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LONDON--(BUSINESS WIRE)-- #AIAgents--Acuity Analytics today announced the launch of its next-generation, domain-led Agentic AI platform, Agent Fleet Pro.

ATLANTA, May 28, 2026 (GLOBE NEWSWIRE) -- Acuity Inc. (NYSE: AYI) (the “Company”) will release fiscal 2026 third-quarter results on Thursday, June 25, 2026 at 6:00 a.m. ET, followed by a conference call at 8:00 a.m. ET. Neil Ashe, Chief Executive Officer of Acuity Inc., will lead the call.

The webcast, earnings release, and supplemental presentation can be accessed via the Investor Relations section of the Company's website at www.investors.acuityinc.com on Thursday, June 25, 2026. The online replay will remain available for a limited time following the call. A replay of the call will also be posted to the Investor Relations site two hours after the completion of the conference call and will be archived on the website.

To learn more about Acuity, please visit the Company's website.

About Acuity

Acuity Inc. (NYSE: AYI) is a market-leading industrial technology company. We use technology to solve problems in spaces, light and more things to come. Through our two business segments, Acuity Brands Lighting (ABL) and Acuity Intelligent Spaces (AIS), we design, manufacture, and bring to market products and services that make a valuable difference in people’s lives.

We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management solutions, and an audio, video and control platform. We focus on customer outcomes and drive growth and productivity to increase market share and deliver superior returns. We look to aggressively deploy capital to grow the business and to enter attractive new verticals.

Acuity Inc. is based in Atlanta, Georgia, with operations across North America, Europe and Asia. The Company is powered by approximately 13,000 dedicated and talented associates. Visit us at www.acuityinc.com.

Investor Contact:
Charlotte McLaughlin
Vice President, Investor Relations
(404) 853-1456
[email protected]

Media Contact:
April Appling
Senior Vice President, Corporate Marketing and Communications
[email protected]

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Cwm LLC reduced its position in Lamar Advertising Company (NASDAQ: LAMR) by 30.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 26,805 shares of the real estate investment trust's stock after selling 11,667 shares during the

Three Month Results

Net revenues were $528.0 millionNet income was $101.8 millionAdjusted EBITDA was $226.3 million BATON ROUGE, La., May 07, 2026 (GLOBE NEWSWIRE) -- Lamar Advertising Company (the “Company” or “Lamar”) (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces the Company’s operating results for the first quarter ended March 31, 2026.

“Our year is shaping up quite nicely, with strong demand from local and particularly national customers," Lamar chief executive Sean Reilly said. "Our first-quarter results surpassed our internal forecasts, and our pacings have us trending at the top end of our previously provided guidance for full-year AFFO per diluted share. “

First Quarter Highlights

Net revenues increased 4.5%Net income decreased 26.9%Adjusted EBITDA increased 7.7%AFFO increased 8.0% First Quarter Results

Lamar reported net revenues of $528.0 million for the first quarter of 2026 versus $505.4 million for the first quarter of 2025, a 4.5% increase. Operating income for the first quarter of 2026 decreased $45.2 million to $146.1 million as compared to $191.2 million for the same period in 2025. Lamar recognized net income of $101.8 million for the first quarter of 2026 as compared to a net income of $139.2 million for the same period in 2025, a decrease of $37.4 million. The 26.9% decrease in net income for the first quarter of 2026 as compared to the same period in 2025 was primarily due to the $67.7 million gain, offset by the $13.1 million income tax expense, recorded in 2025 for the sale of Lamar’s equity interest in Vistar Media, Inc. (“Vistar”). Net income per diluted share was $1.00 and $1.35 for the three months ended March 31, 2026 and 2025, respectively.

Adjusted EBITDA for the first quarter of 2026 was $226.3 million versus $210.2 million for the first quarter of 2025, an increase of 7.7%.

Cash flow provided by operating activities was $147.4 million for the three months ended March 31, 2026 versus $127.7 million for the first quarter of 2025, an increase of $19.6 million. Free cash flow for the first quarter of 2026 was $152.4 million as compared to $121.1 million for the same period in 2025, a 25.8% increase.

For the first quarter of 2026, funds from operations, or FFO, was $167.8 million versus $156.1 million for the same period in 2025, an increase of 7.5%. Adjusted funds from operations, or AFFO, for the first quarter of 2026 was $177.5 million compared to $164.3 million for the same period in 2025, an increase of 8.0%. Diluted AFFO per share increased 7.5% to $1.72 for the three months ended March 31, 2026 as compared to $1.60 for the same period in 2025.

Acquisition-Adjusted Three Months Results

Acquisition-adjusted net revenue for the first quarter of 2026 increased 3.9% over acquisition-adjusted net revenue for the first quarter of 2025. Acquisition-adjusted EBITDA for the first quarter of 2026 increased 5.2% as compared to acquisition-adjusted EBITDA for the first quarter of 2025. Acquisition-adjusted net revenue and acquisition-adjusted EBITDA include adjustments to the 2025 period for acquisitions and divestitures for the same time frame as actually owned in the 2026 period. See “Reconciliation of Reported Basis to Acquisition-Adjusted Results”, which provides reconciliations to GAAP for acquisition-adjusted measures.

Liquidity

As of March 31, 2026, Lamar had $701.5 million in total liquidity that consisted of $662.2 million available for borrowing under its revolving senior credit facility and $39.3 million in cash and cash equivalents. There was $80.0 million in borrowings outstanding under the Company’s revolving credit facility and $242.1 million outstanding under the Accounts Receivable Securitization Program as of the same date.

Recent Developments

Subsequent to March 31, 2026, Lamar paid down $40.0 million of its outstanding borrowings under the Company’s revolving credit facility. Currently, there is $40.0 million in borrowings outstanding under the Company’s revolving credit facility and $250.0 million outstanding under the Accounts Receivable Securitization Program.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding sales trends. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others: (1) our significant indebtedness; (2) the state of the economy and financial markets generally, and the effect of the broader economy on the demand for advertising, including economic changes that may result from new or increased tariffs, trade restrictions or geopolitical tensions, including war and armed conflicts; (3) the continued popularity of outdoor advertising as an advertising medium; (4) our need for and ability to obtain additional funding for operations, debt refinancing or acquisitions; (5) our ability to continue to qualify as a Real Estate Investment Trust (“REIT”) and maintain our status as a REIT; (6) the regulation of the outdoor advertising industry by federal, state and local governments; (7) the integration of companies and assets that we acquire and our ability to recognize cost savings or operating efficiencies as a result of these acquisitions; (8) changes in accounting principles, policies or guidelines; (9) changes in tax laws applicable to REITs or in the interpretation of those laws; (10) our ability to renew expiring contracts at favorable rates; (11) our ability to successfully implement our digital deployment strategy; and (12) the market for our Class A common stock. For additional information regarding factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the risk factors included in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. We caution investors not to place undue reliance on the forward-looking statements contained in this document. These statements speak only as of the date of this document, and we undertake no obligation to update or revise the statements, except as may be required by law.

Use of Non-GAAP Financial Measures

The Company has presented the following measures that are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”): adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), free cash flow, funds from operations (“FFO”), adjusted funds from operations (“AFFO”), diluted AFFO per share, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense. Our management reviews our performance by focusing on these key performance indicators not prepared in conformity with GAAP. We believe these non-GAAP performance indicators are meaningful supplemental measures of our operating performance and should not be considered in isolation of, or as a substitute for their most directly comparable GAAP financial measures.

Our Non-GAAP financial measures are determined as follows:

We define adjusted EBITDA as net income before income tax expense (benefit), interest expense (income), loss (gain) on extinguishment of debt and investments, equity in (earnings) loss of investee, stock-based compensation, depreciation and amortization, loss (gain) on disposition of assets and investments, transaction expenses and investments and capitalized contract fulfillment costs, net. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenues. Free cash flow is defined as adjusted EBITDA less interest, net of interest income and amortization of deferred financing costs, current taxes, preferred stock dividends and total capital expenditures. We use the National Association of Real Estate Investment Trusts definition of FFO, which is defined as net income before (gain) loss from the sale or disposal of real estate assets and investments, net of tax, and real estate related depreciation and amortization and including adjustments to eliminate unconsolidated affiliates and non-controlling interest. We define AFFO as FFO before (i) straight-line income and expense; (ii) capitalized contract fulfillment costs, net; (iii) stock-based compensation expense; (iv) non-cash portion of tax expense (benefit); (v) non-real estate related depreciation and amortization; (vi) amortization of deferred financing costs; (vii) loss on extinguishment of debt; (viii) transaction expenses; (ix) non-recurring infrequent or unusual losses (gains); (x) less maintenance capital expenditures; and (xi) an adjustment for unconsolidated affiliates and non-controlling interest. Diluted AFFO per share is defined as AFFO divided by adjusted weighted average diluted common shares/units outstanding. Adjusted weighted average diluted common shares/units outstanding is calculated by adjusting the Company’s weighted average diluted common shares to add the weighted average outstanding units of Lamar Advertising Limited Partnership (“Lamar LP”), the Company’s operating partnership, that are held by limited partners of Lamar LP other than the Company’s wholly owned subsidiary, Lamar Media Corp. Upon the satisfaction of certain conditions, these units of Lamar LP are redeemable for cash or, at the Company’s option, shares of the Company’s Class A common stock on a one-for-one basis. Outdoor operating income is defined as operating income before corporate expenses, stock-based compensation, capitalized contract fulfillment costs, net, transaction expenses, depreciation and amortization and loss (gain) on disposition of assets and investments. Acquisition-adjusted results adjusts our net revenue, direct and general and administrative expenses, outdoor operating income, corporate expense and EBITDA for the prior period by adding to, or subtracting from, the corresponding revenue or expense generated by the acquired or divested assets before our acquisition or divestiture of these assets for the same time frame that those assets were owned in the current period. In calculating acquisition-adjusted results, therefore, we include revenue and expenses generated by assets that we did not own in the prior period but acquired in the current period. We refer to the amount of pre-acquisition revenue and expense generated by or subtracted from the acquired assets during the prior period that corresponds with the current period in which we owned the assets (to the extent within the period to which this report relates) as “acquisition-adjusted results”. Acquisition-adjusted consolidated expense adjusts our total operating expense to remove the impact of stock-based compensation, depreciation and amortization, transaction expenses, capitalized contract fulfillment costs, net, and loss (gain) on disposition of assets and investments. The prior period is also adjusted to include the expense generated by the acquired or divested assets before our acquisition or divestiture of such assets for the same time frame that those assets were owned in the current period. Adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense are not intended to replace other performance measures determined in accordance with GAAP. Free cash flow, FFO and AFFO do not represent cash flows from operating activities in accordance with GAAP and, therefore, these measures should not be considered indicative of cash flows from operating activities as a measure of liquidity or of funds available to fund our cash needs, including our ability to make cash distributions. Adjusted EBITDA, free cash flow, FFO, AFFO, diluted AFFO per share, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense are presented as we believe each is a useful indicator of our current operating performance. Specifically, we believe that these metrics are useful to an investor in evaluating our operating performance because (1) each is a key measure used by our management team for purposes of decision making and for evaluating our core operating results; (2) adjusted EBITDA is widely used in the industry to measure operating performance as it excludes the impact of depreciation and amortization, which may vary significantly among companies, depending upon accounting methods and useful lives, particularly where acquisitions and non-operating factors are involved; (3) adjusted EBITDA, FFO, AFFO, diluted AFFO per share and acquisition-adjusted consolidated expense each provides investors with a meaningful measure for evaluating our period-over-period operating performance by eliminating items that are not operational in nature and reflect the impact on operations from trends in occupancy rates, operating costs, general and administrative expenses and interest costs; (4) acquisition-adjusted results is a supplement to enable investors to compare period-over-period results on a more consistent basis without the effects of acquisitions and divestitures, which reflects our core performance and organic growth (if any) during the period in which the assets were owned and managed by us; (5) free cash flow is an indicator of our ability to service debt and generate cash for acquisitions and other strategic investments; (6) outdoor operating income provides investors a measurement of our core results without the impact of fluctuations in stock-based compensation, depreciation and amortization and corporate expenses; and (7) each of our Non-GAAP measures provides investors with a measure for comparing our results of operations to those of other companies.

Our measurement of adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense may not, however, be fully comparable to similarly titled measures used by other companies. Reconciliations of adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense to the most directly comparable GAAP measures have been included herein.

Conference Call Information

A conference call will be held to discuss the Company’s operating results on Thursday, May 7, 2026 at 8:00 a.m. central time. Instructions for the conference call and Webcast are provided below:

Conference Call

All Callers:1-800-420-1271 or 1-785-424-1634Passcode:63104  Live Webcast:ir.lamar.com  Webcast Replay:ir.lamar.com Available through Thursday, May 14, 2026 at 11:59 p.m. Eastern Time  Company Contact:Buster Kantrow Director of Investor Relations (225) 926-1000 [email protected]
General Information

Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with over 359,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 5,600 displays.

LAMAR ADVERTISING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
  Three Months Ended
March 31,  2026   2025 Net revenues$528,004  $505,430 Operating expenses (income):   Direct advertising expenses 183,590   179,622 General and administrative expenses 91,496   89,201 Corporate expenses 26,590   26,386 Stock-based compensation 11,203   10,577 Capitalized contract fulfillment costs, net (275)  375 Depreciation and amortization 81,939   77,821 Gain on disposition of assets and investments (12,602)  (69,785)Total operating expense 381,941   314,197 Operating income 146,063   191,233 Other (income) expense:   Interest income (371)  (492)Interest expense 40,539   38,332 Equity in earnings of investee —   (380)  40,168   37,460 Income before income tax expense 105,895   153,773 Income tax expense 4,050   14,544 Net income 101,845   139,229 Net income attributable to non-controlling interest 558   474 Net income attributable to controlling interest 101,287   138,755 Preferred stock dividends 91   91 Net income applicable to common stock$101,196  $138,664 Earnings per share:   Basic earnings per share$1.00  $1.35 Diluted earnings per share$1.00  $1.35 Weighted average common shares outstanding:   Basic 101,373,840   102,437,911 Diluted 101,451,145   102,797,307 OTHER DATA   Free Cash Flow Computation:   Adjusted EBITDA$226,328  $210,221 Interest, net (38,475)  (36,317)Current tax expense (2,272)  (22,812)Preferred stock dividends (91)  (91)Total capital expenditures (33,140)  (29,887)Free cash flow$152,350  $121,114  SUPPLEMENTAL SCHEDULESSELECTED BALANCE SHEET AND CASH FLOW DATA(IN THOUSANDS)  March 31,
2026 December 31,
2025Selected Balance Sheet Data:   Cash and cash equivalents$39,273  $64,812 Working capital deficit$(308,585) $(334,320)Total assets$6,913,348  $6,931,954 Total debt, net of deferred financing costs (including current maturities)$3,495,062  $3,418,907 Total stockholders’ equity$981,694  $1,024,779   Three Months Ended
March 31,  2026   2025Selected Cash Flow Data:   Cash flows provided by operating activities$147,390  $127,745Cash flows (used in) provided by investing activities$(79,394) $65,426Cash flows used in financing activities$93,427  $206,522 SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
  Three Months Ended
March 31,  2026   2025 Reconciliation of Cash Flows Provided By Operating Activities to Free Cash Flow:   Cash flows provided by operating activities$147,390  $127,745 Changes in operating assets and liabilities 40,643   24,167 Total capital expenditures (33,140)  (29,887)Preferred stock dividends (91)  (91)Capitalized contract fulfillment costs, net (275)  375 Other (2,177)  (1,195)Free cash flow$152,350  $121,114     Reconciliation of Net Income to Adjusted EBITDA:   Net income$101,845  $139,229 Interest income (371)  (492)Interest expense 40,539   38,332 Equity in earnings of investee —   (380)Income tax expense 4,050   14,544 Operating income 146,063   191,233 Stock-based compensation 11,203   10,577 Capitalized contract fulfillment costs, net (275)  375 Depreciation and amortization 81,939   77,821 Gain on disposition of assets and investments (12,602)  (69,785)Adjusted EBITDA$226,328  $210,221     Capital expenditure detail by category:   Billboards - traditional$5,928  $6,046 Billboards - digital 13,131   16,076 Logo 4,441   2,606 Transit 502   588 Land and buildings 1,126   310 Operating equipment 8,012   4,261 Total capital expenditures$33,140  $29,887  SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
  Three Months Ended
March 31,  2026  2025  % ChangeReconciliation of Reported Basis to Acquisition-Adjusted Results(a):     Net revenue$528,004 $505,430  4.5%Acquisitions and divestitures —  2,765   Acquisition-adjusted net revenue 528,004  508,195  3.9%Reported direct advertising and G&A expenses 275,086  268,823  2.3%Acquisitions and divestitures —  (2,207)  Acquisition-adjusted direct advertising and G&A expenses 275,086  266,616  3.2%Outdoor operating income 252,918  236,607  6.9%Acquisition and divestitures —  4,972   Acquisition-adjusted outdoor operating income 252,918  241,579  4.7%Reported corporate expense 26,590  26,386  0.8%Acquisitions and divestitures —  (49)  Acquisition-adjusted corporate expenses 26,590  26,337  1.0%Adjusted EBITDA 226,328  210,221  7.7%Acquisitions and divestitures —  5,021   Acquisition-adjusted EBITDA$226,328 $215,242  5.2% (a)   Acquisition-adjusted net revenue, direct advertising and general and administrative expenses, outdoor operating income, corporate expenses and EBITDA include adjustments to 2025 for acquisitions and divestitures for the same time frame as actually owned in 2026.                                                                                                                                  

 Three Months Ended
March 31,  2026   2025  % ChangeReconciliation of Net Income to Outdoor Operating Income:     Net income$101,845  $139,229  (26.9)%Interest expense, net 40,168   37,840   Equity in earnings of investee —   (380)  Income tax expense 4,050   14,544   Operating income 146,063   191,233  (23.6)%Corporate expenses 26,590   26,386   Stock-based compensation 11,203   10,577   Capitalized contract fulfillment costs, net (275)  375   Depreciation and amortization 81,939   77,821   Gain on disposition of assets and investments (12,602)  (69,785)  Outdoor operating income$252,918  $236,607  6.9% SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
  Three Months Ended
March 31,  2026   2025  % ChangeReconciliation of Total Operating Expenses to Acquisition-Adjusted Consolidated Expense:     Total operating expenses$381,941  $314,197  21.6%Gain on disposition of assets and investments 12,602   69,785   Depreciation and amortization (81,939)  (77,821)  Capitalized contract fulfillment costs, net 275   (375)  Stock-based compensation (11,203)  (10,577)  Acquisitions and divestitures —   (2,256)  Acquisition-adjusted consolidated expense$301,676  $292,953  3.0% SUPPLEMENTAL SCHEDULES
UNAUDITED REIT MEASURES
AND RECONCILIATIONS TO GAAP MEASURES
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
  Three Months Ended
March 31,  2026   2025 Adjusted Funds from Operations:   Net income$101,845  $139,229 Depreciation and amortization related to real estate 77,073   73,636 Gain from sale or disposal of real estate assets and investments, net of tax (10,561)  (56,597)Adjustments for unconsolidated affiliates and non-controlling interest (558)  (126)Funds from operations$167,799  $156,142 Straight-line expense 1,164   1,009 Capitalized contract fulfillment costs, net (275)  375 Stock-based compensation expense 11,203   10,577 Non-cash portion of tax provision (193)  (244)Non-real estate related depreciation and amortization 4,866   4,185 Amortization of deferred financing costs 1,693   1,523 Capitalized expenditures-maintenance (9,297)  (9,385)Adjustments for unconsolidated affiliates and non-controlling interest 558   126 Adjusted funds from operations$177,518  $164,308     Weighted average diluted common shares outstanding(1) 101,451,145   102,797,307 Adjusted weighted average diluted common shares/units outstanding(2) 103,074,560   102,797,307 Diluted AFFO per share$1.72  $1.60 
(1) Utilized to calculate earnings per share in accordance with GAAP.
(2) Utilized to calculated AFFO per share. Includes the weighted average outstanding units of Lamar LP (the Company’s operating partnership) that are held by limited partners of Lamar LP other than the Company’s wholly owned subsidiary, Lamar Media Corp. Upon the satisfaction of certain conditions, these units of Lamar LP are redeemable for cash or, at the Company’s option, shares of the Company’s Class A common stock on a one-for-one basis.

Lamar Advertising Company (LAMR) Q1 2026 Earnings Call Transcript

BATON ROUGE, La. , May 08, 2026 (GLOBE NEWSWIRE) -- Lamar Advertising Company (Nasdaq: LAMR) today announced that Sean Reilly, CEO of Lamar Advertising Company, is scheduled to participate in a question-and-answer session at the J. P. Morgan 2026 Global Technology, Media and Communications Conference on Monday, May 18, 2026 at approximately 3:30 pm EST.

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On May 12, 2026, Lamar Advertising Co LAMR shares fell 6.6% to a current price of $147.55. This decline comes amidst a year where the stock has seen a rise of 31.0%. The shares have fluctuated between a 52-week high of $158.69 and a low of $113.05.

GF Value™ verdict: The current price is $147.55, while the GF Value™ estimates fair value at $127.26, indicating the stock is 15.9% overvalued.GF Score™: LAMR has a GF Score™ of 86/100, which is considered strong and suggests potential for higher long-term returns.Most notable signal: Insiders sold $2.5 million worth of shares in the last three months, signaling potential caution among company leadership. Is LAMR Overvalued or Undervalued? The current price of $147.55 for Lamar Advertising Co LAMR is significantly higher than the GF Value™ estimate of $127.26. This indicates that the stock is currently overvalued by approximately 15.9%. A stock trading above its intrinsic value often carries risks, particularly if market sentiment shifts or if the company's future performance does not meet expectations. According to the GF Valuation label, LAMR is considered "Modestly Overvalued." This overvaluation suggests that investors may want to approach with caution, as the margin of safety is relatively thin.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The intrinsic value calculation takes into account various factors that can affect the company's financial health and growth trajectory. Given that LAMR is trading at a premium to its estimated fair value, potential investors need to consider the risks involved, especially if future earnings fail to meet current market expectations.

How Does LAMR's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)27.2x24.9x Forward P/E25.6x- The current P/E ratio of 27.2x is approximately 9% above its 5-year median P/E of 24.9x, indicating that the stock is trading above its historical valuation. This P/E analysis aligns with the GF Value™ verdict of being overvalued, reinforcing the notion that the stock may be priced higher than its historical performance would typically suggest.

What Does LAMR's GF Score™ Tell Us? MetricRating GF Score™86/100 Financial Strength4/10 Profitability9/10 Growth7/10 Valuation6/10 Momentum8/10 The GF Score™ of 86/100 indicates that Lamar Advertising Co LAMR is positioned favorably compared to its peers, particularly in terms of profitability, where it scores an impressive 9/10. However, the financial strength score of 4/10 suggests that there are areas of concern that may warrant further investigation. The growth and momentum rankings also reflect a solid performance, although the valuation rank of 6/10 highlights that the stock may not presently offer the best value based on its current market price.

What Are Insiders Doing with LAMR Stock? In the last three months, insiders have sold $2.5 million worth of LAMR shares, with no buying activity reported. This trend often raises red flags for potential investors, as it may indicate a lack of confidence among those who are most familiar with the company's operations. Insider selling can suggest that executives believe the stock is overvalued or that they are looking to capitalize on favorable market conditions.

The absence of insider buying could further emphasize concerns over the stock's current valuation. It is important for investors to consider these signals when evaluating the overall sentiment surrounding the company.

What This Means for Investors Based on the analysis of the GF Value™, Lamar Advertising Co LAMR is currently overvalued. The price of $147.55 exceeds the GF Value™ estimate of $127.26, which suggests that potential investors might face risks if the stock does not perform as expected in the future.

For the complete analysis, visit the Lamar Advertising Co LAMR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is LAMR's GF Score™?

Lamar Advertising Co LAMR has a GF Score™ of 86/100, indicating strong potential for higher long-term returns based on historical performance.

Is LAMR overvalued or undervalued?

LAMR is currently overvalued, with its price of $147.55 exceeding the GF Value™ estimate of $127.26 by 15.9%.

What is LAMR's P/E ratio?

The P/E ratio for LAMR is 27.2x, which is 9% above its 5-year median of 24.9x, indicating that the stock is currently trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Lamar Advertising Company (LAMR) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

Key Takeaways LAMR beat expectations as local demand stayed healthy and national advertising showed clear signs of recovery.LAMR ended Q1 with 5,657 digital displays; digital was almost 31% of billboard billing.LAMR expects at least $6.40 per share distributed in 2026, supported by $701.5M liquidity. Lamar Advertising Company (LAMR - Free Report) is proving that outdoor advertising remains a strong and relevant business. The REIT opened 2026 on a positive note, beating expectations as local demand stayed healthy and national advertising showed clear signs of recovery.

Investor interest in LAMR has also improved. The stock has gained 8.2% over the past three months, while the industry has slipped 0.6%. With solid AFFO growth, an attractive dividend and encouraging booking trends, Lamar gives investors several reasons to take a closer look.

Image Source: Zacks Investment Research

Analysts also seem optimistic about this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for its 2026 FFO per share has moved northward over the past 30 days to $8.81. It also suggests an increase of 6.66% year over year. 

Image Source: Zacks Investment Research

For investors looking for a steady REIT with advertising upside, LAMR has several things working in its favor. Here are five reasons LAMR stock looks worth buying now.

Factors That Make LAMR Stock a Solid PickRevenue Growth Is Picking Up: Lamar reported first-quarter net revenues of $528 million, up 4.5% from the prior year. On an acquisition-adjusted basis, revenues rose 3.9%, showing that growth was not just coming from deals. Management also said revenues increased 4.8% in April and that bookings for the rest of the second quarter looked encouraging. This matters because outdoor advertising companies depend heavily on booking visibility, and Lamar appears to have a stronger pipeline than it had at the start of the year.

National Advertising Is Recovering: National advertising was one of the strongest parts of the quarter. National revenues increased 5.8%, with programmatic revenues rising nearly 25% to about $11 million. This is important because national advertising has been uneven in recent years. A healthier national business gives Lamar another growth lever beyond its strong local advertiser base.

Digital Billboards Remain a Growth Driver: Digital remains a key growth engine. Same-board digital revenues increased 5%, and digital represented almost 31% of billboard billing in the first quarter. Lamar ended the quarter with 5,657 digital displays, up 104 from year-end 2025. Digital boards allow the company to sell space more flexibly, improve yield and attract advertisers that want faster campaign execution.

Cash Flow and AFFO Look Strong: Adjusted EBITDA rose 7.7% to $226.3 million, while AFFO increased 8% to $177.5 million. AFFO per share climbed 7.5% to $1.72. For an REIT, AFFO is especially important because it helps support dividends and future investment. Lamar also affirmed full-year AFFO guidance of $8.50 to $8.70 per share, with management suggesting an upside revision could be possible if trends continue.

Dividend Adds Appeal: Lamar paid a first-quarter dividend of $1.60 per share and expects to distribute at least $6.40 per share for the full year. Management also said a dividend increase in the back half of 2026 is likely if performance remains strong. In the past five years, the company has raised its dividend eight times. Its five-year annualized dividend growth rate is 12.27%, which is encouraging. With a solid balance sheet, roughly $701.5 million in liquidity at quarter-end and leverage near three times net debt-to-EBITDA, Lamar looks well-positioned to keep rewarding shareholders while still pursuing acquisitions.

Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are Prologis, Inc. (PLD - Free Report) and W. P. Carey Inc. (WPC - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Prologis’ 2026 FFO per share suggests a 6.37% increase year over year.

The consensus mark for W. P. Carey’s 2026 FFO per share has been revised five cents upward to $5.26 over the past month.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

CreativeOne Wealth LLC bought a new stake in Adtalem Global Education Inc. (NYSE: ATGE) in the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 5,584 shares of the company's stock, valued at approximately $862,000. Other large investors have also recently made changes

(PRNewsfoto/Choice Hotels International, Inc.) Global Net Rooms Increased 1.7%, with U.S. Net Rooms Growth Improving

Q1 U.S. Hotel Openings Hit Five-Year High

 Global Franchise Agreements Awarded Increased 72%

, /PRNewswire/ -- Choice Hotels International, Inc. ("Choice" or "the Company") (NYSE: CHH), a leading global lodging franchisor with a capital-light, franchise-driven model, today reported results for the first quarter ended March 31, 2026.

Highlights include:

Total revenues reached a company record $340.6 million for the first quarter. Net income was $20.3 million for the first quarter, representing diluted EPS of $0.44. Adjusted EBITDA totaled $125.7 million, while adjusted diluted EPS reached $1.07 for the first quarter. U.S. royalty rate expanded 11 basis points to 5.22% for the first quarter, compared to the same period of 2025. Global net rooms grew 1.7% compared to March 31, 2025, driven by 2.5% growth in higher revenue extended stay, midscale, and upscale brands. U.S. room openings increased 32% in the first quarter compared to the same period of 2025, reaching the highest first-quarter level since 2023, while exits declined year-over-year to the lowest quarterly level since 2023, driving sequential net rooms growth from year-end 2025. Global franchise agreements awarded increased 72% in the first quarter, compared to the same period of 2025. U.S. pipeline grew sequentially to approximately 71,500 rooms, with the conversion rooms pipeline increasing 17% compared to March 31, 2025, and 3% sequentially from December 31, 2025.   Capital recycling generated $24.6 million of proceeds in the first quarter, with hotel development and lending shifting from net outflows in the prior year to net inflows in the current period. "Choice Hotels delivered first-quarter financial results in line with expectations, with key operating indicators signaling an inflection point in underlying trends," said Patrick Pacious, President and Chief Executive Officer. "We are driving sequentially improving U.S. net rooms growth, supported by our conversion-led model and more accretive pipeline, achieving faster, more capital-efficient expansion. Franchisee unit economics continue to strengthen and capital intensity is declining. This positions Choice to deliver more consistent earnings growth and enhances our ability to return capital to shareholders."

Financial Performance

($ in millions, except per-share amounts)

2026

2025

Total revenues

$341

$333

Revenue excl. revenue for reimbursable costs from
franchised and managed properties1

$217

$209

Net income

$20

$45

Adjusted net income

$50

$64

Diluted EPS

$0.44

$0.94

Adjusted diluted EPS

$1.07

$1.34

Adjusted EBITDA

$126

$130

1 Calculated as total revenues excluding reimbursable revenues. Reimbursable revenues totaled $124 million and $123 million for first quarter 2026 and 2025, respectively.

Revenue excluding reimbursable costs increased 3% to $216.7 million in the first quarter, from $209.4 million in the prior year. Adjusted EBITDA was $125.7 million for the first quarter, compared to $129.6 million in the prior year, primarily reflecting timing-related factors and in line with expectations. Adjusted diluted EPS was $1.07 for the first quarter, compared to $1.34 in the prior year, reflecting timing-related factors and a temporarily elevated effective income tax rate that is expected to be approximately 25% for the full year. RevPAR

(% change on a currency-neutral basis)

Change vs. Prior Year Period

Three months ended

March 31, 2026

U.S.

-2.3 %

International

2.6 %

Global

-0.8 %

U.S. results included a significant hurricane-related impact of approximately 410 basis points, affecting the year-over-year comparison.

U.S. RevPAR increased 1.8% in the first quarter, compared to the same period of 2025, excluding the prior-year hurricane-related impact. International RevPAR increased 2.6% on a currency-neutral basis in the first quarter, compared to the same period of 2025.   System Size and Development

(Rooms)

March 31, 2026

March 31, 2025

Change

U.S.

497,881

505,601

-1.5 %

     U.S. upscale, extended stay, and midscale

440,464

444,230

-0.8 %

International

160,467

141,986

13.0 %

Global

658,348

647,587

1.7 %

     Global upscale, extended stay, and midscale

595,580

580,860

2.5 %

Global pipeline exceeded 77,700 rooms as of March 31, 2026, with 97% concentrated in extended stay, midscale, and upscale brands, supporting a more accretive future earnings profile. Franchise agreements awarded increased 65% in the U.S. and 113% in international markets in the first quarter of 2026, compared to the same period of 2025. International net rooms grew 13% compared to March 31, 2025, highlighted by a 59% increase in room openings, bringing the international system to approximately 160,500 rooms, with strong momentum across regions, including Canada and EMEA. Extended stay remains a core growth engine, supported by strong unit economics and continued developer demand, with U.S. extended stay net rooms growing 11.8% compared to March 31, 2025, and a pipeline of over 30,300 rooms as of March 31, 2026. U.S. midscale room openings increased 57% compared to the same period of 2025, and the pipeline grew 6% from March 31, 2025, reflecting improving owner returns and demand for cost-efficient prototypes. U.S. economy transient rooms pipeline grew 26% sequentially from December 31, 2025, supported by a 13% increase in franchise agreements awarded in the first quarter of 2026. U.S. upscale room openings increased 112% compared to March 31, 2025, and the pipeline grew 8% compared to March 31, 2025, driven by Radisson Individuals, Ascend Collection, and Radisson brand. Balance Sheet and Liquidity

As of March 31, 2026, Choice had total available liquidity of $474.0 million, including cash and cash equivalents and available borrowing capacity. The Company's net debt-to-adjusted EBITDA ratio was 3.2x for the trailing twelve months ended March 31, 2026.

During the first quarter of 2026, the Company used $23.2 million of cash in operating activities, primarily reflecting the timing of working capital items and increased franchise agreement acquisition cost payments associated with higher global room openings, which increased 37% compared to March 31, 2025.

During the three months ended March 31, 2026, Choice generated $24.6 million in proceeds from capital recycling activities, as cash flows related to hotel development and lending shifted meaningfully from net outflows of $41.3 million in the prior year to net inflows of $3.7 million.

Shareholder Returns

During the three months ended March 31, 2026, the Company returned $75.2 million to shareholders, including $13.1 million in dividends and $62.1 million in share repurchases, under its stock repurchase program and repurchases from employees in connection with tax withholding and option exercises relating to awards under the Company's equity incentive plans.

As of March 31, 2026, 2.3 million shares of common stock remained available under the Company's current share repurchase authorization.

Outlook

The Company is maintaining its full-year 2026 outlook. The following outlook includes forward-looking non-GAAP measures used by management to assess expected performance. Adjusted metrics exclude the net surplus or deficit from reimbursable revenue from franchised and managed properties, due diligence and transition costs, share repurchases completed after March 31, 2026, and other items.

Net capital outlays for hotel development-related activities are expected to decline significantly, from $103.4 million in 2025 to a range of $20 million to $45 million in 2026, reflecting the Company's transition to a more capital-efficient model.

Full-Year 2026

Net income

$265 to $275 million

Adjusted net income

$320 to $330 million

Adjusted EBITDA

$632 to $647 million

    Adjusted SG&A

Mid-single digits

Diluted EPS

$5.72 to $5.94

Adjusted diluted EPS

$6.92 to $7.14

Effective tax rate

25 %

Full-Year 2026 vs. 2025

Global RevPAR growth

-2% to 1%

    U.S. RevPAR growth

-2% to 1%

U.S. royalty rate growth

Mid-single digits

Global net system rooms growth

Approximately 1%

Webcast and Conference Call

Choice will host a conference call to discuss first quarter 2026 results on April 30, 2026, at 11:00 a.m. ET. A live webcast will be available on the Company's Investor Relations website at www.investor.choicehotels.com/events-and-presentations. Participants may also dial (800) 715-9871 (U.S.) or (646) 307-1963 (international) and reference conference ID 2822521. A replay and transcript will be available within 24 hours on the Company's Investor Relations website.

About Choice Hotels®

Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.

Forward-Looking Statements

Information set forth herein includes "forward-looking statements." Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of Choice's revenue, expenses, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, net surplus or deficit, repurchases of common stock and other financial and operational measures, including occupancy and open hotels, RevPAR, strategic investment and acquisition performance, international expansion performance, macroeconomic backdrop and Choice's liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.

Several factors could cause our actual results, performance or achievements to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, U.S. and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future U.S. or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of our relationship with employees of our franchisees; the potential impact of new laws and regulations generally, including, without limitation, those relating to taxes, wages, labor and immigration; foreign currency fluctuations; changes in global interest rates and rate differentials; variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; the federal government funding lapse and related government shutdowns; impairments or declines in the value of our assets; our assumptions underlying our critical accounting estimates; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for our marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; introduction and integration of artificial intelligence technologies; climate change; our sustainability strategy; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; political instability, conflicts and terrorism; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness.

These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measurements and Other Definitions

The company evaluates its operations utilizing the performance metrics of adjusted EBITDA, adjusted selling, general and administrative (SG&A) expenses, adjusted net income, and adjusted diluted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP measures in Exhibits 6 and 7, should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by GAAP, such as SG&A, net income and EPS. The company's calculation of these measurements may be different from the calculations used by other companies and comparability may therefore be limited. We discuss management's reasons for reporting these non-GAAP measures and how each non-GAAP measure is calculated below.

In addition to the specific adjustments noted below with respect to each measure, the non-GAAP measures presented herein also exclude restructuring of the company's operations including employee severance benefit, income taxes and legal costs, acquisition related to business combination, due diligence and transition (recoveries) costs, and global ERP system implementation and related costs to allow for period-over-period comparison of ongoing core operations before the impact of these discrete and infrequent charges.

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization: Adjusted EBITDA, presented herein, is calculated as net income excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of cloud computing arrangements, impairments and gains on sale of business, joint ventures and assets, other (gains) and losses, equity in net income (loss) of unconsolidated affiliates and (gain) loss on extinguishment of debt, further adjusted to exclude certain items, including, franchisee agreement acquisition cost amortization and charges, mark-to-market adjustments on non-qualified retirement plan investments, share based compensation expense (benefit) and surplus or deficits generated by reimbursable revenue from franchised and managed properties. We consider adjusted EBITDA to be an indicator of operating performance because it measures our ability to service debt, fund capital expenditures, and expand our business. We also use these measures, as do analysts, lenders, investors, and others, to evaluate companies because they exclude certain items that can vary widely across industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings, and share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of interest expense and share based compensation expense (benefit) on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. These measures also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets or amortizing franchise-agreement acquisition costs. These differences can result in considerable variability in the relative asset costs and estimated lives and, therefore, the depreciation and amortization expense among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are excluded from adjusted EBITDA, as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income. Surpluses and deficits generated from reimbursable revenues from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise and management agreements require these revenues to be used exclusively for expenses associated with providing franchise and management services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from these activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance.

Adjusted Net Income and Adjusted Diluted Earnings Per Share: Adjusted net income and adjusted diluted EPS exclude the impact of surpluses or deficits generated from reimbursable revenue from franchised and managed properties, impairments, formation costs and gains on sale of business, joint ventures and assets and gains on extinguishment of debt. Surpluses and deficits generated from reimbursable revenue from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise agreements require these revenues to be used exclusively for expenses associated with providing franchised and managed services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance. We consider adjusted net income and adjusted diluted EPS to be indicators of operating performance because excluding these items allows for period-over-period comparisons of our ongoing operations.

Adjusted SG&A: Adjusted SG&A reflects SG&A excluding the impact of mark-to-market adjustments on non-qualified retirement plan investments, amortization of cloud computing arrangements and share based compensation expense. We use this measure, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across industries or among companies within the same industry. For example, share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of share-based compensation expense (benefit) on earnings can vary significantly among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are also excluded as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income.

Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. The company calculates occupancy based on information as reported by its franchisees. To accurately reflect occupancy, the company may revise its prior years' operating statistics for the most current information provided. 

Average Daily Rate (ADR): ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and management uses ADR to assess pricing levels that the company is able to generate. The company calculates ADR based on information as reported by its franchisees. To accurately reflect ADR, the company may revise its prior years' operating statistics for the most current information provided. 

Revenue Per Available Room (RevPAR): RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of hotel performance and therefore company royalty and system revenues as it provides a metric correlated to the two key drivers of operations at a hotel: occupancy and ADR. The company calculates RevPAR based on information as reported by its franchisees. To accurately reflect RevPAR, the company may revise its prior years' operating statistics for the most current information provided. RevPAR is also a useful indicator in measuring performance over comparable periods.

Pipeline: Pipeline is defined as hotels awaiting conversion, under construction or approved for development, and master development agreements committing owners to future franchise development.

Contacts

Allie Summers, Senior Director, Investor Relations
[email protected]

© 2026 Choice Hotels International, Inc. All rights reserved.

Choice Hotels International, Inc.

Exhibit 1

Condensed Consolidated Statements of Income

(Unaudited)

(In thousands, except per share amounts)

For the Three Months Ended

March 31,

2026

2025

REVENUES

Franchise and management fees

$       149,631

$       145,068

Partnership services and fees

24,734

25,381

Owned hotels

30,433

27,860

Other

11,873

11,127

Revenue for reimbursable costs from franchised and managed properties

123,904

123,424

Total revenues

340,575

332,860

OPERATING EXPENSES

Selling, general and administrative

78,046

74,210

Business combination, diligence and transition costs

236

99

Depreciation and amortization

16,821

13,748

Owned hotels

23,651

21,060

Reimbursable expenses from franchised and managed properties

161,787

143,811

Total operating expenses

280,541

252,928

Operating income

60,034

79,932

OTHER EXPENSES AND (INCOME), NET

Interest expense

23,962

21,242

Interest income

(1,211)

(1,559)

Other losses, net

721

436

Equity in net loss of affiliates

6,252

51

Total other expenses and (income), net

29,724

20,170

Income before income taxes

30,310

59,762

Income tax expense

10,006

15,228

Net income

$         20,304

$         44,534

Basic earnings per share

$          0.44

$           0.95

Diluted earnings per share

$          0.44

$          0.94

Choice Hotels International, Inc.

Exhibit 2

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

March 31,

December 31,

2026

2025

ASSETS

Cash and cash equivalents

$           43,872

$           44,997

Accounts receivable, net

243,511

207,491

Other current assets

123,392

153,510

Total current assets

410,775

405,998

Property and equipment, net

649,883

649,291

Operating lease right-of-use assets

76,559

77,670

Goodwill

304,583

305,758

Intangible assets, net

1,096,143

1,082,486

Notes receivable, net of allowances

27,403

12,490

Investments for employee benefit plans, at fair value

47,899

50,227

Investments in affiliates

132,848

134,975

Other assets

198,493

199,308

Total assets

$        2,944,586

$        2,918,203

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable

$          146,193

$          156,276

Accrued expenses and other current liabilities

86,707

125,282

Deferred revenue

112,853

100,698

Liability for guest loyalty program

88,236

85,035

 Total current liabilities

433,989

467,291

Long-term debt

2,003,236

1,906,122

Long-term deferred revenue

129,946

130,505

Deferred compensation and retirement plan obligations

54,313

56,532

Deferred income taxes

34,081

25,303

Operating lease liabilities

106,384

107,963

Liability for guest loyalty program

41,566

39,771

Other liabilities

3,644

3,487

Total liabilities

2,807,159

2,736,974

Total shareholders' equity

137,427

181,229

Total liabilities and shareholders' equity

$        2,944,586

$        2,918,203

Choice Hotels International, Inc.

Exhibit 3

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

Three Months Ended March 31,

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$        20,304

$        44,534

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Depreciation and amortization

16,821

13,748

Depreciation and amortization – reimbursable expenses from franchised and managed properties

5,115

4,887

Franchise agreement acquisition cost amortization

9,580

9,791

Non-cash share-based compensation and other charges

8,434

9,834

Non-cash interest, investments, and affiliate loss, net

1,800

1,515

Deferred income taxes

7,657

626

Equity in net loss of affiliates, less distributions received

6,252

413

Franchise agreement acquisition costs, net of reimbursements

(42,842)

(26,287)

Change in working capital and other

(56,295)

(38,594)

Net cash (used in) provided by operating activities

(23,174)

20,467

CASH FLOWS FROM INVESTING ACTIVITIES

Investments in other property and equipment

(10,065)

(10,543)

Investments in owned hotel properties

(16,819)

(35,462)

Contributions to investments in affiliates

(3,863)

(5,415)

Issuances of notes receivable

(236)

(1,952)

Collections of notes receivable

24,610

1,487

Other items, net

197

(1,067)

Net cash used in investing activities

(6,176)

(52,952)

CASH FLOWS FROM FINANCING ACTIVITIES

Net borrowings pursuant to revolving credit facilities

97,000

105,500

Purchases of treasury stock

(56,480)

(64,624)

Dividends paid

(13,115)

(13,471)

Proceeds from the exercise of stock options

880

4,803

Net cash provided by financing activities

28,285

32,208

Net change in cash and cash equivalents

(1,065)

(277)

Effect of foreign exchange rate changes on cash and cash equivalents

(60)

154

Cash and cash equivalents, beginning of period

44,997

40,177

Cash and cash equivalents, end of period

$        43,872

$        40,054

Exhibit 4

CHOICE HOTELS INTERNATIONAL, INC.

CURRENCY-NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS

(UNAUDITED)

For the Three Months Ended March 31, 2026

ADR

Occupancy

RevPAR

2026

vs. 2025

2026

vs. 2025

2026

vs. 2025

Total U.S.

$        88.74

(2.1) %

50.9 %

(10)

bps

$          45.18

(2.3) %

     Upscale & Above (1)

140.24

0.5 %

50.1 %

20

bps

70.24

0.8 %

     Midscale & Upper Midscale (2)

92.29

(2.1) %

49.8 %

—

bps

45.93

(2.1) %

     Extended Stay (3)

66.35

0.1 %

66.1 %

(170)

bps

43.86

(2.4) %

     Economy (4)

66.11

(5.5) %

42.3 %

(150)

bps

27.99

(8.5) %

International (5)

96.64

3.7 %

56.9 %

(60)

bps

54.97

2.6 %

Total System (5)

$        90.73

(0.6) %

52.3 %

(10)

bps

$          47.45

(0.8) %

For the Three Months Ended

March 31, 2026

March 31, 2025

U.S. Average Royalty Rate

Total U.S.

5.22 %

5.11 %

(1) Includes Ascend Hotel Collection, Cambria, Park Plaza, Radisson, Radisson Blu, Radisson Individuals, and Radisson RED brands.

(2) Includes Clarion, Comfort Inn, Comfort Suites, Country Inn & Suites, Park Inn, Quality Inn, and Sleep Inn brands.

(3) Includes Everhome Suites, Mainstay Suites, Suburban Studios, and WoodSpring Suites brands.

(4) Includes Econo Lodge and Rodeway brands.

(5) International and Total System results are presented on a currency-neutral basis and exclude the impact of foreign currency exchange movements.

Exhibit 5

CHOICE HOTELS INTERNATIONAL, INC.

SYSTEM HOTEL AND ROOM SUPPLY

(UNAUDITED)

Global System by Brand

March 31, 2026

Hotels

Rooms

Ascend Hotel Collection

513

69,858

Cambria Hotels

77

10,296

Radisson(1)

129

22,584

Comfort(2)

2,136

179,024

Quality

1,885

148,462

Country

404

32,564

Sleep

425

30,444

Clarion(3)

266

36,157

Park Inn

31

2,656

WoodSpring

293

35,261

MainStay

155

11,304

Suburban

117

9,777

Everhome

27

3,108

Econo Lodge

637

36,275

Rodeway

435

24,037

Other (4)

58

6,541

(1) Includes Radisson, Radisson Blu, Radisson Individuals, Radisson RED and Park Plaza brands.

(2) Includes Comfort family of brand extensions including Comfort Inn and Comfort Suites.

(3) Includes Clarion family of brand extensions including Clarion and Clarion Pointe.

(4) Includes other brands under Master Franchise Agreements.

U.S. System by Chain Scale

March 31, 2026

Hotels

Rooms

Upscale & Above

368

59,403

Midscale & Upper Midscale

4,223

322,291

Extended Stay

584

58,770

Economy

1,013

57,417

Global System by Region

March 31, 2026

Hotels

Rooms

U.S

6,188

497,881

Total International

1,400

160,467

     Americas (excluding U.S.)

542

55,857

     Europe & Middle East

478

69,874

     Asia-Pacific

380

34,736

Total System

7,588

658,348

Exhibit 6

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

(UNAUDITED)

ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

(dollar amounts in thousands)

Three Months Ended

March 31,

2026

2025

Total selling, general and administrative expenses

$       78,046

$       74,210

Mark to market adjustments on non-qualified retirement plan investments

1,051

723

Non-recurring operational restructuring charges and executive severance

(481)

(3,930)

Share-based compensation

(4,812)

(5,890)

Amortization of cloud computing arrangements

(279)

—

Global ERP system implementation and related costs

(300)

(990)

Adjusted selling, general and administrative expenses

$       73,225

$       64,123

ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("ADJUSTED EBITDA")

(dollar amounts in thousands)

Three Months Ended

March 31,

2026

2025

Net income

$         20,304

$        44,534

Income tax expense

10,006

15,228

Interest expense

23,962

21,242

Interest income

(1,211)

(1,559)

Amortization of cloud computing arrangements

279

—

Depreciation and amortization

16,821

13,748

Other losses, net

721

436

Equity in net loss of affiliates

6,252

51

Share-based compensation

4,812

5,890

Mark to market adjustments on non-qualified retirement plan investments

(1,051)

(723)

Franchise agreement acquisition costs amortization and charges

5,925

5,386

Revenue for reimbursable costs from franchised and managed properties

(123,904)

(123,424)

Reimbursable expenses from franchised and managed properties

161,787

143,811

Global ERP system implementation and related costs

300

990

Business combination, diligence and transition costs

236

99

Non-recurring operational restructuring charges and executive severance

481

3,930

Adjusted EBITDA

$       125,720

$       129,639

ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE ("EPS")

(dollar amounts in thousands, except per share amounts)

Three Months Ended

March 31,

2026

2025

Net income

$         20,304

$        44,534

Revenue for reimbursable costs from franchised and managed properties

(123,904)

(123,424)

Reimbursable expenses from franchised and managed properties

161,787

143,811

Business combination, diligence and transition costs

236

99

Non-recurring operational restructuring charges and executive severance

481

3,930

Global ERP system implementation and related costs

300

990

Income tax expense on adjustments

(9,605)

(6,297)

Adjusted Net Income

$         49,599

$        63,643

Diluted EPS

$          0.44

$         0.94

Adjusted Diluted EPS

$          1.07

$         1.34

Exhibit 7

CHOICE HOTELS INTERNATIONAL, INC.

OUTLOOK

(UNAUDITED)

Guidance represents the company's range of estimated outcomes for the full year ended December 31, 2026

ADJUSTED EBITDA

(in thousands)

Full Year

Full Year

Lower Range

Upper Range

Net income

$        265,000

$        275,000

Income tax expense

88,300

91,600

Interest expense

85,800

86,000

Interest income

(4,200)

(4,100)

Amortization of cloud computing arrangements

1,200

1,200

Depreciation and amortization

64,100

65,100

Other losses, net

800

800

Equity in net loss of affiliates

11,300

11,700

Share-based compensation

21,000

21,000

Mark to market adjustments on non-qualified retirement plan investments

(1,100)

(1,100)

Franchise agreement acquisition costs amortization and charges

26,300

26,300

Revenue for reimbursable costs from franchised and managed properties

(595,500)

(595,500)

Reimbursable expenses from franchised and managed properties

665,500

665,500

Global ERP system implementation and related costs

1,700

1,700

Business combination, diligence and transition costs

1,300

1,300

Non-recurring operational restructuring charges and executive severance

500

500

Adjusted EBITDA

$        632,000

$        647,000

ADJUSTED NET INCOME & DILUTED EARNINGS PER SHARE ("EPS")

(in thousands, except per share amounts)

Full Year

Full Year

Lower Range

Upper Range

Net income

$        265,000

$        275,000

Revenue for reimbursable costs from franchised and managed properties

(595,500)

(595,500)

Reimbursable expenses from franchised and managed properties

665,500

665,500

Business combination, diligence and transition costs

1,300

1,300

Non-recurring operational restructuring charges and executive severance

500

500

Global ERP system implementation and related costs

1,700

1,700

Income tax expense on adjustments

(18,500)

(18,500)

Adjusted net income

$        320,000

$        330,000

Diluted EPS

$            5.72

$           5.94

Adjusted Diluted EPS

$            6.92

$           7.14

SOURCE Choice Hotels International, Inc.

Choice Hotels International, Inc. (CHH) Q1 2026 Earnings Call Transcript

The company spotlights new tools, insights and initiatives designed to drive demand, improve efficiency and support stronger franchisee returns across every segment

, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, today opened its 70th Annual Convention, bringing together thousands of franchise owners, operators, vendors and industry collaborators for three days centered on the theme of "Making More Possible" for its owners and operators—helping them capture new demand, enhance performance and build long-term success.

With sessions and experiences spanning AI-powered technology, revenue optimization, and operational simplification, the convention underscores Choice Hotels' ongoing mission to deliver value for franchisees by harnessing intelligent, data-driven tools that streamline hotel operations, reduce friction and fuel stronger hotel-level performance. The company is also investing in the tools, programs and experiences that strengthen guest trust, personalize stays, drive loyalty and keep travelers coming back.

"This week is about one thing: Making More Possible — together," said Patrick Pacious, President and Chief Executive Officer. "At Choice Hotels, we're working relentlessly to do three things for owners: helping drive more revenue, deepening our personal connection and support for owners and operators, and harnessing AI-powered innovation to help owners run their businesses more simply and efficiently — now and in the future. At the same time, we're focused on elevating the guest experience — strengthening loyalty through Choice Privileges, and using smarter technology and personalization to make every stay easier, more rewarding and more memorable. With interest rates stabilizing, demand trends continuing to improve, limited hotel room supply and a strong calendar of events across the U.S., it's an increasingly favorable time to operate a hotel and invest in the future."

A Reimagined Revenue Engine Built to Drive Demand

A reimagined revenue engine is taking center stage at the convention, designed to help franchise owners capture higher–value demand and grow topline results across key segments. The revenue engine is anchored by the refreshed Choice Privileges loyalty program and strengthened by new commercial tools, including Choice Hotels EasyBid, an AI–powered Request For Proposal (RFP) platform designed to help owners respond faster and capture more group business. Choice Hotels Business Direct is a self–service solution launching soon for small and medium–sized businesses to book and manage stays directly on ChoiceHotels.com. Together with RAISE, a new AI–powered Rate Management Tool launching later this year, these capabilities work in tandem to help owners price more effectively, move faster on opportunities, and unlock incremental revenue with greater efficiency.

Throughout the convention, franchisees can explore these AI-powered offerings through dedicated learning sessions and an interactive AI Zone featuring live demonstrations designed to showcase how this technology simplifies operations, reduces costs and supports stronger hotel-level performance.

Driving Demand and Delivering Value for Owners Through Guest Loyalty

Choice Hotels continues to invest in strengthening demand and bringing more high–value customers to franchise owners' hotels by deepening guest trust across its brands and converting more travelers into loyal, repeat visitors. As guests become increasingly focused on getting more value for their money, Choice Hotels is meeting those expectations through trusted brands, consistent experiences and meaningful rewards. Central to this effort is the continued evolution of Choice Privileges, now with more than 75 million members worldwide. Designed with guests in mind, the program offers greater flexibility, value, and personalization while driving repeat stays and stronger hotel performance. These efforts are supported by targeted marketing capabilities that enable more personalized messaging and offers, helping to reach the right guests at the right time and drive sustained demand.

"Across every segment, guests are telling us the same thing — value matters," said Dom Dragisich, Chief Growth and Strategy Officer. "They want more for their money: the right amenities, the right location and a brand they trust to deliver a reliable experience. That ability to consistently deliver value — at every price point — plays directly to the strength of the Choice Hotels portfolio."

AI Innovation Designed to Simplify Hotel Operations

As the travel landscape continues to evolve, Choice Hotels is investing in AI–enabled innovations focused on simplifying how owners run their businesses. Convention programming highlights advancements designed to streamline workflows, reduce operational friction, and save time for owners and on–property teams. These tools are intended to make day–to–day operations more efficient — allowing owners to focus more on delivering strong guest experiences while benefiting from smarter, easier–to–use systems behind the scenes.

Global Momentum Across Extended Stay, Upscale, Core and International Markets

Across extended stay, upscale and core brands, Choice Hotels entered 2026 with performance trends that reinforce its strong development momentum across its portfolio.

Extended stay continues to be a major growth driver, building on its strongest year on record in 2025 with momentum carrying into the first quarter of 2026. The segment opened 66 U.S.  extended stay hotels and awarded 93 franchise agreements last year. With U.S. extended stay agreements increasing 15% year over year and a pipeline of 30,600 rooms as of year–end, the company is well positioned to continue scaling its footprint and meet sustained demand from guests seeking value–driven, longer–stay options.

In upscale, the company opened 27 U.S.  hotels across Ascend Collection, Cambria Hotels and Radisson brands in 2025, supported by early 2026 performance that underscores the strength of the company's upscale and above portfolio, including solid occupancy levels and continued rate resilience in the first quarter.

Across its core brands, Choice Hotels awarded 247 U.S. franchise agreements in 2025, reflecting continued demand and leadership in midscale and economy segments, including strong momentum for Country Inn & Suites and Quality Inn. That strength is reinforced by global midscale franchise agreements awarded growing 14% year over year — including a 50% increase in U.S. agreements for Country Inn & Suites — alongside Q1 demand trends that reflect the enduring relevance of well–positioned midscale and economy brands amid evolving travel patterns.

Internationally, Choice Hotels continues to build momentum across key markets, supported by strong development activity, improving performance and increased operational control. In the first quarter of 2026, international net rooms grew 13% year over year, reinforcing the company's expanding global footprint. This momentum builds on record international development in 2025, when the company onboarded 130 new international hotels and expanded its portfolio to nearly 160,000 rooms outside the United States.

Canada continues to stand out as a key growth market, following Choice Hotels' transition to a direct franchising model. In Q1 2026, the Canadian business delivered its strongest first–quarter growth in over a decade, including RevPAR growth of 5.2% year over year on a currency–neutral basis, revenue growth of more than 20%, and a 55% increase in pipeline rooms, reflecting strong franchisee demand and improving hotel performance.

To learn more about Choice Hotels and its family of brands, visit ChoiceHotels.com.

About Choice Hotels

Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.  

SOURCE Choice Hotels International, Inc.

Highlights include new AI-driven tools and strategic investments strengthening franchisee economics, along with recognition of top-performing hotels and developers

, /PRNewswire/ -- Last week, Choice Hotels International, Inc. (NYSE: CHH) held its 70th Annual Convention. Throughout the three-day event, the company highlighted how its ongoing growth, strategic investments, and focus on innovation are shaping the future of franchise ownership. At the convention, Choice Hotels unveiled a new suite of technology and AI-driven solutions aimed at helping franchise owners increase revenue, streamline operations, and prepare for the next generation of travel experiences and bookings. The company is continuing to innovate across its segments, including its enhanced Choice Privileges program, now with more than 75 million members, which is driving more repeat stays. The all-new experience enables members to earn rewards more frequently, and reach Elite status faster, along with exclusive benefits to get the most from every stay.

President and CEO Patrick Pacious at Choice Hotels International's 70th Annual Convention.

President and CEO Patrick Pacious and Chief Development Officer David Pepper present Azim Saju and ARK Hospitality with the Premier Legacy Award at Choice Hotels International's 70th Annual Convention.

President and CEO Patrick Pacious and Chief Development Officer David Pepper present Ash Sangani and Giri Hotels with the Premier Developer Award at Choice Hotels International's 70th Annual Convention.

Choice Hotels International unveiled a new suite of technology and AI-driven solutions at its 70th Annual Convention.

Choice Hotels International (PRNewsfoto/Choice Hotels International, Inc.) Choice Hotels also reinforced its commitment to long-term brand health and performance, including continued focus on property quality, owner support resources, and a strong development engine designed to help owners grow in an increasingly favorable operating environment.

"At Choice Hotels, our focus is simple: more revenue opportunities, lower operating friction, and the tools and support to run great hotels with confidence to Make More Possible. By combining the power of our scale, loyalty, and technology with hands-on support, we're helping owners grow profitability, so they can focus on delivering superb guest experiences," said President and CEO Patrick Pacious. "Looking ahead, we're investing to continue to lead in the next era of AI-led travel discovery and booking, while strengthening guest trust and loyalty across our brands. With agentic commerce, AI agents search for, research, compare, and book hotels on behalf of consumers. Choice Hotels is poised for this transformation and will help drive growth and performance for our franchisees for years to come."

In addition to sharing milestones and the key areas Choice Hotels is investing in across its system, the company also awarded and celebrated top-performing hotels and owners.

Premier Award Winners
The Premier Legacy Award recognizes phenomenal and longstanding hotel owners who have built a true legacy with the company. It goes to owners who have demonstrated an incredible commitment to development with Choice Hotels.

Azim Saju and ARK Hospitality (Premier Legacy Award): Azim grew up in the hotel business, beginning with his family's first Econo Lodge purchase in 1981, and went on to buy his first hotel as owner of record—a Sleep Inn—in 2003. Today, he manages more than 100 hotel properties across multiple franchisors and holds ownership stakes in approximately 20, while also serving as a longtime and deeply engaged leader within Choice Hotels Owners Council, including three terms as Chairman and his current role as Director of Region 1. Ash Sangani and Giri Hotels (Premier Developer Award): Ash brings more than 25 years of experience in hotel ownership. Today, he owns 12 Choice Hotels properties and is currently leading development of the Cambria in Burlington, Vermont, the largest and most significant project ever undertaken by Giri Hotels. Best of Choice Winners
Each year, the Best of Choice Awards recognizes the best U.S. hotel from each brand and the best international properties. Each winner demonstrates a commitment to superior guest service and operational excellence, representing the very best Choice Hotels has to offer from across its wide-ranging portfolio.

Cambria Hotel Traverse City – Traverse City, Michigan Clarion Hotel Arlanda Airport Terminal – Stockholm, Sweden Clarion Inn Willow River – Sevierville, Tennessee Clarion Pointe Marshall – Marshall, Texas Comfort Inn Connellsville Riverview – Connellsville, Pennsylvania Comfort Inn & Suites – Terrace, BC, Canada Comfort Inn & Suites Caldwell – Caldwell, Ohio Comfort Suites Near Sam Houston Race Park – Houston, Texas Country Inn & Suites by Radisson, Belleville, ON – Belleville, Ontario, Canada Country Inn & Suites by Radisson, Lewisburg, PA – Lewisburg, Pennsylvania Econo Lodge Lenoir City – Knoxville Area – Lenoir, Tennessee Hotel Casa Don Luis by Faranda Boutique, a member of Radisson Individuals – Cartagena, Colombia Ingot Hotel Perth, an Ascend Collection Hotel – Perth, Australia MainStay Suites Winfield-Teays Valley – Hurricane, West Virginia Park Inn by Radisson, Calgary Airport North, AB – Calgary, AB, Canada Park Inn by Radisson Ortonville – Ortonville, Minnesota Quality Inn Ingleside – Corpus Christi – Ingleside, Texas Quality Inn & Suites - Lévis, QC, Canada Radisson Blu Belo Horizonte, Savassi – Belo Horizonte, Brazil Radisson Hotel Nashville Airport – Nashville, Tennessee Radisson Puebla Angelópolis - Puebla, México Radisson RED Campinas – Campinas, Brazil Rodeway Inn South Gate – Los Angeles South – South Gate, California Sleep Inn Winfield – Teays Valley – Hurricane, West Virginia Suburban Studios Monaca – Pittsburgh – Monaca, Pennsylvania WoodSpring Suites Columbus Urbancrest – Grove City, Ohio Subscribe to receive Choice Hotels news updates via email here.

About Choice Hotels®    
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.  

Forward-Looking Statements
This press release includes "forward-looking statements" about future events, including anticipated hotel openings, development pipeline growth, and brand expansion. Such statements are subject to numerous risks and uncertainties, including changes in economic conditions, travel demand, development timelines, and other factors discussed in Choice Hotels International's filings with the Securities and Exchange Commission. Actual results may differ materially from those expressed or implied in these forward-looking statements, and Choice undertakes no obligation to update them.

Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, MD 20852, or by email at [email protected].

SOURCE Choice Hotels International, Inc.

(PRNewsfoto/Choice Hotels International, Inc.) Board Approves Dividend of $0.2875 Per Share on the Company's Common Stock 

, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), a leading global lodging franchisor with a capital-light, franchise-driven model, announced that its board of directors has declared a cash dividend of $0.2875 per share on the company's common stock. The dividend is payable on July 15, 2026, to shareholders of record on July 1, 2026. 

About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.  

Forward-Looking Statements
Certain matters discussed in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which, in turn, are based on information currently available to management. Such statements may relate to projections of the company's revenue, expenses, EBITDA, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, repurchases of common stock and other financial and operational measures, including the company's occupancy and open hotels, RevPAR, and liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.  

Several factors could cause our actual results, performance or achievements to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, U.S. and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future U.S. or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of our relationship with employees of our franchisees; the potential impact of new laws and regulations generally, including, without limitation, those relating to taxes, wages, labor and immigration; foreign currency fluctuations; changes in global interest rates and rate differentials; variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; the federal government funding lapse and related government shutdowns; impairments or declines in the value of our assets; our assumptions underlying our critical accounting estimates; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for our marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; introduction and integration of artificial intelligence technologies; climate change; our sustainability strategy; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; political instability, conflicts and terrorism; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness. These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and, as applicable, our Quarter Reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. 

© 2026 Choice Hotels International, Inc. All Rights Reserved   

For further information: [email protected]  

SOURCE Choice Hotels International, Inc.

On May 20, 2026, Choice Hotels International Inc CHH shares rose 5.8% today, closing at $112.26. The stock has experienced a 52-week range between $84.04 and $136.45, indicating notable volatility over the past year.

GF Value™ verdict: CHH is currently priced at $112.26, which is 17.0% below its GF Value™ of $135.27. GF Score™ of 89/100 indicates a strong overall assessment of the company's potential for long-term returns. Most notable signal: CHH has a momentum rank of 10/10, suggesting strong recent performance trends. Is CHH Overvalued or Undervalued? The current price of Choice Hotels International Inc CHH at $112.26 is below the GF Value™ estimate of $135.27, indicating that the stock is undervalued by approximately 17.0%. This presents a potential investment opportunity, as the margin of safety implies that the stock may be trading at a discount relative to its intrinsic value. The GF Valuation label categorizes CHH as modestly undervalued, suggesting that while there is potential for appreciation, investors should still consider market conditions and company performance when making decisions.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given its current undervaluation, CHH may provide a favorable entry point for those looking to invest in the travel and leisure sector.

How Does CHH's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 15.1x 21.6x (5-Year Median) Forward P/E 15.7x - Currently, CHH's P/E ratio of 15.1x is significantly below its 5-year median P/E of 21.6x, indicating that the stock is trading at a lower valuation compared to its historical performance. The forward P/E of 15.7x further supports this analysis. This P/E assessment aligns with the GF Value™ verdict, reinforcing the notion that CHH is undervalued in its current market position.

What Does CHH's GF Score™ Tell Us? Metric Rating GF Score™ 89/100 Financial Strength 4/10 Profitability 9/10 Growth 8/10 Valuation 8/10 Momentum 10/10 The GF Score™ of 89/100 reflects a strong overall assessment of Choice Hotels International Inc. The company excels in profitability, with a score of 9/10, indicating solid profit margins and operational efficiency. Additionally, a momentum rank of 10/10 suggests that the stock has been performing well recently. However, the financial strength rating of 4/10 indicates some weaknesses in the balance sheet, which may pose risks for long-term sustainability. Overall, the scores suggest that while CHH has potential for growth, there are areas that require monitoring.

What Are Insiders Doing with CHH Stock? In the last three months, insiders have sold $0.2 million worth of CHH stock without any buying activity reported. This pattern of selling may suggest a lack of confidence from insiders regarding the near-term performance of the stock. While insider selling can reflect personal financial decisions rather than company health, it is still a signal that investors should consider when assessing the overall sentiment around the stock.

What This Means for Investors Based on the analysis of GF Value™, Choice Hotels International Inc CHH appears to be undervalued. The current price reflects a significant discount compared to its intrinsic value, presenting an opportunity for potential investors. However, it is essential to consider the financial strength and insider activity as part of a comprehensive investment strategy.

For the complete analysis, visit the Choice Hotels International Inc CHH stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is CHH's GF Score™?

CHH's GF Score™ is 89/100, indicating a strong assessment of the company's potential for long-term returns based on various fundamental factors.

Is CHH overvalued or undervalued?

CHH is currently undervalued, with a GF Value™ of $135.27 compared to its current price of $112.26, presenting a potential investment opportunity.

What is CHH's P/E ratio?

CHH's P/E ratio (TTM) is 15.1x, which is significantly below its 5-year median of 21.6x, indicating that the stock is trading at a lower valuation compared to its historical performance.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

I've upgraded Choice Hotels International to 'Buy' after analyzing its AI initiatives and capital-light model transition. CHH's EasyBid tool, introduced in early May, has already eased CHH's service friction and enhanced its lead-to-reservation capture rate. The firm is becoming less capital-intensive. Its FY2026 CAPEX guidance implies a 70% drop, and it's targeting a 60%-65% free cash conversion this year.

The Austin-area milestone underscores the company's scale, expertise, and continued momentum as a front runner in the fast-growing extended stay segment

, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), a leader in the extended stay segment, today announced the opening of its 30th Everhome Suites® hotel. Located in Georgetown, Texas, the milestone reflects the company's continued strength and execution in one of lodging's most attractive growth categories. Since the brand's debut in 2022, Everhome Suites has rapidly expanded its footprint, reinforcing Choice Hotels' leadership position in extended stay and demonstrating the company's ability to scale new brands while delivering value for owners and guests. Nearly half of all new economy and midscale extended stay construction currently underway in the U.S. are a part of the Choice Hotels system, and the company continues to deliver with eleven consecutive quarters of double-digit extended-stay room growth.

Matt McElhare 30th Everhome Property Quote

Choice Hotels International Everhome Suites Georgetown, located outside of Austin, exemplifies the brand's success in markets with strong, repeatable drivers. The Georgetown area is fueled by corporate and project-based demand from major local employers—such as Dell Technologies, Whole Foods Market, and Southwestern University—in addition to continued manufacturing expansion tied to large-scale developments, further reinforcing the appetite for extended stay in the region. Guests also benefit from proximity to Inner Spaced Cavern, Blue Hole Park, and Lake Georgetown.

"As extended stay continues to evolve, success increasingly belongs to companies that can pair scale with deep segment expertise," said Matt McElhare, Vice President and Extended Stay Segment Lead, Choice Hotels International. "The opening of our 30th Everhome Suites is more than a brand milestone – it's another example of Choice Hotels' leadership in extended stay and our ability to execute in a competitive environment. Our platform is designed to grow alongside long-stay demand – combining disciplined operations with a scalable model that helps owners capture opportunity and deliver long-term, reliable performance."

The Georgetown, Texas opening is part of a broader wave of growth, with additional recent openings in Panama City Beach, Florida and Stockbridge, Georgia to further demonstrate Everhome Suites' national momentum. These projects highlight the brand's expanding geographic footprint along with repeat developer and operator relationships.

Beyond the milestone, this achievement reflects Choice Hotels' sustained leadership, scale, and momentum in extended stay, built through years of investment in a dedicated operating platform. With eight Everhome Suites under construction, and 40 in the pipeline as of Q1 2026— the brand's rapid expansion of thoughtfully designed rooms and amenities reflects a focus on fundamentals that are durable and nationally consistent—supported by corporate project work, manufacturing growth, and relocation activity. With close to 600 extended stay hotels across the segment, Choice Hotels offers guests options for a variety of stay occasions and needs while providing owners with the benefit of one of the industry's largest extended stay platforms.

Created for travelers seeking apartment-style accommodations during longer stays, Everhome Suites' recently redesigned prototype features spacious suites with fully equipped kitchens, contemporary design, and thoughtfully curated amenities that help guests feel at home while traveling. The brand delivers a true midscale extended-stay experience, combining the comfort and convenience of residential living with the service and reliability of a hotel stay. 

For more information on Everhome Suites development opportunities, visit 
www.choicehotels.com/everhome-suites.

About Choice Hotels®    
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.

Everhome Suites®: Closer to Home
The Everhome Suites brand provides a Closer to Home™ experience that enables guests to live life on their terms during longer-term stays. The new construction midscale hotels are designed to help extended stay guests maintain routine on the road with spacious suites with long stay amenities featuring fully equipped kitchens, spa-style bathrooms, and customizable "me" spaces, including movable workstations, full-size closets, and additional storage. Everhome Suites properties have modern and sophisticated public spaces, 24/7 fitness centers with Peloton bikes, guest laundry facilities, free Wi-Fi, and self-service marketplaces with a variety of fresh and frozen meal and grocery options. For more information, visit www.choicehotels.com/everhome-suites.  

Forward-Looking Statements
This press release includes "forward-looking statements" about future events, including anticipated hotel openings, development pipeline growth, and brand expansion. Such statements are subject to numerous risks and uncertainties, including changes in economic conditions, travel demand, development timelines, and other factors discussed in Choice Hotels International's filings with the Securities and Exchange Commission. Actual results may differ materially from those expressed or implied in these forward-looking statements, and Choice undertakes no obligation to update them. 

Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, MD 20852, or by email at [email protected].

SOURCE Choice Hotels International, Inc.

Appointment of seasoned innovator reinforces the company's leadership at the intersection of hospitality, data, AI, and technology

, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, has promoted Tony Pallas to Chief Technology Officer. In this role, Pallas will lead enterprise technology, engineering, and SkyTouch Technology, Choice Hotels' hotel operations and property management technology platform.

Pallas will report to Anna Scozzafava, Chief Data, AI & Technology Officer, and will help drive the company's next phase of technology innovation.

Choice Hotels International Chief Technology Officer Tony Pallas

Choice Hotels International's Tony Pallas on his promotion to Chief Technology Officer.

Choice Hotels International "Tony is a proven leader with deep technology and hospitality experience. He has consistently demonstrated the ability to build high-performing teams, create cutting-edge technology platforms, and keep customer needs at the center of every decision—delivering meaningful business results," said Anna Scozzafava, Chief Data, AI & Technology Officer, Choice Hotels International. "As we continue advancing our data, AI, and technology priorities—Tony's leadership will help strengthen our ability to scale innovation quickly, execute with excellence, and create long-term value for franchisees, customers, and guests."

The appointment builds on Choice Hotels' continued leadership at the intersection of hospitality and technology. For more than a decade, Pallas has led platform modernization efforts, expanding cloud-based capabilities, and delivering scalable solutions that help drive hotel performance, operational efficiency, and franchisee success. While serving as Chief Commercial and Technology Officer for Choice Hotels' hotel property management system business, Pallas grew annual revenues by 68% and EBITDA by nearly 100%, effectively doubling the business under his tenure.

Most recently, he also served as executive sponsor and chief architect for CHARLIE, one of several AI-powered solutions Choice Hotels unveiled during its annual convention last month. In his new role, he will help support the continued development and adoption of the company's broader AI-enabled capabilities, including Choice Hotels Business Direct, EasyBid and RAISE. Designed to help hotel owners capture more demand, improve operational efficiency, and prepare for the next era of travel discovery and booking—these solutions reflect Choice Hotels' commitment to delivering technology that solves real customer challenges while creating value for franchisees and guests.

Prior to joining Choice Hotels, Pallas counseled companies on emerging technology strategies, product development, and led organizations delivering custom software solutions across a variety of platforms including web, mobile, and IoT.

"Technology continues to play an increasingly important role in how we serve hotel owners, operators and guests. I look forward to working alongside our talented teams to build scalable solutions, advance AI-driven innovation, and deliver technologies that support our stakeholders' success while positioning our company for continued growth in an increasingly digital world. I am honored to take on this role at such an exciting time for Choice Hotels," said Pallas.

About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing nearly 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.

SOURCE Choice Hotels International, Inc.

Maximus (MMS - Free Report) has been beaten down lately with too much selling pressure. While the stock has lost 8.4% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Why MMS Could Bounce Back Before LongThe RSI reading of 28.06 for MMS is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.

This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering MMS in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 0.4% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, MMS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Maximus (MMS - Free Report) is headquartered in Mclean, and is in the Business Services sector. The stock has seen a price change of -23.51% since the start of the year. Currently paying a dividend of $0.33 per share, the company has a dividend yield of 2%. In comparison, the Government Services industry's yield is 0.85%, while the S&P 500's yield is 1.5%.

Looking at dividend growth, the company's current annualized dividend of $1.32 is up 10% from last year. Over the last 5 years, Maximus has increased its dividend 1 times on a year-over-year basis for an average annual increase of 1.91%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Maximus's current payout ratio is 16%, meaning it paid out 16% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, MMS expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $8.46 per share, with earnings expected to increase 14.95% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, MMS presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).

Posted by Defense World Staff on Apr 3rd, 2026

Allspring Global Investments Holdings LLC cut its position in Maximus, Inc. (NYSE:MMS – Free Report) by 21.1% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 415,876 shares of the health services provider’s stock after selling 111,017 shares during the period. Allspring Global Investments Holdings LLC owned 0.76% of Maximus worth $35,961,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in MMS. Arizona State Retirement System lifted its holdings in shares of Maximus by 0.9% in the 3rd quarter. Arizona State Retirement System now owns 16,674 shares of the health services provider’s stock worth $1,524,000 after purchasing an additional 156 shares in the last quarter. GAMMA Investing LLC boosted its stake in Maximus by 13.9% during the 3rd quarter. GAMMA Investing LLC now owns 1,337 shares of the health services provider’s stock valued at $122,000 after purchasing an additional 163 shares during the last quarter. Trust Point Inc. increased its holdings in Maximus by 3.7% during the 3rd quarter. Trust Point Inc. now owns 5,286 shares of the health services provider’s stock worth $483,000 after purchasing an additional 191 shares in the last quarter. Richardson Financial Services Inc. increased its holdings in Maximus by 123.1% during the 3rd quarter. Richardson Financial Services Inc. now owns 348 shares of the health services provider’s stock worth $32,000 after purchasing an additional 192 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Maximus by 0.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 34,476 shares of the health services provider’s stock worth $2,351,000 after purchasing an additional 221 shares during the last quarter. 97.21% of the stock is owned by institutional investors.

Analysts Set New Price Targets A number of research analysts have recently weighed in on MMS shares. Weiss Ratings lowered Maximus from a “buy (b)” rating to a “hold (c+)” rating in a report on Tuesday, February 24th. Wall Street Zen cut shares of Maximus from a “buy” rating to a “hold” rating in a research report on Monday, February 23rd. Finally, Zacks Research upgraded Maximus from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, December 30th. One research analyst has rated the stock with a Strong Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Maximus has a consensus rating of “Buy”.

Get Our Latest Research Report on Maximus

Insiders Place Their Bets In other Maximus news, CFO David Mutryn bought 1,000 shares of the business’s stock in a transaction on Monday, February 9th. The stock was purchased at an average price of $75.62 per share, for a total transaction of $75,620.00. Following the completion of the transaction, the chief financial officer directly owned 40,037 shares of the company’s stock, valued at $3,027,597.94. This trade represents a 2.56% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Bruce Caswell bought 3,175 shares of Maximus stock in a transaction dated Tuesday, February 10th. The stock was acquired at an average price of $78.45 per share, with a total value of $249,078.75. Following the purchase, the chief executive officer directly owned 328,013 shares of the company’s stock, valued at approximately $25,732,619.85. This represents a 0.98% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 1.80% of the company’s stock.

Maximus Stock Down 0.4% MMS opened at $62.32 on Friday. The company’s 50-day moving average price is $76.48 and its two-hundred day moving average price is $83.63. The company has a quick ratio of 2.34, a current ratio of 2.34 and a debt-to-equity ratio of 0.88. Maximus, Inc. has a twelve month low of $60.75 and a twelve month high of $100.00. The stock has a market cap of $3.40 billion, a price-to-earnings ratio of 9.49 and a beta of 0.63.

Maximus (NYSE:MMS – Get Free Report) last posted its quarterly earnings results on Thursday, February 5th. The health services provider reported $1.85 EPS for the quarter, topping analysts’ consensus estimates of $1.84 by $0.01. Maximus had a net margin of 6.92% and a return on equity of 25.30%. The company had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.37 billion. During the same quarter in the previous year, the firm posted $1.61 EPS. Maximus’s revenue was down 4.1% on a year-over-year basis. Maximus has set its FY 2026 guidance at 8.050-8.350 EPS. As a group, equities analysts expect that Maximus, Inc. will post 6.15 earnings per share for the current year.

Maximus Increases Dividend The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 2nd. Shareholders of record on Friday, February 13th were issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 2.1%. This is a boost from Maximus’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Friday, February 13th. Maximus’s payout ratio is currently 20.09%.

Maximus Profile (Free Report)

Maximus, Inc (NYSE: MMS) is a global provider of government services focused on delivering health and human services programs. The company partners with federal, state, and local agencies to administer and manage programs that support individuals and families across various stages of life. Key service areas include eligibility determination and enrollment services for Medicaid, Medicare, Children’s Health Insurance Program (CHIP) and other public assistance programs, as well as call center operations, case management and program integrity solutions.

Read More Five stocks we like better than Maximus Want to see what other hedge funds are holding MMS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Maximus, Inc. (NYSE:MMS – Free Report).

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Key Takeaways MMS gains from government partnerships, recurring revenues, strong cash flow and steady dividend payouts.MMS relies heavily on federal and state contracts, exposing growth to funding shifts & slowing core segments.MMS posted Q1 EPS growth. However, its revenues missed estimates and declined year over year. Maximus (MMS - Free Report) is benefiting from its reputation as a trusted partner to governments worldwide, delivering cost-effective, scalable solutions in health and human services. Strong shareholder-friendly policies and solid liquidity are added advantages.

Meanwhile, regulatory risk and heavy reliance on contracts from federal and state governments pose significant concerns for the company. Heightened competition within the government services industry further puts pressure on profitability and scalability.

How is MMS Faring?Maximus gains from its business process management expertise and ability to deliver cost-effective, efficient and large-scale solutions, positioning it as a lucrative partner to governments. The company has grown to be a leading operator of government health and human services programs globally, enabling it to generate predictable recurring revenue streams. Improved quality of lifestyle and more complex health needs have increased the need for government social benefits and safety-net programs, consequently driving the company’s top-line growth.

MMS generates strong cash flow from operations, driven by its profitable operations and efficient receivables management. The subject-matter expertise of its workforce in the critical aspects of the design, implementation, and operation of government health and human services programs differentiates the company, giving it a competitive advantage over its peers.

The company consistently rewards its shareholders through dividend payments. It paid dividends of $68.7 million, $72.9 million, $68.1 million and $68.7 million in fiscal 2025, 2024, 2023 and 2022, respectively. Such moves indicate the company’s commitment to return value to shareholders and instill their confidence in the business.

MMS’s current ratio (a measure of liquidity) at the end of the first quarter of fiscal 2026 was 2.34, higher than the industry’s 2.14. A current ratio of more than 1 indicates that the company is well-positioned to pay off its short-term obligations.

Meanwhile, Maximus continues to rely heavily on contracts from federal and state governments, particularly in programs like Medicaid and Medicare. The company is currently experiencing slowing growth in its core business segments due to this reliance. MMS’s top line and contract volume can be directly impacted by changes in government funding priorities.

The company operates in a highly regulated industry, which exposes it to significant regulatory risks. Policy shifts or changes to government healthcare programs under different political administrations could affect Maximus’s ability to win contracts or sustain existing ones. Regulatory changes that tighten requirements for contractors could increase operational costs and reduce profits.

Recently, MMS reported mixed first-quarter fiscal 2026 results. Earnings of $1.85 per share marginally beat the Zacks Consensus Estimate and increased 14.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by 4.6% and dipped 4.1% year over year.

Maximus currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshots of Some Other Service ProvidersFTI Consulting, Inc. (FCN - Free Report) reported impressive results for the fourth quarter of 2025.

FCN’s adjusted earnings per share of $1.78 beat the consensus mark by 39 cents and increased 14.1% from the year-ago quarter. FTI Consulting’s revenues of $990.7 million beat the Zacks Consensus Estimate of $911.4 million and rose 10.7% from the year-ago quarter.

Gartner, Inc. (IT - Free Report) posted impressive fourth-quarter 2025 results.

IT’s adjusted earnings were $3.94 per share, which beat the Zacks Consensus Estimate by 12.6%. The metric decreased 27.7% from the year-ago quarter. Gartner’s total revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% on a year-over-year basis.