10-Q · June 4, 2026
Pershing Square Inc. reported Q1 2026 results showing total revenue of $57.5M, a 10% increase from Q1 2025, but a significant net income loss of $158.5M compared to a profit of $19.8M in the prior year. Key contributors…
Earnings analysis · 10-Q
PS earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Pershing Square delivered modest Q2 revenue growth to $54,176,772 but missed consensus by 27.4%, while GAAP operating income fell to a $90,128,591 loss and GAAP EPS declined to $(0.11). Recurring metrics were stronger,…
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Pershing Square delivered modest Q2 revenue growth to $54,176,772 but missed consensus by 27.4%, while GAAP operating income fell to a $90,128,591 loss and GAAP EPS declined to $(0.11). Recurring metrics were stronger, with Fee-Related Earnings of $56,061,000, Distributable Earnings of $54,271,000, and AUM of $32,487,000,000. Liquidity is the key concern: cash declined to $8,907,987, debt rose to $231,985,236, and the company drew an additional $30,000,000 after quarter-end. The filing reports no material changes to the risk factors in the IPO Prospectus.
Reported figures
- Earnings per share
- $-0.11
- Operating margin
- -166.36%
- Segment
- Single operating and reportable segment: total revenue was $54,176,772 in Q2 2026 versus $53,179,136 in Q2 2025. Within management-fee revenue, PSUS contributed $16,535,543, while PSH contributed $45,693,694 versus $46,643,397 a year earlier.
What stood out
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Revenue grew modestly but missed consensus
Q2 total revenue increased 1.9% to $54,176,772 from $53,179,136 in Q2 2025, driven by $16,535,543 of new PSUS management fees. However, revenue was $54,176,772 versus consensus of $74,622,080, a 27.4% miss.
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Recurring earnings remained strong
Fee-related earnings increased to $56,061,000 from $45,066,000, while Distributable Earnings rose to $54,271,000 from $49,533,000. DE per share increased to $0.14 from $0.12.
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AUM and permanent capital expanded
AUM increased to $32,487,000,000 from $29,599,000,000 year over year, and Fee-Paying AUM rose to $22,258,000,000 from $20,132,000,000. Permanent capital represented 98% of Fee-Paying AUM as of June 30, 2026.
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Operating cash flow turned positive
Operating cash flow was $113,325,113 for the six months ended June 30, 2026, versus $(193,126,522) in the prior-year period. The improvement was primarily supported by collection of $497,330,469 of performance-fee receivables.
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Balance sheet was recapitalized
The company had $8,907,987 of cash and cash equivalents at June 30, 2026, down from $55,397,767 at December 31, 2025, while total loans payable increased to $231,985,236 from $34,800,000.
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Q2 investment marks helped results
HHH generated a $74,070,000 unrealized gain in Q2, partially offsetting a $50,350,000 unrealized loss on PSUS shares. The HHH investment was valued at $643,410,000 at June 30, 2026.
What to watch
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Transaction compensation overwhelmed revenue
GAAP operating expenses increased to $144,305,363 from $33,039,058, producing an operating loss of $90,128,591 versus operating income of $20,140,078. Q2 GAAP EPS declined to $(0.11) from $0.06.
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Investment marks drove a large loss
For the six months ended June 30, 2026, the company recorded a $74,520,000 unrealized loss on HHH and a $50,350,000 unrealized loss on PSUS. These marks contributed to a net loss attributable to PS Inc. of $190,285,238, compared with net income of $43,400,433 in the prior-year period.
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Low cash and higher leverage
Cash and cash equivalents fell to $8,907,987 while loans payable reached $231,985,236; borrowings accrued at an average rate of 5.39% during Q2. The company subsequently drew another $30,000,000 on August 12, 2026, increasing Revolver borrowings to $164,800,000.
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Long-term PSUS investment lockup
The company must maintain at least $100,000,000 of its PSUS common-share investment and $50,000,000 of its PSUS preferred-share investment, or a substantially equivalent economic position, for at least 25 years after the Combined Transaction.
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Corporate taxes begin in Q3
The Corporate Conversion created a net deferred tax liability of $125,524,518, and management stated that current corporate income taxes will begin in Q3 2026. The company also recorded an $11,000,000 valuation allowance against deferred tax assets related to PSUS.
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Debt covenants depend on AUM and NAV
The Credit Agreement requires a consolidated leverage ratio no greater than 2.50 to 1.00, minimum AUM, and limits on declines in specified fund NAVs. The filing states that the company was compliant as of June 30, 2026, but market declines could pressure these tests.
Management's outlook
No explicit numeric revenue or EPS guidance was provided. Management stated that current cash flow from operations, cash and cash equivalents, and Revolving Facility availability should be sufficient for operations, planned capital expenditures, and debt service for the next 12 months and foreseeable future. The company also plans to launch Pershing Square Ventures and drew $30,000,000 under the Revolver on August 12, 2026.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.