Seaport Entertainment Group Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. The quarter’s numbers.

Key takeaways

Revenue fell 20.7% year-over-year: Total revenues were $12.7 million, down $3.3 million or 20.7% from $16.1 million a year earlier. Hospitality revenue accounted for most of the decline. Source
Net loss widened to $44.1 million: Net loss attributable to common stockholders was $(44.1) million, or $(3.47) per share, compared with $(31.9) million, or $(2.51) per share, a year earlier. Source
Non-GAAP loss narrowed 21.4%: Non-GAAP adjusted net loss attributable to common stockholders was $(17.9) million, or $(1.41) per share, against $(22.8) million, or $(1.79) per share, a year earlier. Source
Sadie’s and Garden Bar opened: Sadie’s, an all-day New American neighborhood restaurant, and Sadie’s Garden Bar, an outdoor bar with regular programming and large-scale events, opened on the Cobblestones. Source
Balloon Museum set for Tin Building: Lux Entertainment is opening its U.S. flagship of Balloon Museum in the Tin Building under a five-year lease. The prior release also reported this lease. Source
Depreciation and amortization more than doubled: Depreciation and amortization was $20.1 million against $8.1 million a year earlier, the largest change among expense lines. Total expenses were $52.7 million against $48.8 million. Source
Cash and restricted cash rose: Cash, cash equivalents and restricted cash were $144.7 million at March 31, 2026, against $87.4 million at December 31, 2025, with restricted cash at $29.9 million. Source
250 Water Street sold for $143.0 million: The 250 Water Street development site sold for $143.0 million in February 2026, with net proceeds of $76.1 million after repaying $61.3 million of variable-rate debt and closing costs. Source

“With Sadie’s opening, Balloon Museum coming to the Tin Building, The Rooftop at Pier 17 concert series returning, and the Las Vegas Aviators’ season underway, we are giving people more reasons to show up, connect, and engage”
Matt Partridge, President and Chief Executive Officer of Seaport Entertainment Group

What changed from last quarter

New: The previously announced 10-year Cobblestones agreement is now identified as being with Public Service, a Brooklyn-based arts and hospitality team. Source
New: Sadie's restaurant and Sadie's Garden Bar opened on the Cobblestones; the prior release had announced plans to open Sadie's. Source
New: GITANO NYC moves from a license agreement to a lease effective April 1, 2026, after quarter end. Source
New: Lux Entertainment announced that Balloon Museum will feature a major installation by artist Marina Abramović. Source

Results and net loss

Revenue fell 20.7% year-over-year: Total revenues were $12.7 million, down $3.3 million or 20.7% from $16.1 million a year earlier. Hospitality revenue accounted for most of the decline. Source
Net loss widened to $44.1 million: Net loss attributable to common stockholders was $(44.1) million, or $(3.47) per share, compared with $(31.9) million, or $(2.51) per share, a year earlier. Source
Non-GAAP loss narrowed 21.4%: Non-GAAP adjusted net loss attributable to common stockholders was $(17.9) million, or $(1.41) per share, against $(22.8) million, or $(1.79) per share, a year earlier. Source
Operating loss deepened on amortization: Operating loss was $(42.5) million against $(32.7) million. Interest was a $(0.3) million expense, against $1.0 million of income a year earlier. Source

Revenue by line

Hospitality revenue fell about 34%: Hospitality revenue was $5.1 million against $7.7 million a year earlier, and hospitality costs were $10.2 million against $15.7 million. Source
Entertainment revenue rose about 7%: Entertainment revenue was $4.5 million against $4.2 million, while entertainment costs were $7.3 million against $7.1 million. Source
Rental revenue fell about 27%: Rental revenue was $2.8 million against $3.8 million. Other revenue was $0.3 million in both periods. Source

“In a world where digital content is everywhere, in person experiences matter more and more”
Matt Partridge, President and Chief Executive Officer of Seaport Entertainment Group

Venues and openings

Sadie’s and Garden Bar opened: Sadie’s, an all-day New American neighborhood restaurant, and Sadie’s Garden Bar, an outdoor bar with regular programming and large-scale events, opened on the Cobblestones. Source
Balloon Museum set for Tin Building: Lux Entertainment is opening its U.S. flagship of Balloon Museum in the Tin Building under a five-year lease. The prior release also reported this lease. Source
Public Service opening in Cobblestones: Public Service is opening its first Manhattan experience in about 11,000 square feet in the historic Cobblestones, under the 10-year agreement. Source
Rooftop named top outdoor venue: The Rolling Stone Audio Awards named The Rooftop at Pier 17 the Best Outdoor Music Venue in the country in 2026. Source

Costs and non-GAAP adjustments

Operating and G&A costs declined: Operating costs were $7.0 million against $8.1 million, and general and administrative expense was $8.1 million against $9.8 million. Source
Depreciation and amortization more than doubled: Depreciation and amortization was $20.1 million against $8.1 million a year earlier, the largest change among expense lines. Total expenses were $52.7 million against $48.8 million. Source
Restructuring costs added back: The non-GAAP reconciliation adds back $3.4 million of restructuring costs and $1.1 million of non-cash compensation, and deducts $0.6 million of lease termination fee income. Source
Non-operating items reduced pre-tax result: Other income (loss), net was $(2.2) million, equity in losses from unconsolidated ventures was $(1.0) million, and a $(0.3) million impairment provision was recorded. Source

Balance sheet and cash

Cash and restricted cash rose: Cash, cash equivalents and restricted cash were $144.7 million at March 31, 2026, against $87.4 million at December 31, 2025, with restricted cash at $29.9 million. Source
Debt fixed at 4.9% and secured: Debt outstanding was $39.1 million at a fixed 4.9% rate, secured on specific assets, with maturity in 2038. Year-end debt was $100.4 million at a 6.95% effective rate, per the prior release. Source
Total assets fell with asset sale: Total assets were $541.8 million against $650.1 million at December 31, 2025, as assets held for sale of $137.4 million left the balance sheet. Source

Asset sale and share count

250 Water Street sold for $143.0 million: The 250 Water Street development site sold for $143.0 million in February 2026, with net proceeds of $76.1 million after repaying $61.3 million of variable-rate debt and closing costs. Source
Shares outstanding edged higher: Shares issued and outstanding were 12,806 thousand at March 31, 2026, up from 12,777 thousand at December 31, 2025. Weighted average diluted shares were 12,723 thousand. Source

Strategy and positioning

Platform framed as entertainment and hospitality: The company describes its focus as delivering experiences through restaurant, entertainment, sports, retail and hospitality offerings integrated into real estate. Source
Pier 17 restaurant moved to lease: GITANO NYC, a restaurant of about 15,000 square feet on Pier 17, moves from a license to a lease effective April 1, 2026. Source

Management view of demand

In-person experience framed as central: The CEO said in-person experiences matter more as digital content spreads, and that authenticity drives visitation, guest engagement and long-term value. Source
Busy season with events underway: The CEO described the company as entering its busiest period, citing Sadie’s opening, Balloon Museum, the Rooftop concert series and the Las Vegas Aviators season. Source

Coming up, as management said on 6 May 2026

Balloon Museum opening summer 2026: The prior release gave an anticipated opening for Balloon Museum in summer 2026, in the former Tin Building food and beverage space.
Public Service concept opening early 2027: The prior release said the new Cobblestones concept is expected to open in early 2027, with the concept to be announced in the coming months.
Rooftop concert series returning: The CEO said the Rooftop at Pier 17 concert series is returning as part of the busy season ahead. Source

Figures management reported

Figure	Reported
Space under Public Service agreement Source	approximately 11,000 square feet
GITANO NYC restaurant space Source	approximately 15,000 square feet

Earlier plans management reported on

Not stated: The 10-year management and lease agreement, signed in Q4 2025, is described as previously announced. Source
Not stated: The prior release said Sadie’s would open in spring 2026. This release reports that it opened.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

‌Exhibit 99.1

SEAPORT ENTERTAINMENT GROUP REPORTS FIRST QUARTER 2026 RESULTS

NEW YORK, NY, May 6, 2026 - Seaport Entertainment Group Inc. (NYSE: SEG) (“Seaport Entertainment Group,” “SEG,” “we,” “our," or the “Company”) announced today its operating and financial results for the quarter ended March 31, 2026.

“We entered 2026 with strong momentum, and the energy across our portfolio is building as we move into our busiest period of the year. With Sadie’s opening, Balloon Museum coming to the Tin Building, The Rooftop at Pier 17 concert series returning, and the Las Vegas Aviators’ season underway, we are giving people more reasons to show up, connect, and engage,” said Matt Partridge, President and Chief Executive Officer of Seaport Entertainment Group. “In a world where digital content is everywhere, in person experiences matter more and more, and the authenticity of those experiences is central to creating the kinds of moments that drive visitation, deepen guest engagement, and build long-term value across our destinations.”

Recent Updates

Disclosed the previously announced 10-year management and lease agreement signed in Q4 2025 with a Brooklyn-based arts, culture, and hospitality concept is with Public Service, the creative and curatorial team behind Public Records. Public Service is opening its first experience in Manhattan within the Seaport in approximately 11,000 square feet in the historic Cobblestones.

Opened Sadie’s, an all-day New American neighborhood restaurant, and Sadie’s Garden Bar, an expansive outdoor bar on the historic Cobblestones that hosts regular programming and large-scale events.

Transitioned GITANO NYC, a modern Mexican waterfront restaurant and nightlife destination occupying approximately 15,000 square feet on Pier 17, from a license agreement to a lease effective April 1, 2026.

Select First Quarter 2026 Results

Completed the sale of the 250 Water Street development site for $143.0 million in February 2026, generating net proceeds of $76.1 million after repaying $61.3 million of variable-rate debt and closing costs.

Executed a five-year lease with Lux Entertainment to open its U.S. flagship of Balloon Museum, the award-winning interactive contemporary art experience, in the Tin Building. Lux Entertainment further announced the museum will feature a major installation from renowned artist, Marina Abramović.

The Rooftop at Pier 17 was named by the 2026 Rolling Stone Audio Awards as the Best Outdoor Music Venue in the country.

Q1 2026 Net Loss Attributable to Common Stockholders increased 38.3% year-over-year to ($44.1) million and, on a per share basis, increased 38.2% year-over-year to ($3.47) per basic and diluted share.

Q1 2026 Non-GAAP Adjusted Net Loss Attributable to Common Stockholders improved 21.4% year-over-year to ($17.9) million and, on a per share basis, improved 21.2% to ($1.41) per basic and diluted share.

Quarterly Results

The table below provides a summary of the Company’s unaudited consolidated operating and financial results for the three months ended March 31, 2026 and March 31, 2025:

	For the Three Months Ended March 31, 2026	For the Three Months Ended March 31, 2025	Variance to Comparable Period in Prior Year
Total revenues	$12,737	$16,069	$(3,332)	(20.7%)
Net loss	$(43,753)	$(31,538)	$(12,215)	(38.7%)
Net loss attributable to common stockholders	$(44,103)	$(31,888)	$(12,215)	(38.3%)
Net loss attributable to common stockholders per share	$(3.47)	$(2.51)	$(0.96)	(38.2%)
Non-GAAP Adjusted Net Loss Attributable to Common Stockholders	$(17,880)	$(22,758)	$4,878	21.4%
Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share	$(1.41)	$(1.79)	$0.38	21.2%

Note: $ in thousands, except per share data.

See the “Non-GAAP Financial Measures” and “Reconciliation of Net Loss to Non-GAAP Adjusted Net Loss Attributable to Common Stockholders” sections in this press release for a discussion and reconciliation of net loss attributable to common stockholders to non-GAAP financial measures, including Non-GAAP Adjusted Net Loss Attributable to Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share.

Balance Sheet

As of March 31, 2026, the Company had $144.7 million in cash, cash equivalents, and restricted cash and $39.1 million of debt outstanding at a fixed interest rate of 4.9%. The Company’s outstanding debt is asset-specific, secured debt, and the maturity date is in 2038.

Investor Conference Call and Webcast

The Company will host a conference call to present its first quarter 2026 results on Thursday, May 7, 2026, at 8:30 AM ET.

A live audio webcast of the conference call will be available in listen-only mode through the “Investors” section of the Company’s website at www.seaportentertainment.com. Participants are encouraged to log in ten minutes prior to the scheduled start time to register. A replay of the audio webcast will be available on the Company’s website shortly after the conclusion of the call and until May 21, 2026.

To dial into the Telephone Conference Call:

Domestic: 1-800-717-1738

International: 1-646-307-1865

Conference Call Playback:

Domestic: 1-844-512-2921

International: 1-412-317-6671

Passcode: 1111876

About Seaport Entertainment Group

Seaport Entertainment Group (NYSE: SEG) is a premier entertainment and hospitality company formed to own, operate, and develop a unique collection of assets positioned at the intersection of entertainment and real estate. Seaport Entertainment Group’s focus is to deliver unparalleled experiences through a combination of restaurant, entertainment, sports, retail, and hospitality offerings integrated into one-of-a-kind real estate that redefine entertainment and hospitality. For more information, please visit www.seaportentertainment.com.

Safe Harbor and Forward-Looking Statements

Forward-looking statements notice

This press release includes forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements include, but are not limited to, statements concerning the Company’s plans, goals, objectives, outlook, expectations, and intentions. Forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause the Company’s results to differ materially from current expectations include, but are not limited to: risks related to macroeconomic conditions; risks related to the impact of tariffs and global trade disruptions on the Company and its tenants, including impacts on inflation, interest rates, supply chains and consumer sentiment and spending; changes in discretionary consumer spending patterns or consumer tastes or preferences; risks associated with the Company’s investments in real estate assets and trends in the real estate industry; the Company’s ability to obtain operating and development capital on favorable terms, or at all; the availability of debt and equity capital; the Company’s ability to renew its leases or re-lease available space; the Company’s ability to compete effectively; the impact of uncertainty around, and disruptions to, the Company’s supply chain; risks related to the concentration of the Company’s properties and operations in New York City and the Las Vegas area; social, political and economic instability, unrest and other circumstances beyond the Company’s control which could adversely affect the Company’s business operations; adverse changes in laws or regulations governing the Company’s operation, changes in the interpretation thereof, or newly enacted laws or regulations could require changes to the Company’s business practices, adversely impact the Company’s revenues and/or impose additional costs on the Company; extreme weather conditions or climate change that may cause property damage or interrupt business; the impact of water and electricity shortages on the Company’s business; the Company’s ability to successfully identify, acquire, develop, and manage properties on terms that are favorable to it; the contamination of the Company’s properties by hazardous or toxic substances; catastrophic events or geopolitical conditions that may disrupt the Company’s business; actual or threatened terrorist activity and other acts of violence, or the perception of a heightened threat of such events; losses that are not insured or that exceed the applicable insurance limits; risks related to the disruption or failure of information technology networks and related systems - both the Company’s and those operated and managed by third parties; the Company’s ability to attract and retain key personnel; the Company’s inability to control certain properties due to the joint ownership of such property and inability to successfully attract desirable strategic partners, including joint venture partners; risks related to the concentration of ownership of the Company’s common stock by Pershing Square; risks related to the Company’s separation from, and relationship with, Howard Hughes Holdings Inc. (“Howard Hughes”); and the other factors detailed in the Company’s filings with the SEC. Forward-looking statements speak only as of the date of this press release. The Company is under no obligation to publicly update or revise and forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

Our reported results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We also disclose Non-GAAP Adjusted Net Loss Attributable to Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share, each of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they provide a meaningful supplement to the Company’s operating performance and period-over-period changes without regard to certain potential distortions or certain non-cash items.

Non-GAAP Adjusted Net Loss Attributable to Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements. Accordingly, they should not be considered alternatives to net loss as a performance measure or cash flows from operating activities as reported on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures.

To derive Non-GAAP Adjusted Net Loss Attributable to Common Stockholders, GAAP net loss attributable to common stockholders is adjusted to exclude depreciation and amortization, as well as gains and losses from the sale of assets, gains or losses on extinguishment of debt, and provisions for impairment, and these adjustments include the pro rata share of such adjustments of unconsolidated subsidiaries. Additionally, adjustments are made for non-cash revenues and expenses such as straight-line rental revenue and expenses, amortization of above- and below-market lease related intangibles, and non-cash compensation; other non-recurring items such as termination fees, leadership transition costs, corporate restructuring costs, and legal settlements; and certain capitalized items such as capitalized interest. Please see the reconciliation table provided in this press release for a reconciliation of Non-GAAP Adjusted Net Loss Attributable to Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share to the most directly comparable GAAP measure of net loss.

Availability of Information on SEG’s Website and Social Media Channels

Investors and others should note that SEG routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the SEG Investor Relations website. The Company uses these channels as well as social media channels (e.g., LinkedIn www.linkedin.com/company/new-york-seaportentertainment) as a means of disclosing information about the Company's business to our customers, employees, investors, and the public. While not all of the information that the Company posts to the SEG Investor Relations website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in SEG to review the information that it shares through its website and on the Company's social media channels. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Email Alerts" in the "Resources" section of the SEG Investor Relations website at https://ir.seaportentertainment.com/resources/email-alerts. The contents of these websites are not incorporated by reference into this press release or any report or document SEG files with the SEC, and any references to the websites are intended to be inactive textual references only.

Consolidated Balance Sheets

(in thousands, except par value amounts)

	(Unaudited)
	March 31, 2026	December 31, 2025
ASSETS
Buildings and equipment	$514,821	$537,243
Less: accumulated depreciation	(223,599)	(225,662)
Land	9,497	9,497
Net investment in real estate	300,719	321,078
Assets held for sale	-	137,441
Investments in unconsolidated ventures	17,061	16,676
Cash and cash equivalents	114,828	77,808
Restricted cash	29,867	9,586
Accounts receivable, net	6,886	7,149
Deferred expenses, net	9,781	3,539
Operating lease right-of-use assets, net	44,657	45,102
Other assets, net	18,006	31,743
Total assets	$541,805	$650,122
LIABILITIES
Mortgages payable, net	$38,361	$38,348
Mortgages payable related to assets held for sale	-	61,300
Operating lease obligations	56,605	56,527
Accounts payable and other liabilities	24,009	27,540
Total liabilities	118,975	183,715
EQUITY
Preferred stock, $0.01 par value, 20,000 shares authorized, none issued or outstanding	-	-
Common stock, $0.01 par value, 480,000 shares authorized, 12,806 issued and outstanding as of March 31, 2026, and 12,777 issued and outstanding issued or outstanding as of December 31, 2025	129	128
Additional paid in capital	625,306	624,781
Accumulated deficit	(212,505)	(168,402)
Total Stockholders' equity	412,930	456,507
Noncontrolling interest in subsidiary	9,900	9,900
Total equity	422,830	466,407
Total liabilities and equity	$541,805	$650,122

Consolidated Statements of Operations

(in thousands, except per share amounts)

(Unaudited)

	Three months ended March 31,
	2026	2025
REVENUES
Hospitality revenue	$5,108	$7,735
Entertainment revenue	4,498	4,209
Rental revenue	2,782	3,789
Other revenue	349	336
Total revenues	12,737	16,069
EXPENSES
Hospitality costs	10,227	15,742
Entertainment costs	7,288	7,077
Operating costs	6,984	8,079
General and administrative	8,056	9,782
Depreciation and amortization	20,113	8,091
Total expenses	52,668	48,771
OTHER
Provision for Impairment	(339)	-
Other income (loss), net	(2,249)	-
Total other	(2,588)	-
Operating loss	(42,519)	(32,702)
Interest income (expense)	(270)	994
Equity in earnings (losses) from unconsolidated ventures	(964)	170
Loss before income taxes	(43,753)	(31,538)
Income tax expense (benefit)	-	-
Net loss	(43,753)	(31,538)
Preferred distributions to noncontrolling interest in subsidiary	(350)	(350)
Net loss attributable to common stockholders	$(44,103)	$(31,888)
Total weighted average shares
Basic	12,723	12,694
Diluted	12,723	12,694
Net loss per share attributable to common stockholders
Basic	$(3.47)	$(2.51)
Diluted	$(3.47)	$(2.51)

Reconciliation of Net Loss to Non-GAAP Adjusted

Net Loss Attributable to Common Stockholders

(in thousands, except per share amounts)

(Unaudited)

	Three months ended March 31,
	2026	2025
Net loss	$(43,753)	$(31,538)
Preferred distributions to noncontrolling interest in subsidiary	(350)	(350)
Net loss attributable to common stockholders	(44,103)	(31,888)
Adjustments:
Depreciation and amortization	20,446	8,098
Lease termination fee income	(570)	-
Non-cash compensation	1,091	2,037
Restructuring costs	3,397	-
Straight line rent, net	1,250	655
Capitalized interest	-	(1,660)
Provision for impairment	339	-
Other income	270	-
Non-GAAP adjusted net loss attributable to common stockholders	(17,880)	(22,758)
Total weighted average shares
Basic	12,723	12,694
Diluted	12,723	12,694
Non-GAAP adjusted net loss per share attributable to common stockholders
Basic	$(1.41)	$(1.79)
Diluted	$(1.41)	$(1.79)

Contacts
T: (212) 732-8257 ir@seaportentertainment.com
media@seaportentertainment.com