InnSuites Hospitality Trust (IHT) Q2 2026 earnings summary

Executive summary

• H1 FY2026 revenue was $4.00M, down 3% YoY; operating loss narrowed to $16K, while consolidated net loss widened to $362K from $331K.

• Operating cash flow improved to $127K from a $504K outflow; cash was $207K at July 31, supported by credit availability and related-party financing.

• Strategy centers on cost control, pursuing hotel sales within 36 months, expanding IBC management, and advancing the high-risk UniGen investment.

Financial highlights

• H1 FY2026 revenue $4.005M vs. $4.134M YoY; operating expenses $4.021M vs. $4.250M, and operating loss $16K vs. $116K.

• H1 consolidated net loss was $362K vs. $331K; loss per share attributable to controlling interests was $0.06 in both periods.

• Q2 revenue was $1.799M vs. $1.840M; consolidated net loss improved to $401K from $410K, with basic and diluted loss per share of $0.04 in both periods.

• H1 room revenue was $3.846M vs. $4.009M; room expenses declined $57K, while G&A fell $127K on corporate staffing cost cuts.

• H1 capital expenditures were $415K, primarily for hotel improvements; depreciation rose to $371K from $346K.

Outlook and guidance

• FY2026 outlook anticipates stable hotel revenue, occupancy and room rates, with continued cost control; tariffs, inflation and economic conditions remain key challenges.

• August combined hotel revenue was approximately $550K, the highest August total reported; solid Q3 FY2026 hotel revenue was expected.

• Management aims to sell both hotels within 36 months and believes asking prices exceed depreciated book values; no sale timing or price is assured.

• Tucson insurance costs were reduced from approximately $450K to $100K annualized, representing expected annual savings of approximately $350K.