EquipmentShare.com Inc (EQPT) filed its inaugural 10-K for the year ended December 31, 2025, coincident with its January 26, 2026 IPO. Under a liquidation lens, the company presents a deeply negative recovery posture, consistent with the MFFAIS-computed values: cash liquidation value of approximately -$4.7B, liquid liquidation value of approximately -$3.9B, and operating liquidation value of approximately -$3.5B. Total reported assets of $5.99B face material haircuts on liquidation: cash of $306M recovers at 100%; gross AR of $816M (net $748M, with $68M allowance already deducted) recovers at roughly 90-95% of net, or approximately $670-710M; inventory of $401M recovers at approximately 60%, or ~$240M; PP&E (the dominant asset — filed as equipment rental fleet plus property) is the primary recovery driver but carries heavy depreciation and sector-specific liquidation risk at 50-70% of net book value. Internally developed software of $110M net and finite-lived intangibles of $31M net carry zero liquidation recovery. Operating lease ROU assets of $676M have no standalone liquidation value. Against these haircut assets, total liabilities stand at $5.10B at face value: long-term debt (carrying value $3.27B noncurrent plus $4M current, face value $3.34B per DebtInstrumentCarryingAmount) is the dominant claim, comprising three tranches of senior secured second lien notes (9.000% due 2028, 8.625% due 2032, 8.000% due 2033) plus a November 2025 credit facility. Accrued liabilities of $609M current and operating lease liabilities of $724M (ASC 842) do not extinguish on wind-up. Finance lease liabilities total $188M with $278M undiscounted future payments. Perpetual preferred stock carries a liquidation preference of $450M (book value $430M) senior to common; these shares were not converted at IPO (only convertible preferred converted). The deferred tax liability net position is $43M, which collapses to zero on liquidation. The filing discloses $1.06B in undiscounted operating lease commitments and $278M in finance lease commitments — both remain at face value in a wind-up scenario, materially worsening recovery. The allowance for credit losses grew from $43M (2024) to $68M (2025), a 58% increase, indicating deteriorating AR quality on a growing receivables base ($816M gross vs. prior period trajectory). The IPO raised $706M net proceeds (subsequent event, not on the December 31, 2025 balance sheet), which would improve cash recovery modestly but does not alter the December 31, 2025 liquidation computation. No goodwill is separately tagged in XBRL; the filing discusses the absence of goodwill impairment in MD&A but does not separately tag goodwill, suggesting it is either zero or immaterial. The capitalized software balance of $110M net is disclosed in MD&A and tagged, but carries zero liquidation value. The company's two-segment structure (equipment rental and technology solutions) does not alter the asset recovery calculus. Prior filing data is unavailable for period-over-period comparison.
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