XML 29 R11.htm IDEA: XBRL DOCUMENT v3.25.2
Revenue
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Revenue Disaggregation
Geographic Areas
The Company had total revenue in the following geographic areas for the three and six months ended June 30, 2025 and 2024 as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in thousands)2025202420252024
US$550,716 $564,980 $1,081,762 $1,118,413 
Canada33,119 32,306 56,318 58,838 
Mexico5,248 7,304 10,554 14,520 
Total revenues$589,083 $604,590 $1,148,634 $1,191,771 
Major Product and Service Lines
Equipment leasing is the Company's core business and the primary driver of the Company's revenue and cash flows. This includes turnkey space solutions along with VAPS. Leasing is complemented by new unit sales and sales of rental units. In connection with its leasing and sales activities, the Company provides services including delivery and installation, maintenance, removal, and other ad hoc services. The Company’s revenue by major product and service line for the three and six months ended June 30, 2025 and 2024 was as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in thousands)2025202420252024
Modular space leasing revenue(a)
$251,374 $253,725 $497,238 $505,872 
Portable storage leasing revenue79,563 86,433 156,598 177,882 
VAPS and third party leasing revenues(b)
100,030 100,112 196,369 196,426 
Other leasing-related revenue(b)(c)
11,949 18,322 27,101 39,013 
Leasing revenue442,916 458,592 877,306 919,193 
Delivery and installation revenue108,452 108,147 197,113 208,509 
Total leasing and services revenue551,368 566,739 1,074,419 1,127,702 
New unit sales revenue21,620 21,378 44,057 34,877 
Rental unit sales revenue16,095 16,473 30,158 29,192 
Total revenues$589,083 $604,590 $1,148,634 $1,191,771 
(a) Includes revenue from clearspan structures.
(b) Includes $9.5 million and $10.1 million of service revenue for the three months ended June 30, 2025 and 2024, respectively, and $18.7 million and $20.1 million of service revenue for the six months ended June 30, 2025 and 2024, respectively.
(c) Includes primarily damage billings, delinquent payment charges, service revenue, and other processing fees associated with leasing arrangements, and is partially offset by provisions for specific uncollectible lease receivables.
Leasing and Services Revenue
The majority of revenue (74% for both the three months ended June 30, 2025 and 2024, and 75% for both the six months ended June 30, 2025 and 2024) was generated by lease income subject to the guidance of Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASC 842"). The remaining revenue was generated by performance obligations in contracts with customers for services or the sale of units subject to the guidance in Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606").
Receivables
The Company manages credit risk associated with its accounts receivable at the customer level. Because the same customers generate the revenues that are accounted for under both ASC 842 and ASC 606, the discussions below on credit risk and the Company's allowance for credit losses address the Company's total revenues.
Concentration of credit risk with respect to the Company's receivables is limited because of a large number of geographically diverse customers who operate in a variety of end markets. The Company manages credit risk through credit approvals, credit limits, and other monitoring procedures.
The Company's allowance for credit losses reflects its estimate of the amount of receivables that the Company will be unable to collect. The estimated losses are calculated using the loss rate method based upon a review of outstanding receivables, related aging, and historical collection experience. The Company's estimate is sensitive to changing circumstances, and the Company may be required to increase or decrease its allowance in future periods in response to changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Specifically identifiable lease revenue receivables and sales receivables not deemed probable of collection are recorded as a reduction of revenue. The remaining provision for credit losses is recorded as selling, general and administrative expense.
Activity in the allowance for credit losses was as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in thousands)2025202420252024
Balance at beginning of period$100,291 $86,418 $101,693 $81,656 
Provision for credit losses, net of recoveries7,418 11,389 19,756 23,196 
Write-offs recorded as a reduction to revenue(19,571)(8,605)(33,336)(15,659)
Foreign currency translation and other222 (132)247 (123)
Balance at end of period$88,360 $89,070 $88,360 $89,070 
Contract Assets and Liabilities
When customers are billed in advance for services, the Company defers recognition of revenue until the related services are performed, which generally occurs at the end of the contract. The balance sheet classification of deferred revenue is determined based on the contractual lease term. For contracts that continue beyond their initial contractual lease term, revenue continues to be deferred until the services are performed. As of June 30, 2025 and December 31, 2024, the Company had approximately $134.8 million and $139.4 million, respectively, of deferred revenue related to service revenue billed in advance. During the three and six months ended June 30, 2025, $23.1 million and $57.8 million, respectively, of deferred revenue related to service revenue billed in advance was recognized as revenue.
The Company does not have material contract assets, and it did not recognize any material impairments of any contract assets. The Company's uncompleted contracts with customers have unsatisfied (or partially satisfied) performance obligations. For the future services revenues that are expected to be recognized within twelve months, the Company has elected to utilize the optional disclosure exemption made available regarding transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations. The transaction price for performance obligations that will be completed in greater than twelve months is variable based on the market rate in place at the time those services are provided, and therefore, the Company is applying the optional exemption to omit disclosure of such amounts.
The primary costs to obtain contracts for new and rental unit sales with the Company's customers are commissions. The Company pays its sales force commissions on the sale of new and rental units. For new and rental unit sales, the period benefited by each commission is less than one year. As a result, the Company has applied the practical expedient for incremental costs of obtaining a sales contract and expenses commissions as incurred.