Pershing Square (PS) Q2 2026 earnings summary

Executive summary

• Focus on long-term compounding from high-quality holdings, with strong NAV growth expected even without new investments.

• Completed Corporate Conversion and IPO, transitioning to a Nevada corporation and raising $5 billion for PSUS.

• Portfolio is concentrated in durable growth companies, with capital deployed during recent market volatility at attractive valuations.

• Strategic transformation of Howard Hughes from a real estate company to an insurance-led conglomerate is underway.

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

Financial highlights

• Q2 2026 GAAP net loss attributable to the company was ($42.7M), compared to net income of $23.7M in Q2 2025.

• Fee-related earnings (FRE) for Q2 2026 were $56.1M, up 24% year-over-year, with an 82.4% margin.

• Distributable earnings (DE) for Q2 2026 were $54.3M, up 10% year-over-year; DE per share was $0.14.

• Fee-paying AUM at quarter-end was $22.3B, up 31.2% from the prior quarter; total AUM reached $32.5B.

• PSUS is trading at a significant discount to NAV (approx. $50 NAV vs. high $30s share price).

Outlook and guidance

• Expectation of continued high compounding from core holdings, with multi-year holding periods anticipated to deliver strong returns.

• Dividend policy targets nearly all Distributable Earnings to be paid out quarterly, subject to board discretion.

• Taxes will be reflected in distributable earnings starting Q3 2026 due to corporate conversion.

• Plans to add investment-grade leverage (15-20% debt to total assets) to PSUS, with rating agency discussions starting in September.

• Ongoing efforts to improve PSUS trading and market awareness through comprehensive marketing.