Alset Inc. Reports Significant Revenue Decline and Increased Net Loss in Q2 2025

Alset Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenue of $1.1 million, a decrease of 2.5% from $1.1 million in the same period of 2024. For the first half of 2025, revenue fell sharply to $2.2 million, down 70% from $7.2 million in the prior year. The decrease in revenue is primarily attributed to the completion of property sales from the Lakes at Black Oak and Alset Villas projects in 2024, which had previously contributed significantly to the company's revenue stream. Rental income remained stable, with $716,042 reported for the second quarter of 2025 compared to $705,011 in 2024.

Operating expenses for the second quarter of 2025 were $3.9 million, a slight decrease from $3.9 million in the same quarter of 2024. However, total operating expenses for the first half of 2025 increased to $8.9 million, compared to $12.3 million in the previous year. The increase in operating expenses was largely driven by higher costs associated with general and administrative expenses, including a notable stock-based compensation expense of $840,000 awarded to the CEO. The company reported a net loss of $8.8 million for the second quarter of 2025, compared to a loss of $1.1 million in the same quarter of 2024, and a total net loss of $18.3 million for the first half of 2025, up from $8.5 million in 2024.

In terms of strategic developments, Alset Inc. completed the acquisition of L.E.H. Insurance Group LLC, acquiring a 60% interest in the company, which is expected to enhance its service offerings in the insurance sector. Additionally, the company is in the process of expanding its rental property portfolio, with plans to acquire more single-family homes to increase rental revenue. As of June 30, 2025, Alset owned 132 single-family residential properties, with a total investment of approximately $31 million.

Operationally, Alset Inc. has seen a decrease in total assets, which fell to $86 million from $96.8 million at the end of 2024, primarily due to declines in cash and investment securities. The company reported a cash balance of $25.6 million as of June 30, 2025, down from $27.2 million at the end of 2024. Liabilities also decreased to $4.7 million from $6.6 million, reflecting a reduction in accounts payable and accrued expenses. The company’s employee headcount remained stable, with no significant changes reported.

Looking ahead, Alset Inc. anticipates continued challenges in revenue generation due to the completion of major property sales. However, the company remains optimistic about its rental business and ongoing strategic acquisitions, including the recent purchase of New Energy Asia Pacific Inc., which is expected to bolster its position in the sustainable energy market. The management believes that the available cash and favorable cash flow from real estate projects will be sufficient to fund operations for at least the next 12 months.