Revenue contraction and operational inefficiency are evident, with top-line figures falling to $362.2 million and NOI margins plummeting to -10.6% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 1.74B | 1.81B | 1.9B | 1.87B | 1.86B | 1.5B | 1.27B | 2.32B | 2.29B | 2.17B | 2.05B | 1.92B | 1.74B | 1.56B | 1.3B | 1.21B | 1.09B | 1.04B | 1.25B | 1.28B | 1.04B | 834.41M | 645.37M | 552.8M | 348.71M | 303.88M | 263.02M | 237.22M | 174.96M | 114.13M | 82.63M |
| Revenue Growth % | -8.12% | -4.33% | 1.23% | 0.58% | 24.57% | 18.2% | -45.37% | 0.94% | 5.64% | 6.09% | 6.52% | 10.69% | 11.03% | 20.58% | 7.16% | 11.5% | 4.65% | -17.2% | -2.18% | 23.2% | 24.57% | 29.29% | 16.75% | 58.53% | 14.75% | 15.53% | 10.88% | 35.58% | 53.3% | 38.13% | 249.5% |
| Property Operating Expenses | 1.34B | 1.25B | 1.29B | 1.24B | 1.24B | 1.03B | 682.8M | 1.41B | 1.39B | 1.28B | 1.2B | 1.14B | 1.04B | 929.58M | 700.94M | 596.62M | 477.6M | 460.87M | 767.19M | 659.71M | 169.04M | 129.9M | 127.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Operating Income (NOI) | 404.69M | 566.7M | 602.96M | 632.29M | 622.48M | 469.19M | 582.45M | 903.43M | 902.18M | 892.39M | 844.67M | 777.92M | 701.18M | 634.27M | 596.04M | 613.72M | 607.89M | 576.38M | 485.48M | 620.85M | 870.38M | 704.51M | 518.28M | 552.8M | 348.71M | 303.88M | 263.02M | 237.22M | 174.96M | 114.13M | 82.63M |
| NOI Margin % | 23.23% | 31.23% | 31.79% | 33.74% | 33.41% | 31.37% | 46.03% | 39.01% | 39.32% | 41.09% | 41.26% | 40.48% | 40.38% | 40.56% | 45.96% | 50.71% | 56% | 55.57% | 38.76% | 48.48% | 83.74% | 84.43% | 80.31% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Operating Expenses | 188.95M | 355.63M | 412.02M | 429.46M | 445.51M | 539.4M | 582.45M | 54.64M | 507.94M | 512.06M | 456.45M | 439.61M | 361.77M | 349.41M | 304.86M | 269.31M | 277.05M | 285.53M | 296.53M | 251.2M | 788.92M | 631.95M | 468.09M | 270.05M | 162.48M | 130.61M | 99.07M | 87.94M | 65.23M | 39.45M | 25.32M |
| G&A Expenses | 31.11M | 40.67M | 40.24M | 45.4M | 44.4M | 53.44M | 50.67M | 54.64M | 104.86M | 125.4M | 99.11M | 109.84M | 45.9M | 50.09M | 44.03M | 40.96M | 38.96M | 39.66M | 37.75M | 37.22M | 26.19M | 23.3M | 19.39M | 16.8M | 15.49M | 14.84M | 14.77M | 13.23M | 10.47M | 6.78M | 4.92M |
| EBITDA | 517.45M | 526.03M | 562.72M | 586.9M | 578.07M | 415.75M | 506.27M | 1.28B | 2.31B | 2.17B | 2.05B | 665.71M | 655.05M | 572.91M | 539.29M | 554.18M | 568.93M | 393.31M | 374.89M | 583.92M | 394.89M | 329.85M | 292.16M | 390.09M | 285.35M | 267.08M | 248.26M | 226.21M | 164.49M | 107.98M | 78.05M |
| EBITDA Margin % | 29.71% | 28.99% | 29.66% | 31.32% | 31.03% | 27.8% | 40.01% | 55.14% | 100.73% | 100% | 100% | 34.64% | 37.73% | 36.63% | 41.58% | 45.79% | 52.41% | 37.92% | 29.93% | 45.6% | 37.99% | 39.53% | 45.27% | 70.57% | 81.83% | 87.89% | 94.39% | 95.36% | 94.02% | 94.61% | 94.46% |
| Depreciation & Amortization | 301.71M | 314.96M | 371.79M | 384.06M | 401.11M | 485.96M | 498.91M | 428.45M | 1.92B | 1.79B | 1.66B | 329.78M | 315.88M | 299.32M | 260.83M | 228.34M | 238.09M | 245.87M | 239.17M | 218.32M | 144.4M | 134.69M | 114.88M | 107.34M | 99.12M | 93.81M | 84.3M | 76.93M | 54.76M | 33.29M | 20.74M |
| D&A / Revenue % | 17.32% | 17.35% | 19.6% | 20.5% | 21.53% | 32.49% | 39.43% | 18.5% | 83.55% | 82.49% | 81.1% | 17.16% | 18.19% | 19.14% | 20.11% | 18.87% | 21.93% | 23.7% | 19.09% | 17.05% | 13.89% | 16.14% | 17.8% | 19.42% | 28.43% | 30.87% | 32.05% | 32.43% | 31.3% | 29.17% | 25.1% |
| Operating Income | 215.74M | 211.07M | 190.93M | 202.84M | 176.97M | -70.22M | 0 | 848.79M | 394.24M | 380.33M | 386.86M | 335.94M | 339.17M | 273.58M | 278.46M | 325.84M | 330.84M | 147.44M | 135.73M | 365.61M | 250.49M | 195.17M | 177.28M | 282.75M | 186.23M | 173.27M | 163.95M | 149.28M | 109.73M | 74.69M | 57.31M |
| Operating Margin % | 12.39% | 11.63% | 10.07% | 10.82% | 9.5% | -4.7% | 0% | 36.65% | 17.18% | 17.51% | 18.9% | 17.48% | 19.53% | 17.49% | 21.47% | 26.92% | 30.48% | 14.21% | 10.83% | 28.55% | 24.1% | 23.39% | 27.47% | 51.15% | 53.4% | 57.02% | 62.33% | 62.93% | 62.72% | 65.44% | 69.36% |
| Interest Expense | 3M | 367.28M | 352.67M | 336.34M | 341.8M | 365.72M | 306.49M | 225.13M | 195.21M | 181.58M | 153.76M | 139.05M | 134M | 139.75M | 129.93M | 134.11M | 138.71M | 143.41M | 147.18M | 140.52M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Coverage | - | 0.43x | 0.26x | 0.83x | 0.55x | -0.55x | 0.02x | 1.83x | 1.95x | 2.16x | 2.48x | 2.13x | 2.48x | 1.91x | 2.10x | 2.38x | 1.11x | 2.38x | 1.92x | 2.64x | - | - | - | - | - | - | - | - | - | - | - |
| Non-Operating Income | 91.92M | 52.6M | 100.09M | -77.9M | -10.02M | 129.7M | -7.36M | 436.81M | 12.62M | -12.5M | 6.1M | 39.94M | 6.27M | 6.08M | 5.91M | 6.24M | 13.58M | -51.18M | -156.96M | -4.92M | 14.84M | -52.82M | -7.16M | 100.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | -247.44M | -213.04M | -274.12M | -34.28M | -132.58M | -545.54M | -284.26M | 262.54M | 186.41M | 201.9M | 226.99M | 156.95M | 198.91M | 127.75M | 153.53M | 191.94M | 21.99M | 198.54M | 135.84M | 230.01M | 169.04M | 129.9M | 127.09M | 238.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Margin % | -14.21% | -11.74% | -14.45% | -1.83% | -7.12% | -36.48% | -22.47% | 11.34% | 8.12% | 9.3% | 11.09% | 8.17% | 11.46% | 8.17% | 11.84% | 15.86% | 2.03% | 19.14% | 10.84% | 17.96% | 16.26% | 15.57% | 19.69% | 43.09% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Income Tax | -10.38M | -10.72M | 1.4M | -1.5M | -199K | -941K | 17.21M | 2.79M | 1.2M | -3.28M | 4.02M | 1.57M | 1.95M | -5.09M | 1.61M | 1.5M | 638K | 5.2M | 1.85M | 2.19M | -170.59M | 72.56M | 50.19M | 44.54M | 44.02M | 41.31M | 37.68M | 37.35M | 28.39M | 15.53M | 5.65M |
| Effective Tax Rate % | 4.19% | 5.03% | -0.51% | 4.37% | 0.15% | 0.17% | -6.05% | 1.06% | 0.64% | -1.63% | 1.77% | 1% | 0.98% | -3.99% | 1.05% | 0.78% | 2.9% | 2.62% | 1.36% | 0.95% | -100.92% | 55.86% | 39.49% | 18.7% | - | - | - | - | - | - | - |
| Net Income | -237.06M | -202.32M | -275.53M | -32.78M | -132.38M | -544.6M | -311.38M | 259.75M | 185.73M | 215.14M | 223.11M | 166.42M | 197.19M | 133.18M | 151.92M | 190.44M | 21.35M | 193.34M | 134M | 330.97M | 169.04M | 129.9M | 127.09M | 238.21M | 142.2M | 131.96M | 126.27M | 111.93M | 81.34M | 59.15M | 51.66M |
| Net Margin % | -13.61% | -11.15% | -14.52% | -1.75% | -7.11% | -36.41% | -24.61% | 11.21% | 8.09% | 9.91% | 10.9% | 8.66% | 11.36% | 8.52% | 11.71% | 15.73% | 1.97% | 18.64% | 10.7% | 25.85% | 16.26% | 15.57% | 19.69% | 43.09% | 40.78% | 43.42% | 48.01% | 47.18% | 46.49% | 51.83% | 62.53% |
| Net Income Growth % | 24.4% | 26.57% | -740.56% | 75.24% | 75.69% | -74.9% | -219.88% | 39.85% | -13.67% | -3.57% | 34.07% | -15.6% | 48.06% | -12.34% | -20.23% | 791.95% | -88.96% | 44.29% | -59.51% | 95.79% | 30.13% | 2.21% | -46.65% | 67.52% | 7.76% | 4.5% | 12.81% | 37.6% | 37.51% | 14.5% | 355.23% |
| Funds From Operations (FFO) | 64.64M | 112.64M | 96.26M | 351.28M | 268.73M | -58.64M | 187.53M | 688.2M | 2.1B | 2.01B | 1.88B | 496.19M | 513.06M | 432.5M | 412.75M | 418.78M | 259.44M | 439.21M | 373.16M | 549.29M | 313.44M | 264.59M | 241.97M | 345.56M | 241.33M | 225.77M | 210.57M | 188.86M | 136.1M | 92.44M | 72.4M |
| FFO Margin % | 3.71% | 6.21% | 5.07% | 18.75% | 14.42% | -3.92% | 14.82% | 29.71% | 91.64% | 92.39% | 92% | 25.82% | 29.55% | 27.66% | 31.82% | 34.6% | 23.9% | 42.34% | 29.79% | 42.89% | 30.16% | 31.71% | 37.49% | 62.51% | 69.21% | 74.3% | 80.06% | 79.61% | 77.79% | 81% | 87.62% |
| FFO Growth % | 188.02% | 17.02% | -72.6% | 30.72% | 558.28% | -131.27% | -72.75% | -67.27% | 4.78% | 6.55% | 279.58% | -3.29% | 18.63% | 4.78% | -1.44% | 61.42% | -40.93% | 17.7% | -32.06% | 75.24% | 18.46% | 9.35% | -29.98% | 43.19% | 6.89% | 7.22% | 11.5% | 38.77% | 47.23% | 27.68% | 321.12% |
| FFO per Share | 0.39 | 0.68 | 0.58 | 2.13 | 1.63 | -0.36 | 1.14 | 4.19 | 12.80 | 12.22 | 12.07 | 3.29 | 3.42 | 3.14 | 3.34 | 3.39 | 2.10 | 4.07 | 3.97 | 5.90 | 4.28 | 3.79 | 3.65 | 5.52 | 3.86 | 3.83 | 3.73 | 3.59 | 3.22 | 3.36 | 3.12 |
| FFO Payout Ratio % | 5.16% | 0% | 105.08% | 37.7% | 14.16% | -11.25% | 50.02% | 51.38% | 16.49% | 16.95% | 16.68% | 60.45% | 56.92% | 59.33% | 54.49% | 53.07% | 85.62% | 16.48% | 77.53% | 73.06% | 68.03% | 75.98% | 77.81% | 52.15% | 74.11% | 72.46% | 74.28% | 73.85% | 78.74% | 70.06% | 74.48% |
| EPS (Diluted) | -1.42 | -1.22 | -1.67 | -0.20 | -0.82 | -3.30 | -1.83 | 1.58 | 1.13 | 1.24 | 1.30 | 0.97 | 1.18 | 0.73 | 0.84 | 1.30 | -0.07 | 1.51 | 1.11 | 3.27 | 2.20 | 1.75 | 1.71 | 3.57 | 2.15 | 2.12 | 2.11 | 2.03 | 1.92 | 2.15 | 2.23 |
| EPS Growth % | 24.62% | 26.95% | -735% | 75.61% | 75.15% | -80.33% | -215.82% | 39.82% | -8.87% | -4.62% | 34.02% | -17.8% | 61.64% | -13.1% | -35.38% | 1957.14% | -104.64% | 36.04% | -66.05% | 48.64% | 25.71% | 2.34% | -52.1% | 66.05% | 1.42% | 0.47% | 3.94% | 5.73% | -10.7% | -3.59% | 145.05% |
| EPS (Basic) | - | -1.22 | -1.67 | -0.20 | -0.82 | -3.30 | -1.83 | 1.58 | 1.13 | 1.24 | 1.30 | 0.97 | 1.18 | 0.73 | 0.84 | 1.30 | -0.07 | 1.51 | 1.11 | 3.27 | 2.20 | 1.75 | 1.71 | 3.57 | 2.15 | 2.12 | 2.11 | 2.03 | 1.92 | 2.15 | 2.23 |
| Diluted Shares Outstanding | 166.4M | 165.95M | 165.34M | 164.99M | 164.74M | 164.57M | 164.42M | 164.34M | 164.26M | 164.18M | 156.09M | 151M | 149.82M | 137.55M | 123.49M | 123.47M | 123.4M | 107.98M | 93.94M | 93.11M | 73.28M | 69.87M | 66.27M | 62.57M | 62.54M | 58.99M | 56.47M | 52.57M | 42.32M | 27.53M | 23.17M |
Negative FFO and Leverage
As reported in financial statements, SVC experienced a significant revenue decline of 16.8% in 2026Q1, reflecting a broader trend of portfolio contraction that has seen top-line figures slide from $512.9 million in 2024Q2 to just $362.2 million in the most recent quarter.
The consistent downward trajectory in quarterly revenue suggests that the company is struggling to maintain occupancy or rate power within its hotel segment. This contraction appears to be outpacing any potential stabilization in the net lease portfolio, indicating that the hybrid model is currently failing to provide the expected defensive buffer against lodging sector volatility.
Based on the company's reported figures, FFO per share plummeted to -0.45 in 2026Q1, marking a severe deterioration from the 0.31 per share recorded in 2023Q4 and highlighting the extreme sensitivity of the REIT's earnings to operational fluctuations and high fixed costs.
The erratic nature of FFO growth, which swung from a 68.9% increase in 2025Q2 to a -175.6% decline in 2026Q1, suggests that the underlying earnings quality is highly unstable. Investors should monitor whether the current FFO trajectory can support long-term capital requirements, as the negative AFFO figures imply that cash generation is insufficient to cover necessary property-level reinvestment.
According to recent SEC filings, the NOI margin collapsed to -10.6% in 2026Q1, a stark reversal from the 35.0% margin achieved in 2024Q2, indicating that property-level operating expenses are currently overwhelming the revenue generated by the hotel and retail portfolio.
The shift to negative NOI margins suggests that the company's cost structure is not sufficiently flexible to adapt to declining occupancy or revenue environments. This margin compression may imply that the fixed costs associated with the managed hotel portfolio are becoming a significant liability, potentially necessitating a strategic pivot in management agreements or asset composition.
As evidenced by the persistent gap between GAAP net income and FFO, the company's reliance on heavy depreciation charges obscures the true economic cost of maintaining its aging hotel assets, with AFFO reaching a concerning -125.2 million in 2026Q1.
The recurring negative AFFO figures suggest that the capital expenditure required to keep properties competitive is significantly higher than the cash flow being generated. This dynamic warrants further investigation into whether the company is effectively deferring necessary maintenance, which could lead to long-term asset degradation and further erosion of future revenue potential.
Quick answers to the most common questions about buying SVC stock.
For fiscal year 2025, Service Properties Trust (SVC) reported total revenue of $1.81B. This represents a 2096.4% increase compared to $82.6M in 1996.
Service Properties Trust (SVC) reported a net loss of $202.3M for the fiscal year ending 2025.
Service Properties Trust (SVC) reported an operating income of $211.1M, resulting in an operating profit margin of 11.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Service Properties Trust (SVC) generated $566.7M in gross profit for the year, representing a gross profit margin of 31.2%. This demonstrates the company's core pricing power and production efficiency.