📊 NXRT Key Takeaways
Is NexPoint Residential Trust, Inc. (NXRT) a Good Investment?
NexPoint Residential Trust faces severe financial distress with an interest coverage ratio of 0.6x, indicating operating income cannot service debt obligations. Negative net income of -$6.8M combined with declining revenue (-3.2% YoY) and extreme leverage (5.88x debt-to-equity) create material risk of financial deterioration. While positive operating cash flow provides temporary relief, the $18.5M cash position is inadequate to service $1.6B in long-term debt absent significant operational improvement or asset sales.
NexPoint Residential Trust exhibits persistent GAAP losses with a -12.7% net margin and extremely weak interest coverage (0.5x) amid elevated leverage (5.39x D/E), signaling strained financial flexibility. While operating income is positive and operating cash flow appears strong, revenue declined 3.2% YoY and returns (ROE/ROA) remain negative, pointing to pressured earnings quality. Until leverage and coverage improve, fundamentals skew to downside risk.
NexPoint Residential Trust, Inc. Key Strengths (NXRT)
- Positive operating cash flow of $23.3M with strong 36.7% FCF margin demonstrates cash generation despite profitability issues
- Positive operating income of $8.5M with 13.4% operating margin shows core business operations are fundamentally profitable
- Elevated Form 4 insider activity (32 filings in 90 days) may indicate management confidence in turnaround prospects
- Positive operating income with 11.1% margin
- Strong operating cash flow and 33.3% FCF margin
- Large asset base supporting recurring cash flows
NXRT Stock Risks: NexPoint Residential Trust, Inc. Investment Risks
- Interest coverage ratio of 0.6x is critical—operating income insufficient to cover interest expense, creating imminent debt service distress
- Extreme leverage with 5.88x debt-to-equity ratio and only $18.5M cash against $1.6B long-term debt limits financial flexibility
- Company is unprofitable with -$6.8M net income (-10.6% margin) and declining revenue (-3.2% YoY), indicating deteriorating operational fundamentals and shrinking top line
- High leverage (5.39x D/E) and weak 0.5x interest coverage
- Persistent net losses with negative ROE/ROA
- Revenue decline (-3.2% YoY) pressuring growth
Key Metrics to Watch
- Interest coverage ratio—must improve above 1.5x to indicate debt sustainability
- Operating cash flow trend—critical to monitor if sustainability can support debt obligations
- Revenue trajectory—reversal of -3.2% decline required to demonstrate business stabilization
- Debt refinancing activity and covenant compliance—indicative of lender confidence and default risk
- Interest coverage
- Operating cash flow
NexPoint Residential Trust, Inc. (NXRT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 36.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
NXRT Profit Margin, ROE & Profitability Analysis
NXRT vs Real Estate Sector: How NexPoint Residential Trust, Inc. Compares
How NexPoint Residential Trust, Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NexPoint Residential Trust, Inc. Stock Overvalued? NXRT Valuation Analysis 2026
Based on fundamental analysis, NexPoint Residential Trust, Inc. shows some fundamental concerns relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NexPoint Residential Trust, Inc. Balance Sheet: NXRT Debt, Cash & Liquidity
NXRT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: NexPoint Residential Trust, Inc.'s revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.69 reflects profitable operations.
NXRT Revenue Growth, EPS Growth & YoY Performance
NXRT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $63.2M | -$6.8M | $-0.27 |
| Q3 2025 | $62.8M | -$7.8M | $-0.31 |
| Q2 2025 | $63.1M | -$7.0M | $-0.28 |
| Q1 2025 | $63.2M | -$6.9M | $-0.27 |
| Q3 2024 | $64.1M | -$8.9M | $-0.35 |
| Q2 2024 | $64.2M | -$4.0M | $-0.15 |
| Q1 2024 | $67.6M | -$3.9M | $-0.15 |
| Q3 2023 | $68.1M | -$597.0K | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NexPoint Residential Trust, Inc. Dividends, Buybacks & Capital Allocation
NXRT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for NexPoint Residential Trust, Inc. (CIK: 0001620393)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NXRT
What is the AI rating for NXRT?
NexPoint Residential Trust, Inc. (NXRT) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NXRT's key strengths?
Claude: Positive operating cash flow of $23.3M with strong 36.7% FCF margin demonstrates cash generation despite profitability issues. Positive operating income of $8.5M with 13.4% operating margin shows core business operations are fundamentally profitable. ChatGPT: Positive operating income with 11.1% margin. Strong operating cash flow and 33.3% FCF margin.
What are the risks of investing in NXRT?
Claude: Interest coverage ratio of 0.6x is critical—operating income insufficient to cover interest expense, creating imminent debt service distress. Extreme leverage with 5.88x debt-to-equity ratio and only $18.5M cash against $1.6B long-term debt limits financial flexibility. ChatGPT: High leverage (5.39x D/E) and weak 0.5x interest coverage. Persistent net losses with negative ROE/ROA.
What is NXRT's revenue and growth?
NexPoint Residential Trust, Inc. reported revenue of $63.5M.
Does NXRT pay dividends?
NexPoint Residential Trust, Inc. pays dividends, with $14.5M distributed to shareholders in the trailing twelve months.
Where can I find NXRT SEC filings?
Official SEC filings for NexPoint Residential Trust, Inc. (CIK: 0001620393) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NXRT's EPS?
NexPoint Residential Trust, Inc. has a diluted EPS of $-0.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NXRT's fundamental grade?
Based on our AI fundamental analysis in May 2026, NexPoint Residential Trust, Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NXRT stock overvalued or undervalued?
Valuation metrics for NXRT: ROE of -2.5% (sector avg: 8%), net margin of -10.6% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is NXRT's AI grade for 2026?
Our dual AI analysis gives NexPoint Residential Trust, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NXRT's free cash flow?
NexPoint Residential Trust, Inc.'s operating cash flow is $23.3M, with capital expenditures of N/A. FCF margin is 36.7%.
How does NXRT compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin -10.6% (avg: 20%), ROE -2.5% (avg: 8%), current ratio N/A (avg: 1.5).
Is NexPoint Residential Trust, Inc. carrying too much debt?
NXRT has a debt-to-equity ratio of 5.88x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.