AI Takeaway
REG delivered solid Q1 FY2026 results with revenue growing 8.3% YoY to $412.5M and net income surging 17.3% to $128.5M, while maintaining an industry-leading operating margin of ~71.9%.
Revenue
$412.45M
++8.28% YoY
Operating Income
$296.39M
++8.36% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue increased 8.3% YoY from $380.9M to $412.5M in Q1 FY2026, reflecting continued demand for REG's real estate portfolio and stable rental income streams.
Source: Source: 10-Q Financial Data, Income Statement
Operating margin held virtually flat at 71.86% (vs. 71.81% prior year), demonstrating disciplined cost management and the high-quality, low-variable-cost nature of REG's property operations.
Source: Source: 10-Q Financial Data, Key Ratios
Net income grew 17.3% YoY to $128.5M, outpacing revenue growth of 8.3%, suggesting improved efficiency below the operating line, potentially from lower interest costs or favorable non-operating items.
Source: Source: 10-Q Financial Data, Income Statement
2 more insights available
Upgrade to unlockLong-term debt increased 7.8% YoY to $5.0B, raising the debt-to-equity ratio to 0.85. In a higher-for-longer interest rate environment, refinancing this debt at elevated rates could pressure future earnings and cash flow. The company's ability to service this debt depends heavily on sustained rental income.
Source: Source: 10-Q Financial Data, Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.68 versus the $0.63 analyst consensus — a +7.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $412.45M | $380.91M | +8.28% |
Operating Income | $296.39M | $273.54M | +8.36% |
Net Income | $128.55M | $109.59M | +17.30% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $13.05B | $12.56B | +3.87% |
Total Liabilities | $5.88B | $5.68B | +3.48% |
Stockholders' Equity | $6.89B | $6.7B | +2.88% |
Long-Term Debt | $5B | $4.64B | +7.81% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $152.73M | $161.03M | -5.16% |
Investing Cash Flow | $-94.93M | $-180.15M | +47.31% |
Financing Cash Flow | $-32.9M | $35.77M | -191.98% |
D&A | $106.42M | $96.77M | +9.97% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 71.9% | 71.8% | +0.05% |
Net Margin | 31.2% | — | — |
ROE | 1.9% | — | — |
ROA | 1.0% | — | — |
Debt to Equity | $0.853 | — | — |
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REG's revenue grew 8.3% year-over-year to $412.5M in Q1 FY2026, up from $380.9M in the prior-year period. This growth reflects continued strength in the company's real estate portfolio and stable rental income generation.
The standout takeaway from REG's Q1 FY2026 earnings is that net income surged 17.3% YoY to $128.5M, outpacing revenue growth of 8.3%, while operating margin held steady at ~71.9%. However, operating cash flow dipped 5.2% to $152.7M, creating a divergence from net income that investors should monitor.
Based on the financial data, key risks include rising long-term debt (up 7.8% YoY to $5.0B), a notable divergence between net income growth and operating cash flow decline, and concentration in real estate assets totaling $13.05B. The financing cash flow reversal from +$35.8M to -$32.9M also signals potential liquidity considerations.
Yes, REG is solidly profitable in Q1 FY2026, reporting net income of $128.5M on revenue of $412.5M, translating to a net margin of approximately 31.2%. Operating income of $296.4M reflects an industry-leading operating margin of ~71.9%.
REG's financial health appears stable with $13.05B in total assets and $6.89B in stockholders' equity, though long-term debt of $5.0B and a debt-to-equity ratio of 0.85x represent meaningful leverage. The company's strong operating margins and growing net income support its ability to service debt, but the decline in operating cash flow warrants attention.