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Terreno reported second-quarter revenue of $124.7 million, below the consensus of $125.9 million. Adjusted EPS of $0.70 matched the consensus. Revenue rose from $112.2 million a year earlier, while diluted EPS fell to $0.54 from $0.90.
The company attributed the revenue increase primarily to higher revenue from new and renewed leases and property acquisitions, partly offset by property sales. Its filing also reported lower gains on property sales than a year earlier.
Terreno’s gross margin rose to 76.2% from 75.1%, and its operating margin increased to 41.8% from 39.0%. The filing attributed higher property operating expenses primarily to acquisitions and increased real estate taxes; it also reported higher interest expense primarily because of increased outstanding debt.
The company reported free cash flow of −$244.4 million, compared with −$89.2 million a year earlier. Its filing said acquisitions and higher rents on new and renewed leases contributed to increased operating cash flow for the first half.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $124.7 million | $112.2 million | 11.1% |
| Diluted EPS | $0.54 | $0.90 | −40.0% |
| Gross margin | 76.2% | 75.1% | 1.1 percentage points |
| Operating margin | 41.8% | 39.0% | 2.8 percentage points |
| Free cash flow | −$244.4 million | −$89.2 million | — |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.70 | $0.70 | In line |
| Revenue | $124.7 million | $125.9 million | Missed by 0.95% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Terreno’s latest earnings call is not available, so its management commentary cannot be reported.
Guidance
Terreno’s management guidance is not available. In its filing, the company said it expects rents on new or renewed leases for its remaining expirations this year to exceed current rates for the same space.