St. Joe Company reported first‑quarter 2026 revenue of $99.1 million, a 5.3 % increase from the $94.2 million earned in the same period last year. The rise was driven mainly by a record $44.7 million in hospitality revenue, up 13 %, and a modest 4 % increase in real‑estate sales to $39.7 million. Leasing revenue, however, fell 10 % to $14.7 million after the company sold a senior‑living asset, offsetting some of the hospitality upside.
Net income fell 21 % to $13.9 million, or $0.24 per share, from $17.5 million in Q1 2025. The decline was largely caused by a sharp drop in equity income from the Latitude Margaritaville Watersound joint venture, where slower home closings reduced the company’s share of profits. Management noted that, despite the lower joint‑venture income, margins in the hospitality and leasing segments improved—hospitality gross margin rose to 24.4 % and leasing margin to 61.2 %—reflecting stronger pricing power and cost discipline in those recurring‑revenue streams.
The company’s cash position remains robust, with $136.3 million on hand, and it continued its disciplined capital allocation policy by declaring a quarterly dividend of $0.16 per share. Management emphasized that the record hospitality performance and the growing residential pipeline—1,380 homesites under contract—support a long‑term shift toward recurring revenue. "Building on a record year in 2025, the first‑quarter 2026 revenue of $99.1 million was the Company’s highest first‑quarter revenue outside of the one‑off timberland sale in 2014," said President, CEO, and Chairman Jorge Gonzalez.
Gonzalez added that the company is "improving profitability, as evidenced by the increase in margins in hospitality and leasing," while acknowledging that the net‑income decline was driven by the joint‑venture slowdown. "Even though our revenue and net operating income increased for the quarter, our net income decreased primarily because of a lower equity…" he explained.
Market reaction to the results was muted, with the stock falling 2.71 % on the day of the earnings release, closing at $69.03. Investors appeared to weigh the revenue growth and margin expansion against the earnings decline and the headwind from the joint‑venture slowdown, leading to a cautious response.
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