CaliberCos Reports 68.4% Revenue Decline and $4.6 Million Net Loss in Q1 2025

CaliberCos Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenues of $7.3 million, down 68.4% from $23.0 million in the same period last year. The decrease was primarily attributed to a substantial drop in hospitality revenues following the deconsolidation of Caliber Hospitality Trust and its subsidiaries in March 2024. Asset management revenues, however, showed a slight increase, rising to $3.2 million from $3.2 million in the prior year, driven by higher fund management fees.

Total expenses also decreased to $9.9 million from $27.3 million, a reduction of 63.9%. This decline was largely due to lower consolidated fund expenses resulting from the aforementioned deconsolidation. Operating costs fell by 23.1%, while general and administrative expenses decreased by 18.5%. Despite these reductions, the company reported a net loss of $4.6 million, slightly improved from a loss of $5.3 million in the previous year.

In terms of strategic developments, CaliberCos has been active in expanding its operations. The company entered into a Development Rights Agreement with an affiliate of Hyatt Hotels Corporation to develop 15 new Hyatt Studios hotels across several states, including Arizona and Texas. Additionally, the company has initiated a reverse stock split of its common stock at a ratio of 1-for-20, effective May 2, 2025, aimed at improving its stock price and market perception.

Operationally, CaliberCos reported a portfolio of corporate notes totaling $33.2 million, with $26.1 million maturing within the next 12 months. The company is actively seeking to raise $20 million through a preferred stock offering to address these maturities. As of March 31, 2025, the company had $4.4 million in cash and restricted cash, down from $5.3 million at the end of 2024. The company is also focusing on cost reductions, including workforce cuts expected to save approximately $1.9 million annually.

Looking ahead, CaliberCos remains cautious about its liquidity and ability to continue as a going concern, given its recurring operating losses and negative cash flow. Management is implementing various strategies to enhance capital raise efforts and reduce operating costs, but acknowledges that these plans may not fully alleviate concerns regarding its financial stability. The company continues to monitor market conditions and investor sentiment as it navigates these challenges.