ADI Global Distribution Inc. shareholders lost money on November 12, 2026 when the stock fell sharply after the Company reported a $659 million noncash goodwill impairment charge in its third-quarter 2026 financial results. The impairment drove a $655 million net loss, or $8.65 per share, versus prior-year net income. Although revenue rose approximately 8.6% to roughly $1.31 billion, beating consensus estimates of about $1.27 billion, profitability deteriorated across the business. Gross margin fell to 20.9% from 22.6% a year earlier, and Adjusted Standalone EBITDA declined 13% to $66 million from $76 million. The Company also disclosed that Q4 and full-year guidance came in below analyst expectations. Management acknowledged in an associated press release "Third-quarter profitability was below our expectations." The Company attributed the goodwill impairment to an interim quantitative assessment triggered by continued residential-market weakness, lower projected earnings and cash flows, and declines in the Company's stock price and market capitalization. Previously, in a Form 10-Q filed August 13, 2026 for the quarter ended July 4, 2026, the Company reported net income of $6 million. The investigation concerns whether ADI Global Distribution Inc. adequately disclosed the potential impact of residential-market weakness and lower projected earnings and cash flows ahead of its November 12, 2026 earnings release.