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CI

CaliberCos Inc. (CWD)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 consolidated revenue was $5.07M and diluted EPS was -$4.15; results missed Wall Street consensus on both revenue ($5.93M*) and EPS (-$0.94*) .
  • Management reaffirmed it remains “on track” to achieve platform adjusted EBITDA profitability in the second half of 2025, citing narrowed focus and cost reductions .
  • Liquidity actions advanced: DoubleTree Tucson hotel refinanced with a $22.5M, 7.43% loan (maturing 2030) and Nasdaq minimum bid-price compliance was regained in May 2025 .
  • Strategic pipeline strengthened: exclusive development rights for 15 Hyatt Studios hotels over 3–5 years (target ~$400M AUM addition), and design review approval for PURE Pickleball & Padel in Scottsdale .
  • Key narrative catalysts: H2 2025 profitability target, Opportunity Zone program permanence (OBBBA), Hyatt Studios pipeline, DoubleTree refinance, and liquidity execution .

What Went Well and What Went Wrong

What Went Well

  • Focused execution and cost control: Management reiterated progress toward platform adjusted EBITDA profitability in H2 2025, aided by overhead reductions and strategic focus on hospitality, multifamily, and multi-tenant industrial assets .
    Quote: “The second quarter results were another positive step in our previously announced plan to achieve platform adjusted EBITDA profitability in the second half of 2025.” – CEO Chris Loeffler
  • Strategic wins: Secured exclusive rights to develop 15 Hyatt Studios hotels across AZ, CO, NV, TX, LA, with expected ~$400M AUM addition over 3–5 years .
    Quote: “We are very excited about our new relationship with Hyatt… [Hyatt Studios] offers Caliber the opportunity to capture a fundamental change in the way people work…” – CEO Chris Loeffler
  • Asset-level financing: Closed $22.5M refinance of DoubleTree Tucson at 7.43% (June 2030 maturity), deconsolidated the entity as the loan is no longer guaranteed by Caliber .

What Went Wrong

  • Estimate misses: Q2 revenue ($5.07M) and EPS (-$4.15) were below S&P Global consensus ($5.93M*, -$0.94*), driven by weaker consolidated fund revenues post-2024 deconsolidations and investment impairments .
  • Liquidity risk flagged: The 10-Q disclosed substantial doubt about going concern due to ~$26.3M of corporate notes maturing within 12 months and recurring operating losses; management outlined plans (preferred raise, note rollovers, receivable collection) but deemed them not yet probable .
  • Platform revenue mix: Fund management fees fell YoY (-$0.59M in Q2), and performance allocations remained minimal, partially offset by higher development and financing fees .

Financial Results

Consolidated P&L and Non-GAAP

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$8.687 $7.261 $5.073
Diluted EPS ($USD)-$0.51 -$3.85 -$4.15
Net Loss Attrib. to Caliber ($USD Millions)-$11.388 -$4.407 -$5.299
Consolidated Adjusted EBITDA ($USD Millions)$1.515 -$0.142 $0.057
Platform Adjusted EBITDA ($USD Millions)-$1.002 -$1.352 -$0.054

Segment and Revenue Mix

Asset Management Revenue Components ($USD Millions)Q2 2024Q2 2025
Fund Management Fees$3.330 $2.739
Financing Fees$0.080 $0.292
Development & Construction Fees$0.328 $0.979
Brokerage Fees$0.441 $0.093
Total Asset Management$4.179 $4.103
Performance Allocations$0.033 $0.023
Total Platform Revenue$4.212 $4.126

KPIs

KPI ($USD Millions)Q4 2024Q1 2025Q2 2025
FV AUM$794.923 $830.758 $803.176
Managed Capital$492.542 $495.217 $498.567

Versus Estimates (S&P Global)

MetricQ2 2025 ConsensusQ2 2025 Actual
Revenue ($USD Millions)$5.933*$5.073
Primary EPS ($USD)-$0.94*-$4.15

Values marked with * are retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Platform Adjusted EBITDA profitabilityH2 2025Targeting H2 2025 profitability “On track” for H2 2025 profitability Maintained / Reaffirmed
Annualized cost reductionsFY 2025~$6M annualized impact expected in 2025 from 2024 actions Workforce reductions expected to save ~$3.9M annualized compensation/benefits Updated detail (partial realization)
Listing complianceMay 2025Non-compliant (bid price below $1) since May 2024 Regained Nasdaq bid-price compliance; matter closed Improved

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
AI/Technology (PropTech)Emphasis on tech stack and operating efficiency noted in year-end commentary Explicit reference to adding AI-enabled proptech tools to enhance project execution Increasing focus
Macro/Interest RatesFed cuts in late 2024 noted; market volatility remained Inflation receded to ~2.7% (June 2025); rates 4.25–4.50%; buyer’s market emerging in target geographies Moderating inflation, supportive acquisition landscape
Regulatory (Opportunity Zones)Ongoing OZ strategy OBBBA enacted; QOZ program permanence seen as a tailwind Positive structural change
Hospitality/Product PipelineHyatt partnership framed as strategic win (Q1) Hyatt Studios 15-property agreement and PURE Pickleball & Padel design approval progress Building pipeline
Capital Formation/Liquidity1031 Exchange launch; preferred and ELOC arrangements (Q4/Q1) Series AA preferred raise underway; DoubleTree refinance; note rollovers Ongoing execution

Management Commentary

  • “We have reduced corporate overhead, narrowed our focus on hospitality, multifamily, multi-tenant industrial real estate, and opportunistic strategies… We expect this focus to continue to generate positive momentum… also encouraged by the recent passage of the BBB… making the opportunity zone program permanent” – CEO Chris Loeffler .
  • “Our partnership with Hyatt is a tremendous win… strategic advantage in building our Caliber Hospitality portfolio… continue focusing on fee-generating, income-producing assets while reducing exposure to long-duration development projects.” – CEO Chris Loeffler (Q1) .

Q&A Highlights

  • A live webcast and call occurred on Aug 13, 2025; transcript was not available in our document set. Replay and materials are posted on Caliber’s investor relations website .
  • No additional Q&A transcript highlights could be reviewed due to unavailability in the current sources.

Estimates Context

  • Q2 2025 was a miss vs consensus on both top and bottom line; revenue was ~$0.86M below consensus and EPS was ~$3.21 below consensus, reflecting lower consolidated fund revenues post-deconsolidations and investment impairments; estimate revisions may need to reflect lower performance allocations and cautious fee growth near-term .
  • S&P Global Wall Street consensus values used: revenue $5.93M* and EPS -$0.94* for Q2 2025.

Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term: Expect muted consolidated results as deconsolidations reduce fund revenues; watch H2 cadence for platform adjusted EBITDA profitability; estimate models should temper performance allocations and fund-set up fees .
  • Liquidity: Monitor execution against ~$26.3M of near-term corporate note maturities, Series AA preferred raise progress, and note rollovers; going concern disclosure indicates risk if financing plans lag .
  • Strategic growth: Hyatt Studios pipeline (15 hotels) positions hospitality segment for scalable fee growth and eventual performance allocations; PURE project approval adds unique asset exposure .
  • Funding/compliance: DoubleTree refinance (7.43%, IO to 2030) de-risks a key hotel asset; Nasdaq compliance regained, reducing listing overhang .
  • Macro tailwinds: Opportunity Zone program permanence (OBBBA) supports OZ-focused strategies and potential investor demand; a buyer’s market could aid acquisitions at improved pricing .
  • Watch KPIs: FV AUM stabilized at ~$803M; Managed Capital built to ~$499M – evidence of platform resilience, but fund management fees declined YoY in Q2 .
  • Trading implications: Post-miss pressure possible until visibility on H2 profitability and financing progress improves; catalysts include Hyatt Studios milestones, preferred raise traction, and evidence of platform EBITDA profitability .

Additional Relevant Press Releases (Q2 2025 window)

  • Caliber Announces Second Quarter 2025 Earnings Announcement & Investor Call (Aug 13, 2025) .
  • Caliber Regains Compliance with Nasdaq Minimum Bid Price (May 16, 2025) .
  • DoubleTree Tucson Refinance ($22.5M at 7.43%) (May 21, 2025) .
  • Design Review Approval for PURE Pickleball & Padel (May 8, 2025) .
  • Exclusive Development Agreement with Hyatt for 15 Hyatt Studios Hotels (May 6, 2025) .

Prior Two Quarters’ Earnings (for trend)

  • Q1 2025: Revenue $7.26M, diluted EPS -$3.85, consolidated adjusted EBITDA -$0.14M; platform revenue $3.55M driven by asset management; focus on profitability and liquidity .
  • Q4 2024: Revenue $8.69M, diluted EPS -$0.51, consolidated adjusted EBITDA $1.52M; one-time non-cash allowances/write-downs impacted platform net loss; cost reductions targeted ~$6M annualized in 2025 .

Notes: Transcript for the Q2 2025 earnings call was not available in the documents reviewed; earnings analysis is based on the 8-K press release, earnings supplemental exhibits, and the Q2 2025 10-Q .