RB Global’s (RBA) Earnings Jump While Its Take Rate Shrinks

On August 4, RB Global (NYSE:RBA) reported results for the three months ended June 30, and the numbers on the surface look almost too good. Net income available to common stockholders climbed 33% year over year to $132.0 million, and diluted earnings per share rose 34% to $0.71. Total revenue grew a much slower 11% to $1.3 billion. When profit runs three times faster than sales, it’s worth asking where the extra money actually came from before getting excited.

The Growth Engine Keeps Humming

Start with what’s working. Gross transaction value rose 11% year over year to $4.7 billion, and the Automotive segment did the heavy lifting, with GTV up 13% to $2,448.7 million as unit volumes grew 11% on net market share gains and higher average prices per vehicle. Inventory sales revenue jumped 28% to $383.7 million, and the inventory rate widened 180 basis points to 5.9%, a sign the company is keeping more of what it resells. Lots sold rose 8% to 911.2 thousand.

RB Global also closed its acquisition of BigIron, which CEO Jim Kessler said strengthens the company’s position in the US agriculture market. Management liked what it saw enough to raise full-year guidance, lifting expected GTV growth to a range of 9% to 11% from 6% to 9%, and nudging adjusted EBITDA guidance up to $1,495 million to $1,545 million. The board also raised the quarterly dividend from $0.31 to $0.33 per share on July 21, 2026, payable September 17, and the company bought back roughly 1.5 million shares for $150.0 million during the quarter.

Growth That Costs More

Here’s the catch. Strip out recent acquisitions and total GTV growth falls from 11% to 7%, meaning a meaningful chunk of the headline expansion was bought rather than earned organically. Service revenue take rate, the cut RB Global keeps from each transaction, fell 110 basis points to 20.0%, driven by lower-margin acquired businesses and automotive pricing incentives tied to higher volumes. Transactional seller revenue slipped 1% to $239.2 million, and marketplace services revenue fell 3% to $83.3 million.

The heavy equipment and transportation segment grew GTV mainly through acquisitions, while underlying transaction volumes actually declined amid what the company called a more cautious customer environment. And the earnings number driving that 34% EPS jump doesn’t hold up as cleanly under an adjusted lens: diluted adjusted EPS rose just 6% to $1.13, with the company attributing the GAAP gain to higher operating income and lower interest expense rather than a broad step up in core profitability.

What The Smart Money Sees

Hedge fund ownership of RB Global fell from 41 funds to 37 over the two most recent quarters, a modest but real pullback in institutional conviction. Short interest sits at 10.54% of float, which is high enough to suggest a real bear camp has formed rather than routine hedging. Against that skepticism, the stock trades at a forward price-to-earnings ratio of 17.12, as of September 17, a multiple that isn’t demanding for a company still raising guidance. That combination is the tension worth watching.

The Real Test Ahead

RB Global’s second quarter shows a company that knows how to grow through acquisitions and knows how to reward shareholders while doing it. What it hasn’t shown yet is that this growth can keep compounding without leaning on deals and pricing incentives that quietly erode the take rate. For the bull case to hold, organic GTV growth needs to close the gap with the reported number. For the bear case to matter, that 7% organic growth rate would need to keep sliding as pricing incentives persist.

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