Stratus Properties Reports $11.6 Million Revenue in Q2 2025, Net Income Turnaround

Stratus Properties Inc. reported a total revenue of $11.6 million for the second quarter of 2025, a significant increase from $8.5 million in the same period last year. The company's revenue for the first half of 2025 was $16.6 million, down from $35 million in the first half of 2024. The increase in quarterly revenue was primarily driven by the sale of two Amarra Villas homes for $6.8 million, compared to one home sold for $3.6 million in the prior year. However, the decline in year-to-date revenue was attributed to a lack of large property sales, including a $14.5 million sale of undeveloped land in Magnolia, Texas, in the previous year.

Stratus reported a net income attributable to common stockholders of $0.3 million, or $0.03 per diluted share, for the second quarter of 2025, compared to a net loss of $1.7 million, or $0.21 per diluted share, in the same quarter of 2024. For the first half of 2025, the company recorded a net loss of $2.6 million, or $0.32 per diluted share, compared to a net income of $2.8 million, or $0.35 per diluted share, in the first half of 2024. The company’s operating loss for the second quarter was $0.8 million, an improvement from a loss of $2.9 million in the prior year.

In terms of strategic developments, Stratus formed a new partnership for the development of Holden Hills Phase 2, contributing land valued at approximately $95.7 million. This partnership is expected to enhance the company's development pipeline, which includes approximately 1,500 acres of residential and commercial projects. The company also completed the sale of the West Killeen Market retail project for $13.3 million, generating a pre-tax gain of approximately $5 million.

Operationally, Stratus reported a significant increase in cash and cash equivalents, totaling $59.4 million as of June 30, 2025, compared to $20.2 million at the end of 2024. The company’s total assets increased to $574.8 million, up from $532.6 million at the end of the previous fiscal year. Stratus also reported a total debt of $199.4 million, a slight increase from $194.9 million at the end of 2024. The company’s equity rose to $338.3 million, reflecting a strong position in the market.

Looking ahead, Stratus remains focused on its development strategy, particularly in the Austin area, where demand for residential projects continues to grow. The company plans to leverage its cash reserves and access to credit to fund ongoing and future projects, while also exploring opportunities for share repurchases and potential dividends, subject to market conditions and compliance with debt covenants. The company anticipates that its strategic initiatives will position it well for future growth, despite the challenges posed by fluctuating market conditions and rising costs.