📊 CTOS Key Takeaways
Investment Thesis
Custom Truck One Source demonstrates strong revenue growth (+34.4% YoY) and impressive operating cash flow generation ($310.1M), but is severely hampered by net losses (-$31.1M), negative profitability margins (-1.6% net margin), and deteriorating returns on equity (-3.8%). The high leverage ratio (2.03x debt/equity) combined with weak liquidity metrics and inability to convert operating success into net profitability presents substantial operational and financial risks.
CTOS Strengths
- Strong revenue growth of 34.4% YoY demonstrating market demand and business expansion
- Substantial operating cash flow of $310.1M with healthy 16.0% FCF margin indicating asset-intensive model generates cash
- Moderate interest coverage ratio of 2.8x suggesting ability to service debt obligations currently
CTOS Risks
- Significant net losses of -$31.1M with negative net margin of -1.6% indicating operational profitability challenges despite gross margin of 21.2%
- High leverage with 2.03x debt/equity ratio and $1.6B long-term debt against only $6.3M cash equivalents creating refinancing and liquidity risks
- Deteriorating return metrics with ROE of -3.8% and ROA of -0.9% showing poor capital efficiency and value destruction for shareholders
- Weak quick ratio of 0.26x indicating potential working capital strain beyond operating cash flow reliance
Key Metrics to Watch
- Net income trend and path to profitability - critical to determine if losses are temporary or structural
- Operating leverage improvement - whether gross margin expansion and operating income growth can offset SG&A and financing costs
- Cash conversion and free cash flow sustainability - ensure strong operating cash flow can continue funding debt service and capital needs
CTOS Financial Metrics
💡 AI Analyst Insight
Custom Truck One Source, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CTOS Profitability Ratios
CTOS vs Default Sector
How Custom Truck One Source, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CTOS Balance Sheet & Liquidity
CTOS 5-Year Financial Trend
5-Year Trend Summary: Custom Truck One Source, Inc.'s revenue has grown significantly by 83% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.21 reflects profitable operations.
CTOS Growth Metrics (YoY)
CTOS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $337.5M | -$5.8M | $-0.03 |
| Q2 2025 | $320.6M | -$14.3M | $-0.10 |
| Q1 2025 | $303.5M | -$14.3M | $-0.06 |
| Q3 2024 | $305.0M | $9.2M | $0.04 |
| Q2 2024 | $315.7M | $11.6M | $0.05 |
| Q1 2024 | $303.5M | $13.8M | $0.06 |
| Q3 2023 | $242.3M | -$2.4M | $-0.01 |
| Q2 2023 | $245.0M | -$3.3M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CTOS Capital Allocation
CTOS SEC Filings
Access official SEC EDGAR filings for Custom Truck One Source, Inc. (CIK: 0001709682)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CTOS
What is the AI rating for CTOS?
Custom Truck One Source, Inc. (CTOS) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTOS's key strengths?
Strong revenue growth of 34.4% YoY demonstrating market demand and business expansion. Substantial operating cash flow of $310.1M with healthy 16.0% FCF margin indicating asset-intensive model generates cash.
What are the risks of investing in CTOS?
Significant net losses of -$31.1M with negative net margin of -1.6% indicating operational profitability challenges despite gross margin of 21.2%. High leverage with 2.03x debt/equity ratio and $1.6B long-term debt against only $6.3M cash equivalents creating refinancing and liquidity risks.
What is CTOS's revenue and growth?
Custom Truck One Source, Inc. reported revenue of $1.9B.
Does CTOS pay dividends?
Custom Truck One Source, Inc. does not currently pay dividends.
Where can I find CTOS SEC filings?
Official SEC filings for Custom Truck One Source, Inc. (CIK: 0001709682) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CTOS's EPS?
Custom Truck One Source, Inc. has a diluted EPS of $-0.14.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.