Executive Summary
InnSuites Hospitality Trust (IHT) reported QQ1 2026 results reflecting a modest top-line improvement within a still-fragmented hotel market and a clearer path to margin stabilization, albeit with a negative bottom-line outcome on a reported basis. Revenue reached $2.206 million, up 27.29% year over year and 20.86% sequentially, while gross profit of $1.202 million produced a healthy gross margin of approximately 54.5%, aided by favorable cost structure and revenue mix. EBITDA stood at $0.405 million with an EBITDA margin around 18.38%, and operating income was $0.222 million (operating margin ≈ 10.08%), signaling improving operating leverage as the portfolio benefits from leaner cost management and potential occupancy gains.
Net income remained negative at $0.121 million, with a net margin of roughly -5.49%. The year-over-year net income move is negative on the reported basis (-30.13% YoY), but the quarter showed a meaningful QoQ improvement (+56.21%) as cost controls and stronger operations begin to offset fixed-cost pressure. Earnings per share were -0.014, down 32.08% YoY but up 53.33% QoQ. Cash flow characteristics were constructive on an operating basis, with net cash provided by operating activities of $0.280 million and free cash flow of $0.280 million, though the balance sheet remains capital-intensive with material debt obligations and a very modest cash balance.
From a liquidity and solvency perspective, IHT ends QQ1 2026 with $13 thousand in cash and cash equivalents and total assets of about $14.0 million. Current assets and current liabilities are roughly $1.546 million and $1.366 million, yielding a modest current ratio near 1.13x. Total debt stands at approximately $12.735 million, with long-term debt at about $11.987 million and debt-to-equity around 2.87x. Net debt to EBITDA is materially elevated at roughly 31x, highlighting financing and refinancing risks amid a small-cap hotel REIT profile. Management commentary (not captured in the provided transcript) would be pivotal to gauge capital allocation plans, occupancy trends, and refinancing strategies moving into the balance of 2026.
Key Performance Indicators
QoQ: 36.29% | YoY:436.33%
QoQ: 270.65% | YoY:192.53%
QoQ: 56.21% | YoY:-30.13%
QoQ: 53.33% | YoY:-32.08%
Key Insights
Revenue: $2,205,763; YoY +27.29%; QoQ +20.86%
Gross Profit: $1,202,121; Gross Margin ~54.50%; YoY +436.33%; QoQ +36.29%
Operating Income: $222,396; Operating Margin ~10.08%; YoY +192.53%; QoQ +270.65%
Net Income: -$121,032; Net Margin -5.49%; YoY -30.13%; QoQ +56.21%
EPS: -0.014; Diluted EPS -0.014; YoY -32.08%; QoQ +53.33%
Earnings Quality: EBITDA $405,446; EBITDARatio ~0.1838; Operating cash flow $279,826; Free cash flow $279,826
Cash & Liquidity: Cash at end of period $13,004; Net change...
Financial Highlights
Revenue: $2,205,763; YoY +27.29%; QoQ +20.86%
Gross Profit: $1,202,121; Gross Margin ~54.50%; YoY +436.33%; QoQ +36.29%
Operating Income: $222,396; Operating Margin ~10.08%; YoY +192.53%; QoQ +270.65%
Net Income: -$121,032; Net Margin -5.49%; YoY -30.13%; QoQ +56.21%
EPS: -0.014; Diluted EPS -0.014; YoY -32.08%; QoQ +53.33%
Earnings Quality: EBITDA $405,446; EBITDARatio ~0.1838; Operating cash flow $279,826; Free cash flow $279,826
Cash & Liquidity: Cash at end of period $13,004; Net change in cash -$79,748; Net cash provided by operating activities $279,826; Cash from investing and financing activities show net decreases of -$195,898 and -$163,676 respectively
Balance Sheet: Total assets $14,027,617; Total current assets $1,546,322; Property, plant & equipment net $2,085,031; Total debt $12,735,220; Long-term debt $11,987,005; Cash & equivalents $13,004; Total stockholders’ equity $4,431,593; Current liabilities $1,366,104; Debt to equity ~2.87x; Current ratio ~1.13x; Net debt $12,722,216; Interest expense $151,203; Interest coverage ≈ 2.68x (EBITDA/Interest)
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.21M |
27.29% |
20.86% |
| Gross Profit |
1.20M |
436.33% |
36.29% |
| Operating Income |
222.40K |
192.53% |
270.65% |
| Net Income |
-121.03K |
-30.13% |
56.21% |
| EPS |
-0.01 |
-32.08% |
53.33% |
Management Commentary
Note: The earnings transcript for QQ1 2026 was not provided in the data set. Consequently, no management quotes or specific on-call remarks could be extracted. If a transcript becomes available, highlights would likely focus on: (1) occupancy trends and rate realization contributing to revenue growth; (2) cost containment initiatives and operating efficiency improvements; (3) liquidity management and debt refinancing strategies; (4) portfolio optimization or asset-level performance. In the absence of quotes, investors should monitor forward-looking commentary on refinancing plans, capex needs, and any strategic shifts in asset mix.
Forward Guidance
No formal guidance was included in the provided data. Given the current leverage, negative net income on a quarterly basis, and extremely tight cash position, guidance would plausibly address: debt refinancing timelines, expected occupancy and ADR (average daily rate) trajectory, and any anticipated capital expenditure or asset disposition plans. Absent explicit targets, investors should scrutinize liquidity runway, covenant terms, and sensitivity to interest rate changes. Key indicators to monitor include occupancy recovery pace, margin progression (especially fixed-cost leverage), debt maturity profiles, and potential refinancing windows in late 2025 to 2026.