$PS · PERSHING SQUARE INC.
Pershing Square Inc. reported Q3 2026 results with a GAAP net loss of $(19.9M) or $(0.05) per share, driven by a surge in employee compensation to $70.5M (vs. $5.7M in Q3 2025) following the Combined IPO and corporate conversion. Total revenue declined to $56.6M from $66.2M YoY as performance fees evaporated. On a non-GAAP basis, Fee-Related Earnings grew 13% to $63.7M with an 84.2% margin, while Distributable Earnings fell 12% to $49.5M after an $11.5M corporate tax charge.
- GAAP net loss attributable to PS Inc. was $(19.9M) or $(0.05)/share vs. $155.5M profit in Q3 2025.
- Total revenue fell to $56.6M from $66.2M YoY; performance fees dropped to $0 from $3.9M.
- Employee compensation and benefits exploded to $70.5M from $5.7M YoY, driving a $(20.1M) operating loss.
- Fee-Related Earnings (non-GAAP) rose 13% YoY to $63.7M with an 84.2% FRE margin.
- Total AUM reached $32.8B, up 0.9% QoQ; Fee-Paying AUM hit $23.0B, 98% in permanent capital vehicles.
Extended-hours trading shows PS at $47.60, up +2.10% vs the regular close of $46.62 and +1.99% above the filing-time price. The market appears to be looking past the GAAP loss to the 13% FRE growth and the $0.12 DE per share dividend capacity.
The stark GAAP vs. non-GAAP divergence captures the growing pains of a newly public alternative asset manager: operating loss widens while the core fee engine quietly compounds at double-digit rates.
As a recently public alternative asset manager (IPO April 2026), PS is transitioning to corporate taxation — Q3 2026 is the first quarter reflecting U.S. corporate income tax, which reduced Distributable Earnings by $11.5M. The 98% permanent capital FPAUM base is structurally differentiated vs. peers reliant on redemption-prone LP capital.
Unrealized losses on HHH shares held at fair value totaled $(55.4M) YTD and $(77.0M) LTM; PSUS shares also recorded $(53.9M) in unrealized losses YTD. These mark-to-market swings on permanent capital holdings directly flow through GAAP net income and could continue to drive volatility in reported results.