Executive Summary

Q3 2025 net income was $1.03M and diluted EPS was $0.25; results declined year over year on lower related-party interest income but improved sequentially as operating expenses fell and interest income ticked higher .
Interest income from related parties decreased 13.6% YoY to $1.395M but rose 3.0% QoQ; G&A fell 11.3% YoY and 14.9% QoQ, supporting modest sequential EPS improvement .
The company provided no guidance and did not conduct an earnings call; management attributed the YoY decline in net income to lower interest income from related parties .
No Wall Street consensus estimates (S&P Global) were available for EPS or revenue for Q3 2025; estimate-based beat/miss analysis is therefore not applicable [GetEstimates Q3 2025, Q4 2025].

What Went Well and What Went Wrong

What Went Well

Sequential improvement: Net income rose to $1.03M (+3.7% QoQ) and EPS to $0.25 (+4.2% QoQ), driven by lower operating expenses and a modest increase in interest income .
Expense discipline: G&A was $63K, down 11.3% YoY and 14.9% QoQ; total operating expenses fell to $90K, down 7.2% YoY and 7.2% QoQ .
Stable share count: Weighted average diluted shares remained at 4,066,178 in Q3 2025, supporting per-share metrics stability .

What Went Wrong

Interest income pressure: Related-party interest income fell 13.6% YoY to $1.395M, the primary driver of lower YoY earnings .
Earnings decline YoY: Net income decreased 13.9% YoY to $1.03M; diluted EPS decreased 13.8% YoY to $0.25 .
Limited disclosure/catalysts: No earnings call or guidance was provided, and operations remain concentrated in notes receivable/related-party interest income, offering limited near-term narrative change .
Management quote: “Our decrease in net income is attributable to a decrease in interest income.” .

Financial Results

P&L snapshot (USD thousands, except per-share)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Other income (Revenue) ($)	$0	$0	$0	$0
Interest income from related parties ($)	$1,614	$1,347	$1,355	$1,395
General & administrative ($)	$71	$68	$74	$63
Advisory fee to related party ($)	$26	$27	$23	$27
Total operating expenses ($)	$97	$95	$97	$90
Net operating loss ($)	$(97)	$(95)	$(97)	$(90)
Income tax provision ($)	$(319)	$(263)	$(264)	$(274)
Net income ($)	$1,198	$989	$994	$1,031
Diluted EPS ($)	$0.29	$0.24	$0.24	$0.25
Weighted avg diluted shares	4,070,327	4,066,178	4,066,178	4,066,178

YoY and QoQ changes

Metric	YoY Change (Q3 2025 vs Q3 2024)	QoQ Change (Q3 2025 vs Q2 2025)
Interest income from related parties	-13.6% (1,395 vs 1,614)	+3.0% (1,395 vs 1,355)
Net income	-13.9% (1,031 vs 1,198)	+3.7% (1,031 vs 994)
Diluted EPS	-13.8% ($0.25 vs $0.29)	+4.2% ($0.25 vs $0.24)
G&A	-11.3% (63 vs 71)	-14.9% (63 vs 74)
Total operating expenses	-7.2% (90 vs 97)	-7.2% (90 vs 97)
Income tax provision	-14.1% (274 vs 319)	+3.8% (274 vs 264)

Estimates comparison (S&P Global)

Metric	Period	Actual	Consensus	Surprise
Diluted EPS ($)	Q3 2025	$0.25	N/A	N/A
Revenue ($)	Q3 2025	$0	N/A	N/A

Note: S&P Global consensus for IOR’s Q3 2025 EPS and revenue was unavailable; beat/miss analysis cannot be performed (Values retrieved from S&P Global).

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
All metrics	Q4 2025 / FY 2025	None provided	None provided	Maintained (no guidance)

Earnings Call Themes & Trends

No earnings call or transcript was available for Q3 2025, and the company did not hold calls for the prior quarters reviewed.

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
AI/technology initiatives	No call; no commentary	No call; no commentary	No call; no commentary	N/A
Supply chain	No call; no commentary	No call; no commentary	No call; no commentary	N/A
Tariffs/macro	No call; no commentary	No call; no commentary	No call; no commentary	N/A
Product/portfolio performance	Minimal disclosure in releases (notes receivable, related-party interest)	Minimal disclosure	Minimal disclosure	Stable/minimal
Regulatory/legal	No call; no commentary	No call; no commentary	No call; no commentary	N/A

Management Commentary

Prepared remarks (press release): “Our decrease in net income is attributable to a decrease in interest income.” .
Company profile reminder: The company “currently holds a portfolio of notes receivable” and invests through direct equity ownership and partnerships, framing earnings sensitivity to interest flows from related parties .

Q&A Highlights

No earnings call was conducted; therefore, no Q&A, guidance clarifications, or tone observations are available for Q3 2025 .

Estimates Context

S&P Global consensus estimates for Q3 2025 EPS and revenue were not available; as a result, there is no beat/miss determination for this quarter (Values retrieved from S&P Global).
Given the lack of coverage, near-term estimate revisions are not applicable for IOR based on available S&P Global data [GetEstimates Q3 2025, Q4 2025].

Key Takeaways for Investors

Earnings remain primarily driven by related-party interest income; a 13.6% YoY decline in that income line directly pressured YoY EPS and net income .
Sequential improvement was supported by cost control (G&A down 14.9% QoQ) and a modest rise in interest income (+3.0% QoQ), yielding EPS of $0.25 vs $0.24 in Q2 .
Lack of guidance and absence of an earnings call limit visibility into trajectory and potential catalysts; disclosures remain minimal and focused on P&L line items .
Share count stability supports per-share metrics; dilution risk appears low in the period reviewed .
Monitoring the trend in related-party interest income is critical; further declines would likely weigh on EPS and net income, while stabilization or growth could sustain sequential improvements .
Expense discipline is a positive lever; sustaining lower OpEx provides cushion against interest income volatility .
With no S&P Global consensus available, trading setups should center on realized financial trends (interest income and OpEx trajectory) rather than estimate-based surprises [GetEstimates Q3 2025].

Sources: Q3 2025 press release and 8-K (Item 2.02 with Exhibit 99.1) ; Q2 2025 press release ; Q1 2025 press release .

INCOME OPPORTUNITY REALTY INVESTORS INC /TX/ (IOR)·Q3 2025 Earnings Summary