InnSuites Hospitality (IHT) Q3 2025 Earnings Report

InnSuites Hospitality Trust reported QQ3 2025 revenue of 1,825,128 USD with a gross margin of approximately 48.3%. Despite a modest year-over-year revenue uptick, the company remains unprofitable on a net basis, posting a net loss of -276,365 USD and an EPS of -0.03 for the quarter. Operating income was negative at -130,322 USD, and EBITDA stood at 44,445 USD, underscoring ongoing profitability pressures in a small hotel REIT portfolio. The reported YoY deterioration in net income (-549.8%) contrasts with a QoQ improvement (+25.48%), highlighting that the quarterly outcome continues to be influenced by non-operational items and financing costs rather than a material turnaround in operations. Liquidity and leverage remain defining features of IHT's near-term risk/reward profile. Cash and cash equivalents totaled 451,905 USD at quarter end, with total debt of 12,549,440 USD and net debt of 12,097,535 USD. The balance sheet shows a current ratio of 1.624 and a debt-to-capitalization ratio of 0.706, signaling meaningful leverage in a capital-intensive asset class. Free cash flow was positive at 105,230 USD, while net cash from operating activities was negative (-146,709 USD), driven by working capital movements (change in working capital of 518,705 USD and other non-cash items). These dynamics imply that sustaining or growing cash generation will depend on capacity to optimize occupancy levels, manage operating costs, and potentially refinance or restructure debt. Overall, the QQ3 2025 results reflect a small-scale hotel REIT navigating a high-leverage environment with limited profitability, while exhibiting modest liquidity and a path to cash flow stabilization only if occupancy, rate environments, and cost controls align favorably. Absent explicit management forward guidance in the provided data, investors should monitor occupancy trends, RevPAR dynamics, refinancing risk, and capital deployment decisions as the primary levers for a potential re-rating.