International Land Alliance Reports 70% Revenue Decline and $14.3 Million Net Loss for Fiscal Year 2025

International Land Alliance, Inc. (ILAL) reported a significant decline in financial performance for the fiscal year ending December 31, 2025, with revenues dropping to $2.43 million from $8.09 million in the previous year, marking a decrease of approximately 70%. The company also recorded a net loss of $14.3 million, a stark contrast to the net income of $3.05 million reported for 2024. This downturn is attributed to a combination of reduced real estate sales and increased operational costs, particularly in general and administrative expenses, which surged to $7.13 million from $1.86 million in the prior year.

The company's operational metrics reflect a challenging environment, with total operating expenses rising to $7.98 million, primarily driven by a substantial increase in stock-based compensation expenses. The cost of revenue also increased to $1.62 million, up from $1.24 million, indicating higher costs associated with land and construction. The company’s accumulated deficit now stands at $38.4 million, raising concerns about its ability to sustain operations without additional capital.

Strategically, ILAL has made notable acquisitions, including the complete acquisition of Rancho Costa Verde Development, LLC for $13.5 million, which is expected to enhance its portfolio of residential properties in Baja California. The company also acquired an additional 300 acres adjacent to its Rancho Costa Verde development for $1.65 million. However, the company faces challenges in transferring titles for its properties, particularly for the Valle Divino and Plaza Bajamar projects, which are still pending government approval.

As of December 31, 2025, ILAL reported a working capital deficit of $24.3 million and cash reserves of only $4,186, raising substantial doubt about its ability to continue as a going concern. The company has indicated that it will need to secure additional financing to support its operations and development activities. Management anticipates that increased marketing efforts and the sale of plots will improve cash flow in the coming year, but there is no assurance that these efforts will be successful.

Looking ahead, ILAL's management remains focused on enhancing its market presence and operational efficiency. The company plans to leverage its existing relationships and marketing strategies to attract potential homebuyers, particularly targeting U.S. and Canadian retirees seeking affordable properties in Mexico. However, the ongoing economic conditions and regulatory challenges in the Mexican real estate market may impact the company's ability to achieve its growth objectives.