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Mobile Infrastructure Corp (BEEP)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 was operationally stable but soft on volumes: revenue fell 3.0% year over year to $9.0M, Net Operating Income declined 3.5% to $5.4M, and Adjusted EBITDA decreased 5.6% to $3.8M, while net loss widened to $4.7M; transient rates rose despite lower volumes, and contract parking continued to grow .
  • Management reaffirmed full-year revenue ($37–$40M), NOI ($23.5–$25.0M), and Adjusted EBITDA ($16.5–$18.0M) ranges but guided that results are tracking to the low end for revenue and NOI due to construction delays and mixed event attendance .
  • Strategic catalysts: active negotiations for ~$20M of non-core asset sales within a three-year $100M asset rotation plan; ongoing refinancing of 2026–2027 maturities; share repurchases of 530K+ shares at ~$3.21 average price support NAV gap thesis .
  • Balance sheet watch items: total debt ~$214.3M, cash/restricted cash ~$15.9M; line of credit ($29.5M, 15% rate) drives higher interest expense and near-term maturities, though management expects plans to alleviate going-concern risk via refinancing, asset sales, and potential deferral to 12/31/25 .

What Went Well and What Went Wrong

  • What Went Well
    • Contract parking momentum: monthly contracts rose 2.5% in Q2 and 6.6% YTD; residential monthly contracts increased ~44% since year-end, strengthening recurring cash flows and long-term pricing power .
    • Rate management: transient rates increased year over year and sequentially despite lower volumes, reflecting effective price positioning near multiple demand drivers .
    • Strategic progress: ~$20M of asset sale negotiations advancing within a $100M non-core divestiture program, expected to optimize the portfolio toward fewer, larger, multi-driver assets with higher NOI potential .
  • What Went Wrong
    • Volume headwinds: transient volumes declined year over year on adverse weather, fewer marquee events, and construction disruptions in key markets (Cincinnati, Detroit, Denver), pressuring RevPAS and NOI .
    • Interest burden: interest expense rose to $4.7M from $3.1M YoY, driven by the September 2024 line of credit and higher rates post-December 2024 CMBS refinancing .
    • Technology amortization: accelerated amortization from phasing out acquired “Inigma” software increased quarterly depreciation/amortization by ~$0.8M, reducing EPS by ~$0.02 in each remaining 2025 quarter .

Financial Results

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$9.27 $9.16 $8.24 $8.99
Net Loss ($USD Millions)$(2.47) $(1.03) $(4.33) $(4.66)
Net Loss Per Share ($)$(0.06) $(0.03) $(0.10) $(0.11)
Net Operating Income (NOI) ($USD Millions)$5.63 $5.50 $4.46 $5.43
Adjusted EBITDA ($USD Millions)$4.07 $3.87 $2.75 $3.85

Segment/KPI Detail:

  • Revenue Disaggregation (Managed Property)
    | Category | Q2 2024 | Q2 2025 | |----------|---------|---------| | Transient Parkers ($USD Millions) | $4.70 | $4.93 | | Contract Parkers ($USD Millions) | $2.46 | $2.47 | | Ancillary Revenue ($USD Millions) | $0.07 | $0.04 | | Total Managed Property Revenue ($USD Millions) | $7.23 | $7.44 |

  • KPIs and Balance Metrics
    | KPI | Q2 2024 | Q1 2025 | Q2 2025 | |-----|---------|---------|---------| | Same-Location RevPAS ($ per stall) | $216.63 | $184.00 (ex-Detroit) | $211.89 | | Adjusted EBITDA Margin (%) | — | 33.4% | 42.8% | | Contract Parking Volumes (%) | — | +4.1% seq (monthly contracts) | +2.5% QoQ; +6.6% YTD | | Cash & Restricted Cash ($USD Millions) | — | $16.16 | $15.86 | | Total Debt ($USD Millions) | — | $214.1 | $214.3 |

Estimates vs Actuals (S&P Global consensus):

MetricQ2 2025 ConsensusQ2 2025 Actual
Revenue ($USD Millions)N/A$8.99
Primary EPS ($)N/A$(0.11)
Note: S&P Global consensus values were unavailable for BEEP at the time of review. Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$37.0–$40.0M $37.0–$40.0M; tracking to low end Maintained; trending low end
Net Operating Income (NOI)FY 2025$23.5–$25.0M $23.5–$25.0M; tracking to low end Maintained; trending low end
Adjusted EBITDAFY 2025$16.5–$18.0M $16.5–$18.0M (no directional change stated) Maintained
Preferred DividendsJul 2025—Series A: $4.791/share; Series 1: $4.583/share (pay in Aug 2025) Declared
Common DividendOngoingSuspended since 2018 No change Maintained (suspended)
Capital AllocationOngoing$10M buyback authorized (Sep 2024) 530K+ shares repurchased at ~$3.21 avg to date Executing buybacks

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Asset Rotation / DivestituresLaunched 36-month plan; target $100M; sold 3 assets at significant multiples; aim 1/3 under contract in 2025 ~$20M of sales in active negotiations; methodical redeployment into fewer, larger, multi-driver assets Progressing positively
Contract Parking GrowthNew contracts rising; pipeline building; attrition easing Monthly contracts +2.5% in Q2; +6.6% YTD; residential +44% since year-end Improving
Transient Volumes and PricingTransient softness in early 2025; rate increases in Q4 2024 Transient volumes down; rates up YoY and sequentially; potential 2H seasonal upside Mixed volumes; better pricing
Construction / Market DisruptionsCincinnati convention center closure; Detroit Renaissance Center redevelopment; Denver 16th Street work Ongoing disruptions; line-of-sight to completion driving 2026 demand recovery Near-term headwind; medium-term tailwind
Balance Sheet / Refinancing$87.5M refinancings; line of credit for preferred/redemptions; work on maturities 2026–2027 Refinancing/structuring underway; LO C maturity management; continued preferred redemptions in cash Active management
EV/AV InitiativesEV charging and autonomous vehicle readiness investments (Q4 call) Continued EV plans with revenue sharing; focus on residential garages for utilization Early-stage build-out

Management Commentary

  • “Our second quarter performance was in line with expectations and generally stable year-on-year despite construction- and weather-related headwinds... Contract parking volumes increased 2.5% in the second quarter and 6.6% year-to-date...” — Stephanie Hogue, CEO (press release) .
  • “We made progress on our three-year asset rotation strategy. We currently are in active negotiations for approximately $20 million in asset sales... we plan to use net proceeds to optimize the balance sheet and reinvest into fewer but larger assets.” — Manuel Chavez, Executive Chairman .
  • “Adjusted EBITDA was $3.8 million... adjusted EBITDA margin was 42.8%. At the end of the quarter, we had $15.9 million of cash/restricted cash and total debt outstanding of $214 million.” — Paul Gohr, CFO .
  • “We expect second half 2025 business trends to be similar to the first half, with potential upside from seasonal factors... we are tracking to the low end of [revenue and NOI] ranges.” — Stephanie Hogue, CEO .

Q&A Highlights

  • Dispositions cadence/pricing: Active ~$20M negotiations with valuations similar to 2024 sales at significant multiples; aim to prevent dilution and redeploy proceeds efficiently .
  • Line of credit maturation: Evaluating refinancing and asset sales to address maturity; confident in positive progress with a supportive lender .
  • Guidance drivers: Operating leverage and fixed G&A support EBITDA; transient trends could provide upside if Q2 patterns persist .
  • Transient trajectory into Q3: Q2 transient improved vs Q1; construction completion expected to benefit events and hotel-related demand later in 2025 .
  • Contract demand dynamics: Residential lease-ups slower in Q2 (timing); corporate monthly contracts impacted by Detroit redevelopment; longer-term outlook remains positive .

Estimates Context

  • S&P Global consensus estimates for Q2 2025 revenue and EPS were unavailable for BEEP at the time of review; no values were returned for Q2 2025, Q1 2025, or current quarter windows. Values retrieved from S&P Global.*
  • Implication: With limited formal sell-side coverage, investors should anchor near-term expectations to management’s reiterated guidance and operational KPIs (RevPAS, contract growth) and monitor disclosures for construction completion and asset sale milestones .

Key Takeaways for Investors

  • Near-term: Expect continued stability with potential seasonal transient upside in 2H; management steering results to low end of guidance for revenue/NOI due to construction/event dynamics .
  • Pricing power: Higher transient rates amid lower volumes suggest attractive micro-market positioning; contract parking mix expansion supports revenue resilience .
  • Portfolio optimization: ~$20M of pending sales are first steps in a $100M rotation; reinvestment strategy targets higher-NOI, multi-driver assets, likely reducing volatility .
  • Balance sheet focus: Elevated interest expense from the 15% line of credit and near-term maturities require close monitoring; management is actively refinancing and can defer the LOC maturity to 12/31/25 if needed .
  • KPI trajectory: Watch Same-Location RevPAS (~$212 in Q2) and monthly contract growth (residential +44% since year-end) as leading indicators of pricing and utilization trends .
  • Capital allocation: Ongoing buybacks (530K+ shares at ~$3.21) and cash settlement of preferred redemptions support NAV gap thesis ($7.25/share NAV disclosed) .
  • Medium term (2026): Construction completions (Cincinnati convention center, Denver corridor) and Detroit Renaissance Center redevelopment point to demand inflections and potential NOI acceleration .

Footnote: *S&P Global consensus values were unavailable for this issuer during the review window. Values retrieved from S&P Global.