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VH

Venu Holding Corp (VENU)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $3.50M, down 11% year over year, with a net loss attributable to common stockholders of $18.06M; management attributed softer top-line to a daypart shift at Notes Eatery and slightly weaker performance at Bourbon Brothers and Phil Long Event Center in Colorado Springs .
  • Luxe FireSuite and Aikman Club fractional ownership sales reached $38.7M in Q1, including $12.5M from the newly launched structured financing program since late February, bolstering balance sheet assets and development funding; total assets rose 19% q/q to $212.9M and property & equipment rose 33% q/q to $182.9M .
  • Guidance reiterated: a development profit expected in 2025 (sale-leaseback of Ford Amphitheater ground) and first operational profitability targeted in 2026 with four major venues online; expansion accelerated via Ryan LLC, with two new public-private partnerships per quarter envisioned .
  • Catalysts: formal acquisition of the ~20-acre El Paso site with $8M forgivable loan and incentives, and structured financing expanding the buyer pool (including triple-net investors), plus sponsorship push via Connect Partnership Group; board strengthened by adding ex-Barings CEO Tom Finke .

What Went Well and What Went Wrong

What Went Well

  • Record fractional ownership momentum: “over $38,000,000 in fractional ownership sales across our venues… well on our way toward our quarter of a billion dollar goal in 2025” . Structured financing uptake: 32% of buyers opted to finance purchases since launch .
  • Strategic partnerships to accelerate expansion and monetization: Ryan LLC to deliver two new public-private partnerships per quarter; Sands Investment Group to market NNN FireSuites targeting 11–12% cap rates; Connect Partnership Group to lead sponsorship sales .
  • Asset base and pipeline strengthened: Total assets +$34.5M q/q to $212.9M; property & equipment +$45.7M q/q; El Paso development footprint expanded to 20 acres with incentives and $100M minimum investment commitment .

What Went Wrong

  • Revenue declined 11% YoY to $3.50M, with notable softness in restaurant and event center revenues; restaurant revenue fell to $2.04M (from $2.58M), event center revenue to $0.98M (from $1.32M) .
  • Operating costs scaled with development stage: total operating costs rose to $22.04M (from $16.91M), including $11.34M in equity-based compensation and $1.38M depreciation/amortization; loss from operations widened to $(18.54)M .
  • Cash burn intensified: cash used in operations was $(9.04)M; capex was $(22.05)M; interest expense rose to $(1.05)M as debt and convertible liabilities ramped to fund development .

Financial Results

Quarterly P&L and Margins (Sequential comparison)

MetricQ3 2024Q4 2024Q1 2025
Revenues ($USD)$5,451,975 $4,267,427*$3,499,159
EBITDA ($USD)$(2,572,541)*$(5,046,140)*$(17,167,000)*
Net Income - (IS) ($USD)$(3,932,221)*$(6,287,497)*$(18,063,730)*
Diluted EPS - Continuing Ops ($)$(0.133)*$(0.361)*$(0.477)*

Values with * retrieved from S&P Global.

Year-over-Year (Q1 2025 vs Q1 2024)

MetricQ1 2024Q1 2025
Total revenues, net ($USD)$3,939,743 $3,499,159
Net loss ($USD)$(15,816,019) $(19,432,750)
Net loss attributable to common stockholders ($USD)$(15,598,938) $(18,063,730)
Basic & diluted net loss per Common share ($)n/a (Common not outstanding) $(0.48)

Note: Prior period EPS is not directly comparable due to differing share classes in Q1 2024 (Class B/C/D) .

Segment Revenue Breakdown

Revenue Category ($USD)Q1 2024Q1 2025
Restaurant (net)$2,580,102 $2,044,916
Event center ticket & fees (net)$1,324,895 $980,439
Rental & sponsorship (net)$34,746 $473,804
Total revenues (net)$3,939,743 $3,499,159

KPIs and Balance Sheet Highlights

KPI / Balance SheetQ1 2025Prior Period
Luxe FireSuite & Aikman Club sales ($)$38,700,000 (quarter) n/a
Structured financing sales since late Feb ($)$12,500,000 n/a
Total assets ($)$212,882,187 $178,417,515 (Dec 31, 2024)
Property & equipment, net ($)$182,906,195 $137,215,936 (Dec 31, 2024)
Cash & equivalents ($)$24,663,106 $37,969,454 (Dec 31, 2024)
Cash from operations ($)$(9,036,985) $(2,711,868) (Q1 2024)
Capital expenditure ($)$(22,048,943) $(8,946,836) (Q1 2024)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Development profit (sale-leaseback of Ford Amphitheater ground)FY 2025Expect development profit in 2025 Reiterated development profit expected in 2025 Maintained
Operational profitabilityFY 2026First operational profit in 2026 with four venues online Reiterated operational profitability targeted for 2026 Maintained
Expansion pace via Ryan LLC2025–2026Aggressive expansion; operating partner mix evolving Ryan contracted to deliver ~2 new public-private partnerships per quarter Raised (pace clarified)
El Paso project scopeMulti-year$80M minimum investment; ~17 acres $100M minimum investment; ~20 acres; incentives incl. $8M forgivable loan Raised scope

No formal numeric guidance provided for revenue, margins, OpEx, OI&E or tax rate in Q1 materials .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Fractional ownership (FireSuites) momentum2024 sales $77.7M; January $10.4M; February $11.2M; goal $200M in 2025 Q1 sales $38.7M; structured financing launched; 32% buyers financed; expanding to NNN investor base Accelerating and diversifying buyer base
Multi-season amphitheater configurationIntroduced to drive year-round monetization; supply flexibility for artists Rolled out across upcoming venues (McKinney, El Paso, Broken Arrow, OKC) to expand margins Scaling across pipeline
Partnerships (Ryan, AEG, Sands, Connect PG)AEG as operator in CO; open-room strategy in new markets; sponsorships (Ford/Kaiser/etc.) Ryan to deliver two PPPs/quarter; Sands to market NNN FireSuites; Connect PG to lead sponsorships Broader monetization and faster expansion
Expansion pipeline11 markets operating/in development; more LOIs underway Seven more municipalities in talks; 12 more in early-stage for 2027–2029 openings Pipeline deepening
Path to profitabilityDevelopment profit in 2025; operational in 2026 Reiterated; losses driven by non-cash/non-recurring development expenses Confidence maintained
Regional projects (El Paso)PPP signed; incentives in place Land acquired; PPP amended to 20 acres, $100M minimum; $8M no-interest forgivable loan Scope increased

Management Commentary

  • “Q1 posted our biggest quarter yet with over $38,000,000 in fractional ownership sales… we will not look back at our losses this first quarter and apologize. The bulk of these costs were noncash and nonrecurring development expenses.” — JW Roth (Founder/CEO) .
  • “Since launching, we have seen more than 32% of our buyers choose to finance… qualified investors can now participate… under a triple net lease structure, offering a projected 11% to 12% cap rate.” — JW Roth .
  • “Our total assets increased 19% for the quarter… to $212,882,187… property and equipment increased 33% to $182,906,195.” — Heather Atkinson (CFO) .
  • “Q1 top line sales were modestly lower year over year, driven by a daypart shift at Notes Eatery and a slightly softer performance at Bourbon Brothers and Phil Long Event Center.” — Will Hodgson (President) .

Q&A Highlights

  • Expansion pace via Ryan LLC: committed to “two new public-private partnerships per quarter,” potentially adding $100–$300M to the balance sheet per agreement, materially accelerating unit growth .
  • Structured financing and NNN investor channel: financing increased sales ~32%; NNN investors targeted via Sands, with VENU managing suites to deliver 11–12% cap rates .
  • Multi-season design: year-round operations within amphitheaters to increase dwell time, content, and margins; scalable capacity to match artist demand .
  • Profitability roadmap: development profit in 2025 via sale-leaseback; operational profitability in 2026 as McKinney, El Paso, Broken Arrow and Ford-related hospitality collections come online .

Estimates Context

  • S&P Global consensus coverage appears limited for VENU’s Q1 2025; Primary EPS Consensus Mean unavailable; Revenue Consensus Mean unavailable; EBITDA Consensus Mean unavailable. Values retrieved from S&P Global.
  • With limited coverage, estimates likely need to incorporate: lower near-term operating revenue from current venues, rising development-driven OpEx, and strong fractional ownership proceeds that bolster assets but are not recognized as operating revenue .

Actuals vs Consensus (Q1 2025)

MetricConsensusActual
Revenue ($USD)N/A*$3,499,159
Primary EPS ($)N/A*$(0.48) (Common)
EBITDA ($USD)N/A*$(17,167,000)*

Values with * retrieved from S&P Global.

Key Takeaways for Investors

  • Development-led balance sheet growth remains the central story: assets and property & equipment expanded sharply, supported by $38.7M FireSuites sales and El Paso site acquisition/incentive package .
  • Near-term P&L pressure reflects non-cash development costs; management reiterates a 2025 development profit and 2026 operational profitability, contingent on execution of multi-season venues and pipeline delivery .
  • Structured financing and NNN channel are expanding the buyer pool, potentially sustaining fractional ownership momentum and funding without excessive reliance on debt .
  • Sponsorship and monetization levers (Connect Partnership Group) plus dwell-time strategies in hospitality are positioned to lift unit economics as venues open and scale .
  • Sequential revenue trend (Q3→Q4→Q1) is down into the seasonal trough; watch Q2/Q3 seasonality, sponsorship recognition, and Ford Amphitheater event cadence for operating leverage .
  • Execution risks: capital intensity, cash burn, rising interest expense, and timeline dependencies in PPPs; El Paso PPP amendments raise scope to $100M and 20 acres with clear performance obligations .
  • Trading lens: stock likely reacts to evidence of pipeline conversion (new PPP announcements), FireSuites momentum (monthly updates), and clarity on timing/magnitude of 2025 development profit; board addition of Tom Finke signals capital markets discipline .