CaliberCos Reports 38% Revenue Decline and $5.7 Million Net Loss in Q2 2025

CaliberCos Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenues of $5.1 million, down 38% from $8.2 million in the same period last year. The decrease was primarily attributed to a substantial drop in revenues from consolidated funds, particularly in hospitality, which fell by 60.7% to $1.1 million. Asset management revenues, however, increased by 16.1% to $3.7 million, driven by higher fund management fees. The company recorded a net loss of $5.7 million for the quarter, slightly worse than the $5.3 million loss reported in the prior year.

For the first half of 2025, CaliberCos experienced a 60.4% decrease in total revenues, totaling $12.3 million compared to $31.1 million in the first half of 2024. This decline was largely due to the deconsolidation of several funds, including the Caliber Hospitality Trust, which significantly impacted hospitality revenues, which dropped 76% to $5.1 million. Operating expenses also decreased by 58% to $16.8 million, reflecting cost-cutting measures and the impact of deconsolidated funds.

Strategically, CaliberCos has been active in restructuring its capital base, including a reverse stock split executed on May 2, 2025, which aimed to enhance the marketability of its shares. The company also entered into a securities purchase agreement in March 2025, raising $1.7 million through a senior secured promissory note and common stock purchase warrants. Additionally, CaliberCos is pursuing a $20 million preferred stock offering to address upcoming debt maturities and improve liquidity.

Operationally, the company reported a decrease in its employee headcount, which is expected to yield annualized savings of approximately $3.9 million in compensation and benefits. As of June 30, 2025, CaliberCos had a total of 1,278 weighted average common shares outstanding, reflecting the impact of the reverse stock split. The company continues to manage a portfolio of corporate notes, with $33 million in outstanding unsecured notes, and is actively working to refinance existing debt to improve its financial position.

Looking ahead, CaliberCos faces challenges related to its liquidity and ability to raise capital, particularly given the substantial debt maturities approaching within the next year. The company is focused on executing its plans to reduce operating costs, collect receivables, and increase fundraising efforts. However, management has acknowledged that these plans may not be sufficient to alleviate concerns regarding its ability to continue as a going concern, given the current economic environment and market conditions.