CTOS Q2 2026 - Preliminary Earnings Alert
Event: Quartr Q2 2026 event Retrieved: 2026-08-04T03:07:06Z Comparison mode: aggressive Scorecard contract: v1 Source status: release=available | financials=not yet available | transcript=not yet available
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue / total revenue | $563.4m | $509.8m | Beat $53.7m | 10.5% |
| EPS / GAAP diluted | $0.05 | $0.0117 | Beat $0.0383 | 327.4% |
Reported results and guidance
- Record second-quarter revenue of $563.4 million, up 10.2% year over year; gross profit was $124.0 million, up 20.9%, and Adjusted Gross Profit was $180.9 million, up 15.6%.
- Net income was $10.4 million (diluted EPS $0.05), a $38.8 million improvement from a $28.4 million loss a year ago; Adjusted EBITDA was $116.8 million, up 25.0%.
- Net leverage fell to 3.85x at quarter-end, below 4.0x for the first time in the disclosed comparison periods (4.02x at Q1-end, 4.31x at year-end 2025).
- Full-year 2026 guidance was raised: revenue to $2.1-$2.2 billion (from $2.005-$2.12 billion) and Adjusted EBITDA to $437.5-$455 million (from $415-$440 million), citing strong transmission and distribution end markets.
Key bullish aspects
- Average OEC on rent rose 13.1% and rental fleet utilization reached 81.6%, up about 400 basis points year over year, with quarter-end total OEC at a record $1.68 billion.
- Adjusted EBITDA grew 25%, well ahead of 10% revenue growth, and both revenue and Adjusted EBITDA guidance were raised at mid-year.
- STEM segment posted a record quarter with $344.6 million of external customer revenue, while continued deleveraging brought net leverage below 4.0x.
Key bearish aspects
- First-half operating cash flow fell to $68.2 million from $181.4 million a year ago, driven by a $112.6 million inventory build and $50.1 million growth in receivables.
- Net income benefited from a $1.4 million income tax benefit on $9.0 million of pre-tax income, and net margin remains thin at about 1.8%; net interest expense was $38.2 million in the quarter.
Key uncertainties
- Whether the inventory build and record OEC convert into second-half sales and rental revenue at the pace the raised guidance implies.
- Exposure to equipment cost inflation and U.S. trade-policy and tariff changes, which the company lists as key risks to cost and supply of new equipment.
Market context
- API Ninjas snapshot: $10.63 (NYSE, volume 1,214,031) at 2026-08-04T03:06:42Z. This is an overnight snapshot after an after-market release and is not evidence of a complete market reaction.
Source limitations
- The API Ninjas estimate row for 2026-08-03 did not populate fiscal-year or fiscal-quarter fields; the match was made on exact ticker and release date. Its actual and difference fields were unavailable and are diagnostics only.
- The company did not report an adjusted EPS figure, so GAAP diluted EPS is used per the aggressive-mode fallback; the large EPS beat percentage reflects a very small consensus base of $0.0117.