Sachem Capital Reports Revenue Decline but Returns to Profitability in Q2 2025

Sachem Capital Corp. reported its financial results for the second quarter and first half of 2025, revealing a significant decline in revenue and a return to profitability. For the three months ended June 30, 2025, the company generated total revenues of $10.8 million, down 28.9% from $15.1 million in the same period last year. The decrease was primarily attributed to lower net new loan originations and an increase in nonperforming loans. However, the company reported a net income of $0.8 million, or $0.02 per share, compared to a net loss of $4.1 million, or $0.09 per share, in the prior year.

In the first half of 2025, total revenues were $22.2 million, a 30.7% decrease from $32.0 million in the first half of 2024. The decline in revenue was again linked to reduced loan origination activity, with net loans held for investment totaling $364.5 million as of June 30, 2025, down from $485.7 million a year earlier. Despite the revenue drop, the company achieved a net income of $0.6 million, or $0.01 per share, compared to a net loss of $0.5 million in the same period of 2024.

Sachem Capital's total assets increased to $501.8 million as of June 30, 2025, up from $492.0 million at the end of 2024, driven by higher cash reserves and loans held for investment. Total liabilities also rose to $323.9 million, primarily due to an increase in senior secured notes payable. Shareholders' equity decreased to $177.9 million, reflecting dividend payments totaling $7.0 million during the period, partially offset by net earnings.

Operationally, the company has made strategic moves, including the establishment of a new revolving credit facility with Needham Bank, which replaced a previous facility. This new agreement, effective March 20, 2025, allows for greater flexibility in financing and is secured by a first priority lien on the assets of its wholly owned subsidiary, SN Holdings. Additionally, on June 11, 2025, Sachem Capital completed a private placement of $100 million in senior secured notes, which will support its lending activities and operational needs.

Looking ahead, Sachem Capital remains focused on improving its loan portfolio and addressing the challenges posed by nonperforming loans. The company anticipates that its current cash reserves, along with available credit facilities, will be sufficient to meet its operational needs over the next 12 months. The management is actively working on strategies to enhance loan origination and mitigate credit losses, aiming to stabilize and grow its financial performance in the coming quarters.