Filing Flows › McGrath Rentcorp (MGRC) › Q2 2025
McGrath Rentcorp (MGRC) Q2 2025 earnings results (second quarter 2025)
10-Q filed Jul 24, 2025
McGrath Rentcorp (MGRC) reported revenue of $236M for the second quarter 2025 (Q2 2025), +11% from a year earlier and +21% from the quarter before. Operating margin was 24.3%, net earnings $36.0M (15.3% of revenue).
McGrath Rentcorp, Q2 2025: revenue $236M (+11% year over year), operating margin 24.3%, net earnings $36.0M, operating cash flow $55.8M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $236M | +21% | +11% |
| Gross profit | $111M | +15% | +7% |
| Operating profit | $57.2M | +25% | +5% |
| Net earnings | $36.0M | +28% | +74% |
| Operating cash flow | $55.8M | +4% | -30% |
| Free cash flow | $38.2M | -23% | -49% |
What changed
Revenue was $235.6M in Q2 2025, up 11% year over year and up 21% from the previous quarter. Non Lease Revenues was the largest line at 35% of revenue. Non Lease Revenues added $15.5M year over year (up 23%), 67% of the total change. Product and Service Other declined 11%.
Gross margin was 47.0%, down 1.7 points from a year earlier. Operating profit was $57.2M, a 24.3% margin (down 1.3 points year over year). Of the extra revenue versus a year earlier, 12% reached operating profit, below the 26% margin then. Operating expenses grew 9% against revenue growth of 11%. Net earnings were $36.0M, up 74% year over year. The effective tax rate was 27.3%.
Operating cash flow was $55.8M (down 30% year over year), 155% of net earnings. Non-cash charges added back $26.3M of depreciation and amortization and $2.8M of share-based compensation. Working capital and other items used $9.3M. Capital expenditures of $17.6M left free cash flow of $38.2M.
Questions
What was McGrath Rentcorp's revenue in the second quarter 2025?
McGrath Rentcorp (MGRC) reported revenue of $236M for the second quarter 2025 (Q2 2025), +11% from a year earlier and +21% from the quarter before.
Was McGrath Rentcorp profitable in the second quarter 2025?
Operating profit was $57.2M (24.3% of revenue) and net earnings $36.0M.
Source: McGrath Rentcorp 10-Q on SEC EDGAR.