A real estate developer owning roughly 165,000 acres in Northwest Florida, building homesites, hotels, marinas, and commercial properties under brands like the Watersound Club and the Jimmy Buffett-inspired Latitude Margaritaville Watersound community. It began in 1936 as the St. Joe Paper Company, founded by Alfred I. duPont and his brother-in-law Edward Ball, before selling its paper mills and renaming itself The St. Joe Company in 1999. The name comes from the Gulf town of Port St. Joe, once home to Florida's first steam-powered railroad.
Q2 2026 net income rose 37.1% to $40.5M as revenue grew 23% to $158.8M
Quarterly profit returned to growth after Q1's drop. rose 23.0% to $158.8M and rose 39.2% to $0.71 as residential real estate revenue grew 38.6% and hospitality hit a record $74.2M. The company is generating cash and paying down debt, with at $370.3M.
Key takeaways
Total increased 23.0% to $158.8M, with real estate revenue up 58.9% to $69.6M and hospitality revenue up 7.8% to a record $74.2M, the main drivers of the quarter.
Residential real estate grew 38.6% to $52.8M, driven by higher homesite residuals and a $2.5M unimproved land sale, with improving to 47.9%.
Hospitality expanded to 41.1% from 38.5%, aided by membership growth to 3,723 members (up 172) and higher average daily rate and occupancy.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income rose 37.3% to $40.5M on 23% revenue growth, driven by residential real estate and hospitality.
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Total increased 23.0% to $158.8M, with real estate revenue up 58.9% to $69.6M and hospitality revenue up 7.8% to a record $74.2M.
rose 37.1% to $40.5M and rose 39.2% to $0.71, while rose 48.2% to $54.8M from a year earlier.
Equity in income from dropped to $4.5M from $7.5M, mainly from fewer home sales at the Latitude Margaritaville Watersound JV.
The company repurchased $32.7M of stock, paid $9.1M in dividends, and reduced debt by $10.9M, ending with $117.3M cash; fell 13.3% to $370.3M .
Leasing fell 9.1% to $15.0M due to the sale of a senior living property, but rose to 60.0% on improved mix.
What changed
Q1 2026 flagged residential homesite closings after 168 units at $121K: Q2 residential real estate rose 38.6% to $52.8M with at 47.9%, though unit closings were not stated.
Q1 flagged next-quarter JV equity income after the drop to $3.5M: Q2 JV equity income was $4.5M, down from $7.5M a year earlier on fewer Latitude Margaritaville Watersound closings.
Q1 flagged Q2 hospitality as The Third golf course and Shark's Tooth clubhouse costs recur: margin expanded to 41.1% from 38.5% a year earlier.
Q1 flagged next-quarter after $380.4M: debt fell to $370.3M, down 2.7% sequentially and 13.3% .
reversed the Q1 2026 rise of 5.2% and the Q4 2025 decline of 9.2% with a 23.0% increase; reversed Q1's 20.2% drop with a 37.1% increase.
rose 41.4% to $43.9M from a year earlier and 4.0% from Q1, after Q1 had fallen from the Q3 2025 JV-sale-boosted $86.2M.
What to watch
Q3 2026 residential homesite closings and average price after Q2's $52.8M and 47.9% margin to see if volume recovers toward 2025 levels.
Next-quarter equity income from after the $4.5M Q2 level on Latitude Margaritaville Watersound home sales.
Q3 2026 hospitality after the 41.1% Q2 level as new amenity costs recur or abate.
Next-quarter level after $370.3M with continued development obligations and $32.7M quarterly buybacks.
Residential real estate grew 38.6% to $52.8M, driven by higher and a $2.5M unimproved land sale, with improving to 47.9%.
Hospitality expanded to 41.1% from 38.5%, aided by membership growth (3,723 members, up 172) and higher ADR and occupancy.
Leasing fell 9.1% to $15.0M due to the sale of a senior living property, but rose to 60.0% on improved mix.
Equity in income from unconsolidated JVs dropped to $4.5M from $7.5M, mainly due to fewer home sales at Latitude Margaritaville Watersound JV.
The company repurchased $32.7M of stock, paid $9.1M in dividends, and reduced debt by $10.9M, ending with $117.3M in cash.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate risk from variable-rate debt and short-term investments is partially hedged via swaps, with limited sensitivity disclosed.
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A 100 rate rise would decrease the fair value of short-term U.S. Treasury Bills by less than $0.1 million, with no earnings impact unless sold early or credit-impaired.
Available-for-sale securities face credit risk from issuer quality, delinquencies, defaults, and rate changes, including potential U.S. credit downgrade impacts.
Money market instruments are not expected to significantly impact results from interest rate changes.
Variable-rate debt totals $98.9 million, with $39.4 million swapped to fixed via ; the unhedged portion has a weighted average rate of 5.9% based on .
A 100 rate increase on unhedged variable-rate debt would raise annual by $0.6 million.
We are subject to a variety of litigation, claims, other disputes and governmental proceedings that arise from time to time in the ordinary course of our business, none of which we believe will have a material adverse effect on our consolidated financial position, results of ope…
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We are subject to a variety of litigation, claims, other disputes and governmental proceedings that arise from time to time in the ordinary course of our business, none of which we believe will have a material adverse effect on our consolidated financial position, results of operations or liquidity. In addition, we are subject to environmental laws and regulations, which include obligations to remove or limit the effects on the environment of the disposal or release of certain wastes or substances at various sites, including sites which have been previously sold. See Note 17. Commitments and Contingencies, for additional information.
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A description of the risk factors associated with our business is contained in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. There have been no material changes to our Risk Factors as previously reported.
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A description of the risk factors associated with our business is contained in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. There have been no material changes to our Risk Factors as previously reported.