10-Q · May 15, 2026
Seritage Growth Properties reported a challenging quarter for Q1 2026, with revenues of $4.17 million, down from $6.7 million in Q1 2025. The company registered significant impairment losses totaling $15.2 million,…
Earnings analysis · 10-Q
SRG earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Seritage’s second-quarter revenue increased to $5 million from $2 million sequentially but was flat year over year, while operating margin remained deeply negative at -160.9% and free cash flow was negative $17 million.…
Read full summary
Seritage’s second-quarter revenue increased to $5 million from $2 million sequentially but was flat year over year, while operating margin remained deeply negative at -160.9% and free cash flow was negative $17 million. EPS improved slightly to -$0.53 from -$0.56 in the prior quarter. The most material issue is that disclosure controls remain ineffective as of June 30, 2026, with remediation still ongoing; the filing provides no quantitative operating guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.53
What stood out
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Revenue rebounded sequentially
Revenue was $5 million, up from $2 million in 2026 Q1 but unchanged from $5 million in 2025 Q2. Gross margin remained 100.0%.
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Operating loss rate improved sequentially
Operating margin improved to -160.9% from -1,005.8% in 2026 Q1, but was unchanged from -160.9% in 2025 Q2.
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EPS improved slightly sequentially
Diluted EPS was -$0.53, modestly better than -$0.56 in 2026 Q1 but unchanged from -$0.53 in 2025 Q2.
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Cash burn remained elevated
Free cash flow was negative $17 million, deteriorating from negative $6 million in 2026 Q1 and matching negative $17 million in 2025 Q2.
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Remediation efforts continue
Management stated that the material weaknesses remain unremediated for the six months ended June 30, 2026, although remediation efforts are ongoing.
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Management supports reported statements
Management said the unaudited financial statements fairly present the company’s position, results and cash flows despite the control weaknesses.
What to watch
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Material weaknesses remain unresolved
Disclosure controls were concluded to be ineffective as of the period end because of material weaknesses involving the precision of general-ledger and reconciliation reviews and segregation of duties over journal entries. Management said the weaknesses remain unremediated as of June 30, 2026.
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Multiple shareholder lawsuits continue
The company is defending 1 securities class action and 3 derivative actions alleging securities-law, fiduciary-duty and governance failures. The complaints seek compensatory damages in an unspecified amount, and management stated the outcomes cannot be predicted with certainty.
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No formal risk-factor update
The company stated that there were no material changes to the risk factors in its 2025 Form 10-K. However, the filing continues to identify legal proceedings and internal-control deficiencies as relevant uncertainties, with the securities action filed on July 1, 2024 and derivative actions filed on January 15, January 20 and May 8, 2025.
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Control remediation timing is uncertain
The company said remediation requires additional time for controls to be fully implemented, operate for a sufficient period and be tested by management; therefore, the weaknesses cannot yet be considered completely remediated.
Management's outlook
No quantitative revenue or EPS outlook was provided in the 10-Q; the filing refers investors to the 2025 Form 10-K for risk factors and provides no operating guidance.
Earlier filings 4
10-K · March 31, 2026
Seritage continues to execute a Plan of Sale as its primary strategy, shrinking to a 10-property portfolio (approximately 0.8 million sq. ft. and 156 acres) as of December 31, 2025. Results remain loss-making with Q4…
10-Q · November 14, 2025
Seritage Growth Properties reported Q3 revenue of $4,785,000 (three months ended Sep 30, 2025), up from $3,251,000 a year earlier, and a narrower net loss of $12.4 million (EPS -$0.24) versus a loss of $22.0 million…
10-Q · August 14, 2024
Seritage reported Q2 revenue of $4.216M and a net loss of $101.227M (EPS -$1.82), driven by sizeable impairment charges and lower disposition gains versus prior year. Management continues to execute its Plan of Sale,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.