RBA earnings analysis
What we found in RBA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
RB Global delivered 11% Q2 revenue growth to $1.3171 billion, with GAAP diluted EPS up 34% to $0.71 and operating income up 19% to $224.8 million. Automotive GTV growth of 13% and a 180-bp increase in inventory rate to 5.9% supported results, although calculated gross margin declined to 43.6% from 46.0% a year earlier. Acquisitions strengthened growth and drove goodwill higher, but also contributed to a 9% increase in debt to $2.9041 billion and a $117.5 million year-over-year decline in six-month operating cash flow.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated on inventory sales
- Q2 revenue increased 11% year over year to $1.3171 billion and rose approximately 7% sequentially from implied Q1 revenue of $1.2346 billion. Service revenue grew 5% to $933.4 million, while inventory sales revenue climbed 28% to $383.7 million.
- Earnings and operating income increased
- GAAP diluted EPS rose 34% year over year to $0.71 from $0.53 and increased from $0.66 in Q1 2026. Net income available to common stockholders increased 33% to $132.0 million, while operating income rose 19% to $224.8 million.
- Operating margin expanded year over year
- Calculated gross margin was 43.6%, based on $574.6 million of gross profit on $1.3171 billion of revenue, versus 46.0% in Q2 2025 and 45.6% in Q1 2026. Operating margin was 17.1%, up from 15.9% a year ago but below 17.5% in Q1 2026.
- Automotive led GTV growth; HE&T acquisition-led
- Automotive GTV increased 13% to $2.4487 billion, supported by higher average price per lot and volume. HE&T GTV rose 8% to $2.0766 billion, although management says it decreased slightly excluding J.M. Wood, BigIron and Smith Broughton acquisitions.
- Inventory profitability improved materially
- The inventory rate improved 180 bps to 5.9%, producing inventory return of $22.8 million versus $12.4 million. Management attributed the improvement to favorable HE&T pricing across all regions.
- Acquisitions expanded agriculture footprint
- BigIron and Blackmon added strategic agriculture and auction exposure: BigIron cost $316.6 million, including $264.5 million of goodwill, and Blackmon's purchase price was $17.0 million. Goodwill increased to $4.9300 billion from $4.6680 billion at year-end.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Take-rate and seller-revenue pressure
- Service-revenue monetization lagged GTV: transactional seller revenue declined 1% to $239.2 million and marketplace-services revenue declined 3% to $83.3 million, despite total GTV increasing 11% to $4.6727 billion. Management cited Automotive volume-based price incentives and a customer contract providing full-year volume rebates.
- Cash conversion and receivables weakened
- Six-month operating cash flow declined $117.5 million to $365.8 million from $483.3 million. Trade and other receivables rose $148.1 million to $854.4 million, and net operating working-capital changes consumed $292.4 million.
- Acquisition funding increased leverage
- Debt increased 9% year over year to $2.9041 billion and adjusted net debt rose 21% to $2.3792 billion. The company borrowed $300.0 million under its revolver to fund BigIron, reducing unused revolving capacity to $700.5 million from $1.1611 billion at December 31, 2025.
- Canadian tax dispute remains unresolved
- The CRA assessment remains a contingent tax exposure of C$79.1 million ($55.8 million), including C$41.4 million ($29.2 million) of interest and penalties; no amount was recorded at June 30, 2026. The company states an adverse final outcome could have a material negative effect.
- No formal risk-factor update; integration costs rose
- Item 1A states there were no material changes to risk factors from the 2025 10-K. However, acquisition-related and integration costs rose 185% year over year to $7.7 million in Q2, reflecting execution costs associated with J.M. Wood, BigIron and Blackmon.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.71
- Gross margin
- 43.6%
- Operating margin
- 17.1%
- Segment
- The company has one reportable segment; total Q2 revenue was $1.3171 billion.
- Segment
- Service revenue: $933.4 million, up 5% year over year.
- Segment
- Inventory sales revenue: $383.7 million, up 28% year over year.
- Segment
- Automotive GTV: $2.4487 billion, up 13% year over year; Heavy Equipment & Transportation GTV: $2.0766 billion, up 8% year over year.
What they said about what is next.
The 10-Q does not provide explicit numerical revenue or EPS guidance. Management states that cash, operating cash flow, and $700.5 million of unused revolving-facility capacity are sufficient for current and planned activities; quantitative outlook was deferred to earnings materials outside this filing.
The filing reads better than the one before it.
What came before.
- 10-Q · May 4, 2026
- RB Global, Inc. reported Q1 2026 earnings, showcasing a strong performance with total revenue increasing by 11% to $1.23 billion and diluted EPS rising to $0.66, a 20% year-over-year increase. Management highlighted…
- 10-K · February 25, 2026
- The 2025 Form 10-K emphasizes IAA’s strategy to evolve into a one-stop inventory management and multichannel disposition platform while continuing to rely on long-term relationships with major insurance suppliers. The…
- 10-Q · May 7, 2025
- RB Global reported Q1 2025 revenue of $1,108.6 million (up 4% YoY) and GAAP diluted EPS of $0.55 (up from $0.53), with operating income of $189.5 million. Operating cash flow was $156.8 million and the company amended…
- 10-Q · November 8, 2024
- RB Global reported Q3 revenue of $981.8 million (down 4% YoY) with service revenue up slightly to $779.9 million while inventory sales fell to $201.9 million. Operating income increased to $153.4 million and net income…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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