Executive Summary

Q2 2025 delivered double-digit growth: revenue rose 16% to $129.1M and net income increased 20% to $29.5M ($0.51 EPS), driven by Real Estate (+27%), Hospitality (+10% record), and Leasing (+11% record) .
Recurring revenue strength continued: Hospitality set a single-quarter record at $68.8M and Leasing at $16.5M; corporate OpEx held ~5% of revenue, maintaining cost discipline .
Capital allocation remained active: $36.5M capex, $8.1M dividends, $10.5M buybacks, and $7.7M gross debt repayment in Q2; dividend of $0.14 per share declared for September 19, 2025 .
Strategic catalysts: Bay County approval of the Pigeon Creek DSAP (3,330 residential units; 450k sq ft commercial), Topgolf opening at Pier Park City Center, and FSU’s $414M bonds for a new teaching/research hospital on JOE’s campus—supporting demand and long-term development runway .

What Went Well and What Went Wrong

What Went Well

Hospitality and Leasing reached single-quarter records, evidencing recurring revenue momentum: “We continue to implement our strategic plan of growing recurring revenue... hospitality revenue to a single quarterly record of $68.8 million... leasing revenue to a single quarterly record of $16.5 million.” — CEO Jorge Gonzalez .
Real Estate execution strong: homesite closings increased 21% YoY (225 vs. 186), with 482 homesites placed under contract in Q2; JV equity income rose (Q2: $7.5M vs. $5.4M) .
Capital discipline: Active shareholder returns and reinvestment (capex $36.5M; dividends $8.1M; buybacks $10.5M; debt repayment $7.7M), with 10-year cumulative repurchases of 34.5M shares ($629.8M) .

What Went Wrong

Real Estate pricing/margins mixed: average homesite base price decreased YoY ($122k vs. $140k) and gross margin compressed (45.9% vs. 52.3%) due to community mix—watch price/mix sensitivity .
Club membership modestly down YoY (3,551 vs. 3,571) as management increased entry fees and dues; revenue offset by higher dues and expanded golf capacity (third course) .
Consolidated EBITDA (non-GAAP) growth lagged YoY margin expansion; depreciation and cost growth in hospitality/leasing weigh on margins despite revenue records .

Financial Results

Consolidated Performance vs. Prior Periods

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$111.6	$94.2	$129.1
Net Income ($USD Millions)	$24.5	$17.5	$29.5
EPS (Basic) ($USD)	$0.42	$0.30	$0.51
Operating Income ($USD Millions)	$32.6	$16.9	$37.0
EBITDA (non-GAAP) ($USD Millions)	$49.2	$39.8	$56.0
EBITDA Margin (%)	44.1%	42.2%	43.4%
EBIT Margin (%)	29.2%	18.0%	28.7%
Net Income Margin (%)	22.0%	18.6%	22.9%

Notes: EBITDA margins calculated from reported EBITDA and revenue; EBITDA is non-GAAP with reconciliations provided in filings .

Segment Revenue Breakdown

Segment Revenue ($USD Millions)	Q2 2024	Q1 2025	Q2 2025
Real Estate	$34.5	$38.3	$43.8
Hospitality	$62.3	$39.6	$68.8
Leasing	$14.8	$16.3	$16.5
Total Revenue	$111.6	$94.2	$129.1

Key KPIs and Operating Metrics

KPI	Q1 2025	Q2 2025
Homesite Closings (Units)	249	225
Homesites Placed Under Contract (Units)	89 (Latitude JV)	482 (JOE)
Residential Homesites Under Contract (Units; $)	952; ~$94.4M	1,209; ~$121.7M
Homesite Avg Base Price / Gross Margin	~$118k; 45.6% (1H)	~$122k; 45.9% (Q2)
Latitude Margaritaville Watersound: Completed Sales (Units)	192	137
Latitude Occupied Homes (Cumulative)	1,855	1,992
Latitude Homes Under Contract (Units; Avg Price)	264; ~$598k	216; ~$599k
Club Members (End of Period)	3,498	3,551
Hotels (Owned; Rooms)	12; 1,298	12; 1,298
Leasable Commercial Sq Ft	~1,180,000; 94% leased	~1,177,000; 95% leased
Multi-family & Senior Living Units	1,383	1,373
Cash & Equivalents ($M)	$94.5	$88.2
Weighted Avg Debt Rate / % Fixed or Swapped	4.8%; 74% fixed/swapped	4.8%; 75% fixed/swapped
Capex / Dividends / Buybacks / Debt Repayment ($M)	$32.7 / $8.2 / $5.7 / $2.5 (net)	$36.5 / $8.1 / $10.5 / $7.7

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend per Share	Q3 2025 payable Sep 19, 2025	$0.14 (Q1 2025 declaration)	$0.14 (Q2 2025 declaration)	Maintained
Share Repurchase Program Authority	Ongoing	$100M authorized (Feb 26, 2025)	$100M authorized; $10.5M repurchased in Q2	Maintained (ongoing execution)
Capital Allocation Strategy	2025	Reinvest/return balanced (Q1)	Continued balanced: capex/dividends/buybacks/debt reduction	Maintained

Note: No quantitative revenue/EBITDA/EPS guidance was provided; management emphasized recurring revenue growth, development approvals, and capital allocation priorities .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Recurring Revenue Focus (Hospitality/Leasing)	2024 records; Q1 leasing record	Hospitality +10% to quarterly record; Leasing +11% to record	Strengthening
Capital Allocation (Capex/Buybacks/Dividends/Debt)	Q4/Q1 steady deployment	$36.5M capex; $8.1M dividends; $10.5M buybacks; $7.7M debt repayment	Active/Accelerating buybacks
Development Entitlements/Approvals	Large pipeline; DSAPs	Pigeon Creek DSAP approved (3,330 res units; 450k sf commercial)	Expanding runway
Macro/Interest Rates Impact on Lot Demand	Interest rate sensitivity noted	Mortgage rate relief would accelerate homesite sales; in-migration remains strong	Watch rates; demand resilient locally
Infrastructure & Regional Growth	Pipeline of projects and airlines	FSU bonds approved; Topgolf opened; LGA-ECP flights (Delta)	Enhancing demand drivers
Club Membership & Pricing	Growing members; dues adjust	Entry fees/dues increased; slight membership dip, higher club revenue	Pricing power; temporary membership slowdown
JV Distributions & Performance	JV contributions material	JV equity income up; distributions based on needs; startup assets in lease-up	Mixed near-term; positive long-term

Management Commentary

“We continue to show solid organic growth with 16% growth in revenue and 20% growth in net income, led by 27% growth in real estate revenue.” — Jorge Gonzalez, CEO .
“Our capital allocation strategy is measured and multi-faceted… $36.5M capex, $8.1M dividends, $10.5M repurchases, $7.7M debt repaid.” .
“We obtained approval from Bay County for the Pigeon Creek DSAP… the tenth DSAP… we have commenced development in only three of the ten.” .
“Through the first six months of 2025, recurring revenue is now 63% of our total revenue… accelerated share repurchase… outstanding share balance below 58 million.” .

Q&A Highlights

Membership policy and pricing: Access policies for three 30A hotels unchanged; higher entry fees/dues in January drove a temporary membership slowdown but higher revenue per member; new golf course expanded capacity .
Lot pipeline and interest rates: Demand remains healthy across communities; mortgage rate relief would help accelerate lot sales above ~1,000/year run-rate .
JV distributions: No fixed formula; distributions depend on operational performance and infrastructure needs; startup JV assets (Residence Inn; Watersound Fountains IL) expected to mature similar to Watercrest senior living trajectory .
Pigeon Creek monetization: Discussions with a large-scale builder for the entire DSAP to potentially accelerate residential segment pace .
Infrastructure: West Bay Parkway bridge alignment selected; engineering/permitting planning underway; timing tied to growing consumer base (Latitude) .

Estimates Context

S&P Global consensus for Q2 2025 EPS, revenue, and EBITDA was not available in the dataset; only actuals were observed. As a result, beat/miss vs. consensus cannot be determined for this quarter (Values retrieved from S&P Global).
Given recurring revenue momentum and segment records, Street models may need to reflect stronger Hospitality/Leasing mix, lower homesite ASPs/gross margins from mix, and higher JV equity contributions .

Consensus Snapshot (S&P Global)

Metric	Q2 2025 Consensus	Q2 2025 Actual
EPS ($)	Unavailable*	$0.51
Revenue ($USD Millions)	Unavailable*	$129.1
EBITDA ($USD Millions, non-GAAP)	Unavailable*	$56.0

Note: Values retrieved from S&P Global.*

Key Takeaways for Investors

Recurring revenue flywheel is working: Hospitality and Leasing delivered record quarters, underpinning more stable earnings and reducing reliance on transactional land sales .
Real Estate remains a growth driver, but mix matters: lower ASPs and margin compression reflect community mix; focus on builder partnerships (Pigeon Creek) should support volume acceleration .
Capital returns sustained alongside reinvestment: continued dividends, buybacks, and debt reduction signal balance sheet strength and disciplined allocation .
Regional catalysts enhancing demand: Topgolf opening, expanded air access (NYC–PCB), and FSU teaching hospital bonds create multi-year tailwinds for hospitality, leasing, and residential segments .
JV contributions increasingly material: equity income up YoY; near-term JV assets in lease-up/stabilization should improve earnings as occupancy ramps .
Watch interest rates and insurance: rate declines would boost homesite demand; insurance costs and macro headwinds remain key variables for margins and consumer behavior .
Near-term trading: Narrative supports multiple expansion on recurring revenue records and visible development runway; any macro rate relief or incremental builder deal at Pigeon Creek could be meaningful catalysts .

ST JOE Co (JOE)·Q2 2025 Earnings Summary