Fresh off its Q1 2026 report, Macerich (MAC) posted total revenue of US$231.7 million, a basic EPS loss of US$0.14, and funds from operations of US$92.4 million, keeping the focus firmly on cash generation rather than accounting earnings. Over recent quarters, total revenue has moved from US$339.2 million in Q4 2024 to US$248.4 million in Q1 2025, then to US$231.7 million in Q1 2026. Trailing twelve month EPS sits at a loss of US$0.72 alongside FFO of US$399.6 million, setting up a story where cash flows and reported losses are pulling in different directions. For investors, the tension between FFO strength and ongoing net losses puts margins and future earnings quality at the center of how this update is likely to be read.

See our full analysis for Macerich.

With the headline numbers on the table, the next step is to see how this earnings profile lines up against the widely held bullish and bearish narratives around Macerich and where those stories might need updating.

FFO Holds Near US$92 million While Net Loss Persists

• Q1 2026 funds from operations came in at US$92.4 million with FFO per share of US$0.34. This compares with trailing twelve month FFO of US$399.6 million and US$1.50 per share, which shows cash generation staying meaningful even while reported net income shows a trailing loss of US$184.2 million.
• What stands out for a bullish view is that REIT style cash metrics remain positive while accounting earnings are negative. This heavily supports the idea that cash flows, not EPS, are doing the heavy lifting here.
  • Across the last year, Macerich produced US$1.0b of revenue and US$399.6 million of FFO, yet basic EPS over the same period was a loss of US$0.72. Bulls who focus on FFO have data to point to, while critics of the bullish case can point to the gap between cash generation and net income.
  • In single quarters, this pattern repeats. For example, Q1 2026 showed a net income loss of US$36.4 million beside US$92.4 million of FFO, which keeps the bullish argument centered on the quality and durability of FFO rather than accounting profitability.

Revenue Slips From US$280 million To US$232 million

• Total revenue has shifted from US$280.3 million in Q4 2025 to US$231.7 million in Q1 2026. On a trailing twelve month basis, it sits at about US$1.0b, alongside analysts forecasting revenue growth of about 0.4% per year, which is slower than the 11.4% per year forecast for the broader US market.
• Critics highlight this modest revenue profile as a key challenge to the bullish growth story, and the reported numbers give them specific angles to focus on.
  • Over the last year, trailing revenue is US$1.0b compared with a forecast growth rate of only 0.4% per year. Bears arguing that top line progress could lag the wider US market have that 11.4% market growth comparison on their side.
  • At the same time, analysts are forecasting earnings to grow about 85.11% per year with a path to profitability within three years. This sets up a clear tension where bears question how such strong earnings growth can be achieved if revenue growth remains far below the broader market.

DCF Fair Value US$33.49 vs Price US$21.37

• The stock trades at US$21.37 with a P/S of 5.4x compared with a peer average of 7.3x and a US retail REITs industry average of 6.8x. It also sits below a DCF fair value estimate of US$33.49 by around 36.2%, all while the company remains unprofitable over the trailing twelve months.
• Supporters of a bullish narrative often lean on this valuation gap and the earnings growth forecast, while the same data also gives cautious investors specific financial pressure points to watch.
  • The lower P/S multiple and the 36.2% gap to the DCF fair value are figures bulls use to argue the stock looks inexpensive, yet the fact that interest payments are not well covered by earnings shows why some investors still see material financial risk baked into that discount.
  • Analysts expecting about 85.11% annual earnings growth and a move to profitability within three years is a positive datapoint for bulls, but the trailing loss of US$184.2 million and an unstable dividend track record give bears concrete reasons to question how quickly that valuation gap can close.

To see how other investors are weighing this mix of cash flow strength, reported losses, and valuation, you can step back and look at the wider discussion around the stock through Curious how numbers become stories that shape markets? Explore Community Narratives

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Macerich's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

With bullish and bearish points both in play, the real question is how you personally weigh the risks against the potential rewards, so do not wait to stress test the thesis against the 2 key rewards and 2 important warning signs.

See What Else Is Out There

Macerich combines ongoing net losses, modest revenue growth forecasts, and an unstable dividend track record with interest payments that are not well covered by earnings.

If you want stocks where the balance sheet is built to handle pressure rather than rely on optimistic forecasts, start comparing companies in the solid balance sheet and fundamentals stocks screener (44 results).

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.