Key Highlights

  • GAAP net loss was USD 19.9 million, or USD 0.05 per share, versus income of USD 0.39 a year earlier.
  • Fee-related Earnings rose 13% to USD 63.7 million, and the Margin widened to 84.2% from 82.3% a year earlier.
  • Distributable earnings fell 12% to USD 49.5 million, or USD 0.12 per share, after taxes of USD 11.5 million.
  • Assets under management were USD 32.8 billion, and permanent Capital made up 98% of fee-paying assets.

GAAP Results

Pershing Square Inc. (NYSE:PS), an alternative asset management company that manages pools of permanent capital, reported third-quarter 2026 total Revenue of USD 56.6 million, versus USD 66.2 million a year earlier. Management fees were USD 56.6 million versus USD 62.3 million, and there were no performance fees against USD 3.9 million. Total expenses were USD 76.7 million versus USD 41.9 million, led by employee compensation and benefits of USD 70.5 million versus USD 5.7 million, producing an operating loss of USD 20.1 million versus Operating Income of USD 24.2 million.

Non-operating items included an unrealized gain of USD 19.2 million on shares of a held investment, an unrealized loss of USD 3.5 million on shares of its own affiliated vehicle, and interest expense of USD 3.9 million. The net loss was USD 18.4 million, and the net loss attributable to the company was USD 19.9 million, or USD 0.05 per share, compared with Net Income of USD 155.5 million, or USD 0.39.

Fee-Related and Distributable Earnings

On a non-GAAP basis the picture is firmer. Fee-related earnings revenue was USD 75.6 million, up 10%, and fee-related earnings were USD 63.7 million, up 13%, a margin of 84.2% versus 82.3%. Distributable earnings before tax were USD 61.0 million, up 8%. After taxes of USD 11.5 million, since the company became subject to corporate income tax following its corporate conversion in connection with the combined IPO, distributable earnings were USD 49.5 million, or USD 0.12 per share, down 12% from USD 0.14 on 400.0 million shares.

The gap between GAAP and non-GAAP results is largely compensation. Employee compensation and benefits on a GAAP basis were USD 70.5 million, whereas fee-related earnings count only USD 5.7 million of such expense, so the GAAP loss mostly reflects compensation charges outside the fee-related measure.

Assets and Balance Sheet

Assets under management were USD 32.8 billion, up 0.9% in the quarter, 6.9% year to date and 4.2% over twelve months. In the quarter inflows were USD 18 million, Market Value rose USD 836 million and outflows were USD 565 million. Fee-paying Assets rose 3.2% to USD 22.96 billion, and 98% of them, USD 22.5 billion, were permanent capital.

Net cash and investments were USD 642 million, or USD 1.61 per share, made up of USD 939 million of cash and investments less USD 297 million of debt, composed of a USD 100 million term Loan and a USD 197 million revolver, both maturing in April 2029. Market Capitalization at the September 30 price of USD 55.94 was USD 22.4 billion. The company paid a Dividend of USD 0.103 per share on October 20, 2026 to holders of record on October 12.

Flows and Distributable Earnings Markers

Items to track include net flows after quarter outflows of USD 565 million, the effect of corporate taxes on distributable earnings, compensation charges that separate GAAP from fee-related results, and the Fair Value movement of the company's own investments. Chief executive Bill Ackman and chief Investment officer Ryan Israel host an investor call and live question session on November 3.