MacKenzie Realty Capital Inc. (MKZR) reported a difficult QQ1 2026 quarter characterized by a materially negative bottom line and constrained liquidity, driven by high operating costs and notable non-operating expenses. The quarter shows a net loss of $4.09 million, an EBITDA deterioration to $(5.83) million, and negative operating cash flow of $(2.02) million despite financing activity inflows. The company carries substantial short-term debt and an outsized asset base dominated by intangible and other non-current assets, with limited current assets to cover near-term liabilities, signaling elevated liquidity risk. On the balance sheet, total assets stand near $229 million with current liabilities of $142.68 million and short-term debt of $142.68 million, yielding a compressed liquidity profile (current ratio ≈ 0.03x). The retained earnings balance is deeply negative at $(89.28) million, and stockholders’ equity sits at roughly $56.73 million, implying a leveraged capital structure that could complicate near-term refinancing prospects. The quarter’s results underscore an urgent need for balance-sheet remediation, cash-flow enhancement, and potential asset/portfolio optimization to stabilize earnings power and repay or restructure maturities. Management commentary (where available) would be pivotal to confirm whether the deterioration reflects one-off items, impairment charges, or ongoing structural headwinds in the portfolio. This report lays out the quantitative baseline, identifies key risk factors, and provides a forward-looking view anchored in the disclosed numbers and market context.