Pershing Square (PS) Q1 2026 earnings summary

Executive summary

• Assets under management (AUM) reached $33.0 billion as of April 30, 2026, up 24% from March 31, 2026, and 8% year-over-year, driven by the Combined Transaction and market appreciation.

• Fee-paying AUM (FPAUM) rose to $23.3 billion as of April 30, 2026, a 37% increase year-over-year, reflecting strong fundraising and the impact of the PSUS IPO.

• The Combined Transaction, including the IPO and private placement of PSUS, was completed on April 30, 2026, significantly increasing capital base.

• Total AUM was $26.6 billion and fee-paying AUM was $17.0 billion as of March 31, 2026, with 96% classified as permanent capital.

• The business model emphasizes permanent capital, disciplined value investing, and scalable operations.

Financial highlights

• Management fees for Q1 2026 were $57.5 million, up 10% from Q1 2025; fee-related earnings (FRE) for Q1 2026 were $47.7 million.

• Distributable earnings (DE) for Q1 2026 were $47.8 million, a 9% decrease from Q1 2025, reflecting higher expenses and one-time items.

• Net loss attributable to the company was $147.6 million, compared to net income of $19.7 million in Q1 2025, primarily due to a $148.6 million unrealized loss on HHH shares.

• Operating income was $5.1 million, down 51% year-over-year.

• General and administrative expenses rose 58% to $16.0 million, mainly due to deal expenses related to the Combined Transaction.

Outlook and guidance

• Management expects continued growth in AUM and FPAUM following the successful Combined Transaction and ongoing fundraising.

• The new capital base from PSUS and expanded permanent capital are expected to support higher recurring fee income.

• The company intends to pay quarterly cash dividends representing nearly all post-tax Distributable Earnings, starting in Q3 2026.

• No material changes to risk factors or critical accounting policies were reported.