RB Global (NYSE:RBA) Reports Bullish Q2

Commercial asset marketplace RB Global (NYSE:RBA) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 8.2% year on year to $1.19 billion. Its non-GAAP profit of $1.07 per share was 12.5% above analysts’ consensus estimates.

Is now the time to buy RB Global? Find out by accessing our full research report, it’s free.

Company Overview

Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE:RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.

With $4.42 billion in revenue over the past 12 months, RB Global is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base.

As you can see below, RB Global’s sales grew at an incredible 28% compounded annual growth rate over the last five years. This is an encouraging starting point for our analysis because it shows RB Global’s demand was higher than many business services companies.

We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. RB Global’s annualized revenue growth of 33.6% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

This quarter, RB Global reported year-on-year revenue growth of 8.2%, and its $1.19 billion of revenue exceeded Wall Street’s estimates by 5.8%.

Looking ahead, sell-side analysts expect revenue to grow 1.8% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.

Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend.

Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D.

RB Global has been an efficient company over the last five years. It was one of the more profitable businesses in the business services sector, boasting an average operating margin of 17.3%.

Looking at the trend in its profitability, RB Global’s operating margin decreased by 2.3 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

This quarter, RB Global generated an operating margin profit margin of 15.9%, down 2.5 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

RB Global’s EPS grew at an astounding 20.6% compounded annual growth rate over the last five years. However, this performance was lower than its 28% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded.

We can take a deeper look into RB Global’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, RB Global’s operating margin declined by 2.3 percentage points over the last five years. Its share count also grew by 70.7%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For RB Global, its two-year annual EPS growth of 17.3% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.

In Q2, RB Global reported adjusted EPS at $1.07, up from $0.94 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects RB Global’s full-year EPS of $3.62 to grow 13.2%.

Key Takeaways from RB Global’s Q2 Results

We enjoyed seeing Airbnb beat analysts’ revenue and EBITDA expectations this quarter. Looking ahead, revenue and EBITDA guidance for next quarter was just in line, which didn't seem good enough. The market seemed to be hoping for more, and the stock traded down 6.8% to $121.90 immediately after reporting.

Sure, RB Global had a solid quarter, but if we look at the bigger picture, is this stock a buy? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.