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Comstock's Q3 Earnings Decrease Y/Y on ParkX Expansion Costs
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Shares of Comstock Holding Companies, Inc. (CHCI - Free Report) have declined 22.6% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares to the S&P 500 index’s 3.1% decline over the same time frame. Over the past month, the stock has declined 11.5% compared with the S&P 500’s 1.2% decrease.
Comstock posted third-quarter 2025 earnings per share (EPS) of 5 cents, down from 23 cents per share.
Revenues of $13.3 million reflected a modest increase of 3% from $13 million in the year-ago quarter.
However, net income declined sharply to $0.5 million from $2.4 million in the third quarter of 2024. Adjusted EBITDA dropped to $1.1 million, down from $3.1 million a year earlier.
Comstock Holding Companies, Inc. Price, Consensus and EPS Surprise
Comstock’s recurring, fee-based revenues — which include income from its property management subsidiaries — increased 30% year over year. A key contributor was its ParkX subsidiary, which saw a 96% rise in third-party revenue for the quarter. Supplemental fee revenue also advanced 35% compared to the prior year.
The company’s stabilized commercial managed portfolio was 93% leased as of the end of Q3. During the quarter, nine new leases were signed covering approximately 75,000 square feet, bringing the YTD commercial leasing volume to over 500,000 square feet. Residential portfolio occupancy stood at 96%, with more than 500 units leased YTD. The average in-place rent increased nearly 4% over the previous year.
ParkX revenues surged 59% year over year. The company added 139 new employees in Q3 to support 12 new porter and janitorial service contracts beginning in Q4, expanding upon 10 previously secured contracts. This growth reflects Comstock’s ability to cross-sell services to existing clients, which the company says helps reduce the costs of acquiring new business.
Management Commentary
Chairman and CEO Christopher Clemente emphasized Comstock’s commitment to “long-term, sustainable growth through diversified revenue.” He highlighted the ParkX expansion as a cornerstone of the company’s Q3 investment activity. Clemente noted that the addition of new services like porter and janitorial offerings enabled the company to both grow relationships with existing clients and attract new ones. He also cited the continued attractiveness of Comstock’s high-quality properties, pointing to robust leasing activity post-quarter end at Reston Station’s two newest office towers.
Factors Influencing the Headline Numbers
Despite the revenue increase, the company’s profitability metrics fell due to a significant rise in operating costs, particularly from the ParkX expansion. Cost of revenues jumped from $9.6 million to $11.9 million year over year in the third quarter. Selling, general and administrative expenses also rose 43% to $0.7 million. These cost increases led to a decrease in net income and adjusted EBITDA. Management attributed the spike in expenses to payroll and onboarding costs tied to launching ParkX’s new services.
Other Developments
During the quarter, Comstock delivered two major assets at Reston Station that will boost future fee-based revenue. The JW Marriott Reston Station, a 248-key luxury hotel featuring the largest luxury event space in the D.C. area, began operations and secured several event bookings into 2026. The JW Marriott Residences, a 94-unit luxury condominium tower, has already achieved nearly $90 million in sales, with $20 million closing in September alone.
Additionally, construction continues on other significant projects within The Row at Reston Station, including the BLVD Haley residential tower (419 units), a fully leased 254,000-square-foot office tower at 1870 Reston Row Plaza, and a 1,200-space parking garage. These assets are expected to begin delivering in late 2025 and into 2026, positioning Comstock for further expansion in both commercial and residential segments.
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Comstock's Q3 Earnings Decrease Y/Y on ParkX Expansion Costs
Shares of Comstock Holding Companies, Inc. (CHCI - Free Report) have declined 22.6% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares to the S&P 500 index’s 3.1% decline over the same time frame. Over the past month, the stock has declined 11.5% compared with the S&P 500’s 1.2% decrease.
Comstock posted third-quarter 2025 earnings per share (EPS) of 5 cents, down from 23 cents per share.
Revenues of $13.3 million reflected a modest increase of 3% from $13 million in the year-ago quarter.
However, net income declined sharply to $0.5 million from $2.4 million in the third quarter of 2024. Adjusted EBITDA dropped to $1.1 million, down from $3.1 million a year earlier.
Comstock Holding Companies, Inc. Price, Consensus and EPS Surprise
Comstock Holding Companies, Inc. price-consensus-eps-surprise-chart | Comstock Holding Companies, Inc. Quote
Other Key Business Metrics
Comstock’s recurring, fee-based revenues — which include income from its property management subsidiaries — increased 30% year over year. A key contributor was its ParkX subsidiary, which saw a 96% rise in third-party revenue for the quarter. Supplemental fee revenue also advanced 35% compared to the prior year.
The company’s stabilized commercial managed portfolio was 93% leased as of the end of Q3. During the quarter, nine new leases were signed covering approximately 75,000 square feet, bringing the YTD commercial leasing volume to over 500,000 square feet. Residential portfolio occupancy stood at 96%, with more than 500 units leased YTD. The average in-place rent increased nearly 4% over the previous year.
ParkX revenues surged 59% year over year. The company added 139 new employees in Q3 to support 12 new porter and janitorial service contracts beginning in Q4, expanding upon 10 previously secured contracts. This growth reflects Comstock’s ability to cross-sell services to existing clients, which the company says helps reduce the costs of acquiring new business.
Management Commentary
Chairman and CEO Christopher Clemente emphasized Comstock’s commitment to “long-term, sustainable growth through diversified revenue.” He highlighted the ParkX expansion as a cornerstone of the company’s Q3 investment activity. Clemente noted that the addition of new services like porter and janitorial offerings enabled the company to both grow relationships with existing clients and attract new ones. He also cited the continued attractiveness of Comstock’s high-quality properties, pointing to robust leasing activity post-quarter end at Reston Station’s two newest office towers.
Factors Influencing the Headline Numbers
Despite the revenue increase, the company’s profitability metrics fell due to a significant rise in operating costs, particularly from the ParkX expansion. Cost of revenues jumped from $9.6 million to $11.9 million year over year in the third quarter. Selling, general and administrative expenses also rose 43% to $0.7 million. These cost increases led to a decrease in net income and adjusted EBITDA. Management attributed the spike in expenses to payroll and onboarding costs tied to launching ParkX’s new services.
Other Developments
During the quarter, Comstock delivered two major assets at Reston Station that will boost future fee-based revenue. The JW Marriott Reston Station, a 248-key luxury hotel featuring the largest luxury event space in the D.C. area, began operations and secured several event bookings into 2026. The JW Marriott Residences, a 94-unit luxury condominium tower, has already achieved nearly $90 million in sales, with $20 million closing in September alone.
Additionally, construction continues on other significant projects within The Row at Reston Station, including the BLVD Haley residential tower (419 units), a fully leased 254,000-square-foot office tower at 1870 Reston Row Plaza, and a 1,200-space parking garage. These assets are expected to begin delivering in late 2025 and into 2026, positioning Comstock for further expansion in both commercial and residential segments.