Comstock Holding Companies (CHCI) just reported Q3 earnings, and the numbers tell an interesting story. While total revenue climbed 3% to $13.3M, net income took a hit—dropping 78% to just $0.5M from $2.4M last year. The culprit? Heavy spending on ParkX expansion.

Here's what caught attention: recurring fee-based revenues jumped 30% YoY, with ParkX's third-party revenue surging 96%. The company's commercial portfolio is 93% leased (500K+ SF leased YTD), and residential occupancy hit 96%. ParkX itself saw revenues explode 59% year over year.

But the market wasn't happy—CHCI stock tanked 22.6% post-earnings, way worse than the S&P 500's 3.1% drop. Why? Operating costs skyrocketed: cost of revenues jumped from $9.6M to $11.9M, largely due to payroll and onboarding for new porter/janitorial contracts. EPS cratered from 23 cents to just 5 cents.

The silver lining: major assets delivering at Reston Station. The JW Marriott hotel is live with event bookings into 2026, and the luxury condo tower already hit $90M in sales ($20M closed in September alone). More projects are rolling out late 2025 into 2026.

So CHCI is betting on diversified revenue streams and property expansion to offset near-term margin pressure. Whether it pays off depends on scaling ParkX profitably.