EquipmentShare.com IncEQPT
EquipmentShare.com Inc Segments Disclosure
SEGMENT INFORMATION
The Company has two reportable segments: (1) Equipment Rental and Services Operations, and (2) Equipment
Sales. Equipment Rental and Services Operations are comprised of recurring activity performed at the Company's
full-service branch locations, such as equipment rentals and related services (including allocated telematics revenue
related to rental customer access to the T3 platform), and sales of parts, supplies and maintenance services to
construction contractors and others. Equipment Sales are comprised of sales by the Company of new or used
equipment made at any of the Company's branch locations and dealership sites, including equipment sales to
participants in the OWN Program. All other business activities, which include telematics SaaS subscriptions,
software applications, and related telematics devices purchased by customers for their owned fleet, as well as
building materials and hardware supplies, are included in “All Other.” The Company generates all of its revenue in
the U.S. and all long-lived assets are located in the U.S.
These segments are based upon revenue streams and how the chief operating decision maker (“CODM”) of the
Company allocates resources and assesses performance. The Company’s Chief Executive Officer is the CODM. The
CODM uses Segment Adjusted EBITDA to make resource allocation decisions and to assess the performance of
these segments. The CODM uses Segment Adjusted EBITDA to evaluate segment performance without regard to
potential distortions and to assess period-over-period growth. Excluding OWN Program payouts and equipment
operating lease expense from Equipment Rental and Services Operations Segment Adjusted EBITDA provides the
CODM with a more meaningful metric to compare operating performance to industry peers who do not source their
equipment fleet through lease arrangements. The most significant decisions made by the CODM relate to site
expansion, capital deployment, and employee hiring, among other things.
Significant expenses regularly provided to the CODM and reported in Segment Adjusted EBITDA include
segment cost of revenues and segment selling, general, and administrative expenses. Segment cost of revenues for
the Equipment Rental and Services Operations segment includes direct operating costs, excluding equipment and
vehicle operating lease expense. Segment cost of revenues for the Equipment Sales segment includes the cost of
equipment sales. Segment cost of revenues for All Other business activities includes platform expenses. Segment
Adjusted EBITDA also excludes operating expenses related to OWN Program payouts, depreciation expense on
rental equipment, and amortization expense on capitalized software. Segment selling, general and administrative
expenses exclude depreciation expense related to the Company’s property and other fixed assets. There are no other
significant segment expenses.
The accounting policies of the reportable segments are consistent with those described in Note 2: Summary of
Significant Accounting Policies in the Company’s Audited Consolidated Financial Statements as of and for the year
ended December 31, 2025. In the second quarter of 2025, following a change in the information regularly reviewed
by the CODM, the Company began to disclose total assets by segment. Prior to the second quarter of 2025, total
assets by segment were not disclosed because this information was not regularly reviewed by the CODM and used to
assess performance and allocate resources. Certain corporate selling, general and administrative expenses, including
corporate employee compensation, technology costs, professional service fees, and insurance expenses are deemed
to be of an operating nature and are allocated to each segment based primarily on segment employee headcount.
There were no sales or transactions between segments for any of the periods presented. The Company retains
various unattributed assets at the general corporate level, which the Company refers to as “Shared Resources” in the
table below. Assets identified as Shared Resources primarily consist of cash, investments, property and other fixed
assets and property right of use assets. All other costs and assets are directly attributable to the segments. The
Company does not compile discrete financial information for segments other than the information presented below.
The following table presents information about reportable segments (In millions):
Year Ended December 31, 2025 | |||||||
Equipment Rental | |||||||
and Services | Equipment | ||||||
Operations | Sales | All Other | Total | ||||
Equipment rental, parts, supplies and services ............... | $2,709 | $– | $– | $2,709 | |||
Equipment sales ............................................................. | – | 1,541 | – | 1,541 | |||
Telematics ...................................................................... | 15 | – | 51 | 66 | |||
Sales of building materials, small tools, and hardware supplies ....................................................................... | – | – | 63 | 63 | |||
Total revenues ................................................................ | $2,724 | $1,541 | $114 | $4,379 | |||
Significant expenses: | |||||||
Segment cost of revenues ......................................... | 773 | 1,237 | 68 | ||||
Segment selling, general and administrative expenses ................................................................. | 812 | 28 | 59 | ||||
Segment Adjusted EBITDA ........................................ | $1,139 | $276 | $(13) | $1,402 | |||
Year Ended December 31, 2024 | |||||||
Equipment Rental | |||||||
and Services | Equipment | ||||||
Operations | Sales | All Other | Total | ||||
Equipment rental, parts, supplies and services ............... | $2,024 | $– | $– | $2,024 | |||
Equipment sales ............................................................. | – | 1,676 | – | 1,676 | |||
Telematics ...................................................................... | 11 | – | 21 | 32 | |||
Sales of building materials, small tools, and hardware supplies ....................................................................... | – | – | 32 | 32 | |||
Total revenues ................................................................ | $2,035 | $1,676 | $53 | $3,764 | |||
Significant expenses: | |||||||
Segment cost of revenues ......................................... | 578 | 1,400 | 30 | ||||
Segment selling, general and administrative expenses ................................................................. | 641 | 29 | 31 | ||||
Segment Adjusted EBITDA ........................................ | $816 | $247 | $(8) | $1,055 | |||
Year Ended December 31, 2023 | |||||||
Equipment Rental | |||||||
and Services | Equipment | ||||||
Operations | Sales | All Other | Total | ||||
Equipment rental, parts, supplies and services ............... | $1,624 | $– | $– | $1,624 | |||
Equipment sales ............................................................. | – | 879 | – | 879 | |||
Telematics ...................................................................... | 8 | – | 13 | 21 | |||
Sales of building materials, small tools, and hardware supplies ....................................................................... | – | – | 33 | 33 | |||
Total revenues ................................................................ | $1,632 | $879 | $46 | $2,557 | |||
Significant expenses: | |||||||
Segment cost of revenues ......................................... | 435 | 728 | 29 | ||||
Segment selling, general and administrative expenses ................................................................. | 441 | 28 | 31 | ||||
Segment Adjusted EBITDA ........................................ | $756 | $123 | $(14) | $865 | |||
The following table reconciles total Segment Adjusted EBITDA to income before income taxes (In millions):
Year Ended December 31, | |||||
2025 | 2024 | 2023 | |||
Segment Adjusted EBITDA ................................................................. | $1,402 | $1,055 | $865 | ||
Equipment operating lease expense ...................................................... | (26) | (85) | (111) | ||
OWN Program payouts ........................................................................ | (714) | (420) | (209) | ||
Depreciation expense on rental equipment ........................................... | (300) | (293) | (280) | ||
Depreciation expense on property and other fixed assets ..................... | (42) | (27) | (9) | ||
Amortization expense on capitalized software and intangible assets ... | (23) | (12) | (6) | ||
Gain on sale of properties and other assets ........................................... | 1 | 20 | 10 | ||
Loss on debt extinguishment ................................................................ | (8) | — | (30) | ||
Interest expense .................................................................................... | (285) | (261) | (213) | ||
Other income, net ................................................................................. | 49 | 29 | 4 | ||
Income before income taxes ................................................................. | $54 | $6 | $21 | ||
The following table presents information about identified assets by reportable segment (In millions):
December 31, 2025 | December 31, 2024 | ||
Segment identified assets: | |||
Equipment Rental and Service Operations ..................................... | $3,948 | $3,025 | |
Equipment Sales .............................................................................. | 160 | 213 | |
All Other ......................................................................................... | 274 | 167 | |
Shared Resources ............................................................................ | 1,605 | 1,411 | |
Total assets ...................................................................................... | $5,987 | $4,816 |
The following table presents information about cash flows from investing activities by reportable segment (In
millions):
December 31, 2025 | December 31, 2024 | ||||||
Equipment | Equipment | ||||||
Rental and | Rental and | ||||||
Services | Equipment | Services | Equipment | ||||
Operations | Sales | Operations | Sales | ||||
Cash flows from investing activities: | |||||||
Purchases of rental equipment ................ | (1,780) | – | (1,586) | – | |||
Proceeds from sale of rental equipment .. | – | 1,160 | – | 1,323 | |||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.