{"url_path":"/sec/eqpt/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 Quantitative and Qualitative Disclosures about Market Risk","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1693736/0001628280-26-034842-index.html","accession_number":"0001628280-26-034842","cik":"0001693736","ticker":"EQPT","issuer_name":"EquipmentShare.com Inc","edgar_url":"https://www.sec.gov/Archives/edgar/data/1693736/0001628280-26-034842-index.html","primary_entity_key":"0001693736","primary_entity_name":"EquipmentShare.com Inc"},"word_count":428,"has_tables":true,"body_markdown":"Item 3.  Quantitative and Qualitative Disclosures about Market Risk\n\nWe are exposed to a variety of market risks, primarily related to the effects of changes in interest rates\n\n(including credit spreads) and fluctuations in fuel prices. We manage our exposure to these market risks through our\n\nregular operating and financing activities and, when deemed appropriate, through the use of derivative financial\n\ninstruments. Derivative financial instruments are viewed as risk management tools and have not been used for\n\nspeculative or trading purposes. In addition, derivative financial instruments are entered into with a major financial\n\ninstitution in order to manage our exposure to counterparty nonperformance on such instruments.\n\nInterest Rate Risk\n\nWe have assessed our exposure to changes in interest rates by analyzing the sensitivity to our earnings assuming\n\nvarious changes in market interest rates. Assuming a hypothetical increase of one percentage point in interest rates\n\non our ABL Facility as of March 31, 2026, our pre-tax earnings would decrease by an estimated $10 million over a\n\n12-month period. We terminated certain interest rate swap agreements in connection with the entry into the ABL\n\nCredit Facility.\n\nCommodity Price Risk\n\nThe cost of logistics and transportation fluctuates in large part due to the price of oil and demand trends. Any\n\nfluctuations in our transportation costs in excess of amounts we charge to customers, including the cost of delivery\n\nand pick up of construction equipment, could harm our gross profits and margins. If we are unable to successfully\n\nmitigate a significant portion of commodity price increases or fluctuations, our results of operations could be\n\nharmed. A 10% increase in our transportation costs, if not recovered through higher charges to our customers, would\n\n54\n\n[Table of Contents](#i082a4b86075e4fe1a8d2dfc6fc75d8d5_7)\n\nhave resulted in a change to cost of revenues of approximately $4 million and $3 million, and for the three months\n\nended March 31, 2026 and 2025, respectively.\n\nForeign Currency Risk\n\nWe employ a limited number of software engineers domiciled in the United Kingdom (the “UK”). As a result,\n\nwe have foreign currency risk exposure to exchange rate fluctuations, primarily with respect to payroll, employee\n\nbenefits, lease expense, and other costs incurred and paid in British Pounds. During the three months ended\n\nMarch 31, 2026, the total costs incurred by our subsidiary in the UK was not material to our operating results. Based\n\non the size of our subsidiary in the UK, we do not believe that a 10% change in the British Pound exchange rate\n\nwould have a material impact on our earnings. We do not engage in purchasing forward exchange contracts for\n\nspeculative purposes."}