Portsmouth Square Inc (PRSI) delivered a revenue increase in QQ3 2025, with reported revenue of $12.21 million, up 13.5% year-over-year and 22.5% quarter-over-quarter. EBITDA of $3.523 million produced an EBITDAR of 28.85%, signaling underlying operating leverage at the property level despite a modest gross margin of 13.5% and an operating margin of 10.35%. The quarter culmined in a net loss of $0.712 million driven by substantial non-operating costs, notably interest expense of $3.361 million and a negative swing in total other income/expenses, which eclipsed the positive operating performance.
From a liquidity and balance sheet perspective, PRSI exhibits meaningful leverage in the non-operating liability stack and limited near-term liquidity headroom. Reported current ratio of 0.23 underscores a stressed working capital position, while total stockholders’ equity sits at a negative $121.63 million on total assets of $45.37 million. The company generated negative cash flow from operating activities (-$8.854 million) and negative free cash flow (-$7.158 million) in QQ3 2025, with financing activities providing a material inflow (+$11.591 million) to support operations and capital activity, leaving ending cash around $9.976 million.
Absent a formal guidance outline, the near-term trajectory hinges on the hotel’s ability to sustain occupancy and peak effective rates (RevPAR drivers), optimize controllable costs, and secure further capital or refinancing on favorable terms. In the current configuration, PRSI presents an asymmetric risk/return profile: robust EBITDA relative to net income and a fragile liquidity/equity base, which implies a high-sensitivity to macro travel demand, interest costs, and financing conditions.