A construction equipment rental and technology company that lets contractors rent heavy machinery like excavators and forklifts from hundreds of branches across the country, while its T3 platform uses GPS trackers and cloud software to monitor fleets in real time. Founded in 2015 in Columbia, Missouri, by brothers Jabbok and Willy Schlacks, who pitched the idea as a peer-to-peer equipment-sharing marketplace at a Startup Weekend — the name 'EquipmentShare' comes from that original 'share your idle machines' concept.
EquipmentShare turned operating cash flow positive at $58M while revenue rose 26% to $1.4B, its first quarter of positive cash generation since going public.
EquipmentShare generated for the first time as a public company. rose 26% to $1.4 billion and widened to 6.5% as rental revenue grew 41%, though SG&A rose 38% on IPO-related stock compensation. The company has the liquidity to keep expanding, but the cost of that expansion is still running ahead of revenue growth.
Key takeaways
turned positive at $58 million, up from negative $200 million in Q1 2026 and negative $76 million a year ago, the first quarter of positive cash generation since the IPO.
Total rose 26% to $1.4 billion, driven by a 41% increase in equipment rental and related services revenue to $815 million as the company added 67 new branches and grew fleet OEC under management 34% to $9.85 billion.
was $19 million, up from $16 million a year ago, as a $94 million was partly offset by $70 million in .
was 28.4%, up 0.4 points , as OWN Program payouts grew 35% to $234 million but represented a smaller share of rental than in prior periods.
Selling, general and administrative expenses rose 38% to $317 million, including $24 million in IPO-related and higher payroll from 592 added staff, keeping limited.
Liquidity stood at $443 million in cash with $980 million in net excess availability under the ABL , and the company issued $1.35 billion in notes in July 2026 after the quarter closed.
What changed
The trajectory of , flagged last quarter when SG&A growth of 36% nearly matched the 44% increase, showed little improvement: SG&A rose 38% while gross profit rose 25%, and the $24 million in IPO-related suggests a portion of the expense is non-recurring.
, flagged as a watch item at $70 million in Q1 2026, remained at $70 million this quarter, and the company disclosed that a one-percentage-point rate increase on the ABL Facility would reduce pre-tax earnings by an estimated $10 million over 12 months.
What to watch
Whether the $1.35 billion July 2026 note issuance pushes materially higher in Q3 2026, beyond the $70 million quarterly run rate.
The pace of branch additions against SG&A growth: 67 new branches this quarter drove a 38% SG&A increase; a slowdown in openings would be the clearest signal that is improving.
The $500 million authorized in July 2026 — any actual activity will reduce the cash balance and could signal management's view on valuation versus reinvestment.
Section summaries
Management's Discussion and Analysis
Total revenue rose 26% YoY to $1.4B in Q2 2026, driven by fleet and branch expansion, while net income edged up 19% to $19M.
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Equipment rental and related services surged 41% to $815M, fueled by 67 new branch locations and a 34% increase in fleet OEC under management to $9.85B.
OWN Program payouts grew 35% to $234M, outpacing owned-fleet , as the program's OEC share rose to 56% of total managed fleet, reducing pressure.
The OWN Program, whose payouts grew 41% to $217 million in Q1 2026, saw payouts rise a further 35% to $234 million this quarter, though the program's OEC share held at 56% of the total managed fleet and management noted reduced pressure.
Liquidity, which management targets at a minimum of $500 million, improved to $443 million in cash from $329 million in Q1 2026, with an additional $980 million in ABL availability and a $1.35 billion note issuance completed in July 2026.
OWN Program payouts as a percentage of rental , which management says is reducing pressure; a reversal would signal rising fleet costs or weaker used-equipment values.
Equipment sales was nearly flat at $483M, with a shift toward OWN Program participant sales offsetting a decline in sales to contractors and end users.
Selling, general and administrative expenses jumped 38% to $317M, largely due to $24M in IPO-related and higher payroll from 592 added staff.
Liquidity remained strong with $443M in cash and $980M in net excess availability under the ABL , further bolstered by a $1.35B note issuance in July 2026.
Quantitative and Qualitative Disclosures About Market Risk
The company’s primary market risks are interest rate changes affecting its ABL Credit Facility and commodity price fluctuations impacting transportation costs, while foreign currency exposure is deemed immaterial.
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A hypothetical one-percentage-point increase in interest rates on the would decrease pre-tax earnings by an estimated $10 million over 12 months.
The company terminated certain in connection with entering the .
A 10% increase in transportation costs, if not recovered through higher customer charges, would have increased by $10 million for the six months ended June 30, 2026.
Foreign currency risk arises from a UK subsidiary, but a 10% change in the British Pound exchange rate is not expected to materially impact earnings.
Derivative financial instruments are used only as risk management tools, not for speculative or trading purposes, and are entered into with a major financial institution to manage risk.
A description of legal proceedings can be found in Note 17. Commitments and Contingencies in this Form 10- Q, which is incorporated by reference in answer to this item.
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A description of legal proceedings can be found in Note 17. Commitments and Contingencies in this Form 10-
Q, which is incorporated by reference in answer to this item.