AI Takeaway
EXR reported Q1 FY2026 revenue growth of 4.4% to $856.0M, but net income declined 11.0% to $241.0M as rising costs and higher depreciation compressed operating margin by 4.5 percentage points to 42.9%.
Revenue
$856.03M
++4.39% YoY
EPS (Basic)
$1.14
-10.94% YoY
Operating Income
$367.55M
-5.45% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue increased 4.4% year-over-year to $856.0M in Q1 FY2026, but cost of revenue rose faster at 6.6% to $238.3M, squeezing gross profit and contributing to a 4.5 percentage point decline in operating margin from 47.4% to 42.9%.
Source: Source: 10-Q Income Statement
Net income fell 11.0% year-over-year to $241.0M, with basic and diluted EPS both declining from $1.28 to $1.14 (-10.9%), reflecting both the margin compression and higher below-the-line costs relative to the prior year period.
Source: Source: 10-Q Income Statement
Operating cash flow remained robust at $489.9M, up 1.8% year-over-year, supported by $185.8M in depreciation and amortization, indicating the business continues to generate strong cash despite reported earnings pressure.
Source: Source: 10-Q Cash Flow Statement
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Upgrade to unlockCost of revenue grew 6.6% year-over-year, outpacing revenue growth of 4.4%, causing operating margin to compress by 4.5 percentage points to 42.9%. If cost pressures persist—particularly in property operating expenses and payroll—profitability could continue to deteriorate.
Source: Source: 10-Q Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.14 versus the $1.13 analyst consensus — a +1.2% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $856.03M | $820M | +4.39% |
Cost of Revenue | $238.3M | $223.58M | +6.58% |
Operating Income | $367.55M | $388.73M | -5.45% |
Net Income | $240.98M | $270.88M | -11.04% |
EPS (Basic) | $1.14 | $1.28 | -10.94% |
EPS (Diluted) | $1.14 | $1.28 | -10.94% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $29.1B | $28.99B | +0.36% |
Total Liabilities | $14.89B | $14.22B | +4.72% |
Stockholders' Equity | $13.33B | $13.89B | -3.99% |
Cash & Equivalents | $138.99M | $119.56M | +16.25% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $489.86M | $481.4M | +1.76% |
Investing Cash Flow | $-47.5M | $-342.04M | +86.11% |
Financing Cash Flow | $-442.13M | $-159.62M | -176.99% |
Share Buybacks | $1.44M | $0 | — |
D&A | $185.79M | $180.36M | +3.02% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 42.9% | 47.4% | -4.47% |
Net Margin | 28.2% | — | — |
ROE | 1.8% | — | — |
ROA | 0.8% | — | — |
Debt to Equity | $1.117 | — | — |
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EXR reported Q1 FY2026 revenue of $856.0M, up 4.4% year-over-year, but net income declined 11.0% to $241.0M as costs rose faster than revenue. Basic EPS came in at $1.14, down from $1.28 in the prior year period.
EXR's cost of revenue grew 6.6%—faster than its 4.4% revenue growth—compressing operating margin by 4.5 percentage points to 42.9%. Additional below-the-line pressures, likely higher interest expense given the company's $14.9B in liabilities, further reduced net income to $241.0M from $270.9M.
EXR holds $29.1B in total assets and generates strong operating cash flow of $489.9M, but carries $14.9B in total liabilities with a debt-to-equity ratio of 1.12. While cash increased 16.2% to $139.0M, the rising leverage and declining equity base warrant monitoring.
Yes, operating cash flow grew 1.8% to $489.9M, and investing outflows dropped sharply from -$342.0M to -$47.5M, suggesting significantly reduced capital spending or acquisitions. However, financing outflows surged to -$442.1M from -$159.6M, likely reflecting higher debt repayments or dividends.
The key risks include rising operating costs outpacing revenue growth, increasing financial leverage with a debt-to-equity ratio of 1.12, and a significant 11% decline in net income despite top-line growth. Elevated financing outflows of $442.1M also suggest potential constraints on future financial flexibility.