← All companies ← EQIX Manual EQR → ← DXPE Trading Companies & Distributors FAST →

EQPT, EquipmentShare.com Inc

Trading Companies & Distributors capital-intensive Distress / turnaround

EquipmentShare is a vertically integrated platform that combines proprietary technology, a connected equipment fleet, and a nationwide footprint to serve the construction industry.

More than a rental company, EquipmentShare delivers jobsite visibility and control through its cloud-based platform ("T3"), which integrates embedded telematics hardware, software applications, and real-time data to support both customers and internal operations.

The T3 platform is original equipment manufacturer ("OEM")-agnostic and gives us and our rental customers the ability to track mixed fleets, maximize utilization, reduce unplanned downtime, streamline maintenance, and improve jobsite security and operator accountability.

Latest annual: FY2025 10-K

EQPT · EquipmentShare.com Inc

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$4.4B

+16.3% YoY

Vital signs · TTM, with 3-yr average

Revenue $4.7B 3-yr avg $3.6B

Gross margin 29% 3-yr avg 28%

Operating margin 6.6% 3-yr avg 7.5%

ROIC 8% 3-yr avg 5%

Owner-earnings margin −6% 3-yr avg −1%

Free cash flow margin −37% 3-yr avg −34%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
What moves the needle: Gross margin has run about 28% and operating margin about 6.8% through the cycle, a solid spread between what it charges and what the product costs to make. That margin has held in a narrow 5.8%–10% band over the years, so steadiness itself is the evidence — the lever is unit growth and cost discipline, not a moving line. Capital spending runs about 42% of sales, well above depreciation, so the return earned on what it sinks into that plant weighs as much as the margin. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2023–2025

realized figures from each filing · older years to the left

2023’23	2024’24	2025’25	TTMTTMMar 2026
				Income statement
$2.6B	$3.8B	$4.4B	$4.7B	RevenueRevenue
30%	25%	28%	29%	Gross marginGross mgn
20%	19%	22%	22%	SG&A / revenueSG&A/rev
$250M	$218M	$297M	$308M	Operating incomeOp. inc.
9.8%	5.8%	6.8%	6.6%	Operating marginOp. mgn
$17M	$3M	$40M	$59M	Net incomeNet inc.
19%	50%	26%	2%	Effective tax rateTax rate
				Cash flow & returns
$279M	$282M	$264M	$115M	Operating cash flowOp. cash
$295M	$332M	$365M	$390M	DepreciationDeprec.
($36M)	($57M)	($145M)	($356M)	Working capital & otherWC & other
$1.1B	$1.6B	$1.8B	$1.8B	CapexCapex
42.9%	42.1%	40.6%	39.0%	Capex / revenueCapex/rev
($16M)	($50M)	($101M)	($275M)	Owner earningsOwner earn.
−0.6%	−1.3%	−2.3%	−5.9%	Owner earnings marginOE mgn
($819M)	($1.3B)	($1.5B)	($1.7B)	Free cash flowFCF
−32.0%	−34.6%	−34.6%	−36.5%	Free cash flow marginFCF mgn
$0	$6M	$48M	$54M	AcquisitionsAcquis.
$5M	$9M	$37M	$37M	Dividends paidDiv. paid
—	4%	6%	8%	ROICROIC
3%	1%	8%	5%	Return on equityROE
2%	−1%	1%	2%	Retained to equityRetained/eq
				Balance sheet
$316M	$407M	$306M	$329M	Cash & investmentsCash+inv
—	$563M	$748M	$818M	ReceivablesReceiv.
—	$331M	$401M	$427M	InventoryInvent.
—	$91M	$95M	$73M	Accounts payablePayables
—	$803M	$1.1B	$1.2B	Operating working capitalOper. WC
—	$1.4B	$1.7B	$1.9B	Current assetsCur. assets
—	$658M	$880M	$758M	Current liabilitiesCur. liab.
—	2.1×	2.0×	2.5×	Current ratioCurr. ratio
—	$4.8B	$6.0B	$6.4B	Total assetsAssets
—	$2.5B	$3.3B	$3.1B	Total debtDebt
—	$2.1B	$3.0B	$2.8B	Net debt / (cash)Net debt
1.2×	0.8×	1.0×	1.1×	Interest coverageInt. cov.
$588M	$549M	$528M	$1.2B	Shareholders’ equityEquity
0.1%	0.1%	0.1%	0.5%	Stock comp / revenueSBC/rev
				Per share
225M	231M	226M	226M	Shares out (diluted)Shares
$11.36	$16.29	$19.38	$20.58	Revenue / shareRev/sh
$0.08	$0.01	$0.18	$0.26	EPS (diluted)EPS
$-0.07	$-0.22	$-0.45	$-1.22	Owner earnings / shareOE/sh
$-3.64	$-5.65	$-6.71	$-7.52	Free cash flow / shareFCF/sh
$0.02	$0.04	$0.16	$0.16	Dividends / shareDiv/sh
$4.88	$6.87	$7.88	$8.03	Cap. spending / shareCapex/sh
$2.61	$2.38	$2.34	$5.31	Book value / shareBVPS

Share counts before 2025 are restated ×3 for a stock split, so per-share figures sit on one basis.

The record, charted

FY2023–2025

Each measure over its full record; the current point and the worst year marked. Share counts on the current split basis.

Share count

226Mpeak FY2024

Gross margin

28%low FY2024

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

($101M)owner earningsvs.$40Mnet incomelow FY2025

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2023FY2025

Owner-earnings bridge

FY2023–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned ($101M) of owner earnings, the operating cash left after the $365M it takes just to hold its position. It put $1.4B more into growth; free cash flow, after that spending, was ($1.5B).

	FY2025	FY2024	FY2023
Reported net income	$40M	$3M	$17M
Depreciation & amortizationnon-cash charge added back	+$365M	+$332M	+$295M
Stock-based compensationreal costnon-cash, but a real cost	+$4M	+$4M	+$3M
Working capital & othertiming of cash in and out, other non-cash items	−$145M	−$57M	−$36M
Cash from operations	$264M	$282M	$279M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$365M	−$332M	−$295M
Owner earnings	($101M)	($50M)	($16M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$1.4B	−$1.3B	−$803M
Free cash flow	($1.5B)	($1.3B)	($819M)
Owner-earnings marginowner earnings ÷ revenue	-2%	-1%	-1%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $365M, roughly its depreciation, the rate its assets wear out). The other $1.4B of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $4M), owner earnings is nearer ($105M).

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 1.0×

Thin

Operating income $297M ÷ interest expense $285M

What this means
Operating profit covers interest, but with little room. A bad year, a refinancing at higher rates, or a revenue wobble closes the gap fast.
How heavy is the debt, net of cash? $3.0B · 10.0× operating profit

Heavy net debt

Cash $306M − debt $3.3B

What this means
Netting $306M of cash and short-term investments against $3.3B of debt leaves $3.0B owed, about 10.0× a year's operating profit (11.0× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 98d

Long (60+ days)

DSO 62 + DIO 47 − DPO 11 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 6%

Below average

NOPAT $220M ÷ invested capital $3.5B (debt + equity − cash)

Industry peers: median 9%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin -1%

Consumes cash through the cycle

3-yr median margin, range -2%–-1%; latest ($101M) = operating cash $264M − maintenance capex $365M

Industry peers: median 21%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -2% of revenue this year, a -1% median across 3 years. It chose to put $1.4B more into growth, so free cash flow this year was ($1.5B) — the gap is investment, not weakness. Treating stock comp as the real expense it is (less $4M of SBC) leaves ($105M).
Are earnings backed by cash? 6.60×

Cash-backed

Cash from ops $264M ÷ net income $40M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? —

No surplus to allocate

What this means
The business didn't generate positive Owner Earnings this year, so any distributions came from the balance sheet or borrowing, not from operations.
Investing or harvesting? 4.88×

Expanding

Capex $1.8B ÷ depreciation $365M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 3 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $4.4B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.97×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $3.3B vs $850M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.25/share (latest year $0.51), the averaged base the calculator's gate runs on, and book value is $6.68/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Does AI threaten the moat?

Moderate contestability

AI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“We cannot control the availability or pricing of such third-party AI technologies, especially in a highly competitive environment, and we may be unable to negotiate favorable economic terms with the applicable providers.”

The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.9B

Cash & short-term investments$329M
Receivables$818M
Inventory$427M
Other current assets$296M

Current liabilities$758M

Debt due within a year$5M
Accounts payable$73M
Other current liabilities$680M

Current ratio2.47×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.90×stricter: inventory excluded

Cash ratio0.43×strictest: cash alone against what's due

Working capital$1.1Bthe cushion left after near-term bills

Debt due this year vs. cash$5M due · $329M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+37.8%the freshest read on whether the business is still growing

Current ratio, recent quarters2.1× → 2.5×

Deeper floors

Tangible book value$1.2Bequity stripped of goodwill & intangibles

Net current asset value($2.9B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$3.8B$756M of it operating leases; with finance leases, “total fixed claims” below reaches $4.2B (annual-report basis)

Deferred revenue$30Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Lease obligations

the lease note, SEC EDGAR →

Debt by another name. What the business owes on the property, aircraft, stores and equipment it rents rather than owns is a fixed claim due on a schedule; added back to the debt, it is the true leverage. That ladder, operating and finance leases together, and what it adds to the debt on the page above.

Operating leasesFinance leases

'26$150M

'27$139M

'28$141M

'29$131M

'30$123M

later$653M

Lease payments by year, scaled to the largest; “later” is everything beyond year five, shown apart. These are the contractual cash payments, before the interest the filing imputes back out to the balance-sheet liability.

Due in the next 12 months$150Ma fixed cash payment, owed whether or not the business has a good year

Total lease payments$1.3Bevery year plus the tail, undiscounted: the full cash the leases will take

On the balance sheet$912Mthe present value of those payments, the recognised lease liability

True leverage: debt plus leases

On-balance-sheet debt$3.3B

Lease obligations (present value)$912M

Total fixed claims on the business$4.2B

Counting the leases the way Buffett does, the fixed claims on this business come to $4.2B, of which the leases are 22%. The lease wall above and the debt schedule together are the calendar of what must be paid, and when.

Lease ladder read from the ASC 842 tags in the company’s Dec 31, 2025 annual report and reconciled: the yearly buckets sum to the undiscounted total, which less the imputed interest equals the balance-sheet liability; a ladder that doesn’t tie out is withheld.

Management, ownership & pay

From the proxy: how much of the business the people running it own, and how they are paid.

Stock-based compensation$4M
The slice of the business handed to employees in shares this year, 0% of revenue, equal to 1% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Peers, Trading Companies & Distributors

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
URIUnited Rentals	$16.1B	40%	24.4%	11%	31%
GPNGlobal Payments Inc.	$7.7B	59%	16.0%	4%	25%
EQPTEquipmentShare.com Inc	$4.4B	28%	6.8%	6%	-1%
AKAMAkamai	$4.2B	64%	17.7%	9%	26%
ALLEAllegion	$4.1B	44%	19.4%	23%	15%
CSGPCoStar Group Inc.	$3.2B	79%	17.7%	9%	21%
FTAIFTAI Aviation Ltd.	$2.5B	55%	-8.2%	-1%	-12%
CTOSCustom Truck One Source Inc.	$1.9B	24%	7.0%	4%	11%
Group median	—	49%	16.9%	8%	18%

The price

What a price has to assume.

What the price implies

reverse-DCF

EquipmentShare.com Inc is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.

Today’s price $

The assumptions Required return 9% Years to get there 10 Revenue growth 0% Mature owner-earnings margin 15%

Enter a price to run it.

Owner earnings it must reach—

Margin the price demands—

Owner-earnings margin today−37%

Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.

Weigh EQPT against another business →

The owners of EQPT: the meeting and the votes →

Cite: Owner Scorecard, "EquipmentShare.com Inc (EQPT), the owner's record," https://ownerscorecard.com/c/EQPT, data as of 2026-07-09.

Manual order: ← EQIX its page in the Manual EQR →

Industry order: ← DXPE the Trading Companies & Distributors chapter FAST →