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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-38864

ALTA EQUIPMENT GROUP INC.

(Exact name of registrant as specified in its charter)


Delaware		83-2583782
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

13211 Merriman Road, Livonia, Michigan 48150

(Address of principal executive offices)(Zip Code)

(248) 449-6700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.0001 par value per share	ALTG	The New York Stock Exchange
Depositary Shares representing a 1/1000th fractional interest in a share of 10% Series A Cumulative Perpetual Preferred Stock, $0.0001 par value per share	ALTG PRA	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.




Large accelerated filer	☐	Accelerated filer	☒	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 5, 2025, there were 32,047,943 shares of Common Stock, $0.0001 par value, and 1,200 shares of Preferred Stock, $0.0001 par value, which Preferred Stock is evidenced by 1,200,000 depositary shares, outstanding.

INDEX


			Page
PART I – FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Interim Financial Statements (Unaudited)		4
	Condensed Consolidated Balance Sheets (Unaudited)		4
	Condensed Consolidated Statements of Operations (Unaudited)		5
	Condensed Consolidated Statements of Comprehensive Loss (Unaudited)		6
	Condensed Consolidated Statements of Stockholders' Equity (Unaudited)		7
	Condensed Consolidated Statements of Cash Flows (Unaudited)		9
	Notes to Unaudited Condensed Consolidated Financial Statements		10
	Note 1.	Organization and Nature of Operations	10
	Note 2.	Summary of Significant Accounting Policies	10
	Note 3.	Revenue Recognition	11
	Note 4.	Related Party Transactions	13
	Note 5.	Inventories	13
	Note 6.	Property and Equipment and Rental Fleet	14
	Note 7.	Goodwill and Other Intangible Assets	14
	Note 8.	Floor Plans	15
	Note 9.	Long-Term Debt	16
	Note 10.	Leases	17
	Note 11.	Contingencies	18
	Note 12.	Income Taxes	19
	Note 13.	Stock-Based Compensation	19
	Note 14.	Fair Value of Financial Instruments	20
	Note 15.	Business Combinations and Divestitures	21
	Note 16.	Segments	22
	Note 17.	Earnings Per Share	25
	Note 18.	Subsequent Events	25
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		42
Item 4.	Controls and Procedures		43
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings		44
Item 1A.	Risk Factors		44
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		44
Item 3.	Defaults Upon Senior Securities		44
Item 4.	Mine Safety Disclosures		44
Item 5.	Other Information		44
Item 6.	Exhibits		45
	Signature		46

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this Form 10-Q may be considered “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained herein are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by any such forward-looking statements. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward looking. Forward-looking statements may include, for example, statements about: our future financial performance; our plans for expansion and acquisitions; and changes in our strategy, future operations, financial position, estimated revenues, income or loss, projected costs, prospects, plans and objectives of management.

These forward-looking statements are based on current information available, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing the Company’s views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Some factors that could cause actual results to differ include, but are not limited to the risks below, which also serves as a summary of the principal risks of an investment in our securities:

•

supply chain disruptions and inflationary pressures resulting from supply chain disruptions;

•

labor market dynamics that impact the price and availability of labor;

•

economic, industry, business and political conditions including their effects on governmental policy and government actions that disrupt our supply chain or sales channels, including taxes and tariffs which impact us or our key suppliers;

•

adverse banking and governmental regulations, resulting in a potential reduction to the fair value of our assets;

•

the performance and financial viability of key suppliers, contractors, customers, and financing sources;

•

our key OEM's relative approaches to competitive pricing dynamics in the marketplace and how their approaches impact the competitiveness of the equipment we sell and our market share;

•

fluctuations in interest rate levels and the relative tenor of those levels;

•

the demand and market price for our equipment and product support;

•

negative impacts on customer payment policies;

•

collective bargaining agreements and our relationship with our union-represented employees;

•

our success in identifying acquisition targets and integrating acquisitions;

•

our success in expanding into and doing business in additional markets;

•

our ability to raise capital at favorable terms;

•

the competitive environment for our products and services;

•

our ability to continue to innovate and develop new business lines;

•

our ability to attract and retain key personnel, including, but not limited to, skilled technicians;

•

our ability to maintain our listing on the New York Stock Exchange (“NYSE”);

•

the impact of cyber or other security threats or other disruptions to our businesses;

•

our ability to realize the anticipated benefits of acquisitions or divestitures, rental fleet and other organic investments or internal reorganizations;

•

federal, state and local government budget uncertainty, especially as it relates to infrastructure projects and taxation;

•

currency risks and other risks associated with international operations; and

•

other risks and uncertainties identified in the section entitled “Risk Factors” in our annual report on Form 10-K and other filings with the United States ("U.S.") Securities and Exchange Commission (the “SEC”).

For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see our filings with the SEC including, but not limited to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, and in this Quarterly Report on Form 10-Q. The foregoing list of factors is not exclusive, and undue reliance should not be placed upon any forward-looking statements, which speak only as of the date made.

PART I

Item 1. Financial Statements

ALTA EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions, except share and per share amounts)


	June 30, 2025			December 31, 2024
ASSETS
Cash	$	13.2		$	13.4
Accounts receivable, net of allowances of $11.9 and $10.7 as of June 30, 2025 and December 31, 2024, respectively		205.3			199.7
Inventories, net		484.5			535.9
Prepaid expenses and other current assets		36.1			25.5
Total current assets		739.1			774.5

NON-CURRENT ASSETS
Property and equipment, net		81.4			81.6
Rental fleet, net		355.1			358.8
Operating lease right-of-use assets, net		111.6			113.0
Goodwill		78.6			77.5
Other intangible assets, net		50.3			54.7
Other assets		19.9			20.3
TOTAL ASSETS	$	1,436.0		$	1,480.4

LIABILITIES AND STOCKHOLDERS’ EQUITY
Floor plan payable – new equipment	$	260.9		$	293.4
Floor plan payable – used and rental equipment		68.7			81.1
Current portion of long-term debt		11.3			10.5
Accounts payable		96.3			91.5
Customer deposits		13.1			14.8
Accrued expenses		48.4			51.2
Current operating lease liabilities		14.9			15.1
Current deferred revenue		12.6			13.0
Other current liabilities		4.8			6.6
Total current liabilities		531.0			577.2

NON-CURRENT LIABILITIES
Line of credit, net		216.2			179.8
Long-term debt, net of current portion		481.8			480.0
Finance lease obligations, net of current portion		34.6			35.5
Deferred revenue, net of current portion		5.1			4.3
Long-term operating lease liabilities, net of current portion		102.8			103.5
Deferred tax liabilities		10.1			10.8
Other liabilities		10.5			11.7
TOTAL LIABILITIES		1,392.1			1,402.8
CONTINGENCIES - NOTE 11
STOCKHOLDERS’ EQUITY
Preferred stock, $0.0001 par value per share, 1,000,000 shares authorized, 1,200 shares issued and outstanding at both June 30, 2025 and December 31, 2024 (1,200,000 Depositary Shares representing a 1/1000th fractional interest in a share of 10% Series A Cumulative Perpetual Preferred Stock)		—			—
Common stock, $0.0001 par value per share, 200,000,000 shares authorized; 32,046,258 and 32,762,135 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively		—			—
Additional paid-in capital		246.0			243.5
Treasury stock at cost, 2,733,306 and 1,587,702 shares of common stock held at June 30, 2025 and December 31, 2024, respectively		(18.2	)		(11.7	)
Accumulated deficit		(181.6	)		(149.3	)
Accumulated other comprehensive loss		(2.3	)		(4.9	)
TOTAL STOCKHOLDERS’ EQUITY		43.9			77.6
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,436.0		$	1,480.4

The accompanying notes are an integral part of these condensed consolidated financial statements.

ALTA EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in millions, except share and per share amounts)


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Revenues:
New and used equipment sales	$	265.6		$	251.5		$	487.3		$	480.1
Parts sales		75.6			78.0			147.6			150.9
Service revenues		64.9			66.2			131.0			130.2
Rental revenues		46.3			53.7			88.6			102.2
Rental equipment sales		28.8			38.7			49.7			66.3
Total revenues		481.2			488.1			904.2			929.7
Cost of revenues:
New and used equipment sales		228.5			211.9			416.6			404.3
Parts sales		50.7			50.9			98.3			99.2
Service revenues		26.1			26.9			52.5			53.9
Rental revenues		5.2			6.2			10.2			12.9
Rental depreciation		27.0			30.8			51.9			57.9
Rental equipment sales		21.4			29.4			37.4			48.9
Total cost of revenues		358.9			356.1			666.9			677.1
Gross profit		122.3			132.0			237.3			252.6
Selling, general and administrative expenses		102.3			114.5			209.0			229.1
Non-rental depreciation and amortization		7.6			7.2			15.1			14.1
Total operating expenses		109.9			121.7			224.1			243.2
Income from operations		12.4			10.3			13.2			9.4
Other (expense) income:
Interest expense, floor plan payable – new equipment		(2.9	)		(2.7	)		(6.1	)		(5.5	)
Interest expense – other		(19.4	)		(16.5	)		(38.1	)		(29.8	)
Other income		0.8			1.0			1.7			1.9
Loss on extinguishment of debt		—			(6.7	)		—			(6.7	)
Gain on divestiture		4.3			—			4.3			—
Total other expense, net		(17.2	)		(24.9	)		(38.2	)		(40.1	)
Loss before taxes		(4.8	)		(14.6	)		(25.0	)		(30.7	)
Income tax provision (benefit)		1.3			(2.7	)		2.0			(6.9	)
Net loss		(6.1	)		(11.9	)		(27.0	)		(23.8	)
Preferred stock dividends		(0.7	)		(0.7	)		(1.5	)		(1.5	)
Net loss available to common stockholders	$	(6.8	)	$	(12.6	)	$	(28.5	)	$	(25.3	)
Basic loss per share	$	(0.21	)	$	(0.38	)	$	(0.87	)	$	(0.76	)
Diluted loss per share	$	(0.21	)	$	(0.38	)	$	(0.87	)	$	(0.76	)
Basic weighted average common shares outstanding		33,002,869			33,239,620			32,903,008			33,174,158
Diluted weighted average common shares outstanding		33,002,869			33,239,620			32,903,008			33,174,158

The accompanying notes are an integral part of these condensed consolidated financial statements.

ALTA EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)

(in millions)


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Net loss	$	(6.1	)	$	(11.9	)	$	(27.0	)	$	(23.8	)
Other comprehensive income (loss):
Foreign currency translation adjustments		1.9			(0.5	)		1.9			(1.6	)
Change in fair value of derivative, net of tax		0.4			0.7			0.7			1.4
Total other comprehensive income (loss) (1)		2.3			0.2			2.6			(0.2	)
Comprehensive loss	$	(3.8	)	$	(11.7	)	$	(24.4	)	$	(24.0	)

(1) There were no material reclassifications from Accumulated other comprehensive loss reflected in Total other comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024. There were no material taxes associated with Total other comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024.

The accompanying notes are an integral part of these condensed consolidated financial statements.

ALTA EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

(in millions, except share and per share amounts)


	Three and Six Months Ended June 30, 2025
	Preferred Stock				Common Stock
	Number of Shares		Amount		Number of Shares			Amount		Additional Paid-in Capital		Accumulated Deficit			Treasury Stock			Accumulated Other Comprehensive Loss			Total Stockholders' Equity
Balance at December 31, 2024		1,200,000	$	—		32,762,135		$	—	$	243.5	$	(149.3	)	$	(11.7	)	$	(4.9	)	$	77.6
Net loss		—		—		—			—		—		(20.9	)		—			—			(20.9	)
Dividends on preferred stock, $0.625 per share		—		—		—			—		—		(0.8	)		—			—			(0.8	)
Dividends on common stock and dividend equivalent on stock-based compensation, $0.057 per share		—		—		—			—		—		(1.8	)		—			—			(1.8	)
Stock-based compensation including employee stock purchase plan		—		—		428,930			—		1.6		—			—			—			1.6
Foreign currency translation adjustments		—		—		—			—		—		—			—			—			—
Change in fair value of derivative, net of tax		—		—		—			—		—		—			—			0.3			0.3
Balance at March 31, 2025		1,200,000	$	—		33,191,065		$	—	$	245.1	$	(172.8	)	$	(11.7	)	$	(4.6	)	$	56.0
Net loss		—		—		—			—		—		(6.1	)		—			—			(6.1	)
Dividends on preferred stock, $0.625 per share		—		—		—			—		—		(0.7	)		—			—			(0.7	)
Dividends on common stock and dividend equivalent on stock-based compensation, $0.057 per share		—		—		—			—		—		(2.0	)		—			—			(2.0	)
Stock-based compensation including employee stock purchase plan		—		—		797			—		0.9		—			—			—			0.9
Foreign currency translation adjustments		—		—		—			—		—		—			—			1.9			1.9
Change in fair value of derivative, net of tax		—		—		—			—		—		—			—			0.4			0.4
Repurchase of common stock		—		—		(1,145,604	)		—		—		—			(6.5	)		—			(6.5	)
Balance at June 30, 2025		1,200,000	$	—		32,046,258		$	—	$	246.0	$	(181.6	)	$	(18.2	)	$	(2.3	)	$	43.9


	Three and Six Months Ended June 30, 2024
	Preferred Stock				Common Stock
	Number of Shares		Amount		Number of Shares			Amount		Additional Paid-in Capital		Accumulated Deficit			Treasury Stock			Accumulated Other Comprehensive Loss			Total Stockholders' Equity
Balance at December 31, 2023		1,200,000	$	—		32,369,820		$	—	$	233.8	$	(76.4	)	$	(5.9	)	$	(1.8	)	$	149.7
Net loss		—		—		—			—		—		(11.9	)		—			—			(11.9	)
Dividends on preferred stock, $0.625 per share		—		—		—			—		—		(0.8	)		—			—			(0.8	)
Dividends on common stock and dividend equivalent on stock-based compensation, $0.057 per share		—		—		—			—		—		(1.9	)		—			—			(1.9	)
Stock-based compensation including employee stock purchase plan		—		—		435,539			—		2.2		—			—			—			2.2
Foreign currency translation adjustments		—		—		—			—		—		—			—			(1.1	)		(1.1	)
Change in fair value of derivatives, net of tax		—		—		—			—		—		—			—			0.7			0.7
Balance at March 31, 2024		1,200,000	$	—		32,805,359		$	—	$	236.0	$	(91.0	)	$	(5.9	)	$	(2.2	)	$	136.9
Net loss		—		—		—			—		—		(11.9	)		—			—			(11.9	)
Dividends on preferred stock, $0.625 per share		—		—		—			—		—		(0.7	)		—			—			(0.7	)
Dividends on common stock and dividend equivalent on stock-based compensation, $0.057 per share		—		—		—			—		—		(2.0	)		—			—			(2.0	)
Stock-based compensation including employee stock purchase plan		—		—		36,269			—		1.3		—			—			—			1.3
Acquisition contingent consideration		—		—		339,847			—		3.4		—			—			—			3.4
Foreign currency translation adjustments		—		—		—			—		—		—			—			(0.5	)		(0.5	)
Change in fair value of derivatives, net of tax		—		—		—			—		—		—			—			0.7			0.7
Repurchase of common stock		—		—		(231,334	)		—		—		—			(2.0	)		—			(2.0	)
Balance at June 30, 2024		1,200,000	$	—		32,950,141		$	—	$	240.7	$	(105.6	)	$	(7.9	)	$	(2.0	)	$	125.2

The accompanying notes are an integral part of these condensed consolidated financial statements.

ALTA EQUIPMENT GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in millions)


	Six Months Ended June 30,
	2025			2024
OPERATING ACTIVITIES
Net loss	$	(27.0	)	$	(23.8	)
Adjustments to reconcile net loss to net cash flows used in operating activities
Depreciation and amortization		67.0			72.0
Amortization of debt discount and debt issuance costs		2.3			1.1
Imputed interest		0.2			0.2
Gain on sale of property and equipment		(0.1	)		—
Gain on sale of rental equipment		(12.3	)		(17.4	)
Provision for inventory obsolescence		3.2			0.5
Provision for losses on accounts receivable		2.5			3.5
Gain on divestiture		(4.3	)		—
Loss on debt extinguishment		—			6.7
Change in fair value of derivative instruments		(0.1	)		(0.2	)
Stock-based compensation expense		2.0			2.6
Changes in deferred income taxes		(0.9	)		(6.8	)
Changes in assets and liabilities, net of acquisitions and divestitures:
Accounts receivable		(6.8	)		(6.5	)
Inventories		(21.1	)		(109.6	)
Proceeds from sale of rental equipment - rent-to-sell		44.8			63.1
Prepaid expenses and other assets		(11.6	)		—
Manufacturers floor plans payable		(41.0	)		5.2
Accounts payable, accrued expenses, customer deposits, and other current liabilities		—			(14.5	)
Leases, deferred revenue, net of current portion and other liabilities		(0.2	)		(0.3	)
Net cash used in operating activities		(3.4	)		(24.2	)
INVESTING ACTIVITIES
Expenditures for rental equipment		(23.7	)		(30.6	)
Expenditures for property and equipment		(3.9	)		(7.2	)
Proceeds from sale of property and equipment		0.3			1.9
Proceeds from sale of rental equipment - rent-to-rent		4.9			3.2
Acquisitions of businesses, net of cash acquired		(2.9	)		—
Proceeds from divestiture, net		18.0			—
Other investing activities		(1.1	)		(1.5	)
Net cash used in investing activities		(8.4	)		(34.2	)
FINANCING ACTIVITIES
Expenditures for debt issuance costs		—			(1.8	)
Extinguishment of long-term debt		—			(319.4	)
Proceeds from long-term borrowings		193.5			849.3
Principal payments on long-term debt and finance lease obligations		(163.9	)		(476.2	)
Proceeds from non-manufacturer floor plan payable		46.9			79.5
Payments on non-manufacturer floor plan payable		(52.8	)		(82.8	)
Preferred stock dividends paid		(1.5	)		(1.5	)
Common stock dividends declared and paid		(3.9	)		(3.9	)
Repurchases of common stock		(6.5	)		(2.0	)
Other financing activities		(0.4	)		(9.1	)
Net cash provided by financing activities		11.4			32.1

Effect of exchange rate changes on cash		0.2			(0.2	)
NET CHANGE IN CASH		(0.2	)		(26.5	)

Cash, Beginning of year		13.4			31.0
Cash, End of period	$	13.2		$	4.5
Supplemental schedule of noncash investing and financing activities:
Noncash asset purchases:
Net transfer of assets from inventory to rental fleet	$	66.7		$	83.0
Contingent and non-contingent consideration for business acquisitions		—			0.5
Supplemental disclosures of cash flow information
Cash paid for interest	$	42.2		$	32.5
Cash paid for income taxes	$	3.6		$	1.3

The accompanying notes are an integral part of these condensed consolidated financial statements.

ALTA EQUIPMENT GROUP INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

(Dollars in millions, except per share data, unless otherwise indicated)

NOTE 1 — ORGANIZATION AND NATURE OF OPERATIONS

Nature of Operations

Alta Equipment Group Inc. and its subsidiaries (“Alta” or the “Company”) is engaged in the sale, service, and rental of material handling, construction, and environmental processing equipment in the states of Michigan, Illinois, Indiana, Ohio, Pennsylvania, New York, Virginia, Massachusetts, Maine, New Hampshire, Vermont, Rhode Island, Connecticut, Nevada and Florida, as well as the Canadian provinces of Quebec and Ontario. Unless the context otherwise requires, the use of the terms “the Company”, “we”, “us,” and “our” in these notes to the unaudited condensed consolidated financial statements refers to Alta Equipment Group Inc. and its consolidated subsidiaries.

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements include the consolidated accounts of the Company and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In our opinion, all adjustments, consisting of all normal and recurring adjustments, considered necessary for a fair presentation of our financial position, results of operations and cash flows for the periods presented have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the 2024 Form 10-K. All intercompany transactions and balances have been eliminated in the preparation of the condensed consolidated financial statements.

Immaterial Restatement of Prior Period Financial Statements

Subsequent to the issuance of the Company’s condensed consolidated financial statements filed on Form 10-Q for the period ended June 30, 2024, the Company identified a multi-year error in the presentation of its Condensed Consolidated Statements of Cash Flows. Management determined its presentation of the proceeds from the sale of rent-to-rent equipment was incorrectly presented as an operating cash flow as opposed to an investing cash flow. The effect of this error was an understatement of net cash used in operating activities by $3.2 million for the six months ended June 30, 2024 with a corresponding overstatement of net cash used in investing activities. Management has evaluated quantitative and qualitative factors for this misstatement and has concluded it was not material to the prior periods.

The following table reflects the effects of the correction on all affected line items of the Company’s previously reported condensed consolidated financial statements presented in this Form 10-Q:


	Six Months Ended June 30, 2024
	As Previously Reported			Adjustment			As Restated
OPERATING ACTIVITIES
Proceeds from sale of rental equipment - rent-to-sell	$	66.3		$	(3.2	)	$	63.1
Net cash used in operating activities		(21.0	)		(3.2	)		(24.2	)
INVESTING ACTIVITIES
Proceeds from sale of rental equipment - rent-to-rent		—			3.2			3.2
Net cash used in investing activities		(37.4	)		3.2			(34.2	)

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

We describe our significant accounting policies in Note 2 of the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024. During the three and six months ended June 30, 2025, there were no significant changes to those accounting policies.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are based on assumptions that we believe are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.

New Accounting Pronouncements

New Accounting Pronouncements Not Yet Adopted

In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance requires disaggregated income tax disclosures on the rate reconciliation and income taxes paid by jurisdiction. The Company is required to adopt the guidance in the 2025 Annual Report on Form 10-K. The guidance will require additional disclosures in the Income Tax footnote but will not have a material impact on our consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). This guidance requires additional disclosure in the notes to the financial statements of specified information about certain statement of operations expense line items. The Company is required to adopt the guidance in the 2027 Annual Report on Form 10-K and in our interim periods during 2028, though early adoption is permitted. The Company is currently evaluating the impact of this guidance on our consolidated financial statements.

The Company believes all other recently issued accounting pronouncements from the FASB that the Company has not noted above will not have a material impact on our consolidated financial statements or do not apply to us.

NOTE 3 — REVENUE RECOGNITION

We recognize revenue in accordance with two different accounting standards: 1) Topic 606, Revenues from Contracts with Customers ("Topic 606") and 2) Topic 842, Leases, ("Topic 842").

Disaggregation of Revenues

The following tables summarize the Company’s disaggregated revenues as presented in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024 by revenue type and the applicable accounting standard.


	Three Months Ended June 30, 2025						Three Months Ended June 30, 2024
	Topic 842		Topic 606		Total		Topic 842		Topic 606		Total
Revenues:
New and used equipment sales	$	—	$	265.6	$	265.6	$	—	$	251.5	$	251.5
Parts sales		—		75.6		75.6		—		78.0		78.0
Service revenues		—		64.9		64.9		—		66.2		66.2
Rental revenues		46.3		—		46.3		53.7		—		53.7
Rental equipment sales		—		28.8		28.8		—		38.7		38.7
Total revenues	$	46.3	$	434.9	$	481.2	$	53.7	$	434.4	$	488.1


	Six Months Ended June 30, 2025						Six Months Ended June 30, 2024
	Topic 842		Topic 606		Total		Topic 842		Topic 606		Total
Revenues:
New and used equipment sales	$	—	$	487.3	$	487.3	$	—	$	480.1	$	480.1
Parts sales		—		147.6		147.6		—		150.9		150.9
Service revenues		—		131.0		131.0		—		130.2		130.2
Rental revenues		88.6		—		88.6		102.2		—		102.2
Rental equipment sales		—		49.7		49.7		—		66.3		66.3
Total revenues	$	88.6	$	815.6	$	904.2	$	102.2	$	827.5	$	929.7

The Company believes that the disaggregation of revenues from contracts with customers as summarized above, together with the discussion below, depicts the nature, amount, timing and uncertainty of our revenues and cash flows. See Note 16, Segments, for further information.

Leases revenues (Topic 842)

Rental revenues: Owned equipment rentals represent revenues from renting equipment. The Company accounts for these rental contracts as operating leases. The Company recognizes revenues from equipment rentals in the period earned, regardless of the timing of billing to customers. A rental contract includes rates for daily, weekly, or monthly use, and rental revenues are earned on a daily basis as rental contracts remain outstanding. Because the rental contracts can extend across multiple reporting periods, the Company records unbilled rental revenues and deferred rental revenues at the end of each reporting period. Unbilled rental revenues are included as a component of "Accounts receivable, net" on the Condensed Consolidated Balance Sheets. Rental equipment may also be purchased outright (“Rental equipment sales”) by our customers. Rental revenues and revenues attributable to rental equipment sales are recognized in "Rental revenues" and "Rental equipment sales" on the Condensed Consolidated Statements of Operations, respectively.

Revenues from contracts with customers (Topic 606)

Accounting for the different types of revenues pursuant to Topic 606 is discussed below. The Company’s revenues under Topic 606 are primarily recognized at a point in time rather than over time.

New and used equipment sales: With the exception of bill-and-hold arrangements and project-based revenues, the Company’s revenues from the sale of new and used equipment are recognized at the time of delivery to, or pick-up by, the customer, which is when the customer obtains control of the promised good(s). Under bill-and-hold arrangements, revenues are recognized when all configuration work is complete and the equipment has been set aside for final shipment, at which point the Company has determined control has been transferred. The bill-and-hold arrangements primarily apply to sales when physical shipment of heavy equipment to the customer is prohibited by law (e.g., frost laws) or requested by the customer due to their inability to arrange freight simultaneous to the satisfaction of the performance obligations. The customer equipment sold under a bill-and-hold arrangement is physically separated from Company inventory and that equipment cannot be used by the Company or sold to another customer. Revenues recognized from bill-and-hold agreements totaled $7.8 million and $2.6 million for the three months ended June 30, 2025 and 2024, respectively, and $18.6 million and $5.5 million for the six months ended June 30, 2025 and 2024, respectively The Company does not offer material rights of return.

Project-based revenues, as referred to herein, are contracts with customers where the Company provides design and build solutions related to automated equipment installation and warehouse management systems integration. These revenues are recognized as the performance obligations are satisfied over time using the cost-to-cost input method, based on contract costs incurred to date to total estimated contract costs. The Company recognizes deferred revenue with respect to project-based services. The Company recognized $16.6 million and $13.5 million in project-based revenues for the three months ended June 30, 2025 and 2024 respectively, and $35.6 million and $30.5 million in project-based revenues for the six months ended June 30, 2025 and 2024, respectively.

Parts sales: Revenues from the sale of parts are recognized at the time of pick-up by the customer for over-the-counter sales transactions and at the time services are completed for parts associated with periodic maintenance services. For parts that are shipped to a customer, the Company has elected to use a practical expedient of Topic 606 and treat such shipping activities as fulfillment costs, thereby recognizing revenues at the time of shipment, which is when the customer obtains control.

Service revenues: The Company records service revenues primarily from guaranteed maintenance contracts and periodic services with customers. The Company recognizes periodic maintenance service revenues at the time such services are completed. The Company recognizes guaranteed maintenance contract revenues over time based on an estimated rate at which the services are provided over the life of the contract, typically three to five years. Revenues recognized from guaranteed maintenance contracts totaled $5.4 million and $5.5 million for the three months ended June 30, 2025 and 2024, respectively, and $10.8 million and $11.0 million for the six months ended June 30, 2025 and 2024, respectively. The Company also records service revenues from warranty contracts whereby the Company performs service on behalf of an Original Equipment Manufacturer (“OEM”) or third-party warranty provider.

Rental equipment sales: The Company also sells rental equipment from our rental fleet. These sales are recognized at the time of delivery to, or pick-up by, the customer, which is when the customer obtains control of the promised good(s). Rental equipment sales may occur at various stages in an equipment’s lifecycle, depending on customer demand and original purchase intentions of the equipment. Rent-to-rent equipment, for instance, is originally purchased directly into the rental fleet for the primary purpose of renting, as opposed to selling. Rental equipment sales of rent-to-rent equipment are therefore typically made toward the end of the useful life of the equipment. Rent-to-sell equipment, on the other hand, is originally purchased as new inventory stock but is subsequently transferred to rental fleet and rented to customers based on rental fleet utilization levels and market conditions. Ultimately, rent-to-sell equipment primarily serves the numerous applications of our Construction Equipment segment customers and allows the Company to create different model years of equipment at varying price points to fulfill market demand for lower hour, lightly used construction equipment. Certain rental agreements contain a rental purchase option, whereby the customer has an option to purchase the rented equipment during the term of the rental agreement. In this case, revenues from the sale of rental equipment are recognized at the time the rental purchase option agreement has been approved and signed by both parties, as the equipment is already in the customer’s possession under the terms of the rental agreement, and therefore control has been transferred concurrently with the title.

Contract Costs

The Company does not recognize assets associated with the incremental costs of obtaining a contract with a customer that the Company expects to recover (e.g., a sales commission). Most of the Company’s revenues are recognized at a point in time or over a period of one year or less, and the Company has used the practical expedient that allows us to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less. The amount of the costs associated with the revenues recognized over a period of greater than one year is insignificant.

Receivables and Contract Assets and Liabilities

With respect to our receivables, we believe the concentration of credit risk is limited because our customer base is comprised of a large number of geographically diverse customers that operate in a wide range of industries.

The Company has contract assets and contract liabilities associated with project-based contracts with customers.

Contract assets are fulfilled contractual obligations prior to receivables being recognizable for project-based revenues. Contract assets as of June 30, 2025 and December 31, 2024 were $6.9 million and $4.2 million, respectively.

Deferred revenue (contract liabilities) includes the unearned portion of project-based revenues, revenues related to guaranteed maintenance contracts for customers covering equipment previously purchased, and deferred revenue related to equipment rental agreements. Total deferred revenue as of June 30, 2025 and December 31, 2024 was $17.7 million and $17.3 million, respectively. For the three and six months ended June 30, 2025, the Company recognized revenues of $2.8 million and $10.7 million, respectively, from the prior year ending deferred revenue balance. For the three and six months ended June 30, 2024, the Company recognized revenue of $2.2 million and $10.3 million, respectively, from the December 31, 2023 deferred revenue balance.

NOTE 4 — RELATED PARTY TRANSACTIONS

Our Chief Executive Officer ("CEO"), Chief Financial Officer, and Chief Operating Officer collectively own an indirect, non-controlling minority interest in OneH2, Inc. (“OneH2”), which they each acquired through various transactions that took place in early 2018 and prior. Our CEO is on the Board of Directors of OneH2. OneH2 is a privately held company that produces and delivers hydrogen fuel to end users and manufactures modular hydrogen plants and related equipment. During the three and six months ended June 30, 2025, the Company purchased $0.2 million and $0.3 million of hydrogen fuel from OneH2, respectively. During the three and six months ended June 30, 2024, the Company purchased $0.6 million and $1.2 million of hydrogen fuel from OneH2, respectively. In addition, the Company has paid OneH2 $5.3 million to date to build and commercialize a hydrogen production plant for the Company which we expect to become operational by April 2026.

NOTE 5 — INVENTORIES

Inventories, net, consisted of the following:


	June 30,			December 31,
	2025			2024
New equipment	$	335.8		$	374.0
Used equipment		47.4			62.0
Work in process		8.8			7.5
Parts		105.2			101.8
Gross inventory		497.2			545.3
Inventory reserves		(12.7	)		(9.4	)
Inventories, net	$	484.5		$	535.9

Direct labor of $1.5 million and $0.6 million incurred for open service orders were capitalized and included in work in process as of June 30, 2025 and December 31, 2024, respectively. The remaining work in process balances as of June 30, 2025 and December 31, 2024 primarily represent parts applied to open service orders. Rental depreciation expense for new and used equipment inventory under short-term leases with purchase options was $3.4 million and $4.0 million for the three months ended June 30, 2025 and 2024, respectively, and $6.2 million and $7.1 million for the six months ended June 30, 2025 and 2024, respectively.

NOTE 6 — PROPERTY AND EQUIPMENT AND RENTAL FLEET

Property and equipment, net, consisted of the following:


	June 30,			December 31,
	2025			2024
Land	$	3.1		$	3.0
Buildings, equipment, and leasehold improvements:
Machinery and equipment		10.4			9.6
Autos and trucks		6.3			7.3
Buildings and leasehold improvements		27.6			25.5
Construction in progress		7.1			7.0
Finance lease right-of-use assets		68.5			63.6
Office equipment		6.0			5.6
Computer equipment		15.2			14.4
Total costs		144.2			136.0

Less: accumulated depreciation and amortization property and equipment		(62.8	)		(54.4	)
Property and equipment, net	$	81.4		$	81.6

Total depreciation and amortization on property and equipment was $5.1 million and $4.6 million for the three months ended June 30, 2025 and 2024, respectively, and $10.1 million and $8.9 million for the six months ended June 30, 2025 and 2024, respectively.

Rental fleet, net, consisted of the following:


	June 30,

ALTA EQUIPMENT GROUP INC. 10-Q