Pershing Square (PS) Q1 2026 earnings summary

Executive summary

• Total assets under management (AUM) were $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, with a focus on compounding capital at high rates of return.

• The quarter included the completion of the Howard Hughes Transaction and the Combined IPO with PSUS, significantly increasing permanent capital AUM.

Financial highlights

• Net revenue for Q1 2026 was $57.5 million, up 10% year-over-year, driven by higher management fees from PSH and HHH.

• 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.

• Fee-Related Earnings (FRE) for Q1 2026 were $47.7 million, down 9% year-over-year.

Outlook and guidance

• Management expects continued growth in permanent capital AUM following the Combined IPO and PSUS launch.

• 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.