Hudson Pacific Properties (HPP) opened 2026 with Q1 revenue of US$181.9 million and basic EPS of US$0.82 loss per share, while trailing twelve month revenue stood at US$814.4 million against a TTM basic EPS of US$9.88 loss per share. Over recent quarters, revenue has moved between US$185.9 million and US$258.2 million while EPS ranged from a US$2.12 loss per share to a US$8.28 loss per share, giving investors a clear view of a business that is still working through weak margins and a long earnings recovery story.

See our full analysis for Hudson Pacific Properties.

With the latest set of numbers on the table, the next step is to weigh these results against the dominant market narratives around Hudson Pacific Properties and determine which views the figures support and which they call into question.

TTM losses of US$550.7 million keep FFO in focus

• Over the trailing twelve months, Hudson Pacific Properties reported US$814.4 million in revenue, a net loss of US$550.7 million, and Funds From Operations of US$193.5 million loss, so the REIT is still firmly in loss-making territory despite relatively steady revenue.
• Consensus narrative highlights growing AI and tech leasing and improving studio demand as supports for future cash flows, yet the combination of US$53.1 million net loss in Q1 2026 and TTM FFO still in a US$193.5 million loss challenges the idea that operational tweaks alone are close to restoring earnings strength.
  • Analysts point to cost cutting and portfolio repositioning as potential margin drivers, but TTM Basic EPS of US$9.88 loss per share and a Q1 2026 EPS loss of US$0.82 per share show that any margin lift is not yet visible in per share results.
  • While the studio segment is framed as a future growth engine, TTM net losses rising from US$364.1 million in the year to Q4 2024 to US$550.7 million by Q1 2026 indicate that, so far, group level earnings are still moving deeper into loss rather than stabilising.

Revenue steady, profitability still pressured

• Quarterly revenue has sat in a fairly tight band between US$181.9 million and US$258.2 million across the last six reported quarters, yet every quarter in that stretch showed a net loss, including US$277.9 million loss in Q4 2025 and US$53.1 million loss in Q1 2026, with trailing revenue growth only around 0.7% per year.
• Bulls argue that accelerating leasing from tech and AI tenants and rising studio demand could meaningfully lift occupancy and cash flows, but the current pattern of modest revenue movement alongside persistent quarterly losses suggests that any bullish recovery story still has to work through a period of pressured profitability.
  • For example, Q4 2025 generated the highest revenue in the recent set at US$258.2 million yet also one of the largest net losses at US$277.9 million, which heavily tests the bullish claim that higher volumes alone will quickly translate into healthier earnings.
  • Even with TTM revenue of US$814.4 million, the fact that losses have reportedly widened over the last five years at an average of 61% per year means bullish expectations around margin expansion need to be weighed carefully against this longer run loss trend.

On that view, bulls who see AI driven leasing and studio recovery as a turning point may want to line these Q1 figures up against the full optimistic case before deciding how convincing it really is. 🐂 Hudson Pacific Properties Bull Case

Discounted valuation with dilution risk

• The shares trade at US$11.77 with a trailing price to sales of 0.8x, compared with 1.9x for the US Office REITs industry and 3.1x for peers, while a DCF fair value of US$27.31 implies the stock is 56.9% below that estimate.
• Bears focus on substantial shareholder dilution over the past year and ongoing unprofitability, and the data supports that concern, as analysts expect shares outstanding to grow by about 7% per year for the next three years while the company is not forecast to return to profitability in that period.
  • TTM Basic EPS of US$9.88 loss per share, together with forecasts that Hudson Pacific Properties will remain unprofitable over the next three years, suggests that any valuation gap to the US$27.31 DCF fair value may stay closely tied to how much further dilution and volatility investors are prepared to accept.
  • With forecast revenue growth of only 0.7% per year versus a US market benchmark of 11.4% per year, the bearish view that slow top line growth and ongoing capital raising could offset some of the apparent P/S discount is strongly grounded in the available numbers.

If you are weighing that discount against the dilution and loss profile, it helps to see how cautious investors frame the downside case in full. 🐻 Hudson Pacific Properties Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Hudson Pacific Properties on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards on the table, the real question is how you weigh them for your own portfolio and time horizon. To pressure test that view against the key data points that investors are watching, start by checking the 2 key rewards and 3 important warning signs.

See What Else Is Out There

Hudson Pacific Properties combines steady revenue with sizeable ongoing losses, shareholder dilution and pressured profitability, which leaves the stock carrying meaningful risk for cautious investors.

If that risk profile feels uncomfortable, you can quickly refocus on companies with more resilient earnings and balance sheets by scanning 72 resilient stocks with low risk scores today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.