Mobile Infrastructure Corporation Reports Q1 2025 Financial Results with Revenue Decline and Increased Net Loss

Mobile Infrastructure Corporation (MIC) reported its financial results for the first quarter of 2025, revealing a total revenue of $8.235 million, a decrease of 6.7% from $8.827 million in the same period last year. The decline was primarily attributed to a $0.6 million reduction in nonrecurring revenue from collections of prior year percentage rent payments, as well as revenue from properties sold in 2024. Managed property revenue increased by 19% to $6.545 million, driven by higher average transient rates, while base rental income fell by 11.2% to $1.459 million, and percentage rental income dropped significantly by 86.3% to $0.231 million.

Operating expenses for the quarter decreased by 12.4% to $8.221 million, down from $9.381 million in the prior year. This reduction was largely due to a $1.1 million decrease in general and administrative expenses, attributed to the vesting of equity compensation awards and a change in the timing of annual equity awards. Property operating expenses rose by 24.9% to $1.899 million, reflecting additional costs associated with properties that transitioned to management contracts. The company reported a net loss of $4.334 million, compared to a net loss of $2.989 million in the first quarter of 2024, resulting in a basic and diluted loss per share of $0.10.

As of March 31, 2025, MIC's total assets amounted to $409.531 million, a slight decrease from $415.062 million at the end of 2024. The company’s liabilities remained relatively stable at $225.536 million, compared to $225.791 million in the previous quarter. The equity attributable to MIC stockholders decreased to $164.456 million from $169.983 million, reflecting the net loss and share repurchases under the company's authorized $10 million share repurchase program. The company repurchased 82,196 shares during the quarter for approximately $0.3 million.

Operationally, MIC owns 40 parking facilities across 20 markets in the U.S., totaling approximately 15,100 parking spaces. The company has shifted 29 of its 40 assets to management contracts, which are expected to enhance revenue predictability and align incentives with third-party operators. The average monthly Revenue Per Available Stall (RevPAS) for the first quarter was $184.24, down from $192.31 in the prior year, indicating a need for continued focus on revenue management strategies.

Looking ahead, MIC faces significant challenges, including $35.4 million in debt maturing within the next twelve months, which raises concerns about its ability to continue as a going concern. The company plans to refinance its Line of Credit and notes payable, and may consider selling real estate assets to meet its obligations. Management remains optimistic about implementing these plans, but acknowledges the uncertainty surrounding market conditions and operational performance.