Core Insights - Diversified Royalty Corp. (DIV) reported its best quarter ever in terms of adjusted revenues for Q2 2025, with strong performances from most royalty partners [3][4] - The company achieved a weighted average organic royalty growth of 5.5% in Q2 2025, indicating the strength of its diversified portfolio [4][7] - The addition of Cheba Hut as a new royalty partner further diversified DIV's portfolio and expanded its visibility in the US market [4][11] Financial Performance - Revenue for Q2 2025 was $17.8 million, a 6.4% increase compared to $16.8 million in Q2 2024 [7][11] - Adjusted revenue reached $19.2 million in Q2 2025, up 6.0% from $18.1 million in Q2 2024 [7][11] - Distributable cash increased to $12.7 million in Q2 2025, representing a 9.3% rise from $11.6 million in Q2 2024 [22][24] Royalty Partner Updates - Mr. Lube + Tires reported a same-store sales growth (SSSG) of 11.3% in Q2 2025, compared to 8.4% in Q2 2024 [13][16] - Oxford Learning Centres achieved a positive SSSG of 6.5% in Q2 2025, a significant improvement from -2.3% in Q2 2024 [17] - AIR MILES® royalty income decreased by 11.8% to $0.8 million in Q2 2025, down from $0.9 million in Q2 2024 [18] Dividend and Payout Ratio - The payout ratio for Q2 2025 was 83.0%, a decrease from 88.6% in Q2 2024, primarily due to higher distributable cash per share [23][24] - Dividends declared were $0.0625 per share for Q2 2025, consistent with the previous year [23][24] Net Income - Net income for Q2 2025 was $9.0 million, an increase from $8.2 million in Q2 2024, driven by higher adjusted revenues and lower expenses [24][26]