EquipmentShare stock falls 6% after short seller report

Investing.com -- EquipmentShare.com Inc. (NASDAQ: EQPT) shares fell 6% Thursday after short seller Blue Orca published a report targeting the equipment rental company.

Blue Orca said it is shorting EquipmentShare because it believes undisclosed promises to backstop the company’s equipment investment program create billions of dollars in hidden liabilities that could impair its balance sheet and bonds.

The short seller questioned EquipmentShare’s OWN Program, a financing arrangement in which the company uses third-party investors to fund expansion of its rental fleet. Blue Orca said resellers and capital funnels connected to co-founders Jabbok and William Schlacks entice investors by promising that EquipmentShare will backstop equipment investments with a first-loss guarantee and repurchase the equipment at the end of the investment term.

The report also questioned how much of the OWN Program represents arms-length, third-party capital. Blue Orca said it found an entity previously called Schlacks Rentals, now called the Premiere Group, which recently stated on its website that it owned over $440 million of equipment. A former company executive told Blue Orca this equipment is likely enrolled in the OWN Program, according to the report.

Blue Orca said EquipmentShare inappropriately inflates its reported Equipment Rental Segment Adjusted EBITDA and associated margins by excluding OWN Program distributions to investors who purchased the equipment.

The report noted that starting in August, the company’s largest third-party investor, Romulus Capital, is now unlocked and has started selling shares. Blue Orca said Romulus sued EquipmentShare in 2025, alleging connected-party dealings.

EquipmentShare went public in January at a premium to peers based on its asset-lite business model.

Original Article

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