Investors in The RMR Group Inc. (RMR) need to pay close attention to the stock based on moves in the options market lately. That is because the Jul 18, 2025 $25.00 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also ...

The RMR Group (RMR) Q2 2025 Earnings Call May 07, 2025 01:00 PM ET Company Participants Matthew Murphy - Investor Relations ManagerAdam Portnoy - President and CEOMatthew Jordan - Executive VP, CFO & TreasurerTyler Batory - Executive Director Conference Call Participants John Massocca - Senior Research Analyst Operator Please note, today's event is being recorded. I would now like to turn the conference over to Matt Murphy, Manager of Investor Relations. Please go ahead. Matthew Murphy Good afternoon and th ...

The RMR Group (RMR) Q2 2025 Earnings Call May 07, 2025 01:00 PM ET Speaker0 Please note, today's event is being recorded. I would now like to turn the conference over to Matt Murphy, Manager of Investor Relations. Please go ahead. Speaker1 Good afternoon and thank you for joining RMR's second quarter fiscal twenty twenty five conference call. With me on today's call are President and CEO, Adam Portnoy and Chief Financial Officer, Matt Jordan. In just a moment, they will provide details about our business an ...

Core Insights - RMR Group reported a revenue of $166.67 million for the quarter ended March 2025, which is a decrease of 23.5% compared to the same period last year [1] - The earnings per share (EPS) for the quarter was $0.28, down from $0.39 in the year-ago quarter, and below the consensus estimate of $0.30, resulting in an EPS surprise of -6.67% [1] - The reported revenue fell short of the Zacks Consensus Estimate of $214.32 million, leading to a revenue surprise of -22.23% [1] Revenue Breakdown - Management services revenue was reported at $44.38 million, slightly below the average estimate of $45.70 million, reflecting a year-over-year decline of 8.4% [4] - Advisory services revenue came in at $1.10 million, compared to the average estimate of $1.15 million, marking a year-over-year change of -2% [4] - Total reimbursable costs were reported at $119.09 million, significantly lower than the average estimate of $167.46 million, representing a year-over-year decline of 29.2% [4] - Total management, termination, incentive, and advisory services revenues were $45.51 million, below the estimated $46.88 million, indicating an 8.3% decrease year-over-year [4] - Other reimbursable expenses totaled $97.35 million, compared to the average estimate of $144.75 million, showing a year-over-year decline of 33% [4] Stock Performance - RMR Group's shares have returned -6.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of +11.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

RMR Group (RMR) came out with quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -6.67%. A quarter ago, it was expected that this real estate management services provider would post earnings of $0.35 per share when it actually produced earnings of $0.35, delivering no surprise. Over the last four qua ...

Commission file number 001-37616 THE RMR GROUP INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact Name of Registrant as Specified in Its Charter) Maryland 47-4122583 (State of Organization) (IRS Employer Identification No.) Two Newton Plac ...

THE RMR GROUP Financial Results and Supplemental Information THE RMR GROUP SECOND QUARTER FISCAL 2025 May 6, 2025 Exhibit 99.2 Table of Contents QUARTERLY RESULTS | The RMR Group Inc. Announces Second Quarter Fiscal 2025 Financial Results. | | --- | | Second Quarter Fiscal 2025 Highlights | | FINANCIALS | | Key Financial Data ... | | Adjusted Net Income Attributable to The RMR Group Inc. Bridge | | AUM by Source | | Management and Advisory Services Revenues by Source | | Well-Covered Dividend | | GAAP Resul ...

Core Viewpoint - The market anticipates a year-over-year decline in RMR Group's earnings due to lower revenues, with a focus on how actual results will compare to estimates [1][3]. Earnings Expectations - RMR Group is expected to report quarterly earnings of $0.30 per share, reflecting a year-over-year decrease of 23.1%, and revenues are projected to be $214.32 million, down 1.6% from the previous year [3]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +1.70% for RMR Group, suggesting analysts have recently become more optimistic about the company's earnings prospects [10]. - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Historical Performance - RMR Group has not been able to beat consensus EPS estimates in any of the last four quarters, with the last reported quarter matching expectations exactly at $0.35 per share [12][13]. Investment Considerations - While an earnings beat may not solely dictate stock movement, betting on stocks expected to exceed earnings expectations can enhance the likelihood of success [14][15]. - RMR Group is viewed as a compelling candidate for an earnings beat, but investors should consider other influencing factors before making investment decisions [16].

Group 1 - The RMR Group Inc. (NASDAQ: RMR) is identified as an attractive stock amidst falling market prices, showing resilience against reciprocal tariffs [1] - The author expresses a value investing approach, focusing on emerging markets and seeking low-risk, high-uncertainty investment opportunities [1] - The investment philosophy is influenced by notable economists and authors, indicating a shift towards Austrian economic principles in future writings [1] Group 2 - The article emphasizes the importance of maintaining an investment journal to track successes and learn from failures [1] - The author graduated from NYU Stern with a Bachelor's in Business and a concentration in Finance, highlighting a solid educational background in finance [1]

Financial Data and Key Metrics Changes - The RMR Group Inc. reported adjusted net income of $0.35 per share and distributable earnings of $0.46 per share for Q1 2025, with net income at $0.38 per share [7][20] - Adjusted EBITDA for the quarter was approximately $21 million, with expectations for the next quarter to be around $20 million [7][24] - Recurring service revenues decreased to $47.3 million, down approximately $700,000 sequentially, with expectations of around $46 million for the next quarter [21][22] Business Line Data and Key Metrics Changes - Recurring cash compensation was $42.6 million, reflecting a decline of approximately $1.5 million sequentially due to headcount actions and technology investments [23] - Recurring G&A expenses were $11.1 million, with expectations to remain at or slightly below this level in the next quarter [24] Market Data and Key Metrics Changes - The company has established a $100 million line of credit to enhance liquidity for growth initiatives, with nearly $150 million in cash on hand and no outstanding corporate debt [8][25] - The company is optimistic about the commercial real estate market improving in 2025, with a focus on residential, credit strategies, and development initiatives [9][10] Company Strategy and Development Direction - The RMR Group Inc. aims to raise a committed fund focused on residential investments and is currently executing a value-add business strategy on newly acquired properties [12][11] - The company is exploring development opportunities within its portfolio, including redeveloping obsolete structures into industrial or multifamily residential spaces [38][42] Management's Comments on Operating Environment and Future Outlook - Management believes the cyclical bottom for commercial real estate is likely behind, with improving fundamentals across most real estate sectors [8][9] - The company expects to see a return to growth in earnings metrics after the upcoming quarter, despite seasonal headwinds impacting Q1 results [65][76] Other Important Information - The company executed $1.8 billion in financings, including a debt exchange transaction related to OPI's 2025 debt maturity [15] - Seven Hills Realty Trust achieved a total shareholder return of over 12%, outperforming its industry benchmark [18] Q&A Session Summary Question: Can you elaborate on the RMR residential JV investments and the pipeline? - Management indicated a gross investment of about $200 million in residential joint ventures, with expected returns in the mid-teens and a target of $500 million to $1 billion in total investments for fiscal 2025 [31][32] Question: What are the development opportunities mentioned? - Management highlighted opportunities to redevelop older structures into industrial or multifamily residential spaces, with significant projects underway in Nashville and Boston [38][40] Question: What is the likelihood of utilizing the revolver in 2025? - Management stated there is less than a 50% chance of drawing on the revolver, as current cash balances are sufficient for planned investments [82][84] Question: What is the outlook for EBITDA margins? - Management aims to return EBITDA margins to the 50% range, currently impacted by the residential platform's performance [74][75] Question: How will the company approach residential investments moving forward? - Management expects to pursue both joint venture deals and potential on-balance sheet investments, with a strong bias towards joint ventures [88][90]