InterGroup earns $336K as FY2026 revenue rises 15%
Portsmouth's $67.0 million senior mortgage and $36.3 million mezzanine loan mature April 9, 2027, with three one-year extension options subject to conditions.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
The InterGroup Corporation (INTG) reported fiscal 2026 revenue of $73.951 million, up approximately 15%, and income from operations of $11.866 million, up approximately 55%. GAAP net income was $0.336 million, versus a $7.547 million loss in fiscal 2025; non-GAAP EBITDA rose approximately 63% to $22.834 million from $13.987 million. Hotel revenue increased approximately 20% to $55.797 million, with RevPAR at $239 versus $200. The Investment Transactions segment loss narrowed to $0.213 million from $2.502 million.
Net cash provided by operating activities was $3.450 million, down from $5.893 million. Cash, cash equivalents and restricted cash totaled $17.299 million as of June 30, 2026. Portsmouth's $67.0 million senior mortgage loan and $36.3 million mezzanine loan mature April 9, 2027, and provide three one-year extension options subject to specified conditions; management currently expects to satisfy the conditions and exercise the first option through April 9, 2028. The company sold a 12-unit Los Angeles County property for $4.85 million, recognizing a $3.508 million GAAP gain. Hotel operations resumed August 10, 2026, after bridge removal.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
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.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue increased approximately 15% to $73.951 million in fiscal 2026.
- Moderate pointIncome from operations increased approximately 55% to $11.866 million.
- Moderate pointGAAP results returned to net income: $0.336 million versus a $7.547 million loss.
- Moderate pointThe property sale generated a $3.508 million GAAP gain in fiscal 2026.
Negative
- Moderate pointNet cash provided by operating activities fell to $3.450 million from $5.893 million.
8-K Event Classification
Key Figures
Key Terms
EBITDA financial
RevPAR financial
Debt Yield financial
mezzanine loan financial
restricted cash financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did INTG report for fiscal 2026?
Did INTG return to profitability in fiscal 2026?
When do Portsmouth's hotel loans mature, and what extension options do they have?
When did INTG's hotel reopen after the pedestrian bridge removal?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission | (IRS Employer | ||
| of incorporation) | File Number) | Identification No.) |
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Registrant’s
telephone number, including area code:
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2)
Emerging
growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Press Release, dated September 29, 2026 | |
| 104 | Cover Page Interactive Data File |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE INTERGROUP CORPORATION | ||
| Dated: September 29, 2026 | By: | /s/ John V. Winfield |
| Chairman of the Board; President and Chief Executive Officer | ||
Exhibit 99.1
FOR IMMEDIATE RELEASE
The InterGroup Corporation Reports Fiscal 2026 Results; Returns to Net Income as Hotel Operating Performance Strengthens Year-Over-Year
Los Angeles, California — September 29, 2026
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