Another Short Report, Similar Accusations; Maintain Buy Ratings

研报英文原文证据摘录

Another Short Report, Similar Accusations; Maintain Buy Ratings

Deutsche Bank

Research

North America Company Date

25 June 2026

High Yield Corporates EquipmentShare.co

Industrials & Manufacturing

m Inc

Another Short Report, Similar

Accusations; Maintain Buy Ratings

Sean-M Wondrack

Allegations of improper related-party transactions Research Analyst

A research provider has published a report alleging that EquipmentShare (EQPT, +1-212-250-8980

EQMSRM) and its founders used affiliated entities to extract value from the

company through undisclosed or under-disclosed related-party transactions. The

bonds and equity have sold off today. We caught up with management late this

afternoon.

The most strenuous allegation is that founder-affiliated entities received at least

$77 million from relationships tied to the OWN program and other property/vendor

arrangements. Related-party activity is not automatically improper and

EquipmentShare has had excess scrutiny over its related-party transactions around

the IPO and recent ABL extension. Management explained that the founders

previously owned equipment in the OWN program but are no longer invested,

making these allegations backward-looking. Related-party transactions require

the approval of the audit committee. EquipmentShare hired law firm Kirkland & Ellis

to carry out an independent review of the company's related-party transactions.

EQPT asserts that any transaction was effectuated on an arm's length basis with the

best interest of the company in mind. The research report also alleges that OWN

economics are deteriorating, however, the company asserts that the OWN program

remains oversubscribed.

Please see a link to our recent initiation on the full business here.

Recommendation