Company: MGRC
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001193125-25-248724
Chunk: 8

Company: MCGRATH RENTCORP
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 226,485
Total revenues $ 469,374 $ 69,014 108,324 40,763 687,475
2024
Leasing $ 306,003 $ 54,881 79,180 - 440,064
Non-lease:
Rental related services 27,130 12,865 2,087 - 42,082
Sales 127,250 3,889 18,926 30,591 180,656
Other 3,153 200 1,041 - 4,394
Total non-lease 157,533 16,954 22,054 30,591 227,132
Total revenues $ 463,536 $ 71,835 101,234 30,591 667,196
Customer returns of rental equipment prior to the end of the rental contract term are typically billed a cancellation fee, which is recorded as rental revenue in the period billed. Sales of new relocatable modular buildings, portable storage containers and electronic test equipment not manufactured by the Company are typically covered by warranties provided by the manufacturer of the products sold. The Company typically provides limited90-day warranties for certain sales of used rental equipment and one-year warranties on equipment manufactured by Enviroplex. Although the Company’s policy is to provide reserves for warranties when required for specific circumstances, warranty costs have not been significant to date.
The Company’s incremental cost of obtaining lease contracts, which consists of salesperson commissions, are deferred and amortized over the initial lease term for modular and portable storage leases. Incremental costs for obtaining a contract for TRS-RenTelco are expensed in the period incurred because the lease term is typically less than 12 months.
Other Income, net
Other income, net consists of the net gain on sales of property, plant and equipment. These sales are generally recognized at a point in time, with contractually defined performance obligations that are typically transferred upon the closing date of the sale. These

types of sales are infrequent in occurrence and reported on the condensed consolidated statements of income within the scope of ASC 610, Other Income. Proceeds to be received from the sale of property, plant and equipment are included in Accounts receivable on the Company's condensed consolidated balance sheets.

NOTE 5. EARNINGS PER SHARE
Basic earnings per share (“ EPS”) is computed as net income divided by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS is computed assuming conversion