International Land Alliance Reports 57.3% Revenue Decline and $2.2M Net Loss in Latest Quarter

International Land Alliance, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2025. The company recorded net revenues of $554,553 for the third quarter, a decrease of 57.3% from $1,303,271 in the same period last year. For the nine months ended September 30, 2025, revenues fell to $1,878,548, down 73.7% from $7,134,240 in the prior year. The gross profit for the quarter was $147,362, compared to $912,483 in the previous year, reflecting a substantial decline in profitability.

The company's operating expenses also increased significantly, totaling $1,156,031 for the third quarter, up from $635,704 a year earlier. For the nine-month period, operating expenses reached $3,579,904, compared to $1,674,315 in the same period of 2024. This increase was primarily driven by higher sales and marketing costs, which rose to $213,243 for the quarter and $590,693 for the nine months, as well as a notable rise in general and administrative expenses, which amounted to $942,788 and $2,989,211, respectively. The net loss for the third quarter was $2,196,465, compared to a loss of $251,598 in the prior year, while the nine-month net loss totaled $5,133,913, a stark contrast to a net income of $3,492,250 in 2024.

In terms of strategic developments, International Land Alliance completed the acquisition of the remaining 75% interest in Rancho Costa Verde Development, LLC (RCVD) in January 2023, which has since become a wholly owned subsidiary. This acquisition was valued at $13.5 million and was financed through a combination of a promissory note, common stock, and stock purchase warrants. The company continues to focus on its real estate development projects in Baja California, Mexico, including the Oasis Park Resort and Plaza Bajamar, which are expected to drive future revenue.

Operationally, the company has faced challenges, including a working capital deficit of approximately $14.3 million as of September 30, 2025. The total liabilities increased to $18.7 million, up from $15.6 million at the end of 2024. The company reported a cash balance of $24,085, down from $26,120 at the end of the previous fiscal year. The management has indicated that the ability to continue as a going concern is contingent upon generating revenues and raising capital, as the company has experienced significant liquidity shortages.

Looking ahead, International Land Alliance anticipates that its capital resources will improve if its land plots gain market recognition, leading to increased sales. However, the company acknowledges that if marketing efforts do not yield the desired results, it may need to secure additional funding through equity or debt financing or further reduce operating expenses to sustain operations. The management's outlook remains cautious, emphasizing the need for effective marketing strategies to drive sales and improve financial performance in the coming months.