New Concept Energy, Inc. (GBR)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 revenue of $39,000 (+5% YoY), net loss of $20,000 (vs. $4,000 loss YoY); diluted EPS was ($0.01). Interest income fell YoY due to lower rates, offsetting modest revenue growth .
• Operating profile remains stable and very small-scale: rental income $26,000 and management fees $13,000 in Q3; corporate G&A was $88,000, consistent with prior quarters but above year-ago levels .
• No formal guidance and no earnings call transcript; management reiterates strategy of evaluating business opportunities to add income and cash flow .
• Potential near-term stock catalysts are limited: results were broadly in line with recent trends; rate-driven interest income headwind continues; no new strategic actions disclosed .

What Went Well and What Went Wrong

• What Went Well

  • Revenue rose modestly YoY to $39,000 (from $37,000), with steady rental income ($26,000) and slightly higher management fees ($13,000 vs. $11,000) .
  • Segment view shows “Current Operations” generating positive operating income ($25,000) in Q3 2025, consistent with the asset-light, rental/fee model .
  • Management remains focused on “evaluating business opportunities to provide both additional income and cash flow,” signaling willingness to pursue accretive options .

• What Went Wrong

  • Net loss widened to $20,000 from $4,000 YoY, as lower interest income (due to lower rates) and higher G&A offset modest revenue gains .
  • Corporate G&A of $88,000 increased vs. $79,000 YoY; a formalized services agreement with Pillar drove $9,000 in fees this quarter, contributing to overhead .
  • Interest income declined to $43,000 from $52,000 YoY as the related-party note reset lower with SOFR (4.24% at quarter-end), reducing a key income stream .

Financial Results

Segment breakdown (Operating view):

Operating detail and KPIs:

Vs. Estimates

Note: Consensus estimates were unavailable via S&P Global for GBR as of this analysis.

Guidance Changes

Earnings Call Themes & Trends

Note: No earnings call transcript was found; themes reflect Q1–Q3 press releases and the Q3 10-Q/MD&A.

Management Commentary

• “The reduction in interest was due to lower interest rates.” (MD&A – Results of Operations) .
• “The Company is evaluating business opportunities to provide both additional income and cash flow.” (Notes to Financial Statements) .
• “The note bears interest at the Secured Overnight Financing Rate (‘SOFR’) at the end of each calendar quarter (4.24% at September 30, 2025) and is due at September 30, 2027.” (Related-party note) .
• “Approximately 16,000 square feet is leased at a rate of $104,000 per annum over the term of the lease which expires October 1, 2029.” (Nature of operations) .

Q&A Highlights

• No public Q&A available; no earnings call transcript was found among the Q3 materials. This recap is based on the Q3 10-Q, the Q3 8-K/press release, and prior-quarter press releases .

Estimates Context

• S&P Global consensus estimates for Q3 2025 Revenue and EPS were not available for GBR; GetEstimates returned no data for this period. In absence of Street benchmarks, results should be assessed vs. sequential and YoY trends .
• Given continued rate-driven pressure on interest income and stable but small operating revenue, modest estimate revisions are unlikely unless new strategic actions alter the income mix (no formal guidance provided) .

Key Takeaways for Investors

• Business remains extremely small and stable: Q3 revenue $39k with consistent rental income and modest management fees; net loss of $20k continues trend of small losses as interest income resets lower with rates .
• Rate sensitivity is the primary earnings driver: related-party note at SOFR (4.24% at quarter-end) makes interest income a function of short-term rates; further rate declines would pressure results, while hikes would help .
• Overhead is sticky: corporate G&A ~$85–$90k/quarter; formalized Pillar agreement ($9k in Q3) supports administration but sustains a high fixed-cost base relative to revenue .
• Liquidity is adequate for scale: $307k cash; minimal liabilities ($63k current liabilities), and $3.542M note receivable due 2027 provide balance sheet support .
• No guidance and no call: with no explicit outlook or catalysts disclosed, trading likely hinges on microcap dynamics and any future announcements regarding “evaluating business opportunities” .
• Watch for: rate path (for interest income), leasing updates on WV property, any M&A or asset redeployment to augment recurring income .

Appendix: Source Documents

• Q3 2025 8-K (Item 2.02) and Exhibit 99.1 press release: financial highlights and summarized statements .
• Q3 2025 10-Q: full financial statements, MD&A, lease and note details, and liquidity snapshot .
• Q2 2025 press release: sequential comparison base .
• Q1 2025 press release: sequential comparison base .