Executive Summary

Q3 2025 delivered revenue of $5.63M (+5.0% y/y) and EPS of $0.04 vs a loss in the prior year, driven by higher base rent from existing and new tenants and lower legal/professional/admin expenses .
Sequentially, revenue was broadly flat (-0.2% q/q) while EPS improved from -$0.08 in Q2 to $0.04 in Q3 on reduced interest expense and lower admin costs .
Management highlighted upcoming tenant non-renewals (~$1.03M annual rent loss) and a mortgage with an unconditional balloon feature as key risk factors; bank has not indicated intent to accelerate repayment as of filing .
Capex plan trimmed to ~$1.2M over the next 12 months (from ~$1.5M previously), supporting leasing build-outs while preserving liquidity ($2.28M cash at quarter end) .

What Went Well and What Went Wrong

What Went Well

Net income of $86,784 ($0.04/share) vs a loss last year, with management attributing improvement to “increased rent from existing and new tenants, and reductions in legal, professional, and administrative fees” .
Real estate operating expenses decreased modestly y/y in Q3, supporting margin stabilization: $3.82M in Q3 vs $3.83M in prior year .
Interest expense fell (net of capitalized interest: -$11.3k in Q3), aiding the swing to positive earnings .

What Went Wrong

Management flagged rising real estate taxes and insurance expenses as ongoing headwinds, partially offsetting rent growth .
Tenant churn: notices in May indicate ~23,000 sq ft of Brooklyn office non-renewals with combined annual rent loss of ~$885k plus another ~$142k, raising occupancy and revenue risk into 2H FY25/FY26 .
Refinancing/liquidity risk persists: ~$3.3M mortgage carries a lender’s unconditional right to demand a balloon repayment any time after Apr 1, 2025; while no acceleration has been signaled, this provision pressures ratios/perception .

Financial Results

Metric	Q1 FY25 (Oct 31, 2024)	Q2 FY25 (Jan 31, 2025)	Q3 FY25 (Apr 30, 2025)
Revenue ($USD)	$5,539,129	$5,643,444	$5,632,151
Diluted EPS ($USD)	$0.01	$(0.08)	$0.04
Operating Income ($USD)	$52,171	$(182,120)	$113,110
Operating Margin (%)	~0.9% (calc on cited)	~-3.2% (calc on cited)	~2.0% (calc on cited)
Net Income ($USD)	$26,657	$(157,681)	$86,784
Net Margin (%)	~0.5% (calc on cited)	~-2.8% (calc on cited)	~1.5% (calc on cited)

Year-over-year comparison (Q3 FY25 vs Q3 FY24):

Metric	Q3 FY24 (Apr 30, 2024)	Q3 FY25 (Apr 30, 2025)	YoY Change
Revenue ($USD)	$5,364,324	$5,632,151	+4.98% (calc on cited)
Diluted EPS ($USD)	$(0.04)	$0.04	+$0.08 (calc on cited)
Net Income ($USD)	$(84,880)	$86,784	+$171,664 (calc on cited)

Revenue breakdown

Component	Q1 FY25	Q2 FY25	Q3 FY25
Base Rent – Fixed ($USD)	$5,087,276	$5,184,270	$5,108,916
Reimbursements of Common Area Costs ($USD)	$150,732	$150,861	$190,017
Non-lease Components (Real Estate Taxes) ($USD)	$301,121	$308,313	$333,218
Rental Income ($USD)	$5,539,129	$5,643,444	$5,632,151

KPIs (leases and cash flows)

KPI	Q1 FY25	Q2 FY25	Q3 FY25
Sublease Income ($USD)	$1,821,654	$1,843,926	$1,863,814
Operating Lease Cost ($USD)	$(749,125)	$(749,180)	$(749,726)
Excess of Sublease Income Over Lease Cost ($USD)	$1,072,529	$1,094,746	$1,114,088
Operating Cash Flows from Operating Leases ($USD)	$540,300	$540,343	$542,501

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Expenditure Plan ($USD)	Next 12 months	~$1.5M (as of Q2 FY25)	~$1.2M (as of Q3 FY25)	Lowered
Liquidity (Cash & Equivalents, point-in-time)	Q3 FY25	—	$2,278,824	Informational
Mortgage Outstanding (Fishkill)	As of Q3 FY25	$3,314,021 net at Q2	$3,275,692 net at Q3	Lower balance

Note: Company does not issue formal revenue/EPS guidance in filings; management provided capex and liquidity outlook commentary .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 FY25)	Previous Mentions (Q2 FY25)	Current Period (Q3 FY25)	Trend
Leasing/Rent Growth	Revenue up on existing/new leases; Brooklyn/Jamaica/Ohio leasing activity	Continued rent growth; lease expansions; short-term storage lease; concessions on select tenants	Rent growth persists; incremental reimbursements/taxes; new and expanded leases noted through May	Improving/Mixed (churn offsets)
Operating Expenses (Taxes/Insurance)	Higher taxes and insurance vs prior year	Elevated taxes, maintenance, insurance	Taxes/insurance remain headwinds; admin down y/y	Mixed
Tenant Churn/Concentration	Two tenants ~27% of rental revenue; receivables concentrated	Similar concentration; some concessions/lease terminations	Non-renewal notices leading to ~$1.03M annual rent loss	Worsening near term
Financing/Mortgage Risk	Plan to renegotiate mortgage balloon feature post Apr 2025	Mortgage paid off at Bond St.; balloon feature on Fishkill remains	Balloon feature remains; bank hasn’t signaled demand; outstanding ~$3.3M	Stable (risk persists)
Marketable Securities Income	Prior-year investment income offset losses	2024 had sizable investment gains; 2025 much lower	Minimal investment income; results driven by operations	Normalizing

Management Commentary

“The net income in the three months ended April 30, 2025 was primarily due to increased rent from existing and new tenants, and reductions in legal, professional, and administrative fees; partially offset by an increase in real estate taxes, and insurance expenses.”
On financing risk: “As of this date of filing, the bank has not communicated any intent to accelerate repayment… Although the interest rate is currently favorable, the Company may choose to refinance the mortgage after April 1, 2025…”
Liquidity/capex: “The Company anticipates incurring an additional $1.2 million in capital expenditures over the next twelve months… primary source of liquidity is cash provided by operations and borrowings.”
Tenant activity: multiple lease extensions, expansions, and new leases across Brooklyn, Jamaica, Fishkill, and Circleville; offset by non-renewals and one lease termination .

Q&A Highlights

No earnings call transcript was available in the filings set; analysis is based on the company’s 8-K press release and 10-Q MD&A –.

Estimates Context

Wall Street consensus (S&P Global) for Q3 2025 was unavailable for EPS and revenue for MAYS; comparison to estimates is not feasible. Actual revenue reported for Q3 2025 was $5,632,151 .
Values retrieved from S&P Global.*

Metric	Q3 2025 Actual	Q3 2025 Consensus Mean	# of Estimates
Revenue ($USD)	$5,632,151	n/a*	n/a*
Primary EPS ($USD)	$0.04	n/a*	n/a*

Key Takeaways for Investors

Earnings inflection: swing to positive EPS ($0.04) on operating discipline and interest savings; sequential momentum from Q2 loss suggests early stabilization in margins .
Revenue quality: base rent remains the primary driver; growth in reimbursements/taxes contributed incrementally, but rising real estate taxes/insurance are a structural headwind to margins .
Near-term occupancy risk: announced non-renewals (~$1.03M annual rent) may pressure 2H FY25/FY26 revenues unless backfilled; watch leasing updates and timing of rent commencements (e.g., Oct 2025 start for a new 10-year Brooklyn lease) .
Financing overhang: ~$3.3M mortgage with balloon feature introduces liquidity perception risk despite no current acceleration; monitor refinancing progress and lender communications .
Capex moderated to ~$1.2M next 12 months, aligning with tenant improvements and supporting revenue continuity while preserving cash ($2.28M) .
No Street coverage: lack of consensus estimates limits “beat/miss” narrative; trading likely responds to leasing disclosures and mortgage developments .
Focus for the next quarter: backfill non-renewals, sustain admin cost reductions, and maintain or improve net margins amid tax/insurance inflation .

MAYS J W INC (MAYS)·Q3 2025 Earnings Summary