Second Quarter 2026
Filed Aug 12, 2026EquipmentShare Reports Second Quarter Financial Results
Total revenue increased 26% to $1,449 million, Rental Segment revenue increased 39% to $908 million, and Adjusted Core EBITDA increased 34% to $531 million. Net leverage decreased to 3.0x from 3.4x as of June 30, 2025, while the company maintained full-year 2026 guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $1,449 million | – | 26% |
| Total revenue, TTMGAAP | $4,952 million | – | 18% |
| Net incomeGAAP | $19 million | – | 19% |
| Net income, TTMGAAP | $62 million | – | 182% |
| Adjusted Net Incomenon-GAAP | $43 million | – | 169% |
| Adjusted Net Income, TTMnon-GAAP | $103 million | – | 368% |
| Adjusted Core EBITDAnon-GAAP | $531 million | – | 34% |
| Adjusted Core EBITDA, TTMnon-GAAP | $1,911 million | – | 34% |
| Mature rental locations adjusted EBITDA margins, TTMnon-GAAP | 55% | – | – |
| New market start-up costsother | $60 million | – | –% |
| New market start-up costs, TTMother | $245 million | – | 7% |
| Operational locationsother | 430 | – | 24% |
| Original Equipment Costother | $9,851 million | – | 34% |
| OWN Program Payoutsother | $234 million | – | 35% |
| OWN Program Payouts, TTMother | $837 million | – | 47% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Equipment Rental and Services OperationsSignificant customer demand drove continued expansion of the Company’s operational location footprint and an increase in the size of the Company’s managed fleet. | $908 million | – | 39% |
| Equipment SalesAn $11 million increase in disciplined, selective placements into the OWN Program was partially offset by a decrease of $6 million in the sale of new and used equipment to contractors and other end users. | $483 million | – | 1% |
| All OtherNot provided. | $58 million | – | 222% |
Year Ending December 31, 2026 outlook
- Revenue$5,254 million to $5,682 million
- NoteOEC: $10,577 million to $11,627 million
- NoteFull-Service Rental Locations: 427 to 435
- NoteRental Segment Revenue: $3,472 million to $3,748 million
- NoteOWN Program Payouts: $929 million to $985 million
- NoteAdjusted Core EBITDA: $1,946 million to $2,058 million
- NoteGross Rental Capex: $2,664 million to $2,886 million
- NoteNet Rental Capex: $980 million to $1,060 million
- NoteOWN Program % of OEC: 55% to 60%
- NoteAdjusted Core EBITDA includes $224 - $240 million of Sales Segment EBITDA.
What drove it
- Strong customer demand, continued market share gains and disciplined execution across the business.
- Expansion of the full-service rental location footprint and maturation of existing rental sites within the Rental Segment.
- The company opened 23 operational locations during the second quarter, including 20 full-service rental locations and 3 building material locations.
- Customers that engage with T3 spend approximately six times more with the company.
- Customer demand remains healthy and the mega-project pipeline continues to expand.
Concerns
- Equipment Sales revenue increased 1% to $483 million, as increased OWN Program placements were partially offset by lower sales of new and used equipment to contractors and other end users.
- Net income increased by $3 million to $19 million because $30 million of higher operating income was partially offset by $27 million of higher income tax provision.
- New market start-up costs were $60 million in the second quarter and $245 million on a TTM basis.
- The outlook includes gross rental capex of $2,664 million to $2,886 million and net rental capex of $980 million to $1,060 million.
What to watch
- Rental Segment revenue growth and the pace of operational-location expansion.
- Maturation of recently opened rental locations and the resulting earnings growth and margin expansion.
- Progress toward 427 to 435 full-service rental locations and 264 mature rental site locations by the end of 2026.
- Sales Segment performance, including selective OWN Program placements and equipment sales to contractors and other end users.
- Net leverage, rental-equipment capital expenditures and the mix of EquipmentShare owned fleet and OWN Program fleet.
Balance sheet and cash flow
- Net rental equipment capex for the second quarter was $321 million after gross purchases of rental equipment of $689 million.
- Net rental equipment capex was $856 million after gross purchases of rental equipment of $1,998 million for the TTM period.
- Original equipment cost under management increased $786 million in the second quarter to $9,851 million.
- Original equipment cost under management comprised $4,235 million of EquipmentShare owned fleet, $5,533 million of OWN Program fleet, and $83 million of equipment on operating leases.
- The appraised value of the OWN Program fleet was $4,090 million as of June 30, 2026.
- Total available liquidity was $1,424 million, including undrawn availability on the asset-based revolving credit facility of $980 million and cash and cash equivalents of $443 million.
- Liquidity was $2,763 million as adjusted for the impact of the bond issuance funded on July 1, 2026.
- Net leverage decreased to 3.0x as of June 30, 2026, from 3.4x as of June 30, 2025.
Analysis
EquipmentShare reported broad top-line growth in the second quarter. Total revenue increased 26% to $1,449 million, led by 39% growth in Equipment Rental and Services Operations revenue to $908 million. Management attributed rental growth to significant customer demand, a larger operational-location footprint and a larger managed fleet. The company opened 23 operational locations in the quarter and ended June 30, 2026 with 430 locations.
The revenue mix favored rental, while Equipment Sales was comparatively subdued. Equipment Sales revenue increased 1% to $483 million, with an $11 million increase in selective OWN Program placements partly offset by a $6 million decline in sales of new and used equipment to contractors and other end users. OWN Program Payouts increased 35% to $234 million. Management also said customers using T3 spend approximately six times more with the company and that platform use is expanding into mixed fleet, service, logistics and enterprise workflows.
Profitability increased with network expansion. Adjusted Core EBITDA increased 34% to $531 million, which management attributed to the expansion and maturation of full-service rental locations. Mature rental locations generated adjusted EBITDA margins of 55% on a TTM basis. GAAP net income increased 19% to $19 million, while Adjusted Net Income increased 169% to $43 million after excluding $24 million of stock-based compensation expense related to IPO Founders Awards. The difference in growth rates reflects the stated exclusion as well as the higher income tax provision, which partially offset higher operating income.
Capital intensity remains central to the model. Original equipment cost under management increased $786 million in the second quarter to $9,851 million. The company reported $321 million of net rental equipment capex after $689 million of gross purchases during the quarter. Balance-sheet indicators improved, with net leverage declining to 3.0x from 3.4x as of June 30, 2025, and total available liquidity of $1,424 million as of June 30, 2026.
The company provided full-year 2026 guidance for total revenue of $5,254 million to $5,682 million and Adjusted Core EBITDA of $1,946 million to $2,058 million. The outlook also calls for Rental Segment revenue of $3,472 million to $3,748 million, 427 to 435 full-service rental locations, and $980 million to $1,060 million of net rental capex. No prior-quarter outlook was provided, so changes in guidance cannot be assessed from the documents.
Management, verbatim
We delivered another exceptional quarter, supported by strong customer demand, continued market share gains and disciplined execution across the business. Rental Segment revenue increased more than 39% year over year, while our mature rental locations continued to generate industry-leading margins that demonstrate the embedded earnings power of our expanding network. As customers undertake larger and more complex projects, they are increasingly consolidating spend with EquipmentShare because of our ability to combine equipment, technology and service through one integrated platform. Looking ahead, customer demand remains healthy, our mega-project pipeline continues to expand, and we remain confident in our outlook and see a meaningful opportunity for growth.
Jabbok Schlacks, Founder and Chief Executive Officer of EquipmentShare
We built T3 to run EquipmentShare, and increasingly our customers want to run more of their businesses on it. Customers that engage with T3 spend approximately six times more with us, and we are seeing the platform expand beyond rental into mixed fleet, service, logistics and broader enterprise workflows.
Willy Schlacks, Founder and President of EquipmentShare
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- GAAP operating income
- GAAP operating margin
- GAAP diluted EPS
- Non-GAAP EPS
- Operating cash flow
- Free cash flow
- Total debt balance
- Share repurchases
- Dividends
- Prior-quarter revenue, segment revenue, net income, Adjusted Net Income and Adjusted Core EBITDA
- Prior-quarter gross margin, operating income, operating margin and EPS
- Prior-year mature rental locations adjusted EBITDA margin
- Prior-year and prior-quarter total available liquidity, cash and cash equivalents, and net rental equipment capex
- Guidance for gross margin, operating expenses and tax rate
- Previous-quarter outlook for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.