Caliber(CWD) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Earnings Overview Caliber's Q2 2025 results show progress towards profitability, with improved Platform Adjusted EBITDA Management Commentary CEO highlights Q2 2025 progress towards platform adjusted EBITDA profitability, driven by strategic focus and opportunity zones - Company remains on track for platform adjusted EBITDA profitability in H2 2025[1][3] - Strategic focus includes reduced corporate overhead and narrowed investment scope on hospitality, multifamily, multi-tenant industrial real estate, and opportunistic strategies[3] - The recent passage of the BBB made the opportunity zone program permanent, expected to drive Caliber's largest investment fund strategy[3] Platform Financial Highlights Platform revenue slightly decreased in Q2 2025, but Platform Adjusted EBITDA loss significantly improved, nearing profitability | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :-------------------------- | :--------------------- | :--------------------- | :----------- | | Platform Revenue | $4,100 | $4,200 | -2.4% | | Asset Management Revenue | $4,100 | N/A | N/A | | Performance Allocations | No significant | Significant | Decrease | | Platform Net Loss | $4,900 | $4,600 | +6.5% | | Platform Net Loss per diluted share | $3.87 | $4.25 | -8.9% | | Platform Adjusted EBITDA Loss | $100 | $2,500 | -96.0% | - Platform performance provides the most meaningful information for CWD shareholder value, excluding consolidated assets and funds where Caliber is a debt guarantor but does not directly benefit beyond management fees[9][10][11] Consolidated Financial Highlights Consolidated revenue decreased in Q2 2025 due to deconsolidations, but Adjusted EBITDA improved to a slight profit | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :------------------------------------ | :--------------------- | :--------------------- | :----------- | | Total Consolidated Revenue | $5,100 | $8,200 | -37.8% | | Consolidated Net Loss attributable to Caliber | $5,300 | $4,700 | +12.8% | | Consolidated Net Loss per diluted share | $4.15 | $4.34 | -4.4% | | Consolidated Adjusted EBITDA | $100 | ($1,000) | Improved to profit | - The decrease in consolidated revenue reflects the deconsolidation of Caliber Hospitality Trust, Caliber Hospitality, LP, Elliot, DT Mesa, and Caliber Fixed Income Fund III, LLC in 2024[10] Business Update Caliber achieved significant operational milestones in Q2 2025, including project approvals and a major refinancing Key Milestones Completed Caliber achieved significant operational milestones in Q2 2025, including project approvals and a major refinancing - Phoenix City Council unanimously approved the Canyon Village redevelopment project, converting a 300,000 sq ft office building into a 376-unit multifamily residential building, benefiting from opportunity zone tax incentives[4] - The PURE Pickleball & Padel™ joint venture received Design Review approval from SRPMIC Planning Department, nearing building permit and ground-breaking[10] - Successfully closed a $22.5 million refinance for the Doubletree by Hilton Hotel in Tucson, AZ, part of Caliber's Tax Advantaged Opportunity Zone Fund[10] Conference Call Information Details for Caliber's Q2 2025 earnings conference call, held on August 13, 2025, are provided Conference Call Details Caliber hosted a conference call on August 13, 2025, to discuss Q2 2025 financial results and business outlook - Conference call held on Wednesday, August 13, 2025, at 5:00 p.m. Eastern Time (ET)[7] - Access available via domestic (800) 715-9871 or international (646) 307-1963 dial-in with conference ID 7312901, and a live webcast on Caliber's investor relations website[7][8] About Caliber Overview of Caliber's profile, strategy, and managed assets, specializing in key real estate sectors Company Profile and Strategy Caliber is a real estate investor, developer, and asset manager with over $2.8 billion in managed assets, specializing in key real estate sectors and focusing on overlooked projects - Manages over $2.8 billion in assets, including estimated costs to complete assets under development, with a 16-year track record[12] - Specializes in hospitality, multi-family residential, and multi-tenant industrial real estate[12] - Competitive advantage lies in investing in projects, strategies, and geographies often overlooked by global real estate institutions, supported by an in-house shared services group[12] Forward Looking Statements This section outlines the forward-looking nature of the press release, highlighting inherent uncertainties and risks Disclaimer and Risk Factors This press release contains forward-looking statements, subject to inherent uncertainties and risks, including meeting fundraising and AUM goals - The press release contains forward-looking statements, identified by words such as 'anticipate,' 'believe,' 'contemplate,' 'expect,' etc., which are not historical facts[13] - These statements are based on current expectations and are subject to inherent uncertainties, risks, and assumptions, including the ability to grow fundraising, AUM, and annualized platform revenue to meet 2026 goals, and access real estate and capital markets[13] - The Company undertakes no duty to update such information except as required under applicable law[13] Contacts Contact information for Caliber's Investor Relations is provided for inquiries Investor Relations Contact Information Contact details for Caliber's Investor Relations are provided for inquiries - Investor Relations Contact: Ilya Grozovsky[14] - Phone: +1 480-214-1915[14] - Email: Ilya@caliberco.com[14] Non-GAAP Financial Information This section provides non-GAAP financial measures for a clearer view of Caliber's operating performance Asset Management Platform Performance Caliber's Asset Management Platform (non-GAAP) reported an increased net loss in Q2 2025, despite reduced expenses, considered more relevant for shareholders - Management believes the Platform view of Caliber's performance is more meaningful to CWD shareholders, including all revenues and expenses generated by Caliber and its wholly-owned subsidiaries, excluding consolidated funds[15] | Metric (Platform) | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :-------------------------- | :--------------------- | :--------------------- | :----------- | | Total Revenues | $4,126 | $4,212 | -2.0% | | Total Expenses | $5,345 | $8,197 | -34.8% | | Net Loss before income taxes | ($4,941) | ($4,640) | +6.5% | | Net Loss attributable to CaliberCos Inc. | ($4,941) | ($4,640) | +6.5% | | Basic and Diluted Platform loss per share | ($3.87) | ($4.25) | -8.9% | Platform Revenue Breakdown Total platform revenue for Q2 2025 slightly decreased, influenced by declines in fund management and brokerage fees, offset by other fee increases | Revenue Type | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :-------------------------- | :--------------------- | :--------------------- | :----------- | | Fund management fees | $2,739 | $3,330 | -17.7% | | Financing fees | $292 | $80 | +265.0% | | Development and construction fees | $979 | $328 | +198.5% | | Brokerage fees | $93 | $441 | -78.9% | | Total asset management | $4,103 | $4,179 | -1.8% | | Performance allocations | $23 | $33 | -30.3% | | Total revenue | $4,126 | $4,212 | -2.0% | Assets Under Management (AUM) and Managed Capital Caliber monitors Fair Value AUM and Managed Capital to gauge investment health and fee generation, both showing modest growth Fair Value AUM Fair Value AUM showed modest growth from December 2024 to June 2025, with varied performance across real estate sectors | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :-------------------------- | :----------------------------- | :----------------------------- | :----- | | Total FV AUM | $803,176 | $794,923 | +1.0% | | Real Estate FV AUM | $725,900 | $716,600 | +1.3% | | Hospitality | $61,200 | $68,500 | -10.6% | | Caliber Hospitality Trust | $217,300 | $236,800 | -8.2% | | Residential | $170,400 | $161,700 | +5.4% | | Commercial | $277,000 | $249,600 | +11.0% | - FV AUM is used for sale and hold decisions, evaluating refinancing or recapitalization, and gaining insight into carried interest value[35] Managed Capital Managed Capital showed modest growth from December 2024 to June 2025, with varied performance across real estate sectors | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :-------------------------- | :----------------------------- | :----------------------------- | :----- | | Total Managed Capital | $498,567 | $492,542 | +1.2% | | Real Estate Managed Capital | $421,291 | $414,219 | +1.7% | | Hospitality | $49,260 | $49,260 | 0.0% | | Caliber Hospitality Trust | $97,207 | $97,414 | -0.2% | | Residential | $98,682 | $96,687 | +2.1% | | Commercial | $176,142 | $170,858 | +3.1% | - Managed Capital includes capital fundraised from customers and corporate note issuances invested in funds, used to monitor preferred return, potential performance fees, and predict future earnings[35] Non-GAAP Adjusted EBITDA Reconciliation Caliber reported significant improvement in both Platform and Consolidated Adjusted EBITDA for Q2 2025, with Platform loss narrowing and Consolidated turning positive | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :-------------------------- | :--------------------- | :--------------------- | :----------- | | Net loss attributable to CaliberCos Inc. | ($5,299) | ($4,730) | +11.9% | | Fee-related earnings | ($1,048) | ($3,140) | -66.6% | | Distributable earnings | ($2,734) | ($4,269) | -35.9% | | Platform adjusted EBITDA | ($54) | ($2,451) | -97.8% | | Consolidated adjusted EBITDA | $57 | ($966) | Improved to profit | Consolidated GAAP Financial Statements This section presents Caliber's consolidated GAAP financial statements, including statements of operations and balance sheets Condensed Consolidated Statements of Operations Consolidated total revenues decreased significantly in Q2 2025 due to lower consolidated funds' revenues, leading to an increased net loss - Consolidated GAAP results include entities where Caliber is a guarantor of debt, which may not fully reflect direct benefits or obligations for CWD shareholders[29] | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :------------------------------------ | :--------------------- | :--------------------- | :----------- | | Total Revenues | $5,073 | $8,179 | -37.9% | | Total Expenses | $6,901 | $12,655 | -45.5% | | Net loss before income taxes | ($5,700) | ($5,316) | +7.2% | | Net loss attributable to CaliberCos Inc. | ($5,299) | ($4,730) | +11.9% | | Basic and diluted net loss per share | ($4.15) | ($4.34) | -4.4% | Condensed Consolidated Balance Sheets Total assets and liabilities decreased significantly from December 2024 to June 2025, primarily due to consolidated funds, worsening stockholders' deficit | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :------------------------------------ | :----------------------------- | :----------------------------- | :----- | | Total Assets | $59,260 | $105,535 | -43.9% | | Cash | $586 | $1,766 | -66.8% | | Real estate investments, net | $21,714 | $21,572 | +0.7% | | Assets of consolidated funds (Real estate investments, net) | $10,397 | $45,090 | -76.9% | | Total Liabilities | $76,864 | $94,282 | -18.5% | | Notes payable, net | $50,518 | $50,450 | +0.1% | | Liabilities of consolidated funds (Notes payable, net) | $11,631 | $29,172 | -60.2% | | Stockholders' deficit attributable to CaliberCos Inc. | ($19,850) | ($12,589) | +57.7% (worsening) | | Total stockholders' (deficit) equity | ($17,604) | $11,253 | Shift from equity to deficit | Definitions of Non-GAAP Measures This section defines key non-GAAP financial measures used by Caliber to evaluate operating performance and provide a clearer view of its direct business Key Non-GAAP Financial Definitions Caliber uses various non-GAAP measures like Managed Capital, FV AUM, and Adjusted EBITDA to evaluate operating performance and provide a clearer view of its direct business - Managed Capital: Total capital fundraised from customers as investments in funds, including corporate note program proceeds invested in funds, used to monitor preferred return, potential performance fees, and predict future earnings[35] - Fair Value (FV) AUM: Aggregate fair value of managed real estate assets from which management fees, performance revenues, and other fees are derived, used for sale/hold decisions, refinancing, recapitalization, and predicting service income[35] - Platform: Refers to the performance of Caliber's asset management platform, excluding consolidated assets or funds, to show performance most useful for understanding CWD's value[36] - Fee-Related Earnings: Non-GAAP measure assessing profit generation from fee-based revenues, excluding non-core items and consolidated funds' impact[37] - Distributable Earnings: Non-GAAP measure equal to Fee-Related Earnings plus performance allocation revenue, less interest expenses and income taxes, useful for assessing earnings available for distribution[38] - Platform Adjusted EBITDA: Distributable Earnings adjusted for interest expense, other income/expense, and income taxes, on a deconsolidated basis, providing a view of platform performance[41] - Consolidated Adjusted EBITDA: Company's and consolidated funds' earnings before net interest expense, income taxes, depreciation, and amortization, with further adjustments for non-cash and non-recurring items[42]