Portsmouth Square Inc (PRSI) reported QQ2 2025 revenue of $9.965 million with a minimal gross profit of $32 thousand and an EBITDA of $0.541 million, yielding an EBITDA margin of 5.4%. The quarter posted a operating loss of $0.264 million and a net loss of $4.036 million, driven largely by an elevated interest expense of $3.742 million and an aggregate other income/expense impact of approximately $3.772 million. Despite a modest level of operating profitability (EBITDA positive), ongoing financing costs and non-cash or non-operating charges produced a meaningful bottom-line shortfall, culminating in a diluted EPS of -$5.50 on 734,187 shares.
From a cash-flow perspective, operating cash flow was negative at -$2.993 million, with capital expenditures of $0.346 million and free cash flow of -$3.327 million for the quarter. The balance sheet shows total assets of $39.646 million against total liabilities of $160.564 million, yielding a negative stockholders’ equity of -$120.918 million. The company also reported a current ratio of 0.15, quick ratio of 0.15, and cash ratio of 0.10, indicating stretched liquidity and a high reliance on colleague or external financing to fund ongoing operations.
Key takeaway for investors: in the near term, profitability remains constrained by the financing burden and residual fixed costs on a single-asset, Hilton-branded property in San Francisco. While EBITDA was positive, the substantial interest expense and net loss underscore a fragile liquidity profile unless operational improvements, cost optimization, or debt restructuring can meaningfully reduce cash burn and stabilize balance-sheet metrics. Given the absence of explicit forward guidance, the near-term outlook hinges on occupancy/ADR trends in San Francisco, the ability to renegotiate debt terms, and potential capital structure optimization.