Despite a 9.3% year-over-year revenue increase in 2026Q1, the company continues to struggle with structural profitability, evidenced by a net margin that averaged -1.60% over the last ten quarters.
| Sales/Revenue | 1.98B | 1.94B | 1.8B | 1.87B | 1.57B | 1.17B | 302.74M | 264.04M | 246.3M | 0 |
| Revenue Growth % | 9.38% | 7.86% | -3.37% | 18.56% | 34.78% | 285.53% | 14.66% | 7.2% | - | - |
| Cost of Goods Sold | 1.59B | 1.58B | 1.46B | 1.46B | 1.23B | 1B | 226.3M | 180.61M | 167.72M | 0 |
| COGS % of Revenue | - | 81.1% | 80.94% | 78.01% | 78.36% | 85.81% | 74.75% | 68.4% | 68.1% | - |
| Gross Profit | 394.91M | 367.36M | 343.43M | 410.09M | 340.39M | 165.65M | 76.44M | 83.43M | 78.57M | 0 |
| Gross Margin % | 19.91% | 18.9% | 19.05% | 21.99% | 21.64% | 14.19% | 25.25% | 31.6% | 31.9% | - |
| Gross Profit Growth % | - | 6.97% | -16.26% | 20.48% | 105.49% | 116.69% | -8.37% | 6.18% | - | - |
| Operating Expenses | 237.93M | 225.78M | 222.64M | 225M | 210.87M | 155.78M | 59.2M | 39.11M | 34.97M | 777.47K |
| OpEx % of Revenue | - | 11.61% | 12.35% | 12.06% | 13.4% | 13.35% | 19.55% | 14.81% | 14.2% | - |
| Selling, General & Admin | 171.71M | 230.08K | 222.64M | 225M | 210.87M | 155.78M | 46.41M | 34.67M | 32.72M | 777.47K |
| SG&A % of Revenue | - | 0.01% | 12.35% | 12.06% | 13.4% | 13.35% | 15.33% | 13.13% | 13.28% | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 225.55M | 0 | 0 | 0 | 0 | 12.79M | 4.44M | -2.25M | 0 |
| Operating Income | 156.99M | 141.58M | 120.78M | 185.09M | 129.53M | 9.86M | 17.25M | 44.32M | 43.6M | -777.47K |
| Operating Margin % | 7.92% | 7.28% | 6.7% | 9.92% | 8.23% | 0.84% | 5.7% | 16.78% | 17.7% | - |
| Operating Income Growth % | - | 17.22% | -34.75% | 42.9% | 1213.25% | -42.82% | -61.08% | 1.63% | 5708.44% | - |
| EBITDA | 375.37M | 409.76M | 363.52M | 410.48M | 353.01M | 218.94M | 23.61M | 118.87M | 110.74M | -777.47K |
| EBITDA Margin % | 18.93% | 21.08% | 20.17% | 22.01% | 22.44% | 18.76% | 7.8% | 45.02% | 44.96% | - |
| EBITDA Growth % | 2.67% | 12.72% | -11.44% | 16.28% | 61.24% | 827.5% | -80.14% | 7.34% | 14343.88% | - |
| D&A (Non-Cash Add-back) | 218.38M | 268.18M | 242.74M | 225.39M | 223.48M | 209.07M | 6.36M | 74.56M | 67.14M | 0 |
| EBIT | 150.68M | 141.58M | 137.92M | 189.39M | 135.64M | -104.23M | 26.79M | 30.32M | 42.88M | -777.47K |
| Net Interest Income | -152.37M | -157.62M | -155.55M | -112.87M | -88.91M | -72.84M | -63.2M | -65.05M | -56.7M | 0 |
| Interest Income | 1.37M | 0 | 11.55M | 18.44M | 0 | 0 | 0 | 63.36M | 6.68M | 0 |
| Interest Expense | 153.74M | 157.62M | 167.1M | 131.31M | 88.91M | 72.84M | 63.2M | 63.36M | 63.38M | 0 |
| Other Income/Expense | -163.43M | -169.71M | -149.97M | -127.02M | -82.79M | -186.94M | -68.6M | -77.35M | -57.42M | 0 |
| Pretax Income | -6.44M | -28.13M | -29.19M | 58.08M | 46.73M | -177.08M | -51.35M | -33.04M | 5.17M | -777.47K |
| Pretax Margin % | -0.32% | -1.45% | -1.62% | 3.11% | 2.97% | -15.17% | -16.96% | -12.51% | 2.1% | - |
| Income Tax | 10.92M | 2.92M | -532K | 7.36M | 7.83M | 4.42M | -30.07M | -5.99M | -13.46M | 0 |
| Effective Tax Rate % | -169.49% | -10.39% | 1.82% | 12.68% | 16.75% | -2.5% | 58.57% | 18.12% | -260.06% | 0% |
| Net Income | -17.36M | -31.05M | -28.66M | 50.71M | 38.91M | -181.5M | -21.28M | -27.05M | 5.17M | -777.47K |
| Net Margin % | -0.88% | -1.6% | -1.59% | 2.72% | 2.47% | -15.55% | -7.03% | -10.25% | 2.1% | - |
| Net Income Growth % | 45.93% | -8.37% | -156.51% | 30.35% | 121.44% | -753.04% | 21.35% | -622.85% | 765.49% | - |
| Net Income (Continuing) | -17.36M | -31.05M | -28.66M | 50.71M | 38.91M | -181.5M | -21.28M | -27.05M | -15.53M | -777.47K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.08 | -0.14 | -0.12 | 0.21 | 0.16 | -0.75 | -0.43 | -0.82 | 0.43 | -0.07 |
| EPS Growth % | 37.97% | -16.67% | -157.14% | 31.25% | 121.33% | -74.42% | 47.56% | -290.7% | 709.07% | - |
| EPS (Basic) | - | -0.14 | -0.12 | 0.21 | 0.16 | -0.75 | -0.43 | -0.82 | 0.43 | -0.07 |
| Diluted Shares Outstanding | 226.63M | 226.56M | 234.44M | 245.73M | 247.71M | 241.37M | 245.32M | 165.33M | 199.55M | 199.55M |
| Basic Shares Outstanding | 226.63M | 226.56M | 234.44M | 245.09M | 247.15M | 241.37M | 245.32M | 165.33M | 199.55M | 199.55M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Persistent negative net margins
According to the provided financial data, CTOS experienced a 9.3% year-over-year revenue increase in 2026Q1, yet the top-line trajectory remains inconsistent, fluctuating between quarterly growth of 20.9% and contractions as deep as 9.0% over the last ten quarters, suggesting a highly cyclical and lumpy revenue profile.
The volatility in revenue suggests that the company's reliance on large-scale equipment sales creates significant quarterly variance compared to more stable rental-only models. Investors should monitor whether the recent stabilization in chassis supply chains can provide the necessary consistency to smooth out these top-line swings.
As reported in financial statements, the company's gross margin has struggled to maintain levels above 20%, with a recent 22.3% reading in 2026Q1 failing to translate into positive net income, highlighting the structural difficulty of scaling profitability within their specialized equipment rental and sales business model.
The inability to consistently convert gross profit into bottom-line earnings suggests that high fixed costs and potential interest burdens are effectively neutralizing operational gains. This margin profile appears significantly weaker than industry peers, indicating that the company lacks the pricing power required to offset its heavy depreciation and debt-related expenses.
Based on reported figures, CTOS maintains an operating margin that has fluctuated between 3.8% and 11.0% over the past ten quarters, indicating that the company has yet to achieve the necessary operating leverage to consistently outpace its significant SG&A and depreciation-heavy cost structure during periods of revenue growth.
The lack of clear scaling between revenue expansion and operating income suggests that the company's cost base is largely fixed rather than variable. This implies that any future profitability improvements will likely require a fundamental shift in operational efficiency rather than simple volume growth.
Analysis of the income statement reveals that net income remains frequently negative, with a -1.60% net margin average, suggesting that reported EPS is heavily influenced by non-operating items and the amortization of intangible assets rather than core operational cash generation, warranting caution for fundamental investors.
The frequent swings between quarterly profits and losses indicate that the company's bottom line is highly sensitive to non-recurring items and financing costs. Investors should look past the headline EPS figures to evaluate whether the underlying business can generate sustainable cash flow independent of its complex capital structure.
As indicated by the company's financial history, the persistent negative net income despite revenue growth suggests that the high debt-to-equity ratio may be creating a structural drag on earnings that prevents the company from achieving the profitability levels seen in more mature, less leveraged industry peers.
Short-term observers may focus on the company's inability to achieve GAAP profitability as a sign of a broken business model. While the utility-focused end market provides a defensive floor, the current interest expense environment appears to be a significant headwind that could limit future capital allocation flexibility.
Quick answers to the most common questions about buying CTOS stock.
For fiscal year 2025, Custom Truck One Source, Inc. (CTOS) reported total revenue of $1.94B.
Custom Truck One Source, Inc. (CTOS) reported a net loss of $31.1M for the fiscal year ending 2025.
Custom Truck One Source, Inc. (CTOS) reported an operating income of $141.6M, resulting in an operating profit margin of 7.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Custom Truck One Source, Inc. (CTOS) generated $367.4M in gross profit for the year, representing a gross profit margin of 18.9%. This demonstrates the company's core pricing power and production efficiency.