Pershing Square Swings to Q3 Loss as Fee Earnings Rise 13%

Pershing Square Inc. swung to a $19.883 million net loss attributable to the company in the third quarter, while fee-related earnings climbed 13% to $63.656 million, a sharp contrast with year-earlier profit.

Net income was $155.462 million in the third quarter of 2025, and GAAP revenue declined to $56.604 million from $66.192 million. Pershing Square is the parent of Pershing Square Capital Management, which manages investment funds and other companies.

Fee-related earnings, the company’s non-GAAP measure of fee-driven operating profitability, rose from $56.476 million in the comparable quarter. Fee-related revenue increased 10% to $75.636 million, while related expenses decreased 1% to $11.980 million. The fee-related earnings margin expanded to 84.2% from 82.3%.

Pershing Square attributed the revenue growth primarily to a first full three-month period of management fees from Pershing Square USA, Ltd. The fund completed its initial public offering April 30, 2026.

Employee compensation and benefits totaled $70.471 million on the GAAP income statement. The company classified $64.784 million of that amount as noncash or nonrecurring, a category that includes amortization of employee equity grants and one-time severance benefits.

Distributable earnings, another non-GAAP measure used to assess amounts available for distribution, fell 12% to $49.456 million from $56.456 million. Pre-tax distributable earnings rose 8% to $60.987 million. The quarter included $11.530 million in taxes and related payables, along with $2.669 million in net interest expense.

Pershing Square became subject to federal, state and local corporate income taxes after its corporate conversion and had not incurred corporate income tax before the third quarter of 2026. Fee-related earnings measure fee-driven operating profitability; distributable earnings adjust that figure for interest income or expense and taxes and related payables, as applicable. The company cautions that these non-GAAP measures should not replace or be considered in isolation from GAAP results.

Chief Executive Officer Bill Ackman and Chief Investment Officer Ryan Israel are scheduled to discuss the results Tuesday, Nov. 3, at 9:30 a.m. ET.