Executive Summary

Q2 2025 delivered low but positive topline growth: revenue was $40,000, up ~8% year over year (vs. $37,000 in Q2 2024) and up ~5% sequentially (vs. $38,000 in Q1 2025; calculation based on cited figures) .
Profitability remained negative: net loss from continuing operations of ($18,000) vs. net income of $3,000 in Q2 2024, though modestly better than Q1 2025’s ($20,000) (sequential improvement) .
Interest income declined to $42,000 from $56,000 YoY, offsetting the small revenue increase and contributing to the net loss; corporate G&A rose to $85,000 from $78,000 YoY .
No formal guidance or earnings call transcript was available; disclosures were limited to the press release and 8‑K exhibit (analysis is therefore anchored to filed materials) .
Sensitivity to oil & gas activity persists through the management fee line (10% of oil & gas revenue), which was pressured in 2024 by lower commodity prices—a structural driver to monitor for periodic volatility .

What Went Well and What Went Wrong

What Went Well

Sequential improvement in bottom line: net loss narrowed to ($18,000) from ($20,000) in Q1 2025 (calculation based on cited figures) .
Revenue mix showed YoY growth in management fees to $14,000 (vs. $12,000) and steady rent at $26,000 (vs. $25,000), indicating modest operational stability in core lines .
Balance sheet remained simple with low current liabilities of $75,000 and cash of $356,000 at June 30, 2025, supporting liquidity for a microcap footprint .

“New Concept Energy, Inc. is a Dallas-based company which owns real estate in West Virginia and provides management services for a third-party oil and gas company.”

What Went Wrong

Profitability deteriorated YoY: ($18,000) loss vs. $3,000 profit in Q2 2024; operating loss also widened vs. revenue scale (loss from operations of ($60,000) vs. ($53,000) YoY) .
Corporate G&A increased to $85,000 from $78,000 YoY, outweighing the small revenue increase and keeping the quarter in loss .
Interest income declined to $42,000 from $56,000 YoY, reducing “other income” support and contributing to the negative net income outcome .

Financial Results

Income Statement Snapshot (oldest → newest)

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($)	$37,000	$38,000	$40,000
Net Income (Loss) ($)	$3,000	($20,000)	($18,000)
Diluted EPS ($)	$0.00	($0.01)	($0.00)
Loss from Operations ($)	($53,000)	($63,000)	($60,000)
Operating Expenses ($)	$12,000	$12,000	$15,000
Corporate G&A ($)	$78,000	$89,000	$85,000
Interest Income ($)	$56,000	$43,000	$42,000
Net Income Margin (%)	8.1% (calc. = 3/37)	(52.6%) (calc. = -20/38)	(45.0%) (calc. = -18/40)

Notes: Percentages are calculated from cited revenues and net income.

Revenue Mix (oldest → newest)

Segment	Q2 2024	Q1 2025	Q2 2025
Rent ($)	$25,000	$26,000	$26,000
Management Fees ($)	$12,000	$12,000	$14,000

Balance Sheet Snapshot

Metric	Dec 31, 2024	Jun 30, 2025
Cash & Cash Equivalents ($)	$363,000	$356,000
Other Current Assets ($)	$9,000	$47,000
Total Current Assets ($)	$372,000	$403,000
Land, Buildings & Equipment ($)	$636,000	$629,000
Note Receivable – Related Party ($)	$3,542,000	$3,542,000
Total Assets ($)	$4,594,000	$4,574,000
Total Current Liabilities ($)	$57,000	$75,000
Stockholders’ Equity ($)	$4,537,000	$4,499,000

Guidance Changes

No formal guidance was disclosed in the Q2 2025 press release or the related 8‑K exhibit .

Metric	Period	Previous Guidance	Current Guidance	Change
—	—	—	—	No guidance provided in Q2 2025 materials

Earnings Call Themes & Trends

No earnings call transcript was available; narrative is based on the press release and 8‑K materials . Historical context from FY 2024 press release is included where relevant.

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Commodity exposure via management fee	Management fee is 10% of oil & gas revenue; 2024 fees declined due to lower oil & gas prices .	Not discussed beyond fee amount disclosure .	Neutral; monitor commodity linkage.
Operating expense discipline	FY 2024 G&A $335k; quarterly G&A in Q1 2025 was $89k .	G&A $85k in Q2 2025 .	Slight sequential improvement.
Strategic direction / growth initiatives	No specific initiatives disclosed in Q1 2025 press release .	No new initiatives disclosed in Q2 2025 press release .	Unchanged; minimal disclosure.

Management Commentary

“New Concept Energy, Inc. is a Dallas-based company which owns real estate in West Virginia and provides management services for a third-party oil and gas company.”
The Q2 2025 materials provide quantitative results without additional qualitative commentary or forward-looking statements .

Q&A Highlights

No earnings call transcript or Q&A was available for Q2 2025; no incremental clarifications beyond the press release and 8‑K exhibit .

Estimates Context

Analyst coverage appears limited; S&P Global consensus estimates for Q2 2025 were unavailable for GBR.

Metric	Q2 2025 Actual	Q2 2025 Consensus	Delta
Revenue ($)	$40,000	N/A*	N/A
Primary EPS ($)	($0.00)	N/A*	N/A

Values retrieved from S&P Global.*

Where estimates are unavailable, investors should anchor on reported results and trend analysis.

Key Takeaways for Investors

Revenue mix showed modest improvement (management fees +$2k YoY to $14k; rent +$1k YoY to $26k), but scale remains very small, and fixed G&A keeps profitability negative .
YoY profitability inflected negatively (loss vs. profit), primarily due to lower interest income and higher G&A; sequentially, the loss narrowed slightly (from -$20k to -$18k) .
Liquidity is adequate for a microcap with simple operations (cash $356k; current liabilities $75k), though equity declined modestly to $4.499M as of June 30, 2025 .
Management fee sensitivity to oil & gas revenue (10% fee) implies commodity-driven variability; 2024 results were affected by lower oil & gas prices—a factor to watch for 2H 2025 .
With no guidance and limited disclosure, the narrative is driven by incremental line-item changes rather than strategic shifts; any new contracts, asset actions, or cost moves could be outsized catalysts for the stock .
Focus for next quarter: monitor G&A trajectory, interest income trend, and management fee progression vs. oil & gas price environment, given their leverage to profitability at GBR’s scale .
In the absence of Street estimates, trading may react more to absolute results, cash/liquidity updates, and any corporate actions or disclosures introduced between quarters .

New Concept Energy, Inc. (GBR)·Q2 2025 Earnings Summary