sales. | <sup>(1)</sup> Net margin is calculated as net (loss) income divided by net sales. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by net sales. | <sup>(1)</sup> Net margin is calculated as net (loss) income divided by net sales. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by net sales. |

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**Seasonality**

The demand for exterior building materials is closely correlated to both seasonal changes and unpredictable weather patterns, therefore demand fluctuations are expected. In general, we expect our net sales and net income to be the highest in quarters ending June 30, September 30, and December 31, which represent the peak months of construction and re-roofing. Conversely, we expect low net income levels or net losses in quarters ending March 31, when winter construction cycles and cold weather patterns have an adverse impact on our customers' ability to conduct their business.

**Liquidity and Capital Resources**

The Company's cash balance was $3.05 billion as of March 31, 2026 and consisted primarily of cash on deposit with banks and investments in money market funds. In addition, we may choose to raise additional funds at any time through equity or debt financing arrangements, which may or may not be needed for additional working capital, acquisitions or other strategic investments. We continually evaluate our liquidity requirements considering our operating needs, growth initiatives and capital resources. Following the Beacon Acquisition, our primary sources of liquidity are cash on the balance sheet, cash generated by operations and borrowings under the ABL Facility. Our primary uses of cash after the Beacon Acquisition are working capital requirements, debt service requirements and capital expenditures. We believe that our existing liquidity and sources of capital are sufficient to support our operations over the next 12 months.

From time to time, depending upon market and other conditions, as well as upon our cash balances and liquidity, we, our subsidiaries or our affiliates may acquire our outstanding debt securities or our other indebtedness through open market purchases, privately negotiated transactions, tender offers, redemption or otherwise, upon such terms and at such prices as we, our subsidiaries or our affiliates may determine for cash or other consideration.

<u>Convertible Preferred Stock</u>

The Company has a quarterly dividend policy in place for its Convertible Preferred Stock, and dividends are paid when declared by the board of directors. During the three months ended March 31, 2026, the Company paid $22.5 million of dividends to holders of Convertible Preferred Stock. Subsequent to the close of the quarter ended March 31, 2026, the Company paid $22.5 million of quarterly dividends to holders of Convertible Preferred Stock. These dividends are part of the Company's ongoing cash obligations and are considered when evaluating overall liquidity needs. For additional information regarding the Company's Convertible Preferred Stock, see Note 6 – *Equity* of Item I of Part I, "Condensed Consolidated Financial Statements" of this Quarterly Report.

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<u>Private Placements</u>

On June 13, 2024, the Company entered into purchase agreements with certain institutional and accredited investors to issue and sell in a private placement an aggregate of 340.9 million shares of the Company's common stock at a price of $9.14 per share, and pre-funded warrants (the "Pre-Funded Warrants") to purchase 42.0 million shares of the Company's common stock at a price of $9.13999 per Pre-Funded Warrant. Each Pre-Funded Warrant has an exercise price of $0.00001 per share, is exercisable immediately and until the Pre-Funded Warrant is exercised in full. The closing of the private placement was completed on July 19, 2024.

On July 22, 2024, the Company entered into purchase agreements with certain institutional and accredited investors to privately place 67.8 million shares of its common stock at a price of $9.14 per share. The closing of the private placement was completed on July 25, 2024.

On March 17, 2025, the Company entered into purchase agreements with certain institutional investors to privately place 67.5 million shares of its common stock at a price of $12.30 per share. The closing of the private placement was contingent upon the completion of the Beacon Acquisition and was completed on April 29, 2025. As a result of the closing, the Company raised $823.8 million in net proceeds, after deducting offering costs of $6.8 million, to partially fund the Beacon Acquisition and related costs.

<u>Issuance of Mandatory Convertible Preferred Stock</u> 

On May 27, 2025, the Company completed a preferred stock offering, through which QXO issued and sold 11.5 million depositary shares ("Depositary Shares"), each representing a 1/20th interest in a share of the Company's 5.50% Series B Mandatory Convertible Preferred Stock, liquidation preference $1,000 per share, par value $0.001 per share (the "Mandatory Convertible Preferred Stock"). The amount issued included 1.5 million Depositary Shares issued pursuant to the exercise in full of the option granted to the underwriters to purchase additional Depositary Shares. The Company received net proceeds from the offering of $558.1 million, after deducting underwriting discounts, commissions and offering expenses of $16.9 million.

*Dividends* 

The Mandatory Convertible Preferred Stock will accumulate dividends (which may be paid in cash or, subject to certain limitations, in shares of common stock or in any combination of cash and common stock) at a rate per annum equal to 5.50% on the liquidation preference of $1,000 per share, payable when, as and if declared by the Company's board of directors (or an authorized committee thereof), on February 15, May 15, August 15 and November 15 of each year, beginning on August 15, 2025 and ending on, and including, May 15, 2028. Given the requirement to pay dividends in any settlement outcome of the Mandatory Convertible Preferred Stock, the Company accrues dividends whether or not they are formally declared by the Company's board of directors. During the three months ended March 31, 2026, the Company paid $7.9 million of dividends to holders of Mandatory Convertible Preferred Stock. These dividends are part of the Company's ongoing cash obligations and are considered when evaluating overall liquidity needs. For additional information regarding the Company's Mandatory Convertible Preferred Stock, see Note 6 – *Equity* of Item I of Part I, "Condensed Consolidated Financial Statements" of this Quarterly Report.

*Mandatory Conversion*

The following table illustrates the conversion rate per share of the Mandatory Convertible Preferred Stock, subject to certain anti-dilution adjustments, based on the applicable market value of the common stock:

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| | |
|:---|:---|
| **Applicable Market Value of Common Stock** | **Conversion Rate per Share of Mandatory Convertible Preferred Stock** |
| Greater than $20.2126 (the "Threshold Appreciation Price") | 49.4740 shares of common stock |
| Equal to or less than the Threshold Appreciation Price but greater than or equal to the Initial Price | Between 49.4740 and 60.6060 shares of common stock, determined by dividing $1,000 by the applicable market value |
| Less than $16.50 (the "Initial Price") | 60.6060 shares of common stock |

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The following table illustrates the conversion rate per Depositary Share, subject to certain anti-dilution adjustments, based on the applicable market value of the common stock:

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| | |
|:---|:---|
| **Applicable Market Value of Common Stock** | **Conversion Rate per Depository Share Representing a 1/20th interest in a share of the Mandatory Convertible Preferred Stock**  |
| Greater than the Threshold Appreciation Price | 2.4737 shares of common stock |
| Equal to or less than the Threshold Appreciation Price but greater than or equal to the Initial Price | Between 2.4737 and 3.0303 shares of common stock, determined by dividing $50 by the applicable market value |
| Less than the Initial Price | 3.0303 shares of common stock |

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*Optional Conversion*

Other than the occurrence of a fundamental change (as defined in the Company's Certificate of Designations relating to the Mandatory Convertible Preferred Stock) at any time prior to May 15, 2028, a holder of Mandatory Convertible Preferred Stock may elect to convert such holder's shares of Mandatory Convertible Preferred Stock, in whole or in part, at the minimum conversion rate of 49.4740 shares of common stock per share of Mandatory Convertible Preferred Stock (equivalent to 2.4737 shares of common stock per Depositary Share), subject to certain anti-dilution and other adjustments. Because each Depositary Share represents a 1/20th fractional interest in a share of Mandatory Convertible Preferred Stock, a holder of Depositary Shares may convert its Depositary Shares only in lots of 20 Depositary Shares.

*Fundamental Change Conversion* 

If a fundamental change occurs on or prior to May 15, 2028, holders of the Mandatory Convertible Preferred Stock will have the right to convert their shares of Mandatory Convertible Preferred Stock, in whole or in part, into shares of common stock at the fundamental change conversion rate during the period beginning on, and including, the effective date of such fundamental change and ending on, and including, the earlier of (a) the date that is 20 calendar days after such effective date (or, if later, the date that is 20 calendar days after holders receive notice of such fundamental change) and (b) May 15, 2028. For the avoidance of doubt, the period described in the immediately preceding sentence may not end on a date that is later than May 15, 2028.

*Ranking* 

The Mandatory Convertible Preferred Stock ranks, with respect to dividend rights and distribution of assets upon liquidation, winding-up or dissolution, (i) senior to the Company's common stock and each other class or series of capital stock, whether outstanding or established after the date of issuance of the Mandatory Convertible Preferred Stock, the terms of which do not expressly provide that it ranks senior to or on a parity with the Mandatory Convertible Preferred Stock as to payment of dividends and distribution of assets upon liquidation, winding-up or dissolution, and (ii) junior to the Convertible Preferred Stock. The Mandatory Convertible Preferred Stock ranks on a parity with or junior to each class or series of capital stock, the terms of which expressly provide for a pari passu or senior ranking, respectively, relative to the Mandatory Convertible Preferred Stock.

*Voting Rights*

Holders of Mandatory Convertible Preferred Stock will not have voting rights, except with respect to issuances of securities senior to the Mandatory Convertible Preferred Stock, amendments to the Company's Fifth Amended and Restated Certificate of Incorporation that would materially and adversely affect the rights of the holders of Mandatory Convertible Preferred Stock, or in the event of a merger, consolidation, exchange or reclassification involving the Mandatory Convertible Preferred Stock, or non-payment of dividends for six consecutive quarters.

<u>Registered Equity Offerings</u>

In April 2025, the Company sold 37.7 million shares of the Company's common stock in an underwritten public offering at a price of $13.25 per share. The closing of the equity offering was completed on April 21, 2025 and the Company raised $487.7 million in net proceeds from the equity offering, after deducting offering costs of $12.3 million. The Company also granted the underwriters in the public offering a 30-day option to purchase up to an additional 5.7 million shares of the Company's common stock at a price of $13.25 per share less underwriting discounts and commissions. On May 5, 2025, the option was partially exercised with respect to 4.0 million shares resulting in an additional $51.8 million of net proceeds. The remaining option to purchase additional shares expired unexercised at the end of the 30-day period.

In May 2025, the Company sold 48.5 million shares of the Company's common stock in an underwritten public offering at a price of $16.50 per share. The Company also granted the underwriters in the public offering a 30-day option to purchase up to an additional 7.3 million shares of the Company's common stock at a price of $16.50 per share less underwriting discounts and commissions. On May 21, 2025, the option was exercised in full. The closing of the equity offering was completed on May 23, 2025 and the Company raised $892.4 million in net proceeds from the equity offering, after deducting offering costs of $27.6 million.

In June 2025, the Company sold 89.9 million shares of the Company's common stock in an underwritten public offering at a price of $22.25 per share. The closing of the equity offering was completed on June 26, 2025 and the Company raised $1.96 billion in net proceeds from the equity offering, after deducting offering costs of $37.8 million. The Company also granted the underwriters in the public offering a 30-day option to purchase up to an additional 13.5 million shares of the Company's common stock at a price of $22.25 per share less underwriting discounts and commissions. On July 24, 2025, the option was partially exercised with respect to 1.7 million shares resulting in additional net proceeds of $38.1 million. The remaining option to purchase additional shares expired unexercised at the end of the 30-day period.

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In January 2026, the Company sold 31.6 million shares of the Company's common stock in an underwritten public offering at a price of $23.80 per share. The closing of the equity offering was completed on January 20, 2026 and the Company raised $748.6 million in net proceeds from the equity offering, after deducting offering costs of $4.6 million. The Company also granted the underwriters in the public offering a 30-day option to purchase up to an additional 4.7 million shares of the Company's common stock at a price of $23.80 per share less underwriting discounts and commissions. The option to purchase additional shares expired unexercised at the end of the 30-day period.

<u>January 2026 Investment Agreement</u>

In January 2026, the Company entered into an investment agreement (the "January 2026 Investment Agreement") with AP Quince Holdings, L.P., a fund managed by affiliates of Apollo Global Management, Inc., and the other investors party thereto (collectively, the "Series C Investors"). Pursuant to the January 2026 Investment Agreement, the Series C Investors committed until July 15, 2026 (the "Initial Commitment Period") to purchase up to 300,000 shares of a new series of Series C Convertible Perpetual Preferred Stock, par value $0.001 per share (the "Series C Preferred Stock"), for an aggregate purchase price of $3.0 billion to fund one or more acquisitions of assets, equity or businesses (or portions thereof) for a purchase price in excess of $1.5 billion or as otherwise determined by the Company (each, a "Qualifying Acquisition"). The Initial Commitment Period will be extended with respect to the commitment for a Qualifying Acquisition up to an additional 12 months if a definitive acquisition agreement for such Qualifying Acquisition is executed before the expiration of the Initial Commitment Period.

On April 1, 2026, the Company completed its acquisition of Kodiak, which constitutes a Qualifying Acquisition, for a total purchase price of $2.25 billion.

<u>Issuance of Series C Preferred Stock</u>

On April 1, 2026, the Company issued 200,000 shares of the Company's Series C Preferred Stock to finance the Kodiak Acquisition. The Series C Preferred Stock has an initial liquidation preference of $10,000 per share (the "Stated Value"). The Company received proceeds from the issuance of approximately $2.0 billion. Following such issuance, the Series C Investors have commitments to purchase an additional 100,000 shares of Series C Preferred Stock for $1.0 billion in cash.

*Dividends*

The holders of the Series C Preferred Stock (each, a "Holder" and collectively, the "Holders") will be entitled to dividends on the Series C Preferred Stock at a rate of 4.75% per annum. The Holders will be entitled to participate in dividends declared or paid on the common stock on an as-converted basis; provided that any such dividends on the common stock on an as-converted basis received by Holders will reduce, on a dollar-for-dollar basis, the dividends such Holders are entitled to receive on the Series C Preferred Stock. Dividends on the Series C Preferred Stock will be payable on a quarterly basis in cash and/or by delivery of shares of registered (or freely tradeable) common stock, in each case at the sole discretion of the Company. Any dividends not declared and paid in cash or shares of common stock on any dividend payment date will accrue and be compounded quarterly in arrears on the then Stated Value of such shares of Series C Preferred Stock on such dividend payment date.

*Conversion and Redemption*

The Series C Preferred Stock are, at the option of the holders thereof at any time and from time to time, convertible into common stock at an initial conversion price of $23.25 per share of Common Stock, subject to customary anti-dilution protections (the "Conversion Price").

At any time after the second anniversary of the initial issuance of the Series C Preferred Stock (the "Initial Issue Date"), the Company will have the option to require that all or any portion of the then-outstanding shares of Series C Preferred Stock be converted into common stock at the then applicable Conversion Price if the closing price per share of common stock exceeds (i) from and after the second anniversary and prior to the third anniversary of the Initial Issue Date, 175% of the Conversion Price and (ii) from and after the third anniversary of the Initial Issue Date, 150% of the Conversion Price, in each case, then in effect for at least 20 trading days in any period of 30 consecutive trading days immediately prior to the Holders' receipt of the conversion notice.

At any time on or following the seventh anniversary of the Initial Issue Date, the Company may redeem all or any portion of the outstanding Series C Preferred Stock at the applicable redemption price (the "Optional Redemption Price") plus accrued and unpaid dividends thereon. The Optional Redemption Price will be an amount in cash equal to the greater of (a) (i) 107% of the Stated Value, with respect to a redemption date on or following the seventh anniversary of the Initial Issue Date but prior to the eighth anniversary of the Initial Issue Date, (ii) 104% of the Stated Value, with respect to a redemption date on or following the eighth anniversary of the Initial Issue Date but prior to the ninth anniversary of the Initial Issue Date and (iii) 100% of the Stated Value, with respect to a redemption date on or following the ninth anniversary of the Initial Issue Date and (b) the as-converted value.

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*Fundamental Change Conversion and Redemption*

Upon the occurrence of a fundamental change of the Company (i) in certain circumstances, the Company will be obligated to pay a customary fundamental change make-whole premium on the Series C Preferred Stock converted in connection with such fundamental change by increasing the conversion rate on such Series C Preferred Stock and (ii) the Company will be obligated to offer to redeem all of the Series C Preferred Stock for a price in cash equal to the greater of (a) the Stated Value, plus accrued and unpaid dividends thereon and (b) the as-converted value.

*Ranking*

The Series C Preferred Stock will rank junior to the Company's Convertible Preferred Stock, pari passu with the Company's Mandatory Convertible Preferred Stock and senior to the Company's common stock, with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company.

*Voting Rights*

The Series C Investors, as Holders, will be entitled to vote with the holders of the common stock on an as-converted basis, voting together as a single class, on all matters presented to the holders of common stock, except as required by Delaware law, subject to certain requirements as described in the January 2026 Investment Agreement.

<u>Senior Secured Notes</u>

On April 29, 2025, Merger Sub (the "Issuer") completed the issuance and sale of $2.25 billion in aggregate principal amount of 6.75% Senior Secured Notes due 2032 (the "Notes"). The Notes were issued pursuant to an Indenture, dated as of April 29, 2025 (as supplemented, the "Indenture"), and, upon consummation of the Beacon Acquisition, QXO Building Products assumed the obligations under the Notes and the Indenture and certain of QXO Building Products' subsidiaries (collectively, the "Subsidiary Guarantors") guaranteed QXO Building Products' obligations under the Notes and the Indenture. The Notes are secured by first-priority liens on substantially all assets of the Issuer and the Subsidiary Guarantors, other than the ABL Priority Collateral (as defined below) (the "Notes Priority Collateral") and by second-priority liens on substantially all of the Issuer's and the Subsidiary Guarantors' inventory, receivables and related assets (the "ABL Priority Collateral"), in each case, subject to certain exceptions and permitted liens. The Notes will mature on April 30, 2032. Interest on the Notes accrues at 6.75% per annum and will be paid semi-annually, in arrears, on April 30 and October 30 of each year, beginning October 30, 2025. Proceeds from the Notes were used to partially fund the Beacon Acquisition and related transaction expenses.

On or after April 30, 2028, the Issuer may redeem the Notes at its option, in whole at any time or in part from time to time, at the redemption prices set forth in the Indenture. In addition, prior to April 30, 2028, the Issuer may redeem the Notes at its option, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus a "make-whole" premium and accrued and unpaid interest, if any. Notwithstanding the foregoing, at any time prior to April 30, 2028, the Issuer may also redeem up to 50% of the aggregate principal amount of the Notes with funds in an aggregate amount not to exceed the net cash proceeds from certain equity offerings at a redemption price equal to 106.75% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any. In addition, prior to April 30, 2028, the Issuer may redeem during each twelve-month period up to 10% of the original aggregate principal amount of the Notes at a redemption price equal to 103%, plus accrued and unpaid interest, if any.

The Indenture includes customary affirmative and negative covenants with respect to the Issuer and its restricted subsidiaries. These covenants are subject to a number of important qualifications and exceptions. Additionally, upon the occurrence of specified change of control events, the Issuer must offer to repurchase the Notes at 101% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the purchase date. The Indenture also provides for customary events of default. As of March 31, 2026, the Issuer and its restricted subsidiaries were in compliance with these covenants.

Debt issuance costs of $22.2 million related to the Notes were capitalized and are being amortized over the term of the financing arrangement.

As of March 31, 2026, the outstanding balance on the Notes, net of $19.9 million of unamortized debt issuance costs, was $2.23 billion.

<u>Term Loan Facility</u>

On April 29, 2025, Merger Sub, as initial borrower, entered into a Term Loan Credit Agreement (the "Term Loan Credit Agreement") with Queen HoldCo, LLC ("Holdings"), the lenders party thereto and Goldman Sachs Bank USA, as administrative agent, which provides for senior secured financing consisting of a term loan facility (the "Term Loan Facility") in an aggregate principal amount of $2.25 billion. Upon the consummation of the Beacon Acquisition, QXO Building Products entered into a joinder to the Term Loan Credit Agreement as the surviving borrower (the "Borrower"). The facility matures on April 30, 2032. Proceeds from the Term Loan Facility were used to partially fund the Beacon Acquisition and related transaction expenses.

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Borrowings under the Term Loan Facility bear interest at variable rates based on Term SOFR or a base rate, in each case plus an applicable margin. The facility requires scheduled quarterly amortization payments in an annual amount equal to 1.0% of the original principal amount of borrowings under the Term Loan Facility, with the remaining balance due at maturity. The Term Loan Facility also requires the Borrower to make certain mandatory prepayments. The Borrower can make voluntary prepayments at any time without penalty, except in connection with a repricing event in respect of the Term Loan Facility, subject to customary breakage costs. Any refinancing through the issuance of certain debt or any repricing amendment, in either case, that constitutes a "repricing event" applicable to the term loans resulting in a lower yield occurring at any time during the first six months after the closing date of the Term Loan Facility will be accompanied by a 1.00% prepayment premium or fee, as applicable.

The Term Loan Facility is unconditionally guaranteed by Holdings on a limited-recourse basis and secured by a first-priority lien on the equity interests of the Borrower held by Holdings. The Term Loan Facility is also guaranteed by each Subsidiary Guarantor and secured by a first-priority lien with respect to the Notes Priority Collateral and a second-priority lien with respect to the ABL Priority Collateral. The Term Loan Facility is secured on a ratable basis with the Notes with respect to the Notes Priority Collateral and the ABL Priority Collateral.

The Term Loan Credit Agreement includes customary affirmative and negative covenants with respect to the Borrower and its restricted subsidiaries. These covenants are subject to a number of important qualifications and exceptions. The Term Loan Credit Agreement contains certain customary events of default, including relating to a change of control. As of March 31, 2026, the Borrower and its restricted subsidiaries were in compliance with these covenants.

The principal amount of borrowing under the Term Loan Facility was reduced by an original issue discount ("OID") of 1%. OID costs of $22.5 million and debt issuance costs of $50.9 million related to the Term Loan Facility were capitalized and are being amortized over the term of the financing arrangement.

On May 29, 2025, the Borrower made a voluntary principal prepayment of $1.40 billion under the Term Loan Facility. As a result, the Borrower was relieved of its obligation to make quarterly amortization payments in an annual amount equal to 1.0% of the original principal amount of borrowings under the Term Loan Facility. Additionally, as a result of the principal prepayment, the Borrower recognized a loss on debt extinguishment of $45.7 million during the three months ended June 30, 2025, which is comprised of $14.0 million of unamortized OID costs and $31.7 million of unamortized debt issuance costs related to the Term Loan Facility.

On November 5, 2025, the Borrower amended the Term Loan Credit Agreement in order to refinance the Term Loan Facility. The amendment reduced the applicable margin for borrowings under the Term Loan Facility from 3.00% to 2.00% for Term SOFR borrowings and from 2.00% to 1.00% for base rate borrowings. (the "Term Loan Refinancing"). As a result of the Term Loan Refinancing, the Borrower recognized a loss on debt extinguishment of $4.0 million during the three months ended September 30, 2025, which is comprised of $0.9 million of unamortized OID costs, $2.2 million of unamortized debt issuance costs, and $0.9 million of third-party fees associated with the modification of the Term Loan Facility. Additionally, new debt issuance costs of $0.1 million were capitalized and are being amortized over the term of the financing arrangement.

The loss on debt extinguishment resulting from the principal prepayment and the subsequent Term Loan Refinancing was separately recognized on the consolidated statements of operations for the year ended December 31, 2025.

As of March 31, 2026, the outstanding balance on the Term Loan Facility, net of $6.6 million of unamortized OID costs and $14.9 million of unamortized debt issuance costs, was $828.5 million.

<u>ABL Credit Agreement</u>

On April 29, 2025, Merger Sub, as initial borrower, entered into the Asset-Based Revolving Credit Agreement (the "ABL Credit Agreement"), with Holdings, the lenders party thereto and Citibank, N.A., as administrative agent and collateral agent, which provides for an asset-based revolving credit facility (the "ABL Facility" and, together with the Term Loan Facility, the "Credit Facilities"), with an aggregate borrowing availability equal to the lesser of $2.0 billion, and the borrowing base. Upon the consummation of the Beacon Acquisition, the Borrower entered into a joinder to the ABL Credit Agreement as the surviving borrower. The ABL Facility matures on April 29, 2030. Based on the Borrower's borrowing base as of March 31, 2026, the Borrower had $1.98 billion borrowing capacity under the ABL Facility.

Borrowings under the ABL Facility bear interest at a rate equal to, at the Borrower's option, either (a) (x) Term SOFR determined by reference to the secured overnight financing rate published by the Federal Reserve Bank of New York, which rate shall be no less than zero or (y) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50% per annum, (ii) the prime rate quoted by the Wall Street Journal as the "Prime Rate" and (iii) the sum of one-month adjusted Term SOFR plus 1.00% per annum, which base rate shall be no less than 1.00%, or (b) (x) with respect to borrowings of Canadian dollars, Term CORRA determined by reference to the interbank offered rate administered by the CORRA Administrator, which rate shall be no less than zero or (y) a base rate determined by reference to the highest of (i) zero (0%), (ii) the one-month Term CORRA plus 1.00% per annum or (iii) the prime rate reported by Reuters, in each case plus an applicable margin based on excess availability set forth in the ABL Credit Agreement. The Borrower is also required to pay a commitment fee equal to 0.20% per annum (depending on the average utilization of the commitments) to the lenders under the ABL Facility in respect of the unutilized commitments thereunder. The Borrower can make voluntary prepayments at any time without penalty, subject to customary breakage costs.

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The ABL Facility (and at the Borrower's option certain hedging, cash management and bank product obligations secured under the ABL Facility) is unconditionally guaranteed by Holdings on a limited-recourse basis and secured by a second-priority lien on the equity interests of the Borrower held by Holdings. The ABL Facility is also guaranteed by each Subsidiary Guarantor and secured by a second-priority lien with respect to the Notes Priority Collateral and a first-priority lien with respect to the ABL Priority Collateral.

The ABL Credit Agreement includes customary affirmative and negative covenants with respect to the Borrower and its restricted subsidiaries. These covenants are subject to a number of important qualifications and exceptions. The ABL Credit Agreement contains certain customary events of default, including relating to a change of control.

The ABL Facility requires that the Borrower, commencing on or after the last day of the first full fiscal quarter ending after the closing date of the ABL Facility, maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 at any time that availability is less than the greater of (x) $120 million and (y) 10% of the lesser of (i) the borrowing base at such time and (ii) the aggregate amount of ABL Facility commitments at such time. As of March 31, 2026, the Borrower and its restricted subsidiaries were in compliance with these covenants.

Debt issuance costs of $18.8 million related to the ABL Facility were capitalized and are being amortized ratably over the term of the financing arrangement. The debt issuance costs related to the ABL Facility are presented as an asset, included in other assets, net on the condensed consolidated balance sheets. As of March 31, 2026, there were $15.4 million of unamortized debt issuance costs related to the ABL Facility.

As of March 31, 2026, there was no outstanding balance on the ABL Facility. The Borrower and its restricted subsidiaries had $21.2 million in outstanding standby letters of credit issued under the ABL Facility as of March 31, 2026.

The following table summarizes our cash flows for the periods indicated:

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| *(in millions)* | **2026** | **2025** |
| Net cash provided by operating activities | $70.6 | $36.5 |
| Net cash used in investing activities | (19.5) | (0.8) |
| Net cash provided by (used in) financing activities | 633.9 | (22.5) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (0.3) |  |
| Net increase in cash, cash equivalents and restricted cash | $684.7 | $13.2 |

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***Operating Activities***

Net cash provided by operating activities was $70.6 million for the three months ended March 31, 2026, compared to $36.5 million for the three months ended March 31, 2025. Cash provided by operations increased $34.1 million during the three months ended March 31, 2026. The increase in cash provided by operations was primarily due to the Beacon Acquisition and the seasonal timing of net working capital requirements for inventory purchases and cash collections.

***Investing Activities***

Net cash used in investing activities was $19.5 million for the three months ended March 31, 2026, compared to $0.8 million for the three months ended March 31, 2025. Cash used in investing activities increased $18.7 million during the three months ended March 31, 2026 primarily due to an increase in capital expenditures during the period.

***Financing Activities***

Net cash provided by financing activities was $633.9 million for the three months ended March 31, 2026, compared to net cash used in financing activities of $22.5 million for the three months ended March 31, 2025. Cash provided by financing activities increased $656.4 million during the three months ended March 31, 2026 primarily due to the net proceeds from the issuance of common stock during the period, which was partially offset by the payment of costs to obtain the Series C Preferred Stock commitment, the payment of taxes related to the net share settlement of equity awards and the payment of dividends on the Company's Mandatory Convertible Preferred Stock.

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**Condensed Supplemental Financial Information**

In accordance with the indenture governing the Notes and the credit agreements governing the Credit Facilities, QXO Building Products and its subsidiaries (together, the "Credit Group") are required to furnish to holders of the Notes and lenders under the Credit Facilities certain financial information relating to the Credit Group.

The summarized financial information below reflects results for the Credit Group, other QXO entities and QXO on a consolidated basis.

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| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **Balance Sheet** *(in millions)* | **Credit Group** | **Other QXO Entities** | **Consolidated QXO** |
| Cash and cash equivalents | $211.1 | $2835.2 | $3046.3 |
| Total current assets | $3580.5 | $2876.1 | $6456.6 |
| Total current liabilities | $1896.8 | $40.4 | $1937.2 |
| Total long-term debt, net | $3058.6 | $— | $3058.6 |
| Total stockholders' equity | $7352.0 | $2812.9 | $10164.9 |
|  | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| **Statement of Operations** *(in millions)* | **Credit Group** | **Other QXO Entities** | **Consolidated QXO** |
| Net sales | $1715.6 | $14.6 | $1730.2 |
| Gross profit | $403.2 | $6.1 | $409.3 |
| Total operating expense | $625.5 | $35.7 | $661.2 |
| Interest (expense) income, net | $(56.4) | $25.3 | $(31.1) |
| (Benefit from) provision for income taxes | $(70.9) | $17.7 | $(53.2) |
| Net loss | $(205.1) | $(22.0) | $(227.1) |

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**Item 3. Quantitative and Qualitative Disclosures about Market Risk** 

Our market risk disclosures set forth in Item 7A of Part II, "Quantitative and Qualitative Disclosures About Market Risk" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 have not changed materially during the three months ended March 31, 2026.

**Item 4. Controls and Procedures** 

***Management's Evaluation of Disclosure Controls and Procedures***

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required financial disclosure.

As of the end of the period covered by this Quarterly Report, our management, under the supervision and with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(e) and 15d-15(e). Based upon this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of March 31, 2026.

***Change in Internal Control over Financial Reporting***

During the three months ended March 31, 2026, there were no changes in our internal control over financial reporting, as defined in Exchange Act Rule 13a-15(f), that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

***Limitations on the Effectiveness of Controls***

Our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving their objectives as specified above. Management does not expect, however, that our disclosure controls and procedures will prevent or detect all error and fraud. Any control system, no matter how well designed and operated, is based on certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected.

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**PART II. OTHER INFORMATION**

**Item 1. Legal Proceedings**

For information related to our legal proceedings, refer to Note 11 – *Commitments and Contingencies* of Item 1 of Part I, "Condensed Consolidated Financial Statements" of this Quarterly Report.

**Item 1A. Risk Factors**

We believe there are no changes that constitute material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 27, 2026, other than as set forth below.

**Risks Related to the Proposed Acquisition of TopBuild**

***The TopBuild Acquisition may not be completed within the expected timeframe, or at all, and the failure to complete the TopBuild Acquisition could impact our stock price and our future business and financial results.***

There can be no assurance that the TopBuild Acquisition will be completed in the expected timeframe, or at all. The TopBuild Merger Agreement contains a number of conditions that must be satisfied or waived prior to the completion of the TopBuild Acquisition, including the Stockholder Approvals. There can be no assurance that all closing conditions will be satisfied (or waived, if applicable). Many of the conditions to completion of the TopBuild Acquisition are not within our control, and we cannot predict when or if these conditions will be satisfied (or waived, as applicable). In addition, either TopBuild or QXO may terminate the TopBuild Merger Agreement if, subject to certain limitations, the TopBuild Acquisition has not been consummated by January 17, 2027.

If the TopBuild Acquisition is not completed, our ongoing business and financial results may be adversely affected and we will be subject to a number of risks, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;• we have dedicated significant time and resources, financial and otherwise, in planning for the TopBuild Acquisition and the associated integration, of which we would lose the benefit if the TopBuild Acquisition is not completed;

&nbsp;&nbsp;&nbsp;&nbsp;• we are responsible for certain transaction costs relating to the TopBuild Acquisition, whether or not the TopBuild Acquisition is completed;

&nbsp;&nbsp;&nbsp;&nbsp;• while the TopBuild Merger Agreement is in force, we are subject to certain restrictions on the conduct of our business, including taking any action that that would reasonably be expected to have a material negative impact on or material delay to the satisfaction of the conditions in the TopBuild Merger Agreement required to consummate the TopBuild Acquisition, which restrictions may adversely affect our ability to execute certain of our business strategies; and

&nbsp;&nbsp;&nbsp;&nbsp;• matters relating to the TopBuild Acquisition (including integration planning) may require substantial commitments of time and resources by our management, whether or not the TopBuild Acquisition is completed, which could otherwise have been devoted to other opportunities that may have been beneficial to us.

In addition, if the TopBuild Acquisition is not completed, we may experience negative reactions from the financial markets and from our customers and employees. We also may be subject to litigation related to any failure to complete the TopBuild Acquisition or to enforcement proceedings commenced against us to perform our obligations under the TopBuild Merger Agreement. If the TopBuild Acquisition is not completed, these risks may materialize and may adversely affect our business, financial results and financial condition, as well as the price of our common stock.

***The TopBuild Merger Agreement restricts our ability to pursue alternative transactions and may require us to pay a termination fee under certain circumstances.***

The TopBuild Merger Agreement contains customary non-solicitation provisions that limit our ability and TopBuild's ability to solicit or engage in discussions regarding alternative acquisition proposals, subject to certain fiduciary exceptions. If the TopBuild Merger Agreement is terminated under certain specified circumstances, including in connection with a competing acquisition proposal, we may be required to pay a termination fee of $600 million in cash to TopBuild or TopBuild may be required to pay a us a termination fee of $600 million in cash. These provisions could discourage other potential strategic transactions that may be favorable to us and our stockholders.

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***Even if the TopBuild Acquisition is completed, we may be unable to integrate TopBuild successfully and realize the anticipated benefits of the TopBuild Acquisition.***

If the TopBuild Acquisition is completed, the successful integration of TopBuild and operations into those of our own and our ability to realize the expected benefits of the transaction are subject to a number of risks and uncertainties, many of which are outside of our control. We will also be required to devote significant management attention and resources to integrating business practices, cultures and operations of each business. The risks and uncertainties relating to integrating the two businesses include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;• the challenge of integrating complex organizations, systems, operating procedures, compliance programs, technology, networks and other assets of TopBuild;

&nbsp;&nbsp;&nbsp;&nbsp;• the difficulties harmonizing differences in the business cultures of QXO and TopBuild;

&nbsp;&nbsp;&nbsp;&nbsp;• the inability to successfully integrate our respective businesses in a manner that permits us to achieve the cost savings and other anticipated benefits from the TopBuild Acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;• the inability to minimize the diversion of management attention from ongoing business concerns during the process of integrating TopBuild into our businesses;

&nbsp;&nbsp;&nbsp;&nbsp;• the inability to resolve potential conflicts that may arise relating to customer, supplier and other important relationships of our business and TopBuild;

&nbsp;&nbsp;&nbsp;&nbsp;• difficulties in retaining key management and other key employees; and

&nbsp;&nbsp;&nbsp;&nbsp;• the challenge of managing the expanded operations of a significantly larger and more complex company and coordinating geographically separate organizations.

We will incur substantial expenses to consummate the TopBuild Acquisition but may not realize the anticipated benefits. In addition, even if we are able to integrate TopBuild successfully, the anticipated benefits of the TopBuild Acquisition may not be realized fully, or at all, or may take longer to realize than expected. Given the size and significance of the TopBuild Acquisition, we may encounter difficulties in the integration of the operations of TopBuild and may fail to realize the full benefits and synergies of the TopBuild Acquisition, which could adversely impact our business, results of operation and financial condition.

***The issuance of shares of common stock in connection with the TopBuild Acquisition will dilute existing stockholders and may adversely affect the market price of our common stock.***

In connection with the TopBuild Acquisition, we expect to issue a substantial number of shares of our common stock to the stockholders of TopBuild, the actual number of which will be determined at closing based on the number of shares and certain equity awards of TopBuild outstanding at that time and subject to proration and election procedures set forth in the TopBuild Merger Agreement. The issuance of these additional shares will dilute the ownership interest of our existing stockholders and may dilute earnings per share. Any such dilution, or any delay in achieving accretion to earnings per share, could cause the market price of our common stock to decline or increase at a reduced rate.

***Securities class action and derivative lawsuits may be brought against us in connection with the TopBuild Acquisition, which could result in substantial costs.***

Securities class action lawsuits and derivative lawsuits are often brought against public companies that have entered into acquisition, merger, or other business combination agreements. Even if such a lawsuit is without merit, defending against these claims can result in substantial costs and divert management time and resources. An adverse judgment could result in monetary damages, which could have a negative impact on our liquidity and financial condition.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

Not applicable.

**Item 3. Defaults Upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures**

None.

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**Item 5. Other Information**

The predecessor financial information is included as Exhibit 99.1 to this Quarterly Report and is incorporated herein by reference.

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**Item 6. Exhibits**

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** |
|<br>**Exhibit Number** |<br>**Description** | **Form** | **Exhibit** | **Filing Date** |
| 2.1 | <u>[Agreement and Plan of Merger, dated as of April 18, 2026, by and among QXO, Inc., TopBuild Corp., Titanium MergerCo, Inc. and Titanium MergerCo 2, LLC.](https://www.sec.gov/Archives/edgar/data/1236275/000110465926045111/tm2612209d1_ex2-1.htm)</u>+ | 8-K | 2.1 | April 20, 2026 |
| 3.1 | <u>[Certificate of Designations of Series C Convertible Perpetual Preferred Stock, filed with the Secretary of State of the State of Delaware and effective April 1, 2026.](https://www.sec.gov/Archives/edgar/data/1236275/000095014226000982/eh260759426_ex0301.htm)</u> | 8-K | 3.1 | April 1, 2026 |
| 10.1\* | <u>[Offer Letter, dated April 15, 2025, by and between QXO, Inc. and Valeri Liborski.](q1-26exx101.htm)</u>† |  |  |  |
| 10.2 | <u>[Voting Agreement, dated as of April 18, 2026, by and between TopBuild Corp. and Jacobs Private Equity II, LLC.](https://www.sec.gov/Archives/edgar/data/1236275/000110465926045111/tm2612209d1_ex10-1.htm)</u> | 8-K | 10.1 | April 20, 2026 |
| 31.1\* | <u>[Certification by the Principal Executive Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)).](q1-26exx311.htm)</u> |  |  |  |
| 31.2\* | <u>[Certification by the Principal Financial Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)).](q1-26exx312.htm)</u> |  |  |  |
| 32.1\*\* | <u>[Certification by the Principal Executive Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](q1-26exx321.htm)</u> |  |  |  |
| 32.2\*\* | <u>[Certification by the Principal Financial Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](q1-26exx322.htm)</u> |  |  |  |
| 99.1\* | <u>[Unaudited predecessor financial information for QXO Building Products, Inc.](q1-26exx991.htm)</u> |  |  |  |
| 101.INS\* | Inline XBRL Instance – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |  |  |  |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema |  |  |  |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation |  |  |  |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation |  |  |  |
| 101.LAB\* | Inline XBRL Taxonomy Extension Labels |  |  |  |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition |  |  |  |
| 104\* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |  |  |  |
| \*Filed herewith | \*Filed herewith | \*Filed herewith | \*Filed herewith | \*Filed herewith |
| \*\*Furnished herewith | \*\*Furnished herewith | \*\*Furnished herewith | \*\*Furnished herewith | \*\*Furnished herewith |
| † Management contract or compensatory plan or arrangement. | † Management contract or compensatory plan or arrangement. | † Management contract or compensatory plan or arrangement. | † Management contract or compensatory plan or arrangement. | † Management contract or compensatory plan or arrangement. |
| + Schedules and/or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. QXO agrees to furnish supplementally a copy of any omitted schedules and/or exhibits to the SEC on a confidential basis upon request. | + Schedules and/or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. QXO agrees to furnish supplementally a copy of any omitted schedules and/or exhibits to the SEC on a confidential basis upon request. | + Schedules and/or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. QXO agrees to furnish supplementally a copy of any omitted schedules and/or exhibits to the SEC on a confidential basis upon request. | + Schedules and/or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. QXO agrees to furnish supplementally a copy of any omitted schedules and/or exhibits to the SEC on a confidential basis upon request. | + Schedules and/or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. QXO agrees to furnish supplementally a copy of any omitted schedules and/or exhibits to the SEC on a confidential basis upon request. |

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**SIGNATURES** 

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **QXO, INC.** | **QXO, INC.** |
| Date: May 12, 2026 | By: | /s/ Brad Jacobs |
|  |  | Brad Jacobs |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |
| Date: May 12, 2026 | By: | /s/ Ihsan Essaid |
|  |  | Ihsan Essaid |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer) |

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## Exhibit 10.1

**Exhibit 10.1**

Five American

Lane Greenwich, CT 06831

April 15, 2025 Valeri Liborski

Delivered via email

Dear Valeri,

On behalf of QXO, Inc. (the "Company"), I am happy to offer you the position of Chief Technology Officer. I know I speak for the rest of our team when I say how pleased we are to make you this offer.

In this role, you will report directly to Brad Jacobs, Chief Executive Officer, and you will be based out of Bellevue, Washington or its vicinity once office space becomes available, with regular travel expected to the Greenwich, Connecticut office and across locations and geographies in which the Company transacts or pursues business. The start of your employment with the Company (the "Start Date") is expected to be April 21, 2025.

**Your salary and compensation**

We'd like to offer you the following compensation package:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Base Salary:** Your initial annual base salary will be $650,000, less all applicable withholdings and deductions, and pro-rated for any partial period worked.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Annual Incentive:** You will be eligible to participate in the Company's annual incentive program. Your initial target annual incentive opportunity is 100% of your base salary.

Your actual incentive payment, if any, for each fiscal year will be determined based on the level of achievement of applicable performance goals established by the Compensation and Talent Committee of the Board of Directors of the Company (the "<u>Committee</u>"). Annual incentive awards will be determined in the discretion of the Committee and will be reflective of your individual performance and contributions, Company and/or business unit performance, as applicable, and the scope and expectations of your position/role in the Company and/or your business unit. As an at-will employee, annual incentives are subject to change at the sole discretion of the Company. Your annual incentive for fiscal year 2025 will be prorated based on your Start Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Long-Term Incentive:**

**<u>Time-Based Restricted Stock Units ("RSUs")</u>**

You will be eligible for a long-term incentive award in the form of RSUs relating to shares of the Company's common stock determined by dividing $3,250,000 by the closing price of the Company's common stock on the date of grant (the "<u>RSU Award</u>"), subject to approval by the Committee. The RSU Award is expected to be granted on your

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Start Date, based on the Company's closing stock price on such date. Subject to the approval of the Committee, the RSU Award will vest on December 31<sup>st</sup> over five years, commencing December 31, 2026, with the first vesting covering 15% of the RSUs, each of the second and third vestings covering 17.5% of the RSUs, the fourth vesting covering 25% of the RSUs, and the fifth vesting covering 25% of the RSUs. The RSU Award will be subject to the terms and conditions of the QXO, Inc. 2024 Omnibus Incentive Compensation Plan and the applicable award agreement thereunder. Additionally, all shares received on settlement of the RSUs (net of applicable tax withholding) are expected to be subject to a lock-up on sales, offers, pledges, as well as any other transfers or dispositions, whether directly or indirectly, through December 31, 2030.

**<u>Performance-Based Restricted Stock Units ("PRSUs")</u>**

You will also be eligible for a long-term incentive award in the form of PRSUs relating to a target number of shares of the Company's common stock determined by dividing

$3,250,000 by the closing price of the Company's common stock on the date of grant (the "PRSU Award"), subject to approval by the Committee. The PRSU Award is expected to be granted on your Start Date based on the closing stock price on such date.

The PRSU Award will be earned based on QXO's Total Shareholder Return (TSR) performance compared to the S&P 500 Index over the applicable performance period(s). The percentage of target PRSUs earned will vary based on QXO's percentile ranking relative to the S&P 500, as outlined below:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**QXO TSR Percentile Rank vs. S&P 500** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**% of Target PSUs Earned \*** |
| Below 55th Percentile | 0% |
| 55th Percentile | 100% |
| 65th Percentile | 150% |
| 75th Percentile | 175% |
| 85th Percentile | 200% |
| 90th Percentile | 225% |

---

\**Linear interpolation applies between levels above the 55th percentile; No PSUs will be earned for below 55th percentile performance.*

Subject to approval by the Committee, the award will vest in tranches based on the achievement of the performance goals outlined above, as determined and certified by the Committee:

&nbsp;&nbsp;&nbsp;&nbsp;25% based on TSR performance from grant date (based on the Company's closing stock price on such date) through December 31, 2026

&nbsp;&nbsp;&nbsp;&nbsp;12.5% based on TSR performance during calendar year 2027

&nbsp;&nbsp;&nbsp;&nbsp;12.5% based on TSR performance during calendar year 2028

&nbsp;&nbsp;&nbsp;&nbsp;50% based on cumulative TSR performance across the entire performance period from grant date (based on the Company's closing stock price on such date) through December 31, 2028

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All vesting is subject to the terms and conditions outlined in the QXO, Inc. 2024 Omnibus Incentive Compensation Plan and the applicable award agreement.

Additionally, all shares received on settlement of the PRSUs (net of applicable tax withholding) are expected to be subject to a lock-up on sales, offers, pledges, as well as any other transfers or dispositions, whether directly or indirectly, through December 31, 2029.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Cash Sign-On Incentive:** You will also receive a cash sign-on incentive, paid in a lump sum no later than the second regularly scheduled payroll date following your Start Date. This amount will be calculated as a prorated portion of your $650,000 annualized bonus target, based on the number of calendar days in 2025 that occur prior to your Start Date, divided by 365. For example, if your Start Date is April 21, 2025, the sign-on incentive would equal $195,890. If you leave the Company for any reason other than involuntary termination without cause before the second anniversary of your Start Date, you will be required to repay 100% of the cash sign-on incentive.

**Your benefits**

At QXO, we are committed to hiring the best talent. That is why we offer a competitive benefits package. Additional details related to our benefits package are included with your new hire materials.

**Severance benefits**

You will be eligible for severance payments and other benefits upon certain qualifying employment termination events, subject to the terms and conditions of the QXO, Inc. Severance Plan, as in effect from time to time (the "<u>Severance Plan</u>"). A copy of the Severance Plan is enclosed for your reference.

**Legal considerations**

In your work for the Company, you are expected not to use or disclose any confidential information, including trade secrets, of any former employer or other person to whom you have a confidentiality obligation. You are expected to use only generally known information which is used by persons with training and experience comparable to your own, which is common in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company. As a condition of your continued employment, you are expected to abide by the Company's rules and policies as may be published from time to time.

During our discussions about your proposed job duties, you assured us that you would be able to perform those duties within the guidelines just described.

You confirm that you have carefully reviewed your files (including emails, computer files and hard copies, whether personal or business) and deleted, and not retained copies of, any files prepared, generated or used during any prior employment that could contain confidential information or trade secrets of your current or former employer. You agree not to bring onto Company premises any unpublished documents or property belonging to any former employer or other person to whom you owe a confidentiality obligation.

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Your employment with the Company will be "at-will." This means that either you or the Company may terminate the employment relationship at any time and for any reason, with or without cause or advance notice. In the event of your resignation, you will give the Company at least 30 days' advance notice, which may be waived by the Company in its sole discretion and without payment to you.

**Confidential Information Protection Agreement**

Your acceptance of this offer and commencement of employment with the Company is contingent upon your acceptance of the Company's Confidential Information Protection Agreement ("CIPA"), which prohibits unauthorized use or disclosure of the Company's confidential and proprietary information and includes certain restrictive covenants, including non-competition and non-solicitation provisions.

**Pre-Hire Screening and Work Authorization**

This offer of employment is contingent upon the successful completion of all required pre-employment processes, including background checks and, if applicable, a drug screening. While the Company may, at its discretion, allow your employment to begin prior to the completion of these checks, continued employment will remain subject to their satisfactory outcome. As required by law, this offer is also contingent upon your ability to provide valid documentation confirming your authorization to work in the United States.

**Entire Offer**

This letter, along with the CIPA and Severance Plan, contains the entire agreement and understanding between you and the Company regarding the employment relationship and supersedes any prior or contemporaneous agreements, understandings, communications, offers, representations, warranties, or commitments by or on behalf of the Company (oral or written). Neither this offer letter nor any other written materials issued by the Company constitutes a contract between you and the Company for employment, express or implied, for any specific duration.

**Taking the next step**

As you know, the Company has built tremendous momentum, thanks to the dedication of our people. With you joining the team, we're confident we'll continue this trajectory and achieve even greater success.

Please review this offer letter in full, including all enclosures, and return a signed copy along with the CIPA agreement to ######## within five (5) business days of receipt. This offer letter constitutes the entire agreement and understanding between you and the Company and supersedes and is in full substitution for any and all prior offers, understandings or agreements (whether written or oral) with respect to your employment. This offer will expire if not accepted and returned by that date, unless otherwise agreed in writing. If you have any questions, feel free to reach out to me directly at the email above.

*[Signature Page Follows]*

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Best regards,

<u>/s/ Josephine Berisha</u>

Josephine Berisha

Chief Human Resources Officer

Enclosures: Confidential Information Protection Agreement; Severance Plan

**ACCEPTED AND AGREED:**

<u>/s/ Valeri Liborski</u>

Valeri Liborski

*[Offer Letter Signature Page]*

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**CONFIDENTIAL INFORMATION PROTECTION AGREEMENT**

In this CONFIDENTIAL INFORMATION PROTECTION AGREEMENT (the "***<u>Agreement</u>***"), the terms "***<u>we</u>****,*" "***<u>us</u>***," "***<u>our</u>***," and the "***<u>Company</u>***" mean, collectively, QXO, Inc., together with its subsidiaries and controlled affiliates. "***<u>You</u>***," "***<u>your</u>***," "***<u>me</u>***" and "***<u>Employee</u>***" mean the specific individual whose signature appears on the last page of this Agreement. To help explain the obligations created under this Agreement, we use certain capitalized terms (e.g., *"****<u>Confidential Information</u>***," "***<u>Cause</u>***," etc.), which are defined throughout the Agreement and, in some cases, in alphabetical order in Section 18 below.

<u>Background Information</u>

This Agreement is a condition of your employment by the Company. You acknowledge that we are employing you and providing you with substantial compensation in a new position with the Company in consideration for your execution and delivery of this Agreement.

<u>Agreement</u>

In consideration of the Company's obligations under this Agreement, your employment with the Company and our providing you with substantial compensation, you and the Company agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.*Confidentiality Covenant***. You agree to use our "***<u>Confidential Information</u>***" (as that term is defined in Section 18) only for our benefit. You agree that, other than as required to perform your duties for us, you will not at any time use, disclose, download or copy our Confidential Information (including but not limited to personal email or storage media) or assist any other person or entity to do so. Notwithstanding anything in this Agreement to the contrary, nothing contained herein is intended to, or shall be interpreted in a manner that does, prohibit, limit or restrict you from exercising any legally protected whistleblower rights (including pursuant to Rule 21F under the Securities Exchange Act of 1934, as amended).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.*Return of Company Property When Requested***. You agree to promptly return to us when we request, but in any event by your "***<u>Termination Date</u>***" (as that term is defined in Section 18), all of our Confidential Information and all other Company property (tangible or intangible) in your possession or control (e.g., all documents, data, recordings, smartphones, computers and other business equipment, inclusive of all information stored in electronic form), obtained or prepared by or for or utilized by you in the course of your employment, all of which you acknowledge and agree is and shall remain our sole and exclusive property. You further agree not to tamper with, alter, delete or destroy any Company property, documents, records or data contained in any location, including but not limited to any information contained on any Company-owned computer or electronic device, system, database, server, portal or network. In this regard, you agree not to re-set, wipe or return to their default settings Company-owned electronic devices, absent our prior written consent. In addition, you agree not to access or attempt to access any electronic device, system, database, server, portal or network of the Company after your Termination Date. You further agree, when requested or by your Termination Date, to conduct a diligent search of all of the electronic documents and information, electronic devices (including, without limitation, computers, hard drives, flash drives, and mobile devices), remote and virtual storage and file systems, emails and email accounts, voicemails, text messages, instant messaging conversations and systems, and any other devices, facilities, systems, accounts, or media that have electronic data storage or saving capabilities, in your possession, custody, or control, for any copies or iterations of Confidential Information, and immediately inform the Company of any copies or iterations of Confidential Information you locate pursuant to such search, and follow Company directives with respect to remitting such information or documents to the Company and remediating the same. If you breach this Section 2, then pursuant to Section 14, your employment shall, at the Company's election, be terminated for Cause or be deemed to have been terminated for Cause retroactive to the Termination Date. You also acknowledge that any breach of this Section 2 may cause the Company to seek an adverse inference against you in the event of litigation, and you agree that such breach shall be considered material and entitle the Company to equitable and monetary relief, including its attorneys' fees and costs pursuant to Section 17.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.*Ownership of Intellectual Property***. Except as otherwise provided by applicable law, you agree that all "***<u>Work Product</u>***" (as that term is defined in Section 18) created in whole or in part by you while employed by us is our exclusive property, and that you will promptly, fully and effectively communicate all Work Product to us. Accordingly, you agree that all Work Product eligible for any form of copyright protection made or contributed to in whole or in part by you within the scope of your employment while so employed shall be deemed a "***work made for hire***" under the copyright laws and shall be owned by us, and

------

that the Company may sell, use, copy, reproduce, display, perform or alter as it sees fit, without any further right or claim by or remuneration to you. To that end, you hereby now (and upon our request, in the future you will) assign, transfer and convey to us, all of your "***<u>Proprietary Rights</u>***" (as that term is defined in Section 18) in all Work Product for our exclusive ownership and use, together with all rights to sue and recover for past and future infringement or misappropriation thereof. In addition, at our request, at all times while you are employed by us and at all times thereafter, you agree to promptly and fully assist us in effecting the foregoing assignment, including but not limited to the further acts of executing any and all documents necessary for us to secure for ourselves such Proprietary Rights in all such Work Product. The foregoing provisions, however, do not apply to any invention (a) for which none of our equipment, supplies, facilities or trade secret information were used, <u>and</u> (b) developed entirely on your own time, unless the invention relates to our businesses or any actual or demonstrably anticipated research or development, or results from any work performed by you for us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.*Covenants During Employment***. While employed by the Company, you agree not to compete with the Company anywhere in the world. Specifically, while employed by the Company, you may not: (a) enter into or engage in a "**<u>Competing Business</u>**" (as defined in Section 7 below); (b) solicit customers, potential customers, business or other business opportunities, or attempt to do so, for any Competing Business; (c) sell or attempt to sell any products or services that compete with the "***<u>Business</u>***" (as defined in Section 7 below); (d) divert, entice or take away any customers, potential customers or other business opportunities of the Company or attempt to do so; or (e) promote or assist, financially or otherwise, any person or entity engaged in a Competing Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.*Post-Employment Covenant Not to Hire the Company's Employees and Others***. During your employment and during the Restricted Period (as defined on <u>Exhibit A</u>), you agree not to solicit for hiring, hire or interfere with (or try to hire or interfere with or solicit for hiring) (or help any other person or party to solicit for hiring, to hire or to interfere with) our relationship with (a) any of our employees; or (b) any person who at any time during the twelve (12) months prior to such solicitation, hiring or interference was an employee of the Company. This undertaking on your part for our benefit is called your "***<u>Non-Interference Covenant</u>***."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.*Post-Employment Covenant Not to Solicit the Company's Restricted Customers.*** During your employment and during the Restricted Period, you hereby agree not to, directly or indirectly, (a) discontinue or reduce the extent of the relationship between the Company Entities and the individuals, partnerships, corporations, professional associations or other business organizations that have a business relationship with any Company Entity and about which business relationship you were aware (collectively, "Associated Third Parties"), or to obtain or seek products or services the same as or similar to those offered by the Company Entities from any source not affiliated with the Company Entities; and (b) solicit, assist in the solicitation of, or accept any business from any Associated Third Parties in relation to a product or service that competes with the products and/or services offered by the Company Entities This undertaking on your part for our benefit is called your "***<u>Non-Solicit Covenant</u>***."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.*Post-Employment Covenant Not to Compete with Us***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)***Duration and Geographic Scope***. During your employment and during the Non-Compete Period (as defined on <u>Exhibit A</u>), you are not allowed to compete with us in the "***<u>Restricted Territory</u>***" (geographic area) described below. This undertaking on your part for our benefit is called your "***<u>Non-Compete Covenant</u>***."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)***Your Non-Compete Covenant to Us****.* You agree that you will not, during your employment and during the Non-Compete Period, within the Restricted Territory, directly or indirectly (whether or not for compensation) become employed by, engage in business with, serve as an agent or consultant to, become an employee, partner, member, principal, stockholder or other owner (other than a holder of less than 1% of the outstanding voting shares of any publicly held company) of any Competing Business. For purposes of this Agreement, "Competing Business" shall mean any individual, corporation, limited liability company, partnership, unincorporated organization, trust, joint venture or other entity that (i) engages or is planning to engage in any business or businesses in which the Company Entities are actively engaged in or planning to engage in during your employment (to the extent you were aware of such plans), including, but not limited to, any line of business involved in building and construction products distribution (collectively, the "Business") or (ii) engages in mergers and acquisition activities related to the Business, including, without limitation, researching, analyzing and evaluating companies for investment in or acquisition of, for itself or clients. Such "Competing Business" definition shall include, but shall not be limited to, each of the following private equity firms and affiliates, including, without limitation, their portfolio companies: American Securities, LLC; Bain Capital; Blackstone; Clayton, Dubilier & Rice, LLC; Court Square Capital Partners; CVC; KKR; Leonard Green & Partners; and Platinum Equity, as well as each of the following building and construction products

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distribution companies and their affiliates: Builders FirstSource; Core & Main; Ferguson; Home Depot; Lowe's; and Watsco.

*Exception for the Practice of Law.* Provided, however, that nothing set forth in this Agreement shall preclude you from engaging in the practice of law pursuant to Rule 5.6 of the Connecticut Rules of Professional Conduct, Rule 5.6 of The Delaware Lawyers' Rules of Professional Conduct, Rule 5.6 of the ABA Model Rules of Professional Conduct, or similar rules adopted by any jurisdiction of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)***Your Restricted Territory***. You agree that your "***<u>Restricted Territory</u>***" means any State of the United States and any other country in which the Company or any Company Entity does business, or in which the Company or any Company Entity has actively planned to engage in business, in each case, during your employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)***Your Non-Compete Payments if We Terminate You Without Cause***. If we terminate your employment <u>without</u> "***<u>Cause</u>***" (as that term is defined in Section 18 below), then we will make "***<u>Non-Compete Payments</u>***" to you in an amount calculated as set forth in subsection (f) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)***Termination of the Restricted Period***. We have the right, at our discretion, to waive your Non-Compete Covenant and/or terminate or reduce the Non-Compete Period, whether in whole or in part. Upon providing you notice to that effect, no Non-Compete Payments will be due with respect to any period subject to this waiver or reduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)***Amount and Timing of Non-Compete Payments During the Restricted Period****.* If we terminate your employment without Cause and do not elect to waive your Non-Compete Covenant or to terminate or reduce your Non-Compete Period, we will pay you each month during the Restricted Period an amount equal to the monthly amount of your base salary at the time of your Termination Date in accordance with our payroll procedures on our normal payroll dates. In the event we waive or reduce the Non-Compete Period, we will make a payment equal to your monthly base salary for the duration of the revised Non-Compete Period. (For example, if we reduce the Non-Compete Period to three (3) months, we will pay you your base salary for three (3) months in accordance with our normal payroll procedures during that period.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)***Additional Non-Compete Payments and Extension of Your Restricted Period.*** We have the right, at our discretion, to extend the Non-Compete Period during one or more Extended Non-Compete Periods (as defined in <u>Exhibit A</u>). If the Company elects to extend the Non-Compete Period, you agree that, during any Extended Non-Compete Period, you shall be bound by the restrictions set forth in Section 7(b) in the same manner applicable during the Non-Compete Period. If we exercise this option to extend the Non-Compete Period, we will pay you "***<u>Additional Non-Compete Payments</u>***" consisting of, for each month of the relevant extension period, an amount equal to the monthly amount of your base salary as of the Termination Date in accordance with our payroll procedures on our normal payroll dates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)You shall deliver a written notice to the Company not more than one hundred twenty (120) days, and not less than one hundred (100) days, prior to the expiration of the Non-Compete Period or Extended Non-Compete Period, as applicable, specifying the date that such expiration will occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)If the Company elects to extend the Non-Compete Period or any Extended Non-Compete Period, it will notify you in writing of such fact not later than the ninetieth (90th) day prior to the commencement of the applicable Extended Non-Compete Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Company may terminate or reduce the duration of any Extended Non-Compete Period. Upon providing you notice to that effect, no Additional Non-Compete Payments will be due with respect to any period subject to this reduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)By signing this Agreement, you agree to accept and abide by the Company's elections. Notwithstanding any provision of this Agreement to the contrary, the right of the Company to extend the Non-Compete Period hereunder shall lapse upon a Change of Control (as defined in the QXO, Inc. 2024 Omnibus Incentive Compensation Plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)***Consequences of Your Breach of Your Non-Compete Covenant***. We reserve the right to use any remedies available to us in law or in equity to enforce our rights under this Agreement, generally, and your Non-Interference Covenant, Non-Compete Covenant, Non-Solicit Covenant and other covenants to us set forth in this Agreement, specifically. You also agree that if you breach your Non-Compete Covenant to us, you will repay us all of the Non-Compete Payments we have made to you.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)***Coordination with Other Benefits.*** If we elect to enforce your Non-Compete Covenant, in whole or in part, and you are eligible for any other cash severance benefit under any other policy, plan or agreement, such other cash severance benefit shall be reduced (but not below zero) by the amount of the Non-Compete Payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)***Conditions to Severance***. Any monies we pay you under this Agreement, will be subject to (i) your execution of a general release of claims and settlement agreement in the form delivered to you by the Company or its applicable Affiliate (provided that any general release of claims and settlement agreement shall not contain any new or additional restrictive covenant requirements if the Termination Date occurs on or within two years following a Change of Control) on or within ten (10) days after the Termination Date and such agreement becoming effective and irrevocable in accordance with its terms no later than the seventieth (70<sup>th</sup>) day following the Termination Date (collectively, the "<u>Release Requirement</u>") and (ii) you incurring a "Separation from Service" (within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended (the "Code") and Treasury Regulation Section 1.409A-1(h)) (a "***Separation from Service***") from the Company. Payment of the Non-Compete Payments, if due, will commence not later than the second regularly scheduled payroll date following satisfaction of the Release Requirement, with any installments that would have been made during the period from the Termination Date to the date of satisfaction of the Release Requirement based on regularly scheduled payroll dates accumulated and paid on the date that such installments commence. In the event that the Company determines it cannot make a payment to you during the six (6)-month period following your Separation from Service because you are a "specified employee" within the meaning of Code Section 409A and making a payment to you during such six (6)-month period would result in the application of tax penalties under Code Section 409A, the Company will pay you a lump-sum amount equal to the cumulative amount that would have otherwise been paid to you during such period (without interest) on the first business day following the end of the six (6)-month period (or such earlier date upon which such amount can be paid without resulting in the application of tax penalties under Code Section 409A). For purposes of Code Section 409A, each installment payment provided under this Agreement will be treated as a separate payment. In addition, you will not be entitled to severance or Non-Compete Payments in connection with your termination of employment with the Company if you are offered employment by any successor to all or any portion of our Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.*Refraining from Disparaging Us***. While employed by us and thereafter, you agree never to disparage, malign or impugn us or any of our officers, directors and employees; provided, however, that nothing herein shall prohibit you from exercising any rights under Section 7 of the National Labor Relations Act, providing truthful testimony, or from initiating, participating in or cooperating with an investigation or proceeding conducted by any local, state or federal governmental agency. In addition, nothing herein shall be construed to waive or limit your right to receive an award for information provided to the Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.*Cooperating After Employment Ends***. While employed by us and thereafter, you agree to fully cooperate with us in connection with any investigation, suit, action or proceeding in which you may have relevant information or testimony, including but not limited to providing testimony at depositions or trial, which cooperation and appearance you fully agree to without the necessity of a subpoena or court order. If your assistance is required after your employment has ended, we will reimburse you for your reasonable, out-of-pocket travel expenses and accommodate your personal and business schedule to the extent practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.*Giving Notice to a New Employer and to Us***. You agree that during the Restricted Period, you will provide any new employer written notice of each of the restrictions to which you are subject under this Agreement (e.g., your Non-Interference Covenant, your Non-Solicit Covenant and your Non-Compete Covenant) before you accept an offer of employment and concurrently provide to us a copy of each such written notice. You shall also provide the Company with fourteen (14) days advance notice prior to becoming employed by any person or entity or engaging in any business of any type or form, regardless of whether or not the prospective employer or business is engaged in a Competing Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.*Prohibited Use of Confidential Information of Your Prior Employers***. It is vital to us that you not disclose to us or use any information or materials that might constitute a former employer's confidential information. Accordingly, you (a) agree not to disclose or use any former employer's confidential information in any form unless you first obtained the prior written consent of that former employer and (b) represent to us that you searched for and deleted any emails, documents or files prepared, generated, obtained or used by you that contain any such confidential information of a prior employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.*Authority to Enter into this Agreement; No Conflicts***. You represent that you have the right to enter into this Agreement, that doing so is not and does not conflict with or breach any obligations you may

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have under any agreement you have or any court order, and that your signature on this Agreement makes a valid and binding obligation, fully enforceable in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.*Prior Restrictive Covenant Agreements to Which You Are Bound***. You represent to us that you: (a) have provided us true, correct and complete copies of any agreement to which you are subject containing non-competition, non-solicitation or similar restrictions or covenants in favor of any prior employer or other party; and (b) are free to enter into this Agreement and be employed by us in accordance with the terms of this Agreement without breaching or violating any such prior agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.*Employee Acknowledgments Regarding Termination for Cause***. You acknowledge that your breach of your representations, covenants and agreements set forth in Sections 1 through 13 hereof is grounds for immediate termination for Cause by us. You agree that if, subsequent to the Termination Date, we determine that we could have terminated your employment for Cause, or we discover a breach of any provision herein, your employment shall, at our election, be deemed to have been terminated for Cause retroactive to the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.*Employment At-Will***. You are employed at-will. Nothing in this Agreement changes your at-will employment status or confers any right with respect to continuation of employment, and nothing in this Agreement interferes in any way with the Parties' right to terminate the employment relationship at any time, with or without Cause or advance notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.*Governing Law; Arbitration and Consent to Jurisdiction.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)***Governing Law***. This Agreement shall be governed by and construed in accordance with its express terms, and otherwise in accordance with the laws of the State of Delaware without reference to its principles of conflicts of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)***Arbitration.*** Any claims you wish to make arising out of or relating to this Agreement, the breach thereof, your employment with us, or the termination of that employment will be resolved by binding arbitration before a single arbitrator in the State of Delaware, or at another location as mutually agreed upon by the parties, administered by the American Arbitration Association ("AAA") in accordance with its Employment Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. This provision does not apply to claims that, under law, may not be subject to a pre-dispute arbitration agreement. Notwithstanding anything to the contrary under the Rules of the AAA or the general grant of authority to the arbitrator contained herein, the arbitrator shall have no jurisdiction or authority to compel any class or collective claim, to consolidate different arbitration proceedings or to join any other party to any arbitration between you and the Company. The arbitrator shall, for all such claims you wish to file, have the exclusive authority to determine the applicability, interpretation and enforceability of this Agreement, but shall have no jurisdiction or authority to compel any class or collective claim or to join any other party to an arbitration between us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)***Consent to Jurisdiction***. You hereby irrevocably consent and submit to the jurisdiction of any state or federal court located in the State of Delaware, including without limitation to decide any and all claims brought by the Company alleging a violation or enforceability of Sections 1, 2, 3, 5, 6, 7 or 8 hereof, as well as any claims relating to misappropriation of trade secrets. In that regard, you waive any objection you now or hereafter have to personal jurisdiction or to the laying of venue of any such suit, action or proceeding brought in the State of Delaware, including any claims relating to the alleged inconvenience of such forum, and agree that you will not attempt to deny or defeat such personal jurisdiction by motion or other request to any such court. You also agree that, notwithstanding Section 16(b) above, if you bring an action in court against the Company or its agents, officers or directors, including in aid of any arbitration proceeding or to challenge arbitrability, you will do so exclusively in the state or federal courts located in the State of Delaware, provided that nothing herein shall waive the Company's right to demand that you comply with Section 16(b). You also agree that the Company has the right to bring a legal action against you in a state or federal court where you live or that has jurisdiction over you. You further agree that, to the fullest extent permitted by applicable law, a final and non-appealable judgment in any suit, action or proceeding brought in any court described in this Section 16(c) shall be conclusive and binding upon you and may be enforced in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)***Waiver of Class and Collective Actions***. The parties to this Agreement waive the right to participate in any class or collective action against the other party. The parties understand and agree that they will not consolidate their claims with the claims of any other individual or entity, will not seek class or collective action treatment for any claim that they may have and will not participate in any class or collective action against each other or anyone affiliated with a party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.*Remedies; Injunctions for Breaches of this Agreement***. All of the Company's rights and remedies may be exercised alternatively or cumulatively to the fullest extent permitted by law. You acknowledge that in addition to the acknowledgements you made in Sections 5, 6, 7 and 8 of this Agreement, you have considered each of the other restrictive covenants set forth in this Agreement and stipulate that those covenants are likewise reasonable and necessary to protect us and our Confidential Information, business strategies, employee and customer relationships and goodwill, now existing or to be developed in the future. You hereby: (a) agree to comply with all of the restrictive covenants; (b) waive any right to contest the reasonableness, validity, scope or enforceability of any of the restrictive covenants, or any other claim or defense related thereto; (c) agree that a breach constitutes irreparable harm and that injunctive relief would be the only practical remedy in the event of your breach; and (d) agree that the Company, without having to post bond, shall be entitled to injunctive relief against any breach by you of a restrictive covenant, <u>provided that</u> the foregoing shall not prejudice our rights to require you to account for and pay over to us any compensation, profits or gains derived by you related to the breach, and you agree to be so responsible for such an accounting. You further agree that if you violate your Non-Interference Covenant, your Non-Compete Covenant, and/or your Non-Solicit Covenant set forth in Sections 5, 6, 7 and 8 of this Agreement, respectively, the post-employment restricted time period therein shall not include any period(s) of violation or period(s) of time required for litigation to enforce the covenants therein. It is the parties' mutual intent that the Company is entitled to the full period applicable to such covenants free of competition and/or litigation to enforce the provisions thereof. Any tolled period due to breach of Sections 5, 6, 7 and 8 of this Agreement or litigation shall not be subject to Non-Compete Payments. If the Company brings a legal action to enforce this Agreement or obtain monetary damages for breach of this Agreement, the Company shall have the right to recover attorneys' fees and costs it incurs as a result of any action brought in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.*Definitions***. This Agreement uses the following defined terms:

&nbsp;&nbsp;&nbsp;&nbsp;"***<u>Additional Non-Compete Payments</u>***" shall have the meaning set forth in Section 7(g) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;"***<u>Agreement</u>***" shall mean this Confidential Information Protection Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;"***<u>Cause</u>***" shall mean (a) your dereliction of duties or gross negligence or failure to perform your duties or refusal to follow any lawful directive of the officer to whom you report; (b) your abuse of or dependency on alcohol or drugs (illicit or otherwise) that adversely affects your performance of duties for any Company Entity; (c) your commission of any fraud, embezzlement, theft or dishonesty or any deliberate misappropriation of money or other assets of any Company Entity; (d) your breach of any fiduciary duties of any Company Entity; (e) any act, or failure to act, by you in bad faith to the detriment of any Company Entity; (f) your failure to cooperate in good faith with a governmental or internal investigation of any Company entity or any of its directors, managers, officers or employees, if the Company requests your cooperation; (g) your failure to follow Company policies, including the Company's code of conduct and/or ethics policy, as may be in effect from time to time; or (h) your conviction of, or plea of nolo contendere to, a felony or any serious crime; provided that in cases set forth in clauses (a) through (g) where a cure is possible (as determined by the Company in its discretion), you shall first be provided with a 15-day cure period.

&nbsp;&nbsp;&nbsp;&nbsp;"***<u>Company Entity</u>***" means the Company and each entity controlled by, controlling or under common control with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;"***<u>Confidential Information</u>***" means all information, written, digital (whether generated or stored on magnetic, digital, photographic or other media) or oral, not generally known to the public and from which we derive a commercial or competitive advantage, or which is proprietary to us, concerning our business, operations, products, services, customer information, merger and acquisition targets and strategies, pricing strategies, operating processes, business methods and procedures, information technology and information-gathering techniques and methods, business plans, financial affairs and all other accumulated data, listings or similar recorded matter useful in the businesses of the Company, including by way of illustration and not limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• information about the business, affairs or operation of the Company developed by you or which is furnished or made available to you by us during your employment;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• information about the business, operations and assets of companies considered for acquisition, merger, sale, disposition, or similar transaction by JPE, and information concerning JPE's evaluation and analysis thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• operating instructions, training manuals, procedures and similar information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• information about customers, vendors and others with whom we do business (e.g., customer or vendor lists, pricing, contracts and activity records);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• information regarding the skills and compensation of employees or contractors of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• information about sales and marketing (e.g., plans and strategies);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• information about any other third parties we have a business relationship with or to whom we owe a duty of confidentiality; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all notes, observations, data, analyses, compilations, forecasts, studies or other documents prepared by you that contain or reflect any Confidential Information.

However, the Company expressly acknowledges and agrees that the term "Confidential Information" excludes information that: (a) is in the public domain or otherwise generally known to the trade; (b) is disclosed to third parties without restriction other than by reason of your breach of your confidentiality obligations under this Agreement; (c) you learn of after the termination of your employment from any other party not then under an obligation of confidentiality to us; or (d) comprises contact information that is readily ascertainable from sources other than the Company.

&nbsp;&nbsp;&nbsp;&nbsp;"***<u>Non-Compete Covenant</u>***" shall have the meaning set forth in Section 7 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;"***<u>Non-Compete Payments</u>***" shall have the meaning set forth in Sections 7(d) and 7(f) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;"***<u>Non-Interference Covenant</u>***" shall have the meaning set forth in Section 5 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;"***<u>Non-Solicit Covenant</u>***" shall have the meaning set forth in Section 6 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;"***<u>Proprietary Rights</u>***" means all right, title and interest regarding all inventions, ideas, improvements, designs, processes, trademarks, service marks, trade names, trade secrets, trade dress, data, discoveries, Work Product, and any other proprietary assets or rights.

"***<u>Restricted Period</u>***" shall have the meaning set forth in Section 7(a) of this Agreement.

"***<u>Restricted Territory</u>***" shall have the meaning set forth in Section 7(c) of this Agreement.

"***<u>Separation from Service</u>***" shall have the meaning set forth in Section 7(j) of this Agreement.

*"****<u>Termination Date</u>***" means the date your employment with the Company ends, whether voluntarily or involuntarily and whether with or without Cause.

"***<u>Work Product</u>***" means all works of authorship, research, discoveries, inventions and innovations (whether or not reduced to practice or documented), improvements, developments, methods, designs, analyses, drawings, reports and all similar or related information (whether patentable or un-patentable, and whether or not reduced to writing), trade secrets and Confidential Information, copyrightable works, and similar and related information (in whatever form or medium). As examples, this definition applies to anything to do with the Company's actual or anticipated business, research and development or existing or

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future products or services. It applies to the results from any work performed by you for us. It also applies to anything conceived, developed, made or contributed to in whole or in part by you while employed by us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.*Other Agreements***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)***Notices***. Except as otherwise provided, we can give you notice at your last known principal residence listed on our records. You, in turn, may give us notice to QXO, Inc., 5 American Lane, Greenwich, CT 06831, Attention: Legal Department. Either you or the Company may provide another address for notice by written notice to the other. Notice is deemed given as follows: (i) when delivered personally; (ii) four (4) days after it is mailed by registered or certified mail, postage prepaid, return receipt requested or (iii) one (1) day after it is sent by overnight courier service via UPS or FedEx.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)***Amendment; No Waiver***. You and we agree that (i) this Agreement may not be amended except in writing signed by both you and us; (ii) the application of any provision of this Agreement may be waived only by a written instrument specifically identifying the provision whose application is being waived and signed by you and us and (iii) no waiver by either you or us of a breach by the other shall be a waiver of any preceding or succeeding breach, and no waiver by you or us of any right under this Agreement shall be construed as a waiver of any other right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)***Entire Agreement; Interpretation***. You and we expressly acknowledge and agree that this Agreement constitutes the entire agreement between you and the Company with respect to the subject matter hereof, and there are no oral agreements between you and us pertaining to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)***Your due diligence***. You acknowledge that: (i) you have had a full opportunity to read and understand this Agreement and consult with such attorneys, accountants, business advisors, and other consultants as you deem necessary or advisable and (ii) this Agreement shall not be construed against one party or the other in the event of any ambiguity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)***Survival***. The provisions of this Agreement shall survive termination of your employment regardless of the reason, and our assignment thereof to any successor-in-interest or other assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)***Severability***. If any provision of this Agreement or its application is held invalid, such invalidation shall not affect other provisions or applications hereof which can be given effect without the invalid provisions or applications; and, so that this objective may be achieved, the provisions hereof are declared to be severable and subject to blue-pencilling by a court of competent jurisdiction. In the event of a final, non-reviewable, non-appealable determination that any covenant of yours set forth in this Agreement (whether in whole or in part) is void or constitutes an unreasonable restriction against you, such provision shall not be rendered void but shall be deemed to be modified to the minimum extent necessary to make such provision enforceable for the longest duration and the greatest scope as may constitute a reasonable restriction under the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)***Counterparts***. This Agreement may be executed in multiple originals. Signatures delivered by facsimile or electronic means (including by "pdf") shall be deemed effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)***Headings***. The Section and subsection headings in this Agreement are for convenience only and shall not affect the meaning of any provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)***Withholding.*** All payments to be made hereunder shall be reduced by applicable federal, state and local withholding taxes.

*\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\**

------

This Agreement is executed on the date shown below and shall be effective as of such date.

**QXO, INC.**, for itself and its subsidiaries and affiliates

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name:&nbsp;&nbsp;&nbsp;&nbsp;Josephine Berisha

Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Human Resources Officer

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

Employee Signature

<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

Employee Name (Print)

Date:

<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

------

Exhibit A

Applicable Restriction Periods

---

| | |
|:---|:---|
| **Defined Term** | **Definition** |
| **Restricted Period** | The period of four (4) years after your Termination Date. |
| **Non-Compete Period** | The period of one (1) year after your Termination Date. |
| **Extended Non-Compete Periods** | Up to two (2) additional sequential periods of one (1) year each, with the first such period commencing immediately following the end of the Non-Compete Period. |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER**

**PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF**

**THE SARBANES-OXLEY ACT OF 2002**

I, Brad Jacobs, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of QXO, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Dated: May 12, 2026 | By: | /s/ Brad Jacobs |
|  |  | Brad Jacobs<br>Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF**

**THE SARBANES-OXLEY ACT OF 2002**

I, Ihsan Essaid, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of QXO, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Dated: May 12, 2026 | By: | /s/ Ihsan Essaid |
|  |  | Ihsan Essaid<br>Chief Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF**

**THE SARBANES-OXLEY ACT OF 2002**

In connection with this Quarterly Report on Form 10-Q of QXO, Inc. (the "Company") for the quarter ended March 31, 2026, as filed with the U.S. Securities and Exchange Commission on the date hereof (the "Report"), I, Brad Jacobs, Chief Executive Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Dated: May 12, 2026 | By: | /s/ Brad Jacobs |
|  |  | Brad Jacobs<br>Chief Executive Officer |

---

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF**

**THE SARBANES-OXLEY ACT OF 2002**

In connection with this Quarterly Report on Form 10-Q of QXO, Inc. (the "Company") for the quarter ended March 31, 2026, as filed with the U.S. Securities and Exchange Commission on the date hereof (the "Report"), I, Ihsan Essaid, Chief Financial Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Dated: May 12, 2026 | By: | /s/ Ihsan Essaid |
|  |  | Ihsan Essaid<br>Chief Financial Officer |

---

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 99.1

**Exhibit 99.1**

**PREDECESSOR FINANCIAL INFORMATION**

**QXO BUILDING PRODUCTS, INC.**

**For the Quarter Ended March 31, 2025** 

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
| **<u>Financial Information (unaudited)</u>** | **<u>Financial Information (unaudited)</u>** | |
| <u>[Item 1.](#i132fe6186b6948b9bb1c0fa1072648e1_13)</u> | <u>[Condensed Consolidated Financial Statements](#i132fe6186b6948b9bb1c0fa1072648e1_13)</u> | <u>[2](#i132fe6186b6948b9bb1c0fa1072648e1_13)</u> |
|  | <u>[Condensed Consolidated Balance Sheets](#i132fe6186b6948b9bb1c0fa1072648e1_16)</u> | <u>[2](#i132fe6186b6948b9bb1c0fa1072648e1_16)</u> |
|  | <u>[Condensed Consolidated Statements of Operations](#i132fe6186b6948b9bb1c0fa1072648e1_19)</u> | <u>[3](#i132fe6186b6948b9bb1c0fa1072648e1_19)</u> |
|  | <u>[Condensed Consolidated Statements of Comprehensive Income](#i132fe6186b6948b9bb1c0fa1072648e1_22)</u> | <u>[4](#i132fe6186b6948b9bb1c0fa1072648e1_22)</u> |
|  | <u>[Condensed Consolidated Statements of Stockholders](#i132fe6186b6948b9bb1c0fa1072648e1_25)</u><u>'</u><u>[Equity](#i132fe6186b6948b9bb1c0fa1072648e1_25)</u> | <u>[5](#i132fe6186b6948b9bb1c0fa1072648e1_25)</u> |
|  | <u>[Condensed Consolidated Statements of Cash Flows](#i132fe6186b6948b9bb1c0fa1072648e1_28)</u> | <u>[6](#i132fe6186b6948b9bb1c0fa1072648e1_28)</u> |
|  | <u>[Notes to the Condensed Consolidated Financial Statements](#i132fe6186b6948b9bb1c0fa1072648e1_31)</u> | <u>[7](#i132fe6186b6948b9bb1c0fa1072648e1_31)</u> |
| <u>[Item 2.](#i132fe6186b6948b9bb1c0fa1072648e1_91)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i132fe6186b6948b9bb1c0fa1072648e1_91)</u> | <u>[22](#i132fe6186b6948b9bb1c0fa1072648e1_91)</u> |

---

------

**Item 1. Condensed Consolidated Financial Statements (as predecessor)**

**QXO BUILDING PRODUCTS, INC.**

**Condensed Consolidated Balance Sheets** 

(Unaudited; in millions, except per share amounts)

---

| | | | |
|:---|:---|:---|:---|
| | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **March 31,**<br>**2024** |
| **Assets** |  |  |  |
| Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $57.4 | $74.3 | $134.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, less allowance of $17.1, $17.6, and $14.7 as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively | 1250.5 | 1196.1 | 1188.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 1711.5 | 1407.7 | 1537.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 547.2 | 501.7 | 520.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 3566.6 | 3179.8 | 3380.8 |
| Property and equipment, net | 541.0 | 545.7 | 457.0 |
| Goodwill | 2097.7 | 2094.7 | 2011.1 |
| Intangibles, net | 469.2 | 489.1 | 434.0 |
| Operating lease right-of-use assets, net | 651.2 | 626.8 | 517.3 |
| Deferred income taxes, net |  |  | 2.1 |
| Other assets, net | 19.4 | 17.5 | 16.2 |
| Total assets | $7345.1 | $6953.6 | $6818.5 |
| **Liabilities and Stockholders' Equity** |  |  |  |
| Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $1275.7 | $938.0 | $1247.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 423.6 | 522.4 | 423.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 106.3 | 101.2 | 92.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of finance lease liabilities | 41.4 | 38.9 | 29.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | 12.8 | 12.8 | 15.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 1859.8 | 1613.3 | 1807.3 |
| Borrowings under revolving lines of credit, net | 316.1 | 148.1 | 111.5 |
| Long-term debt, net | 2479.1 | 2481.2 | 2487.6 |
| Deferred income taxes, net | 41.4 | 37.0 | 24.0 |
| Other long-term liabilities | 2.8 | 1.9 | 1.3 |
| Operating lease liabilities | 566.2 | 544.7 | 436.5 |
| Finance lease liabilities | 136.3 | 134.9 | 109.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 5401.7 | 4961.1 | 4978.0 |
| Commitments and contingencies (Note 13) |  |  |  |
| Stockholders' equity: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock (voting); $0.01 par value; 100.0 shares authorized; 61.8, 61.5, and 63.6 shares issued and outstanding as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively | 0.6 | 0.6 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Undesignated preferred stock; 5.0 shares authorized, none issued or outstanding |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 1261.1 | 1264.4 | 1228.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 710.6 | 753.7 | 624.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | (28.9) | (26.2) | (13.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 1943.4 | 1992.5 | 1840.5 |
| Total liabilities and stockholders' equity | $7345.1 | $6953.6 | $6818.5 |

---

*See accompanying Notes to the Condensed Consolidated Financial Statements*

------

**QXO BUILDING PRODUCTS, INC.**

**Condensed Consolidated Statements of Operations** 

(Unaudited; in millions, except per share amounts)

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Net sales | $1907.8 | $1912.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold | 1440.0 | 1439.2 |
| Gross profit | 467.8 | 473.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative<sup>1</sup> | 436.5 | 381.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 31.4 | 25.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 23.3 | 21.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expense | 491.2 | 428.1 |
| Income (loss) from operations | (23.4) | 45.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense, financing costs and other, net | 42.2 | 38.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on debt extinguishment |  | 2.4 |
| Income (loss) before provision for income taxes | (65.6) | 4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for (benefit from) income taxes | (22.5) | (1.5) |
| Net income (loss) | $(43.1) | $5.6 |
| Weighted-average common shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 61.7 | 63.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 61.7 | 64.8 |
| Net income (loss) per common share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.70) | $0.09 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.70) | $0.09 |

---

1. Selling, general and administrative expense for the three months ended March 31, 2025 includes $37.7 million of one-time costs incurred in connection with the the Beacon Acquisition (as defined in Note 1).

*See accompanying Notes to the Condensed Consolidated Financial Statements*

------

**QXO BUILDING PRODUCTS, INC.** 

**Condensed Consolidated Statements of Comprehensive Income** 

(Unaudited; in millions)

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Net income (loss) | $(43.1) | $5.6 |
| Other comprehensive income (loss): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | 0.1 | (3.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) due to change in fair value of derivative financial instruments, net of tax | (3.3) | 5.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments reclassified to earnings, net of tax | 0.5 | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) | (2.7) | 1.2 |
| Comprehensive income (loss) | $(45.8) | $6.8 |

---

*See accompanying Notes to the Condensed Consolidated Financial Statements*

------

**QXO BUILDING PRODUCTS, INC.** 

**Condensed Consolidated Statements of Stockholders**' **Equity** 

(Unaudited; in millions)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | | | | |
| | **Shares** | **Amount** |<br>**APIC**<sup>1</sup> | **Retained**<br>**Earnings** |<br>**AOCI**<sup>2</sup> |<br>**Total** |
| **Three Months Ended March 31, 2025** | | | | | | |
| Balance as of December 31, 2024 | 61.5 | $0.6 | $1264.4 | $753.7 | $(26.2) | $1992.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock, net of shares withheld for taxes | 0.3 | 0.0 | (12.5) |  |  | (12.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 9.2 |  |  | 9.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) |  |  |  |  | (2.7) | (2.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) |  |  |  | (43.1) |  | (43.1) |
| Balance as of March 31, 2025 | 61.8 | $0.6 | $1261.1 | $710.6 | $(28.9) | $1943.4 |
| **Three Months Ended March 31, 2024** |  |  |  |  |  |  |
| Balance as of December 31, 2023 | 63.3 | $0.6 | $1218.4 | $618.8 | $(14.3) | $1823.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock, net of shares withheld for taxes | 0.3 | 0.0 | 2.8 |  |  | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 7.4 |  |  | 7.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) |  |  |  |  | 1.2 | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) |  |  |  | 5.6 |  | 5.6 |
| Balance as of March 31, 2024 | 63.6 | $0.6 | $1228.6 | $624.4 | $(13.1) | $1840.5 |

---

1. Additional Paid-in Capital ("APIC").

2. Accumulated Other Comprehensive Income (Loss) ("AOCI").

*See accompanying Notes to the Condensed Consolidated Financial Statements* 

------

**QXO BUILDING PRODUCTS, INC.**

**Condensed Consolidated Statements of Cash Flows**

(Unaudited; in millions)

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| **Operating Activities** |  |  |
| Net income (loss) | $(43.1) | $5.6 |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 54.7 | 46.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 9.2 | 7.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Certain interest expense and other financing costs | 2.1 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on debt extinguishment |  | 2.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of fixed assets and other | (1.4) | (1.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 5.3 | 2.8 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (51.7) | (38.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | (302.0) | (303.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (49.7) | (69.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 239.2 | 207.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets and liabilities | 2.2 | (0.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | (135.2) | (140.8) |
| **Investing Activities** |  |  |
| Capital expenditures | (13.1) | (27.0) |
| Acquisition of business, net | (10.7) | (109.0) |
| Proceeds from sale of assets | 1.6 | 1.7 |
| Purchases of investments | (1.3) | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | (23.5) | (135.1) |
| **Financing Activities** |  |  |
| Borrowings under revolving lines of credit | 640.8 | 677.8 |
| Payments under revolving lines of credit | (473.3) | (646.8) |
| Borrowings under term loan |  | 300.0 |
| Payments under term loan | (3.2) |  |
| Payment of debt issuance costs |  | (0.2) |
| Payments under equipment financing facilities and finance leases | (10.0) | (6.4) |
| Payment of fees for the repurchase of convertible Preferred Stock |  | (0.1) |
| Proceeds from employee stock purchase plan |  | 4.1 |
| Proceeds from issuance of common stock related to equity awards | 1.4 | 3.5 |
| Payment of taxes related to net share settlement of equity awards | (13.9) | (4.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 141.8 | 327.1 |
| Effect of exchange rate changes on cash and cash equivalents | 0.0 | (0.6) |
| Net increase (decrease) in cash and cash equivalents | (16.9) | 50.6 |
| Cash and cash equivalents, beginning of period | 74.3 | 84.0 |
| Cash and cash equivalents, end of period | $57.4 | $134.6 |
| **Supplemental Cash Flow Information** |  |  |
| Cash paid during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest | $43.9 | $40.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes, net of refunds | $3.4 | $3.6 |

---

*See accompanying Notes to the Condensed Consolidated Financial Statements* 

------

**QXO BUILDING PRODUCTS, INC.**

**Notes to the Condensed Consolidated Financial Statements**

(Unaudited; in millions, except per share amounts or otherwise indicated)

**1. Company Overview** 

Beacon Roofing Supply, Inc. ("Beacon") was incorporated in the state of Delaware on July 16, 1997 and has been the leading specialty wholesale distributor of roofing and complementary building products, including waterproofing products, in North America.

Beacon has served customers in all 50 states throughout the United States (the "U.S.") and seven provinces in Canada. Beacon's material subsidiaries are Beacon Sales Acquisition, Inc. and Beacon Roofing Supply Canada Company.

On March 20, 2025, Beacon entered into an Agreement and Plan of Merger (the "Merger Agreement") with QXO, Inc. ("QXO") and Queen MergerCo, Inc. ("Merger Sub" or the "Acquirer"), a wholly owned subsidiary of QXO, pursuant to which QXO agreed to acquire Beacon for a purchase price of 124.35 per share of Beacon's common stock (the "Beacon Acquisition"). On April 29, 2025 (the "Closing Date"), QXO completed its acquisition of Beacon pursuant to the Merger Agreement in a transaction that valued Beacon at $10.6 billion. On the Closing Date, Merger Sub merged with and into Beacon (the "Merger"), with Beacon remaining as the surviving entity and being renamed QXO Building Products, Inc. ("QXO Building Products"). In connection with the Beacon Acquisition, all of Beacon's outstanding common stock was cancelled.

During the three months ended March 31, 2025, the Company recognized $37.7 million of one-time costs incurred in connection with the Beacon Acquisition which are included in selling, general and administrative expense in the condensed consolidated statements of operations.

**2. Summary of Significant Accounting Policies** 

***Basis of Presentation***

These financial statements are being included separately in this Quarterly Report on Form 10-Q because QXO has determined that Beacon is the predecessor for financial reporting purposes. This determination was made as the legacy Beacon business now comprises substantially all of QXO and has significantly larger operations compared to QXO prior to the Beacon Acquisition. The Company also determined that the Beacon Acquisition represented a fundamental change in QXO's operations.

The accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to state fairly the following:

&nbsp;&nbsp;&nbsp;&nbsp;• Beacon's financial position as of March 31, 2025, December 31, 2024, and March 31, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;• Beacon's results of operations for the three months ended March 31, 2025 and 2024; and

&nbsp;&nbsp;&nbsp;&nbsp;• Cash flows for the three months ended March 31, 205 and 2024.

The Company prepared the condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial information and the requirements of the Securities and Exchange Commission ("SEC"). As permitted under those rules, certain footnotes or other financial information have been condensed or omitted. Certain prior period amounts have been reclassified to conform to current period presentation.

References to "the Company" in these financial statements refer to Beacon.

***Segment Information***

Operating segments are defined as components of a business that can earn revenue and incur expenses for which discrete financial information is evaluated on a regular basis by the chief operating decision maker ("CODM") in order to decide how to allocate resources and assess performance. The Company's CODM, the Chief Executive Officer, reviews consolidated results of operations to make decisions, therefore the Company views its operations and manages its business as a single operating segment.

***Recent Accounting Pronouncements — Not Yet Adopted***

In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-06, "Disclosure Improvements – Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." This standard affects a wide variety of Topics in the Codification. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. Early adoption is prohibited. The Company does not expect the adoption of this standard to have a material impact on the Company's consolidated financial statements and related disclosures.

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In December 2023, the FASB issued ASU 2023-09, "Improvements to Income Tax Disclosures," a final standard on improvements to income tax disclosures. The standard requires disaggregated information about a registrant's effective tax rate reconciliation as well as information on income taxes paid. This standard should be applied prospectively and is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses." The standard requires disclosure of disaggregated information about certain financial statement expense line items presented on the consolidated statements of operations in the notes to the financial statements on an interim and annual basis. The standard can be applied either prospectively or retrospectively and is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures.

**3. Acquisitions**

The following table presents the Company's acquisitions between January 1, 2024 and March 31, 2025. The Company acquired 100% of the equity or substantially all of the net assets in each case. The Company has not provided pro forma results of operations for any of the transactions below, as the transactions individually and in the aggregate for the respective year are not material to the Company. The results of operations for these transactions are included in the Company's condensed consolidated statements of operations from the date of the acquisition (dollars in millions):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Date Acquired** | **Company Name** | **U.S. State/Canadian Province** | **Branches** | **Goodwill Recognized**<sup>1</sup> | **Intangible Assets Acquired**<sup>1</sup> |
| March 5, 2025 | D.M. Figley Co., Inc. | California | 5 | $1.5 | $3.3 |
| November 1, 2024 | Fairway Wholesale Distribution, LLC | Massachusetts | 1 | $4.3 | $5.0 |
| October 1, 2024 | Ryan Seamless Gutter Systems, Inc. | Massachusetts | 1 | $4.8 | $4.7 |
| September 10, 2024 | Chicago Metal Supply & Fabrication, Inc. | Illinois | 1 | $4.7 | $5.8 |
| August 1, 2024 | Passaic Metal & Building Supplies LLC and affiliates | New Jersey and New York | 9 | $44.5 | $43.0 |
| August 1, 2024 | SSR Roof Supply Ltd. | British Columbia | 2 | $6.4 | $10.6 |
| July 10, 2024 | Roofers Mart of Southern California, Inc. | California | 1 | $0.5 | $1.1 |
| July 1, 2024 | Integrity Metals, LLC | Florida | 2 | $5.9 | $6.0 |
| July 1, 2024 | Extreme Metal Fabricators, LLC | Florida | 2 | $10.7 | $15.2 |
| May 1, 2024 | Smalley & Company | Colorado, Arizona, California, Nevada, New Mexico, and Utah | 11 | $0.3 | $25.8 |
| April 15, 2024 | General Roofing & Siding Supply Co. | Nebraska, Iowa, and North Dakota | 5 | $3.7 | $8.8 |
| February 12, 2024 | Metro Sealants & Waterproofing Supply, Inc. | Virginia and Maryland | 4 | $22.4 | $25.2 |
| February 1, 2024 | Roofers' Supply of Greenville, Inc. | South Carolina and North Carolina | 3 | $35.1 | $26.6 |

---

1. For all acquisitions occurring after March 31, 2024, the measurement period is still open and amounts are based on provisional estimates of the fair value of assets acquired and liabilities assumed as of March 31, 2025.

In each company's respective twelve months prior to being acquired by Beacon, the companies listed above produced aggregate annual sales of approximately $594.2 million. The total transaction costs incurred by the Company for these acquisitions for the three months ended March 31, 2025 were $1.1 million. Of the $144.8 million of goodwill recognized for these acquisitions, $102.2 million is deductible for tax purposes.

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**4. Net Sales**

The following table presents the Company's net sales by line of business and geography for each period presented (in millions):

---

| | | | |
|:---|:---|:---|:---|
| | **U.S.** | **Canada** | **Total** |
| **Three Months Ended March 31, 2025** | | | |
| Residential roofing products | $917.5 | $11.1 | $928.6 |
| Non-residential roofing products | 475.4 | 25.9 | 501.3 |
| Complementary building products | 473.8 | 4.1 | 477.9 |
| &nbsp;&nbsp;&nbsp;Total net sales | $1866.7 | $41.1 | $1907.8 |
| **Three Months Ended March 31, 2024** |  |  |  |
| Residential roofing products | $920.6 | $6.8 | $927.4 |
| Non-residential roofing products | 492.1 | 36.5 | 528.6 |
| Complementary building products | 454.1 | 2.3 | 456.4 |
| &nbsp;&nbsp;&nbsp;Total net sales | $1866.8 | $45.6 | $1912.4 |

---

**5. Net Income (Loss) Per Common Share** 

Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the period, without consideration for common share equivalents. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock unit ("RSU") awards. Diluted net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the period plus the effect of all potentially dilutive common share equivalents, except when the effect would be anti-dilutive.

The following table presents the components and calculations of basic and diluted net income (loss) per common share attributable to common stockholders (in millions, except per share amounts; certain amounts may not recalculate due to rounding):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| **Numerator:** |  |  |
| Net income (loss) | $(43.1) | $5.6 |
| **Denominator:** |  |  |
| Weighted-average common shares outstanding – Basic | 61.7 | 63.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of common share equivalents |  | 1.2 |
| Weighted-average common shares outstanding – Diluted | 61.7 | 64.8 |
| **Net income (loss) per common share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.70) | $0.09 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.70) | $0.09 |

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The following table includes the number of shares that may be dilutive common shares in the future. These shares were not included in the computation of diluted net income (loss) per common share because the effect was either anti-dilutive or the requisite performance conditions were not met (in millions):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Stock options | 0.5 | 0.0 |
| Restricted stock units | 0.7 | 0.0 |
| Employee Stock Purchase Plan | 0.0 | 0.1 |

---

------

**6. Stock-based Compensation**

On April 1, 2024, the Company's Board of Directors (the "Board") approved the Beacon Roofing Supply, Inc., 2024 Stock Plan (the "2024 Plan"), subject to stockholder approval, which was subsequently obtained on May 15, 2024 in conjunction with the 2024 Annual Meeting of Stockholders. Upon approval, the 2024 Plan succeeded the Beacon Roofing Supply, Inc. Second Amended and Restated 2014 Stock Plan (the "Prior Plan") and is the only plan of the Company pursuant to which stock-based awards are currently granted. The 2024 Plan provides for discretionary grants of stock options, stock awards, stock unit awards, and stock appreciation rights ("SARs") for up to 6,200,000 shares of common stock to key employees and non-employee directors. Stock options and SARs granted under the 2024 Plan, or granted under the Prior Plan after March 6, 2024, will reduce the number of available shares by one share for every share subject to the stock option or SAR, and stock awards and stock unit awards granted under the 2024 Plan, or granted under the Prior Plan after March 6, 2024, will reduce the number of available shares by 2.25 shares for every one share delivered. If (i) there is a lapse, forfeiture, expiration, termination, or cancellation of any award for any reason under the 2024 Plan, or under the Prior Plan after March 6, 2024, or (ii) shares subject to a stock award or a stock unit award under the 2024 Plan, or under the Prior Plan after March 6, 2024, are delivered or withheld as payment of any withholding taxes, then in each case such shares will again be available for issuance under the 2024 Plan, to be added back in the same multiple as described in the preceding sentence. Any shares delivered or withheld as payment for the exercise price of a stock option or of any withholding taxes with respect to such stock options or SARs will not be available for issuance pursuant to subsequent awards. As of March 31, 2025, there were 5,980,115 shares of common stock available for issuance pursuant to the 2024 Plan.

All unvested employee equity awards contain a "double trigger" change in control mechanism to the extent such employee equity award is continued or assumed after a change in control. If an award is not continued or assumed by a public company in an equitable manner, it will vest immediately prior to a change in control (at 100% payout with respect to a performance-based restricted stock unit award and at 100% of the award then earned but not vested with respect to a restricted stock unit award with market conditions). If an award is so continued or assumed, vesting will continue in accordance with the terms of the award (based on actual performance with respect to a performance-based restricted stock unit award subject to completed annual performance periods and at 100% payout for any in-progress annual performance periods) unless there is a qualifying termination (without cause or for good reason) within one-year following the change in control, in which event the award shall become vested immediately.

On March 20, 2025, the Company entered into the Merger Agreement with QXO and Merger Sub. Under the Merger Agreement, the outstanding Company equity awards held by the Company's employees will be converted into corresponding QXO equity awards (and, with respect to each performance-based restricted stock unit award, with the performance-based vesting condition deemed satisfied at target and being converted into an award of QXO restricted stock units for which vesting is solely based on service-based conditions), in each case, based on the Equity Award Conversion Amount (as defined in the Merger Agreement). Such QXO equity awards will remain subject to the same vesting terms as the original Company equity awards (excluding performance conditions), including accelerated vesting upon certain qualifying terminations of employment without cause or good reason. Such accelerated vesting is "double-trigger" (i.e., it is contingent upon a termination of employment without cause or resignation for good reason within one year after the Merger (as defined in Note 1) is consummated.)

***Stock Options***

Non-qualified stock options generally expire 10 years after the grant date and, except under certain conditions, the options are subject to continued employment and vest in three annual installments over the three-year period following the grant date.

There were no stock options granted during the three months ended March 31, 2025. The fair values of the options granted during the three months ended March 31, 2024 were estimated on the dates of grants using the Black-Scholes option-pricing model with the following weighted-average assumptions:

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| | |
|:---|:---|
| | **Three Months Ended March 31,** |
| | **2024** |
| Risk-free interest rate | 4.12% |
| Expected volatility | 48.05% |
| Expected life (in years) | 5.08 |
| Dividend yield |  |

---

------

The following table summarizes all stock option activity for the three months ended March 31, 2025 (in millions, except per share amounts and time periods):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Options Outstanding** | **Weighted-Average Exercise Price** | **Weighted-Average Remaining Contractual Term (Years)** | **Aggregate Intrinsic Value**<sup>1</sup> |
| Balance as of December 31, 2024 | 0.9 | $47.54 | 5.6 | $51.2 |
| &nbsp;&nbsp;&nbsp;Granted |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Exercised | (0.0) | 46.80 |  |  |
| &nbsp;&nbsp;&nbsp;Canceled/Forfeited | (0.0) | 78.04 |  |  |
| Balance as of March 31, 2025 | 0.9 | $47.40 | 5.4 | $69.7 |
| Vested and expected to vest after March 31, 2025 | 0.9 | $47.16 | 5.4 | $69.4 |
| Exercisable as of March 31, 2025 | 0.8 | $43.48 | 5.0 | $65.2 |

---

1. Aggregate intrinsic value represents the difference between the closing fair value of the underlying common stock and the exercise price of outstanding, in-the-money options on the date of measurement.

During the three months ended March 31, 2025 and 2024, the Company recorded stock-based compensation expense related to stock options of $0.9 million and $1.0 million, respectively. During the three months ended March 31, 2025 and 2024, the Company recognized a tax benefit related to stock-based compensation expense related to stock options of $0.4 million and $1.3 million, respectively.

As of March 31, 2025, there was $3.1 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 1.5 years.

The following table summarizes additional information on stock options for the period presented (in millions, except per share amounts):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Weighted-average fair value per share of stock options granted | $— | $40.20 |
| Total grant date fair value of stock options vested | $4.0 | $2.7 |
| Total intrinsic value of stock options exercised | $2.0 | $6.4 |

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***Restricted Stock Units***

Time-based RSU awards granted to employees are subject to continued employment and generally vest ratably over a three-year period or cliff vest on the third anniversary of the grant date. The Company also grants certain RSU awards to management that additionally may contain market or performance conditions. Market conditions, which are based on stock price, are incorporated into the grant date fair value of the management awards with market conditions using a Monte Carlo valuation model. Compensation expense for management awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. For awards with performance conditions, the actual number of awards that will vest can range from 0% to 200% of the original grant amount, depending upon actual Company performance below or above the established performance metric targets. At each reporting date, the Company estimates performance in relation to the defined targets when determining the projected number of management awards with performance conditions that are expected to vest and calculating the related stock-based compensation expense. Management awards with performance conditions are amortized over the service period if, and to the extent that, it is determined that achievement of the performance condition is probable. If awards with market, performance and/or service conditions are forfeited due to failure to achieve performance conditions or failure to satisfy service conditions, any previously recognized expense for such awards is reversed.

RSUs granted to non-employee directors are subject to continued service and vest on the first anniversary of the grant date (except under certain conditions). Generally, the common shares underlying the RSUs are not eligible for distribution until the non-employee director's service on the Board has terminated, and for non-employee director RSU grants made prior to fiscal year 2014, the share distribution date is six months after the director's termination of service on the Board. Any non-employee directors who have Beacon equity holdings (defined as common stock and outstanding vested equity awards) with a total fair value that is greater than or equal to five times the annual Board cash retainer may elect to have any future RSU grants settle simultaneously with vesting.

------

The following table summarizes all RSU activity for the three months ended March 31, 2025 (in millions, except grant date fair value amounts):

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| | | |
|:---|:---|:---|
| | **RSUs Outstanding** | **Weighted-Average Grant Date Fair Value** |
| Balance as of December 31, 2024 | 1.2 | $62.91 |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted | 0.3 | $119.90 |
| &nbsp;&nbsp;&nbsp;&nbsp;Released | (0.3) | $60.88 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canceled/Forfeited | (0.0) | $76.19 |
| Balance as of March 31, 2025 | 1.2 | $78.88 |
| Vested and expected to vest after March 31, 2025<sup>1</sup> | 1.1 | $78.04 |

---

1. As of March 31, 2025, outstanding awards with performance conditions were expected to vest at or below 100% of their original grant amount.

During the three months ended March 31, 2025 and 2024, the Company recorded stock-based compensation expense related to RSUs of $7.5 million and $5.8 million, respectively. During the three months ended March 31, 2025 and 2024, the Company recognized a tax benefit related to stock-based compensation expense related to RSUs of $4.8 million and $1.3 million, respectively.

As of March 31, 2025, there was $54.2 million of total unrecognized compensation expense related to unvested RSUs (including unrecognized expense for RSUs with performance conditions at their estimated value as of March 31, 2025), which is expected to be recognized over a weighted-average period of 2.2 years.

The following table summarizes additional information regarding RSUs (in millions, except per share amounts):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Weighted-average fair value per share of RSUs granted | $119.90 | $84.83 |
| Total grant date fair value of RSUs vested | $20.5 | $8.8 |
| Total intrinsic value of RSUs released | $39.4 | $15.1 |

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***Employee Stock Purchase Plan***

On March 20, 2023, the Board adopted the Company's 2023 Employee Stock Purchase Plan (the "ESPP"), subject to stockholder approval, which was subsequently obtained on May 17, 2023 in conjunction with the 2023 Annual Meeting of Stockholders. The ESPP allows eligible employees to acquire shares of the Company's common stock through payroll deductions over six-month offering periods. The purchase price per share is equal to 85% of the lesser of (1) the fair market value of a share of the Company's common stock on the offering date, defined as the first trading day of the offering period, or (2) the fair market value of a share of the Company's common stock on the purchase date, defined as the last trading day of the offering period; provided that the purchase price is not less than the $0.01 par value per share of the common stock. Participant purchases are limited to a maximum of $12,500 worth of stock per offering period (or $25,000 per calendar year). The Company is authorized to grant up to 1,000,000 shares of its common stock under the ESPP.

During the three months ended March 31, 2025, no shares were purchased under the ESPP. As of March 31, 2025, there were 818,164 shares of common stock available for issuance pursuant to the Company's ESPP. During the three months ended March 31, 2025 and 2024, the Company recorded stock-based compensation expense related to the ESPP of $0.8 million and $0.6 million, respectively.

In connection with the Beacon Acquisition (as defined in Note 1), the Company, after having received a formal request from QXO and in accordance with the terms of the Merger Agreement, caused the ESPP to be terminated effective as of April 23, 2025. As a result, the final purchase of Company common stock under the ESPP occurred on the date of termination.

**7. Share Repurchase Program**

On February 24, 2022, the Company announced a new share repurchase program (the "Repurchase Program"), pursuant to which the Company may purchase up to $500.0 million of its common stock. On February 23, 2023, the Company announced that its Board authorized and approved an increase of the Repurchase Program by approximately $387.9 million, permitting future share repurchases of $500.0 million after considering actual share repurchases as of such re-authorization date.

Share repurchases under the Repurchase Program may be made from time to time through various means, including open market purchases (including block trades), privately negotiated transactions, accelerated share repurchase transactions or through a series of

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forward purchase agreements, option contracts or similar agreements and contracts (including Rule 10b5-1 plans) adopted by the Company, in each case in accordance with the rules and regulations of the SEC, including, if applicable, Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The timing, volume, and nature of share repurchases pursuant to the Repurchase Program are at the discretion of management and may be suspended or discontinued at any time. Shares repurchased under the Repurchase Program are retired immediately and are included in the category of authorized but unissued shares. Direct and incremental costs associated with the Repurchase Program are deferred and included as a component of the purchase price. The excess of the purchase price over the par value of the common shares is reflected in retained earnings.

The Company did not make any share repurchases during the three months ended March 31, 2025 and 2024.

As of March 31, 2025, the Company had approximately $164.1 million available for repurchases remaining under the Repurchase Program.

**8. Prepaid Expenses and Other Current Assets**

The following table summarizes the significant components of prepaid expenses and other current assets (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **March 31,**<br>**2024** |
| Vendor rebates | $433.7 | $415.5 | $417.2 |
| Other | 113.5 | 86.2 | 102.9 |
| &nbsp;&nbsp;Total prepaid expenses and other current assets | $547.2 | $501.7 | $520.1 |

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**9. Goodwill and Intangible Assets** 

***Goodwill***

The following table sets forth the change in the carrying amount of goodwill during the three months ended March 31, 2025 (in millions):

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| | |
|:---|:---|
| Balance as of December 31, 2024 | $2094.7 |
| &nbsp;&nbsp;&nbsp;Acquisitions | 3.0 |
| &nbsp;&nbsp;&nbsp;Translation and other adjustments | 0.0 |
| Balance as of March 31, 2025 | $2097.7 |

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The changes in the carrying amount of goodwill for the three months ended March 31, 2025 were driven primarily by the Company's recent acquisitions. See Note 3 for additional information.

***Intangible Assets***

The amortizable intangible asset lives generally range from 1 to 20 years. The following table summarizes intangible assets by category (in millions, except time periods):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **March 31,**<br>**2024** | **Weighted-Average Remaining**<br>**Life**<sup>1</sup> **(Years)** |
| Amortizable intangible assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Customer relationships and other | $1412.7 | $1410.5 | $1290.4 | 15.9 |
| &nbsp;&nbsp;&nbsp;Trademarks |  |  | 5.6 |  |
| Total amortizable intangible assets | 1412.7 | 1410.5 | 1296.0 | 15.9 |
| &nbsp;&nbsp;&nbsp;Accumulated amortization | (958.8) | (936.7) | (871.8) |  |
| Total amortizable intangible assets, net | 453.9 | 473.8 | 424.2 |  |
| Indefinite-lived trademarks | 15.3 | 15.3 | 9.8 |  |
| Total intangibles, net | $469.2 | $489.1 | $434.0 |  |

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1. As of March 31, 2025.

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Amortization expense relating to the above-listed intangible assets for the three months ended March 31, 2025 and 2024 was $23.3 million and $21.1 million, respectively.

The following table summarizes the estimated future amortization expense for intangible assets (in millions):

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| | |
|:---|:---|
| **Year Ending December 31,** | |
| 2025 (April - December) | $63.0 |
| 2026 | 73.4 |
| 2027 | 62.0 |
| 2028 | 50.6 |
| 2029 | 41.4 |
| Thereafter | 163.5 |
| &nbsp;&nbsp;&nbsp;Total future amortization expense | $453.9 |

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**10. Accrued Expenses**

The following table summarizes the significant components of accrued expenses (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **March 31,**<br>**2024** |
| Inventory | $163.8 | $135.5 | $178.1 |
| Selling, general and administrative | 128.7 | 114.2 | 121.1 |
| Payroll and employee benefit costs | 61.6 | 101.1 | 55.7 |
| Customer rebates | 43.4 | 139.0 | 38.2 |
| Interest and other | 26.1 | 32.6 | 30.0 |
| &nbsp;&nbsp;Total accrued expenses | $423.6 | $522.4 | $423.1 |

---

**11. Financing Arrangements** 

The following table summarizes all outstanding debt (presented net of unamortized debt issuance costs) and other financing arrangements (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **March 31,**<br>**2024** |
| **Revolving Lines of Credit** |  |  |  |
| <u>2026 ABL:</u> |  |  |  |
| 2026 U.S. Revolver<sup>1</sup> | $316.1 | $146.0 | $111.5 |
| 2026 Canada Revolver<sup>2</sup> |  | 2.1 |  |
| Borrowings under revolving lines of credit, net | $316.1 | $148.1 | $111.5 |
| **Long-term Debt, net** |  |  |  |
| <u>Term Loan:</u> |  |  |  |
| 2028 Term Loan<sup>3</sup> | $1251.4 | $1254.1 | $1265.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion | (12.8) | (12.8) | (15.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings under term loan | 1238.6 | 1241.3 | 1249.3 |
| <u>Senior Notes:</u> |  |  |  |
| 2026 Senior Notes<sup>4</sup> | 299.0 | 298.8 | 298.3 |
| 2029 Senior Notes<sup>5</sup> | 348.0 | 347.8 | 347.4 |
| 2030 Senior Notes<sup>6</sup> | 593.5 | 593.3 | 592.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings under senior notes | 1240.5 | 1239.9 | 1238.3 |
| Long-term debt, net | $2479.1 | $2481.2 | $2487.6 |

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1. Effective rate on borrowings of 5.40%, 6.23%, and 5.93% as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

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2. Effective rate on borrowings of 5.70% as of December 31, 2024.

3. Interest rate of 6.32%, 6.36%, and 7.33% as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

4. Interest rate of 4.50% for all periods presented.

5. Interest rate of 4.125% for all periods presented.

6. Interest rate of 6.50% for all periods presented.

***Debt Refinancing***

In May 2021, the Company entered into various financing arrangements to refinance certain debt instruments to take advantage of lower market interest rates for the Company's fixed rate indebtedness and to extend maturities (the "2021 Debt Refinancing"). The transactions included a new $350.0 million issuance of senior notes (the "2029 Senior Notes"). In addition, the Company entered into a second amended and restated credit agreement for its $1.30 billion asset-based revolving line of credit (the "2026 ABL"), and an amended and restated term loan credit agreement for a term loan of $1.00 billion (subsequently increased) (the "2028 Term Loan"), which together are defined as the "Senior Secured Credit Facilities."

On May 19, 2021, the Company used the net proceeds from the 2029 Senior Notes offering, together with cash on hand and borrowings under the Senior Secured Credit Facilities, to redeem all $1.30 billion aggregate principal amount outstanding of the Company's 4.875% Senior Notes due 2025 at a redemption price of 102.438%, to refinance all outstanding borrowings under the Company's previous term loan, and to pay all related accrued interest, fees and expenses.

On March 28, 2024, the Company entered into a financing arrangement to refinance the 2028 Term Loan resulting in an increase in the outstanding principal balance from $975.0 million to $1.275 billion. Refer to the discussion below for additional information regarding the refinancing.

*2029 Senior Notes* 

On May 10, 2021, the Company and certain subsidiaries of the Company as guarantors completed a private offering of $350.0 million aggregate principal amount of 4.125% senior unsecured notes due 2029 at an issue price equal to par. The 2029 Senior Notes mature on May 15, 2029 and bear interest at a rate of 4.125% per annum, payable on May 15 and November 15 of each year, which commenced on November 15, 2021. The 2029 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company's active United States subsidiaries.

The 2029 Senior Notes and related subsidiary guarantees were offered and sold in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act. The 2029 Senior Notes and related subsidiary guarantees have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.

The Company capitalized debt issuance costs of $4.0 million related to the 2029 Senior Notes, which are being amortized over the term of the financing arrangements.

As of March 31, 2025, the outstanding balance on the 2029 Senior Notes, net of $2.0 million of unamortized debt issuance costs, was $348.0 million.

*2026 ABL*

On May 19, 2021, the Company entered into a $1.30 billion senior secured asset-based revolving credit facility with Wells Fargo Bank, N.A. and a syndicate of other lenders. The 2026 ABL provides for revolving loan commitments in both the United States in an amount up to $1.25 billion ("2026 U.S. Revolver") and Canada in an amount up to $50.0 million ("2026 Canada Revolver") (as such amounts may be reallocated pursuant to the terms of the 2026 ABL). The 2026 ABL has a maturity date of May 19, 2026. The unused commitment fees on the 2026 ABL are 0.20% per annum.

The 2026 U.S. Revolver has various borrowing tranches with an interest rate based, at the Company's option, on a base rate, plus an applicable margin, or a Term SOFR rate, plus an applicable margin. The applicable margin for borrowings under the 2026 U.S. Revolver is based on the Company's quarterly average excess availability as determined by reference to a borrowing base and ranges from 0.25% to 0.75% per annum in the case of base rate borrowings and 1.25% to 1.75% per annum in the case of Term SOFR borrowings.

The 2026 Canada Revolver has various borrowing tranches with an interest rate based, at the Company's option, on a base rate, plus an applicable margin, or an adjusted CORRA rate, plus an applicable margin. The applicable margin for borrowings under the 2026 Canada Revolver is based on the Company's quarterly average excess availability as determined by reference to a borrowing base and

------

ranges from 0.25% to 0.75% per annum in the case of base rate borrowings and 1.25% to 1.75% per annum in the case of CORRA borrowings.

The 2026 ABL contains a springing financial covenant that requires a minimum 1.00:1.00 Fixed Charge Coverage Ratio (consolidated EBITDA less capital expenditures to fixed charges, each as defined in the 2026 ABL credit agreement) as of the end of each fiscal quarter (in each case, calculated on a trailing four fiscal quarter basis). The covenant would become operative if the Company failed to maintain a specified minimum amount of availability to borrow under the 2026 ABL, which was not applicable to the Company as of March 31, 2025.

In addition, the Senior Secured Credit Facilities and the 2029 Senior Notes (as well as the 2030 Senior Notes and the 2026 Senior Notes, each as defined below) are subject to negative covenants that, among other things and subject to certain exceptions, limit the Company's ability and the ability of its restricted subsidiaries to: (i) incur indebtedness (including guarantee obligations); (ii) incur liens; (iii) engage in mergers or other fundamental changes; (iv) dispose of certain property or assets; (v) make certain payments, dividends or other distributions; (vi) make certain acquisitions, investments, loans and advances; (vii) prepay certain indebtedness; (viii) change the nature of their business; (ix) engage in certain transactions with affiliates; (x) engage in sale-leaseback transactions; and (xi) enter into certain other restrictive agreements. The 2026 ABL is secured by a first priority lien over substantially all of the Company's and each guarantor's accounts and other receivables, chattel paper, deposit accounts (excluding any such account containing identifiable proceeds of Term Priority Collateral (as defined below)), inventory, and, to the extent related to the foregoing and other ABL Priority Collateral, general intangibles (excluding equity interests in any subsidiary of the Company and all intellectual property), instruments, investment property (but not equity interests in any subsidiary of the Company), commercial tort claims, letters of credit, supporting obligations and letter of credit rights, together with all books, records and documents related to, and all proceeds and products of, the foregoing, subject to certain customary exceptions (the "ABL Priority Collateral"), and a second priority lien over substantially all of the Company's and each guarantor's other assets, including all of the equity interests of any subsidiary held by the Company or any guarantor, subject to certain customary exceptions (the "Term Priority Collateral"). Beacon Sales Acquisition, Inc., a Delaware corporation and subsidiary of the Company, is a U.S. Borrower under the 2026 ABL and Beacon Roofing Supply Canada Company, an unlimited liability company organized under the laws of Nova Scotia and subsidiary of the Company, is a Canadian borrower under the 2026 ABL. The 2026 ABL is fully and unconditionally guaranteed, on a joint and several basis, by the Company's active U.S. subsidiaries.

The Company capitalized debt issuance costs of $8.3 million related to the 2026 ABL, which are being amortized over the term of the financing arrangements.

As of March 31, 2025, the outstanding balance on the 2026 ABL, net of $1.9 million of unamortized debt issuance costs, was $316.1 million. The Company also had outstanding standby letters of credit related to the 2026 U.S. Revolver in the amount of $17.8 million as of March 31, 2025.

*2028 Term Loan* 

On May 19, 2021, the Company entered into a $1.00 billion senior secured term loan B facility with Citi and a syndicate of other lenders. The 2028 Term Loan, prior to the most recent amendment, required quarterly principal payments in the amount of $2.5 million, with the remaining outstanding principal to be paid on its May 19, 2028 maturity date. The interest rate was based, at the Company's option, on a base rate, plus an applicable margin, or a Term SOFR rate, plus an applicable margin. The applicable margin for the 2028 Term Loan ranged, depending on the Company's consolidated total leverage ratio (consolidated total indebtedness to consolidated EBITDA, each as defined in the 2028 Term Loan credit agreement), from 1.25% to 1.50% per annum in the case of base rate borrowings and 2.25% to 2.50% per annum in the case of Term SOFR borrowings.

On March 28, 2024, the Company entered into Amendment No. 3 to the 2028 Term Loan (the "2028 Term Loan Amendment No. 3") with Citi, as administrative agent and collateral agent, and the lenders party thereto. The 2028 Term Loan Amendment No. 3, among other things, (i) increases the aggregate outstanding amount of outstanding term loans to $1.275 billion, (ii) changes the interest rate for base rate borrowings to a rate per annum equal to a base rate plus a margin equal to 2.00%, (iii) reduces the interest rate to a rate per annum equal to Term SOFR with a 0.00% floor, plus a margin equal to 2.00%, and (iv) increases the required quarterly principal payments from $2.5 million to $3.2 million starting March 31, 2024 (the "2028 Term Loan Refinancing"). Except as amended by the 2028 Term Loan Amendment No. 3, the remaining terms of the 2028 Term Loan remain in full force and effect.

The Company evaluated the 2028 Term Loan Refinancing on a lender-by-lender basis to determine whether the transaction should be accounted for as either a debt extinguishment or debt modification. As a result, the Company recognized a loss on debt extinguishment of $2.4 million during the three months ended March 31, 2024. In addition, unamortized historical debt issuance costs of $9.7 million and new debt issuance costs of $0.1 million related to the 2028 Term Loan continue to be amortized over the term of the financing arrangement.

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The 2028 Term Loan is secured by a shared first-priority lien on the Term Priority Collateral and a shared second-priority lien on the ABL Priority Collateral. Certain excluded assets will not be included in the Term Priority Collateral and the ABL Priority Collateral. The 2028 Term Loan is fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company's active U.S. subsidiaries.

On March 16, 2023, the Company novated and amended its interest rate swap agreement related to the 2028 Term Loan. For additional information, see Note 17.

As of March 31, 2025, the outstanding balance on the 2028 Term Loan, net of $7.7 million of unamortized debt issuance costs, was $1.25 billion.

***2030 Senior Notes***

On July 31, 2023, the Company, and certain subsidiaries of the Company as guarantors, completed a private offering of $600.0 million aggregate principal amount of 6.50% Senior Secured Notes due 2030 (the "2030 Senior Notes") at an issue price equal to par. The 2030 Senior Notes mature on August 1, 2030 and bear interest at a rate of 6.50% per annum, payable on February 1 and August 1 of each year, commencing on February 1, 2024. The 2030 Senior Notes and related subsidiary guarantees are secured by a shared first-priority lien on the Term Priority Collateral and a shared second-priority lien on the ABL Priority Collateral. Certain excluded assets will not be included in the Term Priority Collateral and the ABL Priority Collateral. The 2030 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company's active U.S. subsidiaries.

The 2030 Senior Notes and related subsidiary guarantees were offered and sold in a private transaction exempt from the registration requirements of the Securities Act, to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act. The 2030 Senior Notes and related subsidiary guarantees have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.

On July 31, 2023 the Company used net proceeds from the offering, together with cash on hand and available borrowings under the 2026 ABL to complete the repurchase of the shares of Series A Cumulative Convertible Participating Preferred Stock, par value $0.01 per share held by CD&R Boulder Holdings, L.P.

The Company capitalized debt issuance costs of $8.1 million related to the 2030 Senior Notes, which are being amortized over the term of the financing arrangement.

As of March 31, 2025, the outstanding balance on the 2030 Senior Notes, net of $6.5 million of unamortized debt issuance costs, was $593.5 million.

***2026 Senior Notes*** 

On October 9, 2019, the Company, and certain subsidiaries of the Company as guarantors, completed a private offering of $300.0 million aggregate principal amount of 4.50% Senior Secured Notes due 2026 (the "2026 Senior Notes") at an issue price equal to par. The 2026 Senior Notes mature on November 15, 2026 and bear interest at a rate of 4.50% per annum, payable on May 15 and November 15 of each year, commencing on May 15, 2020. The 2026 Senior Notes and related subsidiary guarantees are secured by a shared first-priority lien on the Term Priority Collateral and a shared second-priority lien on the ABL Priority Collateral. Certain excluded assets will not be included in the Term Priority Collateral and the ABL Priority Collateral. The 2026 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company's active U.S. subsidiaries.

The 2026 Senior Notes and related subsidiary guarantees were offered and sold in a private transaction exempt from the registration requirements of the Securities Act, to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act. The 2026 Senior Notes and related subsidiary guarantees have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.

On October 28, 2019, the Company used the net proceeds from the offering, together with cash on hand and available borrowings under the Company's previous asset-based revolving credit facility, to redeem all $300.0 million aggregate principal amount outstanding of the Company's 6.375% Senior Notes due 2023.

The Company capitalized debt issuance costs of $4.7 million related to the 2026 Senior Notes, which are being amortized over the term of the financing arrangements.

As of March 31, 2025, the outstanding balance on the 2026 Senior Notes, net of $1.0 million of unamortized debt issuance costs, was $299.0 million.

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***Notice of Conditional Redemptions for Senior Notes***

On March 28, 2025, the Company delivered a conditional notice of redemption with respect to all of the outstanding 2026 Senior Notes, conditioning such redemption on the consummation of the Merger (as defined in Note 1) pursuant to the terms and conditions set forth in the Merger Agreement. On April 17, 2025, the Company delivered conditional notices of redemption with respect to all of the outstanding 2029 Senior Notes and 2030 Senior Notes, conditioning such redemptions on the consummation of the Merger (as defined in Note 1) pursuant to the terms and conditions set forth in the Merger Agreement.

**12. Leases** 

The following table summarizes components of lease costs recognized in the condensed consolidated statements of operations (in millions):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Operating lease costs | $39.9 | $34.1 |
| Finance lease costs: |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 10.6 | 7.6 |
| &nbsp;&nbsp;&nbsp;Interest on lease obligations | 2.8 | 2.0 |
| Variable lease costs | 4.3 | 3.5 |
| &nbsp;&nbsp;Total lease costs | $57.6 | $47.2 |

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The following table presents supplemental cash flow information related to the Company's leases (in millions):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Cash paid for amounts included in measurement of lease obligations: |  |  |
| &nbsp;&nbsp;&nbsp;Operating cash outflows from operating leases | $38.3 | $32.9 |
| &nbsp;&nbsp;&nbsp;Operating cash outflows from finance leases | $2.7 | $2.2 |
| &nbsp;&nbsp;&nbsp;Financing cash outflows from finance leases | $10.0 | $6.4 |
| Right-of-use assets obtained in exchange for new finance lease liabilities | $13.8 | $19.3 |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $38.5 | $19.7 |

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As of March 31, 2025, the Company's operating leases had a weighted-average remaining lease term of 6.3 years and a weighted-average discount rate of 6.20%, and the Company's finance leases had a weighted-average remaining lease term of 4.4 years and a weighted-average discount rate of 6.44%.

The following table summarizes future lease payments as of March 31, 2025 (in millions):

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| | | |
|:---|:---|:---|
| **Year Ending December 31,** | **Operating Leases** | **Finance Leases** |
| 2025 (April - December) | $105.7 | $38.7 |
| 2026 | 150.0 | 50.7 |
| 2027 | 133.1 | 45.7 |
| 2028 | 115.0 | 34.6 |
| 2029 | 94.9 | 21.7 |
| Thereafter | 223.7 | 13.0 |
| &nbsp;&nbsp;Total future lease payments | 822.4 | 204.4 |
| Imputed interest | (149.9) | (26.7) |
| Total lease liabilities | $672.5 | $177.7 |

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**13. Commitments and Contingencies**

The Company is subject to loss contingencies pursuant to various federal, state, and local environmental laws and regulations; however, the Company is not aware of any reasonably possible losses that would have a material impact on its results of operations, financial position, or liquidity. Potential environmental loss contingencies include possible obligations to remove or mitigate the effects on the environment of the placement, storage, disposal, or release of certain chemical or other substances by the Company or by other parties. Historically, environmental liabilities have not had a material impact on the Company's results of operations, financial position, or liquidity.

The Company is subject to litigation and governmental investigations from time to time in the ordinary course of business; however, the Company does not expect the results, if any, to have a material adverse impact on its results of operations, financial position, or liquidity. The Company accrues a liability for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The Company also considers whether an insurance recovery receivable is applicable and appropriate based on the specific legal claim. The actual costs of resolving legal claims and governmental investigations may be substantially higher or lower than the amounts accrued for those activities.

In December 2018, a Company vehicle was involved in a fatal accident. In October 2019, the decedent's estate and two bystanders sued the driver and the Company in Utah state court. The trial was in August 2022 and the jury found the driver not liable. In April 2023, the trial court granted plaintiffs' motion for judgment notwithstanding the verdict, entering judgment against the driver and ordering the trial to proceed on the claims against the Company. The Utah appeals court granted an interlocutory appeal and affirmed the trial court's decision in December 2024. The case has been remanded to the trial court for a trial on the claims against the Company, which is scheduled for March 2026. At this time there is not a probable loss with respect to this matter and any potential loss in regard to this matter is not reasonably estimable. Accordingly, the Company has not accrued any amounts related to this matter within its financial statements as of March 31, 2025.

In addition, the Company has received certain demand letters from stockholders pertaining to disclosures made by the Company in connection with the Merger Agreement and the consummation of the transactions contemplated by the Merger Agreement (the "QXO Transactions"), which the Company does not believe are material, individually or in the aggregate.

**14. Accumulated Other Comprehensive Income (Loss)**

Other comprehensive income (loss) is composed of certain gains and losses that are excluded from net income under GAAP and instead recorded as a separate element of stockholders' equity.

The following table summarizes the components of, and changes in, AOCI (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **Foreign Currency Translation** | **Derivative Financial Instruments** | **AOCI** |
| Balance as of December 31, 2024 | $(30.5) | $4.3 | $(26.2) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | 0.1 | (3.3) | (3.2) |
| &nbsp;&nbsp;&nbsp;Reclassifications out of other comprehensive income (loss) |  | 0.5 | 0.5 |
| Balance as of March 31, 2025 | $(30.4) | $1.5 | $(28.9) |

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Gains (losses) on derivative instruments are reclassified in the condensed consolidated statements of operations in interest expense, financing costs and other, net in the period in which the hedged transaction affects earnings.

**15. Geographic Data** 

The following table summarizes geographic information for long-lived assets, including property and equipment and other non-current assets, excluding intangible assets, for the periods presented (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **March 31,**<br>**2024** |
| Long-lived assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. | $529.1 | $533.4 | $449.7 |
| &nbsp;&nbsp;&nbsp;Canada | 22.5 | 22.3 | 15.3 |
| Total long-lived assets | $551.6 | $555.7 | $465.0 |

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**16. Fair Value Measurement** 

As of March 31, 2025, the carrying amount of cash and cash equivalents, accounts receivable, prepaid and other current assets, accounts payable, and accrued expenses approximated fair value because of the short-term nature of these instruments. The Company measures its cash equivalents at amortized cost, which approximates fair value based upon quoted market prices (Level 1).

As of March 31, 2025, based upon recent trading prices (Level 2), the fair values of the Company's $300.0 million 2026 Senior Notes, $350.0 million 2029 Senior Notes, and $600.0 million 2030 Senior Notes were $299.4 million, $352.8 million, and $631.5 million, respectively.

As of March 31, 2025, the fair value of the Company's term loan and revolving lines of credit approximated the amount outstanding. The Company estimates the fair value of its term loan and revolving lines of credit by discounting the future cash flows of each instrument using estimated market rates of debt instruments with similar maturities and credit profiles (Level 3).

**17. Financial Derivatives**

The Company uses interest rate derivative instruments to manage the risk related to fluctuating cash flows from interest rate changes by converting a portion of its variable-rate borrowings into fixed-rate borrowings.

On September 11, 2019, the Company entered into two interest rate swap agreements to manage the interest rate risk associated with the variable rate on the Company's previous term loan. Each swap agreement had a notional amount of $250.0 million. As part of the 2021 Debt Refinancing, the Company refinanced its previous term loan, resulting in the issuance of the 2028 Term Loan; the two interest rate swaps were designed and executed such that they continue to hedge against a total notional amount of $500.0 million related to the refinanced 2028 Term Loan. One agreement (the "5-year swap") was scheduled to expire on August 30, 2024 and swaps the thirty-day LIBOR with a fixed-rate of 1.49%. The second agreement (the "3-year swap") expired on August 30, 2022 and swapped the thirty-day LIBOR with a fixed-rate of 1.50%. At the inception of the swap agreements, the Company determined that both swaps qualified for cash flow hedge accounting under ASC 815. Therefore, changes in the fair value of the swaps, net of taxes, were recognized in other comprehensive income each period, then reclassified into the condensed consolidated statements of operations as a component of interest expense, financing costs and other, net in the period in which the hedged transaction affected earnings.

On March 16, 2023, the Company novated its 5-year swap agreement to another counterparty and, in connection with such novation, amended the interest rate swap agreement. The amendment changed the index rate from LIBOR to SOFR, increased the total notional amount of the interest rate swap to $500.0 million, and extended the termination date to March 31, 2027 (the "2027 interest rate swap"). Specifically, the fixed rate of 1.49% indexed to LIBOR was modified to 3.00% indexed to SOFR. The Company used a strategy commonly referred to as "blend and extend" which allows the asset position of the novated 5-year swap agreement of approximately $9.9 million to be effectively blended into the new 2027 interest rate swap agreement. As a result of this transaction, on March 16, 2023, the 5-year swap agreement was de-designated and the unrealized gain of $9.9 million included within accumulated other comprehensive income was frozen and was ratably reclassified as a reduction to interest expense, financing costs and other, net over the original term of the 5-year swap as the hedged transactions affect earnings. The unrealized gain of $9.9 million was fully recognized as of August 2024. Additionally, the 2027 interest rate swap had a fair value of $9.9 million at inception and will be ratably recorded to accumulated other comprehensive income and reclassified to interest expense, financing costs and other, net over the term of the 2027 interest rate swap, or through March 31, 2027 as the hedged transactions affect earnings. At the inception of the 2027 interest rate swap, the Company determined that the swap qualified for cash flow hedge accounting under ASC 815. Therefore, changes in the fair value of the swap, net of taxes, will be recognized in other comprehensive income each period, then reclassified into the condensed consolidated statements of operations as a component of interest expense, financing costs and other, net in the period in which the hedged transaction affects earnings. The 2027 interest rate swap is the only swap agreement outstanding as of March 31, 2025.

The effectiveness of the outstanding 2027 interest rate swap will be assessed qualitatively by the Company during the life of the hedge by (i) comparing the current terms of the hedge with the related hedged debt to assure they continue to coincide and (ii) through an evaluation of the ability of the counterparty to the hedge to honor its obligations under the hedge. The Company performed a qualitative analysis as of March 31, 2025 and concluded that the outstanding 2027 interest rate swap continues to meet the requirements under ASC 815 to qualify for cash flow hedge accounting. As of March 31, 2025, the fair value of the 2027 interest rate swap, net of tax, was $5.2 million in favor of the Company.

During the three months ended March 31, 2025, the Company reclassified losses of $0.5 million out of accumulated other comprehensive income (loss) and to interest expense, financing costs and other, net. Approximately $4.7 million of net gains included in accumulated other comprehensive income (loss) at March 31, 2025 is expected to be reclassified into earnings within the next 12 months as interest payments are made on the Company's Term Loan and amortization of the inception date fair value of the 2027

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interest rate swap occurs. The Company records any differences paid or received on its interest rate hedges to interest expense, financing costs and other, net within the condensed consolidated statements of operations.

The fair value of the interest rate swap is determined through the use of a pricing model, which utilizes verifiable inputs such as market interest rates that are observable at commonly quoted intervals (generally referred to as the "forward curve") for the full terms of the hedge agreements. These values reflect a Level 2 measurement under the applicable fair value hierarchy. The following table summarizes the combined fair value, net of tax, of the interest rate swap (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Net Assets (Liabilities) as of** | **Net Assets (Liabilities) as of** | **Net Assets (Liabilities) as of** |
|<br>**Instrument** |<br>**Fair Value Hierarchy** | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **March 31,**<br>**2024** |
| Designated interest rate swap<sup>1</sup> | Level 2 | $5.2 | $8.5 | $12.9 |

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1. Assets are included in the condensed consolidated balance sheets in prepaid expenses and other current assets, while liabilities are included in accrued expenses.

The following table summarizes the amounts of gain (loss) on the change in fair value of the designated interest rate swap recognized in other comprehensive income (in millions):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|<br>**Instrument** | **2025** | **2024** |
| Designated interest rate swap | $(3.3) | $5.1 |

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**18. Segment Reporting** 

As further described in Note 2, the Company views its operations and manages its business as a single operating segment, which is the wholesale distribution of building materials. The Company's revenues for its single operating segment are derived from the sale of residential and non-residential roofing products, as well as complementary products, such as siding and waterproofing.

The accounting policies for the wholesale distribution of building materials operating segment are the same as those described in Note 2 in the Notes to the Consolidated Financial Statements included in the Company's 2024 Annual Report on Form 10-K. As described in Note 2, the Company's CODM is the Chief Executive Officer. The CODM evaluates performance for the Company's single operating segment and decides how to allocate resources based on the Company's consolidated net income that is reported in the condensed consolidated statements of operations as net income (loss). The measure of segment assets is reported on the condensed consolidated balance sheets as total assets. The CODM allocates resources across the Company based on consolidated net income derived during the annual budgeting process and throughout the year in monitoring actual results compared to budget and updated forecasts. These results are used to assess segment performance and determine the compensation of certain employees.

The operating segment financial information regularly reviewed by the CODM, inclusive of assets, revenue, expenses, profit or loss, and noncash items are presented on a consolidated basis in the same amount and using the same captions as those included in the condensed consolidated statements of operations, condensed consolidated balance sheets, and condensed consolidated statements of cash flows. There are no additional segment expense categories regularly provided to the CODM. Therefore, there are also no amounts classified as other segment items requiring disclosure.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations** 

*The following discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and the notes thereto included elsewhere in this report. Unless otherwise indicated, references to "2025" refer to the three months ended March 31, 2025 being discussed and references to "2024" refer to the three months ended March 31, 2024 being discussed.*

***Beacon Acquisition***

On March 20, 2025, Beacon entered into an Agreement and Plan of Merger (the "Merger Agreement") with QXO, Inc. ("QXO") and Queen MergerCo, Inc. ("Merger Sub" or the "Acquirer"), a wholly owned subsidiary of QXO, pursuant to which QXO agreed to acquire Beacon for a purchase price of 124.35 per share of Beacon's common stock (the "Beacon Acquisition"). On April 29, 2025 (the "Closing Date"), QXO completed its acquisition of Beacon pursuant to the Merger Agreement in a transaction that valued Beacon at $10.6 billion. On the Closing Date, Merger Sub merged with and into Beacon (the "Merger"), with Beacon remaining as the surviving entity and being renamed QXO Building Products, Inc. ("QXO Building Products").

***Cautionary Statement Regarding Forward-Looking Information***

Our disclosure and analysis in this report contains forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that involves risks and uncertainties. Our forward-looking statements express our current expectations or forecasts of possible future results or events, including projections of future performance, statements of management's plans and objectives, future contracts, and forecasts of trends and other matters. These statements include, but are not limited to, those related to our views and expectations regarding the Merger and the Merger Agreement. You can identify these statements by the fact that they do not relate strictly to historic or current facts and often use words such as "anticipate," "estimate," "expect," "believe," "will likely result," "outlook," "project" and other words and expressions of similar meaning. No assurance can be given that the results in any forward-looking statements will be achieved and actual results could be affected by one or more factors, which could cause them to differ materially. We do not undertake, and specifically disclaim, any obligation to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

Actual results may differ materially from those expressed in any forward-looking statements as the result of: the Merger Agreement and the consummation of the transactions contemplated by the Merger Agreement (the "QXO Transactions"); product shortages; changes in supplier pricing and rebates; inability to identify acquisition targets or close acquisitions; difficulty integrating acquired businesses; inability to identify new markets or successfully open new locations; catastrophic safety incidents; cyclicality, seasonality, and weather; information technology failures or interruptions, including as a result of cybersecurity incidents; goodwill or intangible asset impairments; disruptions in the capital and credit markets; debt leverage; loss of key talent; labor disputes; and regulatory risks. We may not succeed in addressing these and other risks. Consequently, all forward-looking statements in this report are qualified by the factors, risks and uncertainties referenced above and readers are cautioned not to place undue reliance on forward-looking statements.

**Overview**

We are the leading publicly-traded specialty wholesale distributor of roofing and complementary building products, including waterproofing products, in North America. We have served the building industry for over 95 years and as of March 31, 2025, we operated 595 branches throughout all 50 states in the U.S. and seven provinces in Canada. We offer one of the most extensive ranges of high-quality professional grade exterior products comprising over 135,000 SKUs, and we serve approximately 110,000 residential and non-residential customers who trust us to help them save time, improve efficiency, and enhance productivity.

We are strategically focused on two core markets, residential and non-residential roofing. We also distribute complementary building products like siding and waterproofing that are often utilized by the roofing and other specialty contractors we serve. As a distributor, our national scale, networked model, and specialized capabilities are competitive advantages, providing strong value for both customers and suppliers. &nbsp;&nbsp;&nbsp;&nbsp;

Our differentiated service model is designed to solve customer needs. The scale of our business provides branch coverage, technology enablement, and investment in our team that is the foundation of customer service excellence. In addition, service is further enhanced by our Beacon OTC<sup>®</sup> Network and market-based sales teams. We believe we also provide the most complete digital commerce platform in roofing distribution, creating value for customers who are able to operate their businesses more effectively and efficiently.

Our mission is to empower our customers to build more for their customers, businesses, and communities. Our project lifecycle support helps our customers find projects, land the job, do the work, and close projects out by providing guidance that allows our customers to deliver on project specifications and timelines that are critical to their success. Using an omni-channel approach and our Beacon PRO+<sup>®</sup> digital suite, we differentiate our services and drive customer retention. Our customer base is composed of professional contractors, home builders, building owners, lumberyards, and retailers across the U.S. and Canada who depend on

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reliable local access to exterior building products for residential and non-residential projects. Our customers vary in size, ranging from relatively small contractors to large contractors and builders that operate on a national scale.

As of March 31, 2025, we operated 595 branches, which we designate as either standalone or co-located. A co-located branch shares all or a portion of a physical location with a standalone branch, but it records sales separately (to a different customer base and/or through different product offerings from the standalone branch) and generally operates with independent employees and inventory.

**Classification of Branch Results**

In managing our business, we consider all growth, including the opening of new branches (also referred to as greenfields), to be organic growth, unless it results from an acquisition. When we refer to organic growth, we include growth from existing branches and greenfields, but exclude growth from acquired branches until they have been reclassified to existing as described further below.

***Acquired branches***

The results of operations of acquired branches are designated as such until they have been under our ownership and have contributed to our results of operations for at least 12 calendar months (treating partial months as full months), after which such branches are classified as existing. Therefore, the prior year results of operations for branches are reclassified to existing when the comparable current month's financial results are also classified as existing. Under our branch classification methodology, a branch's results of operations can be classified as both acquired and existing in the same fiscal reporting period. We believe our branch classification methodology enhances comparability of branch results between periods and demonstrates the economic impact of newly acquired branches on our financial results.

The following table illustrates the classification of financial results for branches acquired during the three months ended March 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Date Acquired** | **Company Name** | **Branches Acquired** | **Results of Operations Classified as Acquired** | **Results of Operations Classified as Existing** |
| February 12, 2024 | Metro Sealants & Waterproofing Supply, Inc. | 4 | January 2025 | February 2024 - March 2024;<br>February 2025 - March 2025 |
| February 1, 2024 | Roofers' Supply of Greenville, Inc. | 3 | January 2025 | February 2024 - March 2024;<br>February 2025 - March 2025 |

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All branches acquired prior to January 1, 2024 are classified as existing and all branches acquired after March 31, 2024 are classified as acquired.

***Greenfields***

We also apply the same definition for determining when a branch classification changes from greenfield to existing (i.e., branches are designated as greenfields until they have been opened for at least 12 calendar months (treating partial months as full months), after which such branches are classified as existing). It should also be noted that greenfield branches incur limited operating costs prior to their open date for things such as lease costs and other costs incurred in getting the branch ready to open. All such costs incurred prior to the greenfield open date are also classified as greenfield in all periods when discussing our results of operations.

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**Comparison of the Three Months Ended March 31, 2025 and 2024**

The following tables set forth condensed consolidated statements of operations data and such data as a percentage of total net sales for the periods presented (in millions):

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| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2025** | **2024** |
| Net sales | $1907.8 | $1912.4 |
| &nbsp;&nbsp;&nbsp;Cost of products sold | 1440.0 | 1439.2 |
| Gross profit | 467.8 | 473.2 |
| &nbsp;&nbsp;&nbsp;Operating expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 436.5 | 381.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 31.4 | 25.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 23.3 | 21.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expense | 491.2 | 428.1 |
| Income (loss) from operations | (23.4) | 45.1 |
| &nbsp;&nbsp;&nbsp;Interest expense, financing costs and other, net | 42.2 | 38.6 |
| &nbsp;&nbsp;&nbsp;Loss on debt extinguishment |  | 2.4 |
| Income (loss) before provision for income taxes | (65.6) | 4.1 |
| &nbsp;&nbsp;&nbsp;Provision for (benefit from) income taxes | (22.5) | (1.5) |
| Net income (loss) | $(43.1) | $5.6 |

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| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2025** | **2024** |
| Net sales | 100.0% | 100.0% |
| &nbsp;&nbsp;&nbsp;Cost of products sold | 75.5% | 75.3% |
| Gross profit | 24.5% | 24.7% |
| &nbsp;&nbsp;&nbsp;Operating expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 22.9% | 20.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 1.6% | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 1.2% | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expense | 25.7% | 22.4% |
| Income (loss) from operations | (1.2)% | 2.3% |
| &nbsp;&nbsp;&nbsp;Interest expense, financing costs and other, net | 2.2% | 2.0% |
| &nbsp;&nbsp;&nbsp;Loss on debt extinguishment | —% | 0.1% |
| Income (loss) before provision for income taxes | (3.4)% | 0.2% |
| &nbsp;&nbsp;&nbsp;Provision for (benefit from) income taxes | (1.2)% | (0.1)% |
| Net income (loss) | (2.2)% | 0.3% |

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***Net Sales***

Net sales decreased 0.2% to $1.908 billion in 2025, down from $1.912 billion in 2024. The following table summarizes net sales by line of business for the periods presented (in millions):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Change** |
| | **2025** | **2025** | **2024** | **2024** | **Change** |
| | **Net Sales** | **%** | **Net Sales** | **%** | $**%** |
| Residential roofing products | $928.6 | 48.7% | $927.4 | 48.5% | 0.1% |
| Non-residential roofing products | 501.3 | 26.3% | 528.6 | 27.6% | (5.2)% |
| Complementary building products | 477.9 | 25.0% | 456.4 | 23.9% | 4.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $1907.8 | 100.0% | $1912.4 | 100.0% | (0.2)% |

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The following table summarizes net sales by branch classification for the periods presented (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Change** |
| | **2025** | **2024** | $**%** |
| Organic net sales |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Existing | $1807.3 | $1912.4 | (5.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Greenfields | 23.2 |  | n/m |
| Total organic net sales | 1830.5 | 1912.4 | (4.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquired | 77.3 |  | n/m |
| Total net sales | $1907.8 | $1912.4 | (0.2)% |

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The decrease in organic net sales was primarily driven by a decrease in estimated organic volume of approximately 5-6%, partially offset by an increase in weighted-average selling price of approximately 0-1%. Total selling days decreased from 64 in 2024 to 63 in 2025, which contributed to the decrease in organic net sales. Total net sales for 2025 continued to benefit from greenfields and acquired branches.

We estimate the impact of inflation or deflation on our sales and gross profit by looking at changes in our average selling prices and gross margins (discussed below). To calculate approximate weighted-average selling price and product cost changes, we review organic U.S. warehouse sales of the same items sold regionally period over period and normalize the data for non-representative outliers. To determine estimated volumes, we subtract the change in weighted-average selling price, calculated as described above, from the total changes in net sales, excluding acquisitions and dispositions. As a result, and especially in high inflationary periods, the weighted-average selling price and estimated volume changes may not be directly comparable to changes reported in prior periods.

***Gross Profit***

The following table summarizes gross profit and gross margin by branch classification for the periods presented (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Change**<sup>1</sup> |
| | **2025** | **2024** | $**%** |
| Organic gross profit |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Existing | $442.8 | $473.2 | (6.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Greenfields | 5.9 |  | n/m |
| Total organic gross profit | 448.7 | 473.2 | (5.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquired | 19.1 |  | n/m |
| Total gross profit | $467.8 | $473.2 | (1.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 24.5% | 24.7% | (0.2)% |

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1. Percentage changes for dollar amounts represent the ratable increase or decrease from period-to-period. Percentage changes for the gross margin percentages represent the net period-to-period change in basis points.

Gross margin was 24.5% in 2025, down 0.2% from 24.7% in 2024. The modest year-over-year decrease in gross margin resulted from a weighted-average product cost increase of approximately 1-2%, partially offset by a weighted-average selling price increase (calculated as described above) of approximately 0-1%.

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***Selling, General, and Administrative ("SG&A") Expense***

The following table summarizes SG&A expense by branch classification for the periods presented (in millions):

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Change** |
| | **2025** | **2024** | $**%** |
| Organic SG&A |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Existing<sup>1</sup> | $408.8 | $380.6 | 7.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Greenfields<sup>2</sup> | 8.0 | 0.9 | n/m |
| Total organic SG&A | 416.8 | 381.5 | 9.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquired | 19.7 |  | n/m |
| Total SG&A | $436.5 | $381.5 | 14.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total SG&A as % of net sales | 22.9% | 20.0% |  |

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1. Existing SG&A expense includes all direct and incremental costs incurred in connection with our acquisition activity ("acquisition costs") regardless of whether the acquired branch was classified as Existing or Acquired as of March 31, 2025 as well as all restructuring costs. Acquisition costs and restructuring costs included in Existing SG&A expense were $39.7 million and $3.5 million for 2025 and 2024, respectively. Excluding the impact of the acquisition costs and restructuring costs, Existing SG&A expense decreased 2.1%, or $8.0 million from 2024 to 2025.

2. Greenfield branches incur limited operating costs prior to their open date for things such as lease costs and other costs incurred in getting the branch ready to open. Amounts reported for 2024 represent operating costs incurred in 2024 for greenfields opened in 2025.

Total SG&A expense increased 14.4%, or $55.0 million, to $436.5 million in 2025, up from $381.5 million in 2024. The increase in total SG&A expense was primarily driven by one-time costs incurred in connection with the QXO Transactions. The increase in total SG&A expense was also driven by acquisitions and greenfields.

The increase in organic SG&A expense was mainly influenced by the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;• a $34.4 million increase in general and administrative expenses, primarily due to higher professional fees incurred in connection with the QXO Transactions; and

&nbsp;&nbsp;&nbsp;&nbsp;• a $3.8 million increase in warehouse operating costs, primarily due to higher rent expense across our existing locations coupled with greenfields opened during the year, which contributed $2.7 million to the increase;

partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;• a $3.4 million decrease in payroll and employee benefit costs, primarily due to a reduction in headcount in response to market conditions at the end of the third quarter of 2024 resulting in a lower average number of employees in 2025.

Total SG&A expense as a percent of net sales was higher in 2025 when compared to 2024 primarily as a result of the above factors. The impact of recent greenfields that have not yet fully matured and acquired branches that are not yet fully synergized also negatively affected our operating leverage.

***Depreciation Expense***

Depreciation expense was $31.4 million in 2025, compared to $25.5 million in 2024. The comparative increase was primarily due to an increase in property and equipment as a result of new and acquired branches.

***Amortization Expense***

Amortization expense was $23.3 million in 2025, compared to $21.1 million in 2024. The comparative increase was primarily due to amortization expense associated with new intangible assets as a result of recent acquisitions.

***Interest Expense, Financing Costs and Other***

Interest expense, financing costs and other, net was $42.2 million in 2025, compared to $38.6 million in 2024. The comparative increase was primarily due to higher average debt balances in 2025 as a result of the refinancing of our 2028 Term Loan on March 28, 2024 and an increase in our 2026 U.S. Revolver to build inventory and support our acquisition activity subsequent to March 31, 2024.

***Loss on Debt Extinguishment***

Loss on debt extinguishment was $2.4 million in 2024 due to the refinancing of our 2028 Term Loan and includes the write-off of previously capitalized debt issuance costs as well as certain third-party professional fees. There was not a similar refinancing or other transaction that resulted in a loss on debt extinguishment in 2025.

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***Income Taxes***

Income tax provision (benefit) was $(22.5) million in 2025, compared to $(1.5) million in 2024. The comparative increase in income tax benefit was primarily due to lower pre-tax income coupled with an increase in the excess tax benefits of stock-based compensation during 2025. The effective tax rate, excluding discrete items, was 26.5% in 2025, compared to 26.4% in 2024.

***Net Income (Loss)/Net Income (Loss) Per Common Share***

We calculate basic net income (loss) per common share by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated based upon the weighted-average common shares outstanding during the period plus the effect of all potentially dilutive common share equivalents, except when the effect would be anti-dilutive.

The following table presents all the components utilized to calculate basic and diluted net income (loss) per common share attributable to common stockholders (in millions, except per share amounts; certain amounts may not recalculate due to rounding):

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| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2025** | **2024** |
| **Numerator:** |  |  |
| Net income (loss) | $(43.1) | $5.6 |
| **Denominator:** |  |  |
| Weighted-average common shares outstanding – Basic | 61.7 | 63.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of common share equivalents |  | 1.2 |
| Weighted-average common shares outstanding – Diluted | 61.7 | 64.8 |
| **Net income (loss) per common share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.70) | $0.09 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.70) | $0.09 |

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**Non-GAAP Financial Measures**

To provide investors with additional information regarding our financial results, we prepare certain financial measures that are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"), specifically:

&nbsp;&nbsp;&nbsp;&nbsp;• *Adjusted Operating Expense*. We define Adjusted Operating Expense as operating expense, excluding the impact of the adjusting items (as described below).

&nbsp;&nbsp;&nbsp;&nbsp;• *Adjusted Net Income (Loss)*. We define Adjusted Net Income (Loss) as net income (loss), excluding the impact of the adjusting items (as described below).

&nbsp;&nbsp;&nbsp;&nbsp;• *Adjusted EBITDA*. We define Adjusted EBITDA as net income (loss), excluding the impact of interest expense (net of interest income), income taxes, depreciation and amortization, stock-based compensation, and the adjusting items (as described below).

We use these supplemental non-GAAP measures to evaluate financial performance, analyze the underlying trends in our business and establish operational goals and forecasts that are used when allocating resources. We expect to compute our non-GAAP financial measures consistently using the same methods each period.

We believe these non-GAAP measures are useful measures because they permit investors to better understand changes over comparative periods by providing financial results that are unaffected by certain items that are not indicative of ongoing operating performance.

While we believe that these non-GAAP measures are useful to investors when evaluating our business, they are not prepared and presented in accordance with GAAP, and therefore should be considered supplemental in nature. These non-GAAP measures should not be considered in isolation or as a substitute for other financial performance measures presented in accordance with GAAP. These non-GAAP financial measures may have material limitations including, but not limited to, the exclusion of certain costs without a corresponding reduction of net income for the income generated by the assets to which the excluded costs relate. In addition, these non-GAAP financial measures may differ from similarly titled measures presented by other companies.

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***Adjusting Items to Non-GAAP Financial Measures***

The impact of the following expense (income) items is excluded from each of our non-GAAP measures (the "adjusting items"):

&nbsp;&nbsp;&nbsp;&nbsp;• *Acquisition costs*. Represent certain direct and incremental costs related to acquisitions, including: amortization of intangible assets; professional fees, branch integration expenses, travel expenses, employee severance and retention costs, and other personnel expenses classified as selling, general and administrative; gains/losses related to changes in fair value of contingent consideration or holdback liabilities; and amortization of debt issuance costs. Acquisition costs are impacted by the timing and size of the acquisitions. We exclude acquisition costs from our non-GAAP financial measures to provide a useful comparison of our operating results to prior periods and to our peer companies because such amounts vary significantly based on the magnitude of the acquisition and do not reflect our core operations.

&nbsp;&nbsp;&nbsp;&nbsp;• *Restructuring costs*. Represent costs stemming from headcount rationalization efforts and certain rebranding costs; impact of divestitures; amortization of debt issuance costs; debt refinancing and extinguishment costs; abandoned lease costs; and costs incurred in connection with the QXO Transactions. We exclude restructuring costs from our non-GAAP financial measures, as such items vary significantly based on the magnitude of the restructuring activity and also do not reflect expected future operating expenses. Additionally, these costs do not necessarily provide meaningful insight into the current or past core operations of our business.

The following table presents the pre-tax impact of the adjusting items on our condensed consolidated statements of operations for each of the periods indicated (in millions):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Operating Expense** | **Operating Expense** | **Non-Operating Expense** | **Non-Operating Expense** | |
| | **SG&A** | **Amortization** | **Interest Expense** | **Other (Income) Expense** |<br>**Total** |
| **Three Months Ended March 31, 2025** | | | | | |
| Acquisition costs | $0.9 | $23.3 | $1.0 | $— | $25.2 |
| Restructuring costs | 38.8 |  | 0.5 |  | 39.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total adjusting items | $39.7 | $23.3 | $1.5 | $— | $64.5 |
| **Three Months Ended March 31, 2024** |  |  |  |  |  |
| Acquisition costs | $3.0 | $21.1 | $1.0 | $— | $25.1 |
| Restructuring costs<sup>1</sup> | 0.5 |  | 0.5 | 2.4 | 3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total adjusting items | $3.5 | $21.1 | $1.5 | $2.4 | $28.5 |

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1. Other (income) expense for the three months ended March 31, 2024 consists of a loss on debt extinguishment of $2.4 million as a result of the refinancing of our 2028 Term Loan, as discussed in Note 11 in the Notes to the Condensed Consolidated Financial Statements.

Refer to Adjusted Net Income (Loss) below for the tax impact of adjusting items.

***Adjusted Operating Expense***

The following table presents a reconciliation of operating expense, the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted Operating Expense for each of the periods indicated (in millions):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Operating expense | $491.2 | $428.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition costs | (24.2) | (24.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring costs | (38.8) | (0.5) |
| Adjusted Operating Expense | $428.2 | $403.5 |
| Net sales | $1907.8 | $1912.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expense as % of net sales | 25.7% | 22.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted Operating Expense as % of net sales | 22.4% | 21.1% |

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***Adjusted Net Income (Loss)***

The following table presents a reconciliation of net income (loss), the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted Net Income (Loss) for each of the periods indicated (in millions):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Net income (loss) | $(43.1) | $5.6 |
| Adjusting items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition costs | 25.2 | 25.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring costs | 39.3 | 3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjusting items | 64.5 | 28.5 |
| Less: tax impact of adjusting items<sup>1</sup> | (17.1) | (7.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments, net of tax | 47.4 | 21.0 |
| Adjusted Net Income (Loss) | $4.3 | $26.6 |
| Net sales | $1907.8 | $1912.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) as % of net sales | (2.2)% | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted Net Income (Loss) as % of net sales | 0.2% | 1.4% |

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1. Amounts represent the tax impact of adjustments that are not included in our income tax provision (benefit) for the periods presented. The tax impact of adjustments for the three months ended March 31, 2025 and 2024 were calculated using a blended effective tax rate of 26.5% and 26.3%, respectively.

***Adjusted EBITDA***

The following table presents a reconciliation of net income (loss), the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted EBITDA for each of the periods indicated (in millions):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Net income (loss) | $(43.1) | $5.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | 44.2 | 39.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | (22.5) | (1.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 54.7 | 46.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 9.2 | 7.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition costs<sup>1</sup> | 0.9 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring costs<sup>1</sup> | 38.8 | 2.9 |
| Adjusted EBITDA | $82.2 | $103.1 |
| Net sales | $1907.8 | $1912.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) as % of net sales | (2.2)% | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA as % of net sales | 4.3% | 5.4% |

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1. Amounts represent adjusting items included in SG&A expense and other (income) expense; remaining adjusting item balances are embedded within the other line item balances reported in this table.

**Seasonality and Quarterly Fluctuations**

The demand for exterior building materials is closely correlated to both seasonal changes and unpredictable weather patterns, therefore demand fluctuations are expected.

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In general, our net sales and net income are highest in quarters ending June 30, September 30, and December 31, which represent the peak months of construction and re-roofing. Conversely, we have historically experienced low net income levels or net losses in quarters ending March 31, when winter construction cycles and cold weather patterns have an adverse impact on our customers' ability to conduct their business.

Our balance sheet fluctuates throughout the year, driven by similar seasonal trends. We generally experience an increase in inventory and peak cash usage in the quarters ending March 31 and June 30, driven primarily by increased purchasing that is necessary to meet the rise in demand for our products during the warmer months. Accounts receivable, accounts payable, and cash collections are generally at their highest during the quarters ending June 30 and September 30, when sales are typically at their peak.

At times, we experience fluctuations in our financial performance that are driven by factors outside of our control, including the impact that severe weather events and unusual weather patterns may have on the timing and magnitude of demand and material availability.

**Liquidity and Capital Resources**

Liquidity is defined as the current amount of readily available cash and the ability to generate adequate amounts of cash to meet the current needs for cash. We assess our liquidity in terms of our cash and cash equivalents on hand and the ability to generate cash to fund our operating activities, taking into consideration available borrowings and the seasonal nature of our business.

Our principal sources of liquidity as of March 31, 2025 were our cash and cash equivalents of $57.4 million and our available borrowings of approximately $959.0 million under our asset-based revolving lines of credit.

Significant factors which could affect future liquidity include the following:

&nbsp;&nbsp;&nbsp;&nbsp;• the adequacy of available bank lines of credit;

&nbsp;&nbsp;&nbsp;&nbsp;• the ability to attract long-term capital with satisfactory terms;

&nbsp;&nbsp;&nbsp;&nbsp;• cash flows generated from operating activities;

&nbsp;&nbsp;&nbsp;&nbsp;• working capital management;

&nbsp;&nbsp;&nbsp;&nbsp;• acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;• share repurchases; and

&nbsp;&nbsp;&nbsp;&nbsp;• capital expenditures.

Our primary capital needs are for working capital obligations and other general corporate purposes, including acquisitions, capital expenditures, and share repurchases. Our primary sources of working capital are cash from operations and bank borrowings. We have financed larger acquisitions through increased bank borrowings and the issuance of long-term debt and common or preferred stock. We then repay any such borrowings with cash flows from operations or subsequent financings. We have funded most of our capital expenditures with cash on hand, increased bank borrowings, or equipment financing, and then reduced those obligations with cash flows from operations. We may explore additional or replacement financing sources in order to bolster liquidity and strengthen our capital structure.

We believe we currently have adequate liquidity and availability of capital to fund our present operations, meet our commitments on our existing debt and fund anticipated growth, including expansion in existing and targeted market areas. We may seek additional acquisition opportunities from time to time. If suitable acquisition opportunities or working capital needs arise that require additional financing, we believe that our financial position, credit profile, and earnings history provide a sufficient base for obtaining additional financing resources at reasonable rates and terms. We may also choose to issue additional shares of common stock or preferred stock in order to raise funds. If we were to seek to obtain additional financing or issue additional shares as provided above, then such actions may require QXO's approval under the Merger Agreement (which may not be unreasonably withheld, conditioned, or delayed).

The following table summarizes our cash flows for the periods indicated (in millions):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Net cash provided by (used in) operating activities | $(135.2) | $(140.8) |
| Net cash provided by (used in) investing activities | (23.5) | (135.1) |
| Net cash provided by (used in) financing activities | 141.8 | 327.1 |
| Effect of exchange rate changes on cash and cash equivalents | 0.0 | (0.6) |
| Net increase (decrease) in cash and cash equivalents | $(16.9) | $50.6 |

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***Operating Activities***

Net cash used in operating activities was $135.2 million in 2025, compared to $140.8 million in 2024. Cash used in operations decreased $5.6 million in 2025 primarily due to an incremental cash inflow of $42.5 million stemming from changes to our net working capital, mainly driven by favorable changes in cash flows related to accounts payable and accrued expenses of $32.2 million and prepaid expenses and other current assets of $19.5 million, partially offset by an unfavorable change in cash flows related to accounts receivable of $13.3 million. The increase was partially offset by a decrease in net income after adjustments for non-cash items of $36.9 million.

***Investing Activities***

Net cash used in investing activities was $23.5 million in 2025, compared to $135.1 million in 2024. Cash used in investing activities decreased $111.6 million in 2025 primarily due to a decrease in acquisitions and capital expenditures during the period. See Note 3 in the Notes to the Condensed Consolidated Financial Statements for more information.

***Financing Activities***

Net cash provided by financing activities was $141.8 million in 2025, compared to $327.1 million in 2024. Cash provided by financing activities decreased $185.3 million in 2025 primarily due to the refinancing of our 2028 Term Loan in March 2024 resulting in an increase in the principal balance of $300.0 million, partially offset by an increase in net borrowings under our revolving lines of credit compared to the prior year.

***Financing Arrangements***

As of March 31, 2025, we had access to the following financing arrangements:

&nbsp;&nbsp;&nbsp;&nbsp;• the 2026 U.S. Revolver, an asset-based revolving line of credit in the U.S., in an amount up to $1.25 billion and with an outstanding balance (net of unamortized debt issuance costs) of $316.1 million;

&nbsp;&nbsp;&nbsp;&nbsp;• the 2026 Canada Revolver, an asset-based revolving line of credit in Canada, in an amount up to $50.0 million and with no outstanding balance;

&nbsp;&nbsp;&nbsp;&nbsp;• the 2028 Term Loan with an outstanding balance (net of unamortized debt issuance costs) of $1.25 billion; and

&nbsp;&nbsp;&nbsp;&nbsp;• three separate senior notes instruments, the 2030 Senior Notes, 2029 Senior Notes, and 2026 Senior Notes, with outstanding balances (net of unamortized debt issuance costs) of $593.5 million, $348.0 million, and $299.0 million, respectively.

See Note 11 in the Notes to the Condensed Consolidated Financial Statements for additional information on our current financing arrangements.

**Share Repurchase Program**

On February 24, 2022, we announced a new share repurchase program (the "Repurchase Program"), pursuant to which we may purchase up to $500.0 million of our common stock. On February 23, 2023, we announced that our Board authorized and approved an increase of the Repurchase Program by approximately $387.9 million, permitting future share repurchases of $500.0 million after considering actual share repurchases as of such re-authorization date.

Share repurchases under the Repurchase Program may be made from time to time through various means, including open market purchases (including block trades), privately negotiated transactions, accelerated share repurchase transactions or through a series of forward purchase agreements, option contracts or similar agreements and contracts (including Rule 10b5-1 plans) adopted by us, in each case in accordance with the rules and regulations of the SEC, including, if applicable, Rule 10b-18 of the Exchange Act. The timing, volume, and nature of share repurchases pursuant to the Repurchase Program are at our management's discretion and may be suspended or discontinued at any time. Shares repurchased under the Repurchase Program are retired immediately and are included in the category of authorized but unissued shares. Direct and incremental costs associated with the Repurchase Program are deferred and included as a component of the purchase price. The excess of the purchase price over the par value of the common shares is reflected in retained earnings.

We did not make any share repurchases during the three months ended March 31, 2025 and 2024, and we do not anticipate making any share repurchases under the Repurchase Program as a result of the QXO Transactions.

As of March 31, 2025, we had approximately $164.1 million available for repurchases remaining under the Repurchase Program. See Note 7 in the Notes to the Condensed Consolidated Financial Statements for additional information.

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