--- title: "Generac's Amazon warrant is worth $112.5 million, more than its quarter's profit, and cuts Amazon revenue" description: "The generator maker's 10-Q prices the warrant it gave Amazon at $112.5 million and books it against Amazon revenue as the generators ship, more than the quarter's entire profit. The same filing shows how far the $4.5 billion backlog sits from the accounting." publisher: "The Inference" section: "Power" published: 2026-11-04T17:17:21.313Z modified: 2026-11-04T17:17:21.313Z canonical: https://theinference.org/article/generac-s-amazon-warrant-is-worth-112-5-million-more-than-its-quarter-s-profit-and-cuts-amazon-revenue language: en keywords: "Generac, Amazon, Earnings, Data Centers, Backlog" --- # Generac's Amazon warrant is worth $112.5 million, more than its quarter's profit, and cuts Amazon revenue > The generator maker's 10-Q prices the warrant it gave Amazon at $112.5 million and books it against Amazon revenue as the generators ship, more than the quarter's entire profit. The same filing shows how far the $4.5 billion backlog sits from the accounting. ## A sentence the deal paperwork never had [Generac](https://theinference.org/markets/companies/generac)'s 10-Q, [the quarterly report filed on November 3, 2026](https://www.sec.gov/Archives/edgar/data/1474735/000143774926034665/gnrc20260930_10q.htm), carries one line the deal's earlier paperwork did not [1]. [The warrant the backup-power maker granted a subsidiary of Amazon.com on September 16](https://theinference.org/article/amazon-pays-its-suppliers-and-collects-in-their-shares) was worth $112.5 million on its grant date, priced by the Black-Scholes option model at $66.40 a share, and Generac "will recognize the grant-date fair value of the Warrant as a reduction of revenue from [Amazon](https://theinference.org/markets/companies/amazon) as control of the related goods or services are transferred" [1]. That is more than the quarter's entire $109.2 million of net income [2][3]. [The September 8-K](https://www.sec.gov/Archives/edgar/data/1474735/000143774926030550/gnrc20260915_8k.htm) gave the share count and the strike; [the October release](https://www.sec.gov/Archives/edgar/data/1474735/000143774926033685/ex_1032565.htm) gave the backlog [2][3]. Neither priced the equity [2][3]. ## Two currencies in one order book The warrant covers up to 1,693,745 shares, about 2.9% of the 58,988,982 shares outstanding on the filing's cover, at a strike of $200.9266, exercisable in cash or in shares at Amazon's election through September 16, 2033, with the share count protected by anti-dilution adjustments [1][2]. Only 307,954 shares vested at signing; the rest vest in tranches as [Amazon's payments for data-center generators accumulate toward $8 billion](https://theinference.org/article/generac-signed-its-8-billion-amazon-deal-21-days-after-the-generator-order-doe-rules-land-december-24) [2]. Generac has booked $20.4 million of the value as an asset to offset future Amazon revenue; the remaining $92.0 million depends on Amazon actually spending [1]. *Chart: **Amazon's equity costs 1.4 cents of every dollar it must spend to vest it** Bar chart comparing $8,000 million of Amazon payments needed to fully vest the warrant, $2,400 million of initial deliveries in 2027 and 2028, and the warrant's $112.5 million grant-date fair value.* *Dollar values in millions from the September 16, 2026, transaction agreement and Generac's Q3 2026 10-Q; warrant value is grant-date fair value before anti-dilution adjustments. [1][2]* ## The backlog is a statement, not a schedule The quarter itself was a record: net sales of $1.2948 billion, up 16%, with the Commercial & Industrial segment up 28% to $552.1 million on data-center demand [1][3]. Chief executive [Aaron Jagdfeld](https://theinference.org/markets/people/aaron-jagdfeld) put [the data-center backlog at about $4.5 billion](https://theinference.org/article/amazon-s-ai-buildout-tripled-generac-s-order-book-to-4-5-billion-at-half-the-margin-of-its-home-business), nearly triple July's $1.6 billion [3][4][6]. The word backlog appears nowhere in the 10-Q [1][2]. Its closest filed measure, remaining performance obligations, the revenue Generac still expects from signed contracts, totals about $330 million, and the $2.4 billion of initial Amazon deliveries expected in 2027 and 2028 is not in that line [1][2]. The filing does not explain the gap [1][2]. *Chart: **A record $1.30 billion quarter ends a flat two-year run** Line chart of Generac quarterly net sales from Q4 2023 to Q3 2026, dipping through 2025 and rising to a record $1.3 billion in Q3 2026.* *A record $1.30 billion quarter ends a flat two-year run [1][7]* ## The incentive, and the seller The bull case is cheap lock-in: the equity costs about 1.4% of the $8 billion Amazon must spend to vest it, and Jagdfeld says it creates "a material incentive for Amazon to continue leveraging Generac as a supplier"; a second, unnamed hyperscaler could match the $700 million he expects from it in 2027 [4]. Jagdfeld [sold 5,000 shares on November 2 at $200.61](https://www.sec.gov/Archives/edgar/data/1474735/000143774926034651/0001437749-26-034651-index.htm), 32 cents under the strike, his fourth such monthly sale since August under a pre-scheduled trading plan adopted December 4, 2025, months before the deal existed [5][6]. The readings that decide it start in 2027, when deliveries begin and Amazon's payments start flowing back off Generac's own revenue line [5][6]. ## Takeaway Generac's 10-Q shows the Amazon warrant costs $112.5 million, booked against Amazon revenue as generators ship, and the $4.5 billion backlog never reaches the filed numbers. ## Sources 1. [Generac Holdings Inc., Form 10-Q for the quarter ended 30 September 2026, filed 3 November 2026](https://www.sec.gov/Archives/edgar/data/1474735/000143774926034665/gnrc20260930_10q.htm) 2. [Generac Holdings Inc., Form 8-K, 16 September 2026, Amazon transaction agreement and warrant](https://www.sec.gov/Archives/edgar/data/1474735/000143774926030550/gnrc20260915_8k.htm) 3. [Generac Holdings Inc. press release, Generac Reports Third Quarter 2026 Results, 28 October 2026](https://www.sec.gov/Archives/edgar/data/1474735/000143774926033685/ex_1032565.htm) 4. [Milwaukee Journal Sentinel, Ricardo Torres, Generac reports record sales of $1.29 billion, driven by data centers, 28 October 2026](https://www.jsonline.com/story/money/business/2026/10/28/generac-reports-record-sales-driven-by-booming-data-center-demand/92481298007/) 5. [SEC Form 4, Aaron Jagdfeld, Generac Holdings Inc., period 2 November 2026, filed 3 November 2026](https://www.sec.gov/Archives/edgar/data/1474735/000143774926034651/0001437749-26-034651-index.htm) 6. [Rackline, Generac's sales rise 16% to a record $1.29bn, 30 October 2026](https://www.rackline.news/earnings/report/nl07qk) 7. [Generac, quarterly figures from its SEC filings, retrieved 4 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001474735) --- Generac's Amazon warrant is worth $112.5 million, more than its quarter's profit, and cuts Amazon revenue — The Inference. 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