EquipmentShare’s model shows demand for alternative financing

EquipmentShare’s decision to go public is spotlighting its financing model and the potential domino effect on the equipment rental industry. 

 EquipmentShare, which filed for an IPO last week, reported $3.8 billion in revenue in 2024, up 47.2% year over year and up 117.2% from 2022, according to its Dec. 9 S-1 filing with the SEC. Its trailing 12-month revenue of $4.4 billion ranks third in the industry, trailing United Rentals and Sunbelt Rentals, according to Stock Analysis. 

Columbia, Miss.-based EquipmentShare’s rapid growth and IPO filing show that “clearly there is demand for this type of alternative financing,” Jared Ristoff, a senior analyst focused on heavy equipment and industrial rental markets at research firm IBISWorld, told Equipment Finance News.  

“I also think it just underscores the overall demand for equipment rental and for technology integration within the equipment rental sector,” he said.  

With its OWN financing model, EquipmentShare sells equipment to third-party investors who immediately lease it back, allowing the company to maintain control of the assets while sharing revenue with investors. This capital-light strategy enables fleet expansion through asset-backed securities and other credit facilities rather than traditional floorplan debt.  

The OWN financing model has worked because “investors are looking for alternative ways to make money” and recognize the rental industry’s record growth in recent years, Ristoff said.  

This strategy also shows that EquipmentShare can “grow fast without weighing down its balance sheet,” which should appeal to investors, especially in an asset-heavy industry, Matthew Kennedy, senior strategist at IPO-focused research firm Renaissance Capital, told EFN. 

Assessing risk 

While the OWN program has shown promise, it’s also an “added layer of risk” that fellow industry giants do not face, Ristoff said.  

For example, EquipmentShare is especially vulnerable to interest hikes and tightened credit standards due to its dependence on external capital and complex financing arrangements, he said.  

“There’s a lot more that goes into it,” Ristoff said. “It’s a lot more complex than United or Herc [Rentals], where they just own the equipment and rent it out.”  

There are also questions about divestitures and liquidity, with EquipmentShare receiving an unclear portion of the proceeds when investors sell assets, he said. 

For these reasons, Ristoff said he doesn’t expect other rental companies to emulate EquipmentShare’s financing model, even if it performs well on the public markets.  

The company’s OWN program payouts totaled $512.3 million through the first nine months of 2025, up 78.1% YoY, according to the S-1 filing. 

Technology impact 

However, a strong stock performance could prompt other rental companies to ramp up technology implementation, Ristoff said.  

For example, the company’s proprietary T3 technology platform is a centralized telematics system that provides real-time insights into equipment location, utilization and maintenance needs, enhancing fleet management for both EquipmentShare and construction operators.  

While EquipmentShare’s T3 platform is a strong “selling point” that’s poised to influence industry trends, customer demands pressure smaller rental companies that lack the resources to scale their technology stacks quickly and efficiently, Ristoff said. 

The company’s telematics revenue rose 55.6% YoY through September to $34.7 million. 

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