Comstock Q3 Revenue Jumps 34% as Adjusted EBITDA Doubles

Comstock Holding Companies (Nasdaq: CHCI) reported third quarter 2026 revenue of $17.9 million, a 34% increase over the $13.3 million recorded in the same quarter a year earlier, according to the company's results announced on November 5, 2026. Net income rose 9% to $0.6 million, or $0.06 per diluted share. Adjusted EBITDA more than doubled, climbing 112% to $2.3 million from $1.1 million. Year-to-date revenue reached $57.9 million, up 49%, while year-to-date net income of $11.4 million was 219% higher than the prior-year period.

Context — why the managed-portfolio model matters now

Comstock's results matter because they test whether an asset-light, fee-based property manager can keep compounding when the underlying real estate cycle is uneven. The company said the growth came from expanding its managed portfolio, which reached 115 assets versus 91 a year earlier — 24 additional managed assets, including 12 new contracts secured by its ParkX parking subsidiary in the quarter.

The comparable the company itself provides is its own prior-year quarter. Q3 2025 revenue was $13.3 million, Adjusted EBITDA $1.1 million, and net income $0.5 million. Against those figures, the 2026 quarter shows revenue growth of roughly a third and EBITDA growth of more than double, a gap that indicates operating use rather than pure volume.

What changed to trigger the acceleration is the mix of fee streams. Comstock said the increase in Adjusted EBITDA was driven by recurring fee-based revenue from its three operating property management subsidiaries, higher asset management fee revenue, and significant increases in supplemental leasing fee and acquisition fee revenue. Those are transaction- and contract-linked lines, not just base management fees.

Net income grew far more slowly than EBITDA because of a $1.0 million unrealized loss on Jericho (JEV) equity investments booked in the quarter. That loss partially reversed a significant gain in the second quarter, leaving the year-to-date gain on equity investments at $3.7 million. The swing is a mark-to-market item, not an operating result, which is why the company's non-GAAP reconciliation adds it back.

The company said this was its eighth consecutive quarter of double-digit revenue growth. That framing, attributed to the company, is its own characterization of the streak rather than an independently verified series.

Data — what the numbers show

The headline figures compare as follows. Revenue moved from $13.3 million in Q3 2025 to $17.9 million in Q3 2026. Net income moved from $0.5 million to $0.6 million. Adjusted EBITDA moved from $1.1 million to $2.3 million. Diluted earnings per share moved from $0.05 to $0.06. Managed assets moved from 91 to 115.

On a year-to-date basis, revenue rose from $38.9 million to $57.9 million, net income from $3.6 million to $11.4 million, and Adjusted EBITDA from $5.3 million to $11.8 million. Diluted earnings per share year to date rose from $0.34 to $1.05.

Operating costs tell the other half of the story. Cost of revenue rose to $15.1 million in the quarter from $11.9 million, while selling, general and administrative expenses rose to $991,000 from $725,000. Total operating costs and expenses rose to $16.2 million from $12.7 million. Income from operations therefore rose to $1.7 million from $661,000.

Stock-based compensation, added back in the EBITDA reconciliation, rose to $510,000 in the quarter from $255,000. The company also recorded $133,000 of interest income in the quarter, down from $218,000 a year earlier.

The balance sheet showed $22.7 million of cash and cash equivalents at September 30, 2026, down from $31.3 million at December 31, 2025. Investments in real estate ventures rose to $20.0 million from $6.0 million, and equity investments rose to $6.4 million from zero. Total assets were $94.6 million against total liabilities of $12.3 million.

Analysis — what it means for markets and sectors

The clearest read is that Comstock is converting third-party asset mandates into recurring revenue faster than it is converting revenue into GAAP profit. Adjusted EBITDA grew 112% while net income grew 9%, a spread explained almost entirely by the JEV mark and by rising stock-based compensation.

The portfolio detail supports the operating narrative. The company said its stabilized commercial portfolio is 92% leased and its stabilized residential portfolio is 91% leased. At Reston Station, five trophy-class office towers are 98% leased or reserved, with interior build-outs underway for Booz Allen Hamilton's 300,000-plus square foot headquarters and other tenants. The 419-unit BLVD Haley development was 50% leased at period end.

ParkX is the fastest-moving subsidiary by revenue growth, up 65% in the quarter and 84% year to date. That matters for the parking and mobility segment broadly, because it suggests third-party owners are outsourcing operations rather than building in-house.

The counter-argument is concentration. Comstock's platform remains anchored in the Washington, D.C. region, and its two flagship mixed-use developments sit in that market. The company said it is pursuing opportunities to extend the platform beyond that region, but it did not disclose terms, pricing, or timelines for those efforts.

A second limitation is that acquisition and leasing fee revenue is inherently lumpy. A quarter with heavy transaction closings flatters EBITDA, and a quiet quarter would not repeat it. The company did not break out how much of the $2.3 million in quarterly Adjusted EBITDA came from recurring versus transactional fees.

The data center angle is the newer exposure. The company said its Oklahoma joint venture secured 1,000 acres of surface development rights in the quarter and now holds roughly 7,000 acres, with development plans commenced for the first of several large-scale campuses. That places Comstock adjacent to the AI infrastructure build-out without yet generating data center revenue.

Positioning is difficult to assess from the release alone. The company did not disclose institutional ownership, short interest, or guidance for the fourth quarter.

Outlook — what to watch next

Comstock said it will post an updated investor presentation to the Events and Presentations section of its investor relations website on November 5, 2026. That document is the next scheduled disclosure where the company may expand on segment detail.

On the development side, the company gave two dated catalysts. The JW Marriott Reston Station hotel conference center expansion is scheduled to deliver in the fourth quarter. Ebbitt House, described as the first-ever expansion of D.C.'s Old Ebbitt Grill, is officially scheduled to open in November 2026.

The institutional venture platform has two items in progress. The company said it secured a purchase agreement for the acquisition of The Ascher, a 672-unit value-add multifamily property in Charlotte, North Carolina, and secured development approval for a 147-unit LITEC multifamily development in Rockville, Maryland. It did not disclose purchase price or capitalization for either.

Investors watching the equity investment line should note that the JEV position remains marked to market each quarter. A reversal of the year-to-date $3.7 million gain would pressure GAAP net income without touching Adjusted EBITDA.

Frequently Asked Questions

Why did Comstock's net income grow only 9% when Adjusted EBITDA doubled?

Net income includes a $1.0 million unrealized loss on Jericho equity investments recorded in the quarter, which partially reversed a large second-quarter gain. Adjusted EBITDA excludes that mark, along with stock-based compensation, income taxes, depreciation, interest income, and gains or losses on real estate ventures. The gap between the two measures is therefore driven by non-cash and non-operating items rather than by weaker core operations.

How much of Comstock's revenue is recurring versus transaction-based?

The company said the Adjusted EBITDA increase came from recurring fee-based revenue across its three property management subsidiaries and higher asset management fees, plus significant increases in supplemental leasing fee and acquisition fee revenue. It did not disclose the dollar split between recurring and transactional lines. Leasing and acquisition fees are tied to deal closings, so they can vary materially from quarter to quarter.