EquipmentShare.com (EQPT) Financials

EquipmentShare.com (NASDAQ: EQPT) showed a significant improvement in operating performance in Q2 2026. Revenue increased to $1.45 billion, up 46.5% from $989 million in Q1 2026 and 26.3% from $1.15 billion in Q2 2025. Gross profit rose to $411 million, lifting the gross margin to approximately 28.4%, compared with 25.5% in Q2 2025. Operating income increased to $94 million from $1 million in Q1 and $64 million in the year-ago quarter.

Profitability also improved despite continued interest costs. EquipmentShare.com generated $19 million of net income in Q2, compared with a $29 million loss in Q1 and $16 million of net income in Q2 2025. Net income attributable to common shareholders was $16 million, or $0.14 per basic share and $0.13 per diluted share. However, the sharp change in weighted average basic shares—from 78 million in Q2 2025 to 506 million in Q2 2026—means per-share comparisons should be interpreted cautiously.

The balance sheet expanded considerably during the quarter. Total assets increased to $7.11 billion from $6.36 billion in Q1, while cash rose to $443 million from $329 million. The company generated $58 million in operating cash flow in Q2, reversing the $200 million outflow in Q1. Nevertheless, the business remains highly capital-intensive and dependent on financing: long-term debt increased to $3.64 billion, and total liabilities reached $5.53 billion. The data provided covers Q1 2025 through Q2 2026 rather than a complete four-year history.

• Strong revenue momentum: Q2 2026 revenue grew 26.3% year over year and 46.5% sequentially, indicating substantial expansion in the company’s operating scale.
• Improving margins: Gross margin rose to approximately 28.4% from 25.5% a year earlier, while operating margin reached about 6.5% versus 5.6% in Q2 2025.
• Return to profitability: The company moved from a $29 million net loss in Q1 2026 to $19 million of net income in Q2, with common shareholders receiving $16 million of earnings.
• Operating cash flow turned positive: Cash generated from operations improved to $58 million from negative $200 million in Q1 2026 and negative $76 million in Q2 2025.
• Liquidity improved but remains important to monitor: Cash increased to $443 million, and current assets of $2.21 billion exceeded current liabilities of $914 million. However, a large portion of current assets consisted of accounts receivable, inventory and prepaid expenses rather than cash.
• Asset growth is concentrated in operating assets: Total assets rose by roughly $754 million sequentially, including increases in accounts receivable, prepaid expenses, plant and equipment, and other noncurrent operating assets.
• Leverage increased: Total debt, including short- and long-term borrowings, rose to approximately $3.64 billion from $3.08 billion in Q1. Net debt was roughly $3.19 billion based on Q2 cash balances.
• Interest expense remains a major burden: Q2 interest expense was $73 million, absorbing most of the company’s $94 million in operating income. Cash interest paid increased to $92 million from $39 million in Q1.
• Capital spending remains substantial: EquipmentShare.com spent $697 million on property, plant and equipment in Q2, while investing activities used $450 million even after $368 million of proceeds from asset sales.
• Working capital consumed cash: Changes in operating assets and liabilities reduced operating cash flow by $178 million in Q2. Accounts receivable increased to $971 million from $818 million in Q1, creating a potential collection and liquidity risk if growth slows.