Q1 2026 earnings snapshot

NexPoint Residential Trust (NXRT) has released its Q1 2026 numbers with total revenue of US$63.5 million and basic EPS of US$0.27 loss, while trailing twelve month revenue sits at US$251.9 million and EPS at US$1.26 loss. Over recent quarters, revenue has moved in a tight band around the low US$60 million range, from US$63.3 million in Q1 2025 through US$62.2 million in Q4 2025 to US$63.5 million in Q1 2026, while quarterly basic EPS has stayed in a similar loss range between US$0.27 and US$0.41. With the stock at US$28.86 and a high stated dividend yield in the background, these results keep the focus squarely on how efficiently NXRT is converting revenue into sustainable margins for equity holders.

See our full analysis for NexPoint Residential Trust.

With the headline numbers on the table, the next step is to see how this latest set of margins and revenue outcomes lines up with the prevailing bullish and bearish narratives around NexPoint Residential Trust.

FFO and net income still moving in different directions

• On a trailing basis, NXRT generated US$63.3 million of funds from operations (FFO) over the last 12 months while reporting a net loss of US$31.9 million and basic EPS of US$1.26 loss, so cash style metrics and accounting earnings are telling very different stories.
• Consensus narrative leans on value add renovations and operational efficiencies to support cash flow, yet the trailing 12 month net loss of US$31.9 million and basic EPS loss of US$1.26 show that, despite US$251.9 million of revenue, reported profitability has not matched those expectations:
  • Supporters point to the US$63.3 million of FFO and FFO per share of US$2.49 in the prior trailing period as evidence that the core portfolio can generate cash. Critics point out that net income has stayed in loss territory across recent quarters, from a US$6.9 million loss in Q1 2025 to a US$6.8 million loss in Q1 2026.
  • Revenue has held roughly flat over the last six reported quarters in a band around US$63 million. With trailing revenue growth at 1.8% per year versus a referenced 11.1% for the US market, the slower top line context explains why earnings metrics are described as weak despite the FFO support.

Investors who want to see how this split between FFO strength and accounting losses is treated in a full valuation and fundamentals model can review the detailed company report and its earnings section for more context before forming a view on NXRT’s long term profile.

High yield and lower P/S versus peers

• NXRT is trading at a P/S of 2.9x versus industry and peer averages of 5.2x and 4.4x, with a trailing dividend yield of 7.35% and the share price of US$28.86 sitting about 25.9% below a stated DCF fair value of roughly US$38.94.
• Bulls argue that a focus on Sun Belt multifamily, value add upgrades and cost efficiencies should support cash flows and make today’s valuation attractive, and the current numbers partly back that view but also highlight trade offs:
  • On one hand, the combination of a 7.35% dividend yield, P/S of 2.9x and the share price sitting below both peer multiples and the DCF fair value of US$38.94 is the core of the income and valuation appeal.
  • On the other hand, trailing 12 month net income of US$31.9 million loss and basic EPS loss of US$1.26, together with analyst expectations for earnings to decline by about 2.4% per year and interest payments not being well covered, show why the market may be assigning a discount to the growth story.

Bulls who want to see how supporters frame this gap between a 7.35% yield, a 2.9x P/S multiple and the DCF fair value against NXRT’s Sun Belt and value add focus can go deeper in the dedicated positive case breakdown here 🐂 NexPoint Residential Trust Bull Case

Unprofitable with interest coverage concerns

• Over the last 12 months, NXRT has been unprofitable with losses that have grown at about 24.2% per year over five years, and analysts expect earnings to decline by around 2.4% per year while interest payments are described as not well covered by earnings.
• Bears focus on weak interest coverage and the persistence of losses to question the durability of the dividend and any valuation gap, and the reported figures line up with several of those concerns:
  • Despite US$251.9 million of trailing revenue, the company reported a net loss of US$31.9 million and basic EPS loss of US$1.26, matching the description of an unprofitable REIT with poor quality of past earnings.
  • With analysts expecting earnings to decline by about 2.4% per year and interest payments not well covered by earnings, bears argue that the income profile could face pressure if operating trends stay close to the current 1.8% revenue growth pace and negative net income.

Skeptics who see the combination of ongoing losses, weaker interest coverage and forecast earnings declines as the central risk can walk through a structured, cautious case that sets those issues out in detail 🐻 NexPoint Residential Trust 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 NexPoint Residential Trust on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Seen enough to know the debate is finely balanced between risks and rewards, yet still unsure where you stand? Take a moment to review the figures for yourself, compare them with your own expectations, and then check the 2 key rewards and 2 important warning signs.

See What Else Is Out There

NXRT combines a high dividend yield with a P/S discount, yet it remains unprofitable with weak interest coverage and slow 1.8% revenue growth against referenced market context.

If you are concerned about ongoing losses and interest coverage pressure, you may want to quickly compare steadier candidates in the 72 resilient stocks with low risk scores.

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.