InnSuites Hospitality Trust (IHT) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue fell 4% YoY to $2.21M, while operating income rose to $222K from $178K; consolidated net income was $39K versus $87K.

• Operating cash flow improved to $280K from cash used of $459K; quarter-end cash was $13K.

• Management expects stable hotel operations and improved profitability from cost controls, while pursuing hotel sales and diversification through IBC and UniGen.

Financial highlights

• Revenue was $2.206M, down $88K (4%) YoY; room revenue declined 5% to $2.125M, while food and beverage revenue rose 35% to $30K.

• Operating expenses fell 6% to $1.983M; operating income increased $44K to $222K. G&A declined $138K to $468K, primarily from corporate overhead savings.

• Consolidated net income was $39K versus $87K; net loss attributable to controlling interests narrowed to $121K from $149K, and loss per share improved to $0.01 from $0.02.

• Interest expense rose 29% to $151K from $118K; cash interest paid was $151K versus $117K.

• Cash from operations was $280K versus cash used of $459K; investing used $196K and financing used $164K.

Outlook and guidance

• FY2026 outlook calls for stable occupancy, room rates and cost control, supporting improved hotel profitability; management expects stable revenue and operating margins amid economic and tariff uncertainty.

• Both hotels posted record combined revenue of $2.82M for the first four fiscal months through mid-June 2025; solid Q2 FY2026 hotel revenue was expected.

• Management plans to seek buyers for both hotels over the next 36 months; estimated market asking prices total $28M and are not based on appraisals.

• Management expects Tucson insurance costs to decline from ~$450K annualized in FY2025 to ~$100K in FY2026, a projected ~$350K saving.