Portsmouth Square (PRSI) Q2 revenue rises as hotel loss narrows

Rhea-AI Filing Summary

Portsmouth Square, Inc. reported stronger results for its fiscal second quarter ended December 31, 2025, as its Hilton San Francisco Financial District hotel continued to recover. Hotel revenues rose to $12.661 million from $9.965 million a year earlier, helped by higher room rates, strong occupancy and 14 guestrooms returned to inventory.

The company’s net loss narrowed to $2.291 million, or $3.12 per share, from $4.036 million, or $5.50 per share, while income from operations improved to $1.004 million from a loss of $0.264 million. Key hotel metrics improved, with ADR at $234 versus $190, occupancy at 92% versus 88%, and RevPAR at $215 versus $168.

Cash and restricted cash totaled $8.722 million as of December 31, 2025. For the six-month period, hotel revenues increased to $25.079 million from $21.785 million, and the net loss narrowed to $4.876 million from $5.908 million. Portsmouth invested about $1.431 million in capital expenditures, mainly guest-room renovations and bringing 14 rooms back into service.

Insights

Hospitality and real estate earnings analyst

Hotel revenue and margins improved, meaningfully narrowing Portsmouth Square’s losses while the San Francisco market slowly stabilizes.

Portsmouth Square shows a solid operational rebound at its Hilton San Francisco Financial District property. Quarterly hotel revenues increased to $12.661 million from $9.965 million, driven by higher room rates, strong occupancy and more rooms back in service, lifting income from operations to a positive $1.004 million.

Profitability is still challenged, with a quarterly net loss of $2.291 million, but this is much better than the prior loss of $4.036 million. Key lodging metrics—ADR of $234, 92% occupancy and RevPAR of $215—all improved year over year, suggesting healthier pricing power and demand at the hotel.

Year-to-date, revenues rose to $25.079 million and the net loss narrowed to $4.876 million, while capital expenditures of about $1.431 million funded renovations and added 14 rooms to inventory. Management notes that going-concern uncertainty was previously alleviated after a March 28, 2025 refinancing, and now emphasizes disciplined costs and selective investment as the San Francisco lodging market gradually recovers.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act Of 1934

Date of Report (Date of earliest event reported): February 17, 2026

PORTSMOUTH SQUARE, INC.

(Exact name of registrant as specified in its charter)

California		0-4057		94-1674111
(State or other jurisdiction		(Commission		(IRS Employer
of incorporation)		File Number)		Identification No.)

1516 S. Bundy Drive, Suite 200, Los Angeles, CA		90025
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (310) 889-2500

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
NONE		NONE		NONE

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 February 17, 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.

	PORTSMOUTH SQUARE, INC.
Dated: February 17, 2026	By:	/s/ Ann Marie Blair
		Ann Marie Blair,
		Principal Financial Officer

Exhibit 99.1

Portsmouth Square, Inc. Reports Second Quarter Fiscal 2026 Results; Hotel Performance Improves Year-Over-Year as Market Stabilization Continues

Los Angeles, California — February 17, 2026

Portsmouth Square, Inc. (the “Company” or “Portsmouth”) today announced financial results for the fiscal second quarter ended December 31, 2025. Portsmouth’s principal asset is the Hilton San Francisco Financial District hotel (the “Hotel”). Results discussed below are derived from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2025.

Second Quarter Fiscal 2026 Highlights (Three Months Ended December 31, 2025)

	●	Hotel revenues were $12.661 million, compared to $9.965 million for the prior-year quarter.
	●	During fiscal Q2 2026, the Hotel benefited from 14 additional guestrooms returned to available inventory in September 2025, improving room availability compared to the prior year.
	●	Net loss was $2.291 million, or $3.12 per share, compared to a net loss of $4.036 million, or $5.50 per share, in the prior-year quarter.
	●	Income (loss) from operations was $1.004 million, compared to $(0.264) million in the prior-year quarter.
	●	Average Daily Rate (ADR) was $234 versus $190 in the prior-year quarter; average occupancy was 92% versus 88%; RevPAR was $215 versus $168.
	●	Cash and cash equivalents were $3.408 million and restricted cash was $5.314 million as of December 31, 2025 (total cash, cash equivalents and restricted cash of $8.722 million).

Selected Hotel Expense Categories (Three Months Ended December 31, 2025)

The following Hotel expense categories are presented consistent with the Company’s segment disclosures in its Form 10-Q:

	●	Operating expenses: $9.208 million (prior-year quarter: $7.973 million)
	●	Utilities: $0.397 million (prior-year quarter: $0.432 million)
	●	Real estate taxes: $0.588 million (prior-year quarter: $0.429 million)
	●	Insurance: $0.234 million (prior-year quarter: $0.221 million)

Year-to-Date Highlights (Six Months Ended December 31, 2025)

	●	Hotel revenues were $25.079 million, compared to $21.785 million for the prior-year period.
	●	Net loss was $4.876 million, or $6.64 per share, compared to a net loss of $5.908 million, or $8.05 per share, for the prior-year period.
	●	Income from operations was $1.801 million versus $1.506 million in the prior-year period.
	●	ADR was $226 versus $200; average occupancy was 94% versus 92%; RevPAR was $211 versus $184.
	●	Capital expenditures were approximately $1.431 million for the six months ended December 31, 2025, primarily related to guest-room renovations and returning 14 rooms previously used as administrative offices to available inventory.

Liquidity and Capital Resources

As previously disclosed, management concluded that the going concern uncertainty was alleviated as of June 30, 2025, following the March 28, 2025 refinancing.

Management Commentary

David C. Gonzalez, President of Portsmouth, said:

“While the San Francisco lodging market continues to face headwinds, our second-quarter results reflect continued stabilization and improvement year-over-year. We benefited from higher room revenues driven by increased room availability and improved rate and occupancy dynamics. We also benefited from 14 additional guestrooms placed back into service in September 2025, which improved overall room availability and supported year-over-year revenue growth. We remain focused on disciplined expense management and selective capital investment to support the Hotel’s competitive positioning.”

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

“We continue to see encouraging signs of gradual recovery across San Francisco, including ongoing efforts to strengthen the City’s appeal for business and leisure travel. Although the pace of recovery can be uneven, we remain cautiously optimistic that improving conditions will support more durable demand over time.”

About Portsmouth Square, Inc.

Portsmouth Square, Inc. is a California corporation that, through its subsidiaries, owns and operates the Hilton San Francisco Financial District hotel.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws. Forward-looking statements are not statements of historical fact and are based on current expectations and assumptions. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including factors described in the Company’s filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended December 31, 2025 and its Annual Report on Form 10-K for the year ended June 30, 2025. The Company undertakes no obligation to update forward-looking statements except as required by law.

Investor Contact

Portsmouth Square, Inc.

1516 S. Bundy Drive, Suite 200

Los Angeles, CA 90025

(310) 889-2500

FAQ

How did Portsmouth Square, Inc. (PRSI) perform in fiscal Q2 2026?

Portsmouth Square delivered stronger fiscal Q2 2026 results with higher hotel revenue and a smaller net loss. Hotel revenues rose to $12.661 million, net loss narrowed to $2.291 million, and income from operations turned positive at $1.004 million compared with a loss a year earlier.

What were Portsmouth Square (PRSI) key hotel metrics for Q2 2026?

Key hotel metrics improved significantly year-over-year for Portsmouth Square. Average Daily Rate increased to $234 from $190, occupancy rose to 92% from 88%, and RevPAR climbed to $215 from $168, reflecting stronger pricing and demand at the Hilton San Francisco Financial District.

Did Portsmouth Square, Inc. (PRSI) reduce its net loss year-over-year?

Yes, Portsmouth Square significantly reduced its net loss in fiscal Q2 2026. The company reported a net loss of $2.291 million, or $3.12 per share, compared with a $4.036 million loss, or $5.50 per share, in the prior-year quarter, reflecting improved hotel performance.

What were Portsmouth Square (PRSI) year-to-date results through December 31, 2025?

Year-to-date results showed higher revenue and a smaller net loss for Portsmouth Square. For the six months ended December 31, 2025, hotel revenues reached $25.079 million versus $21.785 million, and net loss narrowed to $4.876 million from $5.908 million a year earlier.

How much cash did Portsmouth Square, Inc. (PRSI) hold at December 31, 2025?

Portsmouth Square reported a solid cash position at December 31, 2025. Cash and cash equivalents were $3.408 million and restricted cash was $5.314 million, for total cash, cash equivalents and restricted cash of $8.722 million supporting ongoing operations and capital projects.

What capital investments did Portsmouth Square (PRSI) make in the first half of fiscal 2026?

Portsmouth Square invested heavily in its hotel during the first half of fiscal 2026. Capital expenditures of approximately $1.431 million focused on guest-room renovations and converting 14 rooms formerly used as administrative offices back into revenue-generating inventory.

What does Portsmouth Square management say about the San Francisco hotel market outlook?

Management describes the San Francisco lodging recovery as gradual but improving. Executives cited stabilizing conditions, better room revenues and efforts to enhance the city’s appeal, while emphasizing disciplined expense management and selective capital investment amid ongoing headwinds and an uneven recovery path.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 24.0 KB

Other Documents

• EX-101 XBRL SCHEMA FILE 2.9 KB
• EX-101 XBRL LABEL FILE 33.4 KB
• EX-101 XBRL PRESENTATION FILE 21.8 KB