The InterGroup Corporation Reports Fiscal 2026 Results; Returns to Net Income as Hotel Operating Performance Strengthens Year-Over-Year

Operating cash flow declined despite higher revenue and the return to GAAP profitability.

Rhea-AI Summary

InterGroup (INTG) returned to GAAP net income of $0.336 million for fiscal 2026 as hotel operations improved.

Revenue rose 15% to $73.951 million from fiscal 2025, and operating income rose 55% to $11.866 million. Fiscal 2025 had brought a $7.547 million GAAP net loss. Hotel revenue rose 20% to $55.797 million; average daily rate reached $253 from $218, while occupancy reached 95% from 92%. Hotel segment income rose 43% to $12.524 million, and real estate segment income rose 5% to $8.853 million. The Investment Transactions loss narrowed to $0.213 million from $2.502 million. A December 2025 property sale produced a $3.508 million GAAP gain. Operating cash flow fell to $3.450 million from $5.893 million.

Portsmouth’s $67.0 million mortgage and $36.3 million mezzanine loan mature April 9, 2027. Management expects to meet the conditions for a one-year extension.

15 points · 0 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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1 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointGAAP net income was $0.336 million, versus a $7.547 million loss in fiscal 2025.
• Moderate pointRevenue rose 15% to $73.951 million from $64.378 million in fiscal 2025.
• Moderate pointOperating income rose 55% to $11.866 million from $7.643 million.
• Moderate pointMarketable securities produced a $0.953 million net gain, versus a $1.347 million net loss.
• Moderate pointProperty sale brought $4.85 million and a $3.508 million GAAP gain. 6.9% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.First loan extension is expected by management to run through April 9, 2028, if conditions are met.

9 minor points

• Minor pointHotel revenue rose 20% to $55.797 million from $46.363 million.
• Minor pointHotel segment income rose 43% to $12.524 million from $8.732 million.
• Minor pointAverage daily rate increased to $253 from $218; occupancy increased to 95% from 92%.
• Minor pointRevenue per available room increased to $239 from $200.
• Minor pointReal estate segment income rose 5% to $8.853 million from $8.465 million.
• Minor pointInvestment Transactions segment loss narrowed to $0.213 million from $2.502 million.
• Minor pointEBITDA, a non-GAAP measure, rose to $22.834 million from $13.987 million.
• Minor pointTotal cash, cash equivalents and restricted cash rose to $17.299 million from $15.195 million.
• Minor pointMarketable securities held had a fair value of $4.394 million, versus $0.969 million a year earlier.

Negative

• Major pointPortsmouth loans of $67.0 million and $36.3 million mature April 9, 2027; extensions require specified conditions. 95% of market cap
• Moderate pointOperating cash flow fell to $3.450 million from $5.893 million in fiscal 2025.
• Moderate pointIncome tax expense rose to $2.283 million from $0.548 million.
• Minor pointHotel operating expenses were higher in fiscal 2026, partly offsetting improved hotel performance.
• Minor pointAimbridge fee waiver of $1.030 million recognized in fiscal 2025 did not recur.

2 minor points

• Minor pointInvestment Transactions still recorded a $0.213 million segment loss in fiscal 2026.
• Minor pointHotel guest operations were suspended from July 31 through August 9, 2026, during pedestrian bridge removal.

News Explained

The first extension remains conditional; the company says no Debt Yield requirement applies to that option.

The fiscal 2026 release reports that pedestrian bridge removal was completed on August 9, 2026, and the hotel resumed guest operations on August 10, 2026, after being closed from July 31, 2026 through August 9, 2026.

As of June 30, 2026, cash, cash equivalents and restricted cash totaled $17.299 million, and marketable securities were $4.394 million.

At June 30, 2026, Portsmouth was in compliance with applicable loan covenants, and no Debt Yield requirement applies to the first extension option, which remains subject to specified conditions.

Market Context

On May 11, INTG’s Q3 report coincided with a 6.89% 24-hour share-price rise and reported quarterly n...

Analysis

On May 11, INTG’s Q3 report coincided with a 6.89% 24-hour share-price rise and reported quarterly net income alongside hotel-revenue growth, establishing the preceding quarter’s operating progression for comparison with these fiscal-year results.

Key Figures

Total revenue: $73.951 million vs. $64.378 million (+15%) Income from operations: $11.866 million vs. $7.643 million (+55%) GAAP net income (loss): $0.336 million vs. $(7.547) million +5 more

Total revenue

$73.951 million vs. $64.378 million (+15%)

Fiscal 2026 vs. fiscal 2025

Income from operations

$11.866 million vs. $7.643 million (+55%)

Fiscal 2026 vs. fiscal 2025

GAAP net income (loss)

$0.336 million vs. $(7.547) million

Fiscal 2026 vs. fiscal 2025

EBITDA

$22.834 million vs. $13.987 million (+63%)

Fiscal 2026 vs. fiscal 2025; non-GAAP measure

Hotel Operations segment income

$12.524 million vs. $8.732 million (+43%)

Fiscal 2026 vs. fiscal 2025

Average daily rate

$253 vs. $218

Hotel Operations, fiscal 2026 vs. fiscal 2025

Average occupancy

95% vs. 92%

Hotel Operations, fiscal 2026 vs. fiscal 2025

RevPAR

$239 vs. $200

Hotel Operations, fiscal 2026 vs. fiscal 2025

Historical Context

1 past event · Latest: May 11

1 event

1. May 11

   Quarterly results

   24h Move

   +6.9%

   Quarterly revenue rose 21%, with $0.595 million net income and hotel revenue growth.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, ebitda, revpar, mezzanine loan

4 terms

gaap financial

"returned to GAAP net income after reporting a GAAP net loss"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

ebitda financial

"EBITDA is a non-GAAP financial measure"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

revpar financial

"RevPAR increased to $239 from $200"

RevPAR, or revenue per available room, is a measure used in the hotel industry to show how much money a hotel earns from each of its rooms over a certain period. It helps investors understand how well a hotel is performing financially, similar to how a store's sales per square foot reveal its profitability. Higher RevPAR indicates better use of resources and stronger financial health.

mezzanine loan financial

"senior mortgage loan and $36.3 million mezzanine loan mature"

A mezzanine loan is a type of financing that sits between a primary bank loan and equity ownership: it has a lower priority for repayment than the main loan but ranks above shareholders. Think of it as a bridge loan that fills the gap when a company needs extra cash for a buyout, expansion, or project, often carrying higher interest and sometimes a small equity stake. For investors, mezzanine debt offers higher returns but more risk than senior loans and can affect shareholder value if converted into ownership.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Los Angeles, California, Sept. 29, 2026 (GLOBE NEWSWIRE) -- The InterGroup Corporation (NASDAQ: INTG) (the “Company” or “InterGroup”) financial results for the fiscal year ended June 30, 2026. InterGroup operates in three reportable segments: Hotel Operations, through its majority-owned subsidiary Portsmouth Square, Inc.; Real Estate Operations, consisting of its multifamily and commercial rental portfolio; and Investment Transactions, consisting of investment of cash in marketable securities and other investments.

Fiscal 2026 Performance Highlights

Fiscal 2026 reflected broad-based improvement across InterGroup's three reportable business segments. Total revenues increased approximately 15% year-over-year, income from operations increased approximately 55%, and the Company returned to GAAP net income after reporting a GAAP net loss in fiscal 2025. Hotel Operations segment income increased approximately 43%, Real Estate Operations segment income increased approximately 5%, and the Investment Transactions segment loss improved by approximately $2.289 million.

Selected results	Fiscal 2026	Fiscal 2025	Year-over-year change
Total revenues	$73.951 million	$64.378 million	+15%
Income from operations	$11.866 million	$7.643 million	+55%
GAAP net income (loss)	$0.336 million	$(7.547) million	$7.883 million improvement
Net income (loss) attributable to InterGroup	$1.643 million	$(5.348) million	$6.991 million improvement
Hotel Operations segment income	$12.524 million	$8.732 million	+43%
Real Estate Operations segment income	$8.853 million	$8.465 million	+5%
Investment Transactions segment loss	$(0.213) million	$(2.502) million	$2.289 million improvement

The fiscal 2026 results also included a $3.508 million GAAP gain from the December 2025 sale of a non-core 12-unit multifamily property in Los Angeles County. No comparable gain on sale was recorded in fiscal 2025.

Hotel Operations

For the fiscal year ended June 30, 2026, Hotel revenues increased approximately 20% to $55.797 million, compared with $46.363 million for the fiscal year ended June 30, 2025. For fiscal 2026, average daily rate increased to $253 from $218 in fiscal 2025, average occupancy increased to 95% from 92%, and RevPAR increased to $239 from $200. Management attributed the year-over-year improvement primarily to higher room revenues resulting from increased average daily rate, higher occupancy, improved business travel and convention demand, and increased room availability. The improvement was partially offset by higher Hotel operating expenses in fiscal 2026 and by the absence of the $1.030 million Aimbridge incentive management fee waiver recognized in fiscal 2025.

Real Estate Operations

For fiscal 2026, real estate revenues were $18.154 million, compared with $18.015 million in fiscal 2025. Real estate operating expenses decreased to $9.301 million in fiscal 2026, compared with $9.550 million in fiscal 2025, and Real Estate Operations segment income increased to $8.853 million in fiscal 2026, compared with $8.465 million in fiscal 2025. During fiscal 2026, InterGroup completed the sale of a non-core 12-unit multifamily property in Los Angeles County for $4.85 million and recognized a GAAP gain on sale of approximately $3.508 million; no comparable gain on sale was recorded in fiscal 2025.

Investment Transactions

Investment Transactions is a separate reportable business segment. The segment loss improved to approximately $0.213 million in fiscal 2026 from approximately $2.502 million in fiscal 2025. The segment measure includes gains and losses on marketable securities, dividend and interest income, and trading and margin interest expense. Within the segment, the Company recorded a net gain on marketable securities of $0.953 million in fiscal 2026, compared with a net loss of $1.347 million in fiscal 2025. The fiscal 2026 securities gain consisted of a realized gain of $0.167 million and an unrealized gain of $0.786 million, compared with a realized loss of $0.329 million and an unrealized loss of $1.018 million in fiscal 2025.

EBITDA (Non-GAAP Financial Measure)

In addition to GAAP results, management uses EBITDA as a supplemental measure to evaluate period-to-period performance before the effects of interest expense, income taxes and non-cash depreciation and amortization. EBITDA is a non-GAAP financial measure and should be considered in addition to, and not as a substitute for, GAAP net income (loss), cash flows or other GAAP measures. Investment Transactions remains reflected in EBITDA, except for the margin-interest component of the segment's expenses, which is added back because EBITDA excludes interest expense. Trading expenses and gains and losses on marketable securities remain included in EBITDA.

Reconciliation of GAAP net income (loss) to EBITDA (in $000s)	Fiscal 2026		Fiscal 2025
GAAP net income (loss)	$	336	$	(7,547	)
Interest expense - mortgages and mezzanine		12,666		13,556
Margin interest expense		756		806
Income tax expense		2,283		548
Depreciation and amortization		6,793		6,624
EBITDA	$	22,834	$	13,987

GAAP net income was $0.336 million in fiscal 2026, compared with a GAAP net loss of $7.547 million in fiscal 2025, an improvement of approximately $7.883 million. EBITDA increased approximately 63% to $22.834 million in fiscal 2026 from $13.987 million in fiscal 2025. The EBITDA reconciliation adds back the margin-interest component of trading and margin interest expense ($0.756 million in fiscal 2026 and $0.806 million in fiscal 2025), but does not add back trading expenses. EBITDA is not adjusted for gains or losses on securities, the fiscal 2026 gain on sale of real estate, or the fiscal 2025 gain on extinguishment of debt.

Subsequent Development

In connection with the bridge removal, the Hotel was closed from July 31, 2026 through August 9, 2026. The physical removal of the pedestrian bridge connecting the Hotel to Portsmouth Square Park was completed on August 9, 2026, and the Hotel resumed guest operations on August 10, 2026.

Liquidity and Capital Resources

As of June 30, 2026, InterGroup had cash and cash equivalents of $6.356 million and restricted cash of $10.943 million, for total cash, cash equivalents and restricted cash of $17.299 million, compared with $15.195 million as of June 30, 2025. The Company also held marketable securities with a fair value of $4.394 million as of June 30, 2026, compared with $0.969 million as of June 30, 2025. Net cash provided by operating activities was $3.450 million in fiscal 2026, compared with $5.893 million in fiscal 2025.

Portsmouth’s $67.0 million senior mortgage loan and $36.3 million mezzanine loan mature on April 9, 2027 and provide for three one-year extension options, subject to specified conditions. As of June 30, 2026, Portsmouth was in compliance with all applicable loan covenants. No Debt Yield requirement applies to the first extension, and management currently expects to satisfy the applicable conditions and exercise the first one-year extension option through April 9, 2028.

Management Commentary

David C. Gonzalez, Chief Operating Officer of InterGroup, said:
“Fiscal 2026 reflected substantial year-over-year improvement across InterGroup's businesses. Total revenues increased approximately 15%, income from operations increased approximately 55%, and GAAP results improved from a $7.547 million net loss in fiscal 2025 to $0.336 million of net income in fiscal 2026. Hotel Operations segment income increased approximately 43%, Real Estate Operations segment income also improved, and Hotel operating metrics strengthened year-over-year.

Portsmouth remained in compliance with the applicable Hotel loan covenants at June 30, 2026, and management currently expects to satisfy the applicable conditions and exercise the first extension option through April 9, 2028. We remain focused on operating performance, liquidity and financial flexibility.”

John V. Winfield, Chairman of the Board, President and Chief Executive Officer of InterGroup, added:

“We remain cautiously optimistic regarding the continued recovery of San Francisco and the broader environment supporting business travel, conventions and event-related demand. Investment Transactions is one of InterGroup's three reportable business segments, and its segment loss improved substantially to approximately $0.213 million in fiscal 2026 from approximately $2.502 million in fiscal 2025. Within the segment, marketable securities results improved from a net loss of $1.347 million in fiscal 2025 to a net gain of $0.953 million in fiscal 2026. We will continue to approach investment activity with a disciplined focus on market conditions, liquidity and risk.”

About The InterGroup Corporation

The InterGroup Corporation (NASDAQ: INTG) is a diversified holding company with interests in hospitality, real estate and marketable securities. InterGroup consolidates its majority-owned subsidiary Portsmouth Square, Inc., which owns the Hilton San Francisco Financial District hotel and related facilities. InterGroup also owns and operates multifamily and commercial real estate properties and maintains an investment portfolio of marketable securities.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding the Company’s expectations concerning future Hotel and real estate operating performance, the recovery of the San Francisco hospitality market, liquidity, financing arrangements and the anticipated exercise of the first extension option under the Hotel financing. Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including the satisfaction of applicable extension conditions, market conditions affecting the Company’s Hotel, real estate and investment activities, and other factors described in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2026. The Company undertakes no obligation to update forward-looking statements except as required by law.

Investor Contact
The InterGroup Corporation
1516 S. Bundy Drive, Suite 200
Los Angeles, CA 90025
(310) 889-2500

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What drove InterGroup’s fiscal 2026 hotel results?

Hotel revenue rose 20% to $55.797 million, while hotel segment income rose 43% to $12.524 million. Average daily rate increased to $253 from $218, occupancy increased to 95% from 92%, and revenue per available room increased to $239 from $200.

What are the extension terms for InterGroup’s Portsmouth hotel loans?

Three one-year extension options apply to Portsmouth’s $67.0 million senior mortgage and $36.3 million mezzanine loan, which mature April 9, 2027. The options are subject to specified conditions. No Debt Yield requirement applies to the first extension, and Portsmouth was in compliance with applicable loan covenants as of June 30, 2026.

What does InterGroup’s fiscal 2026 EBITDA include?

Fiscal 2026 EBITDA was $22.834 million. It includes gains and losses on marketable securities and the fiscal 2026 real estate sale gain. The reconciliation adds back margin interest expense but not trading expenses; EBITDA is a non-GAAP measure, not a substitute for GAAP net income or cash flows.