Weekly Real Estate News
Pacaso narrowed its losses and expanded margins in the first half of 2026 as the luxury-home co-ownership company continued working toward positive operating cash economics.
The privately held real estate marketplace reported a GAAP net loss of $12.5 million for the six months ended June 30, down from $22.3 million a year earlier. Adjusted gross profit excluding whole-home sales rose 23% to $15.5 million, while the corresponding adjusted gross margin increased to 18.8% from 15.2%.
Pacaso’s adjusted EBITDA loss narrowed 25% to $7.0 million from $9.3 million in the first half of 2025. The company released the results Wednesday. Its unaudited semiannual filing with the Securities and Exchange Commission shows first-half revenue of $51.9 million, up from $50.8 million a year earlier, alongside the lower net loss.
The adjusted numbers need context
Pacaso emphasizes adjusted measures to describe the economics of its core co-ownership model. Those figures are non-GAAP and exclude or retime several expenses and accounting adjustments, including certain inventory valuation items, share-based compensation and other costs.
The GAAP figures therefore provide an important counterweight. Pacaso generated $15.1 million of gross profit during the first half but remained unprofitable, posting the $12.5 million net loss. Interest expense totaled roughly $3.0 million during the period.
The company also recorded $543,000 in restructuring costs, primarily severance and employee termination benefits tied to plans to streamline operations and reduce overhead, according to its reconciliation of adjusted EBITDA.
Pacaso said its core economics improved as inventory turned faster and carrying costs declined. CFO Alvaro Cortes said the company remains focused on disciplined costs and improving economics on each home sold.
Pacaso keeps broadening beyond fractional ownership
Pacaso was founded in 2020 by Austin Allison and Zillow co-founder Spencer Rascoff around a model that lets buyers acquire interests in specific luxury second homes through property-level LLCs. The company manages the property, scheduling and resale process.
It has increasingly added services around that ownership model. This year Pacaso introduced Infinity, a private exchange network for whole-home owners that extends its Swap program beyond Pacaso co-owned properties.
The company said Infinity has expanded access to 26 additional destinations across 10 countries since launch. Its footnote provides an important qualification: only 13 of those destinations and five countries are fully onboarded, while the remainder are pending agreements or onboarding and are not guaranteed.
That distinction illustrates why Pacaso’s financial disclosures matter beyond the headline growth figures. The company is still investing in expansion while trying to prove that a capital-intensive second-home marketplace can generate durable margins.
The first-half results show meaningful progress on losses and adjusted profitability, but not profitability itself. The next test is whether those gains continue while Pacaso expands its inventory, exchange network and international footprint.
