10-Q - RMR GROUP INC. (0001644378) (Filer)

Tue, May 6, 8:22 PM (16 days ago)

**The RMR Group Inc. (RMR) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $166.7 million, down 23.5% YoY due to decreased management services and reimbursable costs. - **Profit Margins:** Operating income was $7.6 million, down 37.7% YoY. Net income was $7.7 million, down 39.5% YoY. - **Cash Flow:** Operating cash flow was $38 million, up $3 million YoY. Investing activities used $11.1 million, down $69.5 million YoY. Financing activities used $31.3 million, relatively unchanged YoY. **Key Metrics:** - **Earnings Changes:** Basic EPS was $0.21, down 40% YoY. Diluted EPS was $0.21, down 38.3% YoY. - **Quarterly Performance:** Revenue from management services decreased by $4.1 million, primarily due to lower base business management revenues and construction supervision revenues. Reimbursable costs decreased by $49 million, driven by cost containment measures. **Trends and Uncertainties:** - **Business Environment:** The real estate industry faces uncertainties due to economic conditions, interest rates, and trade policies. - **Future Operations:** RMR plans to expand its private capital business, focusing on real estate-related investment funds and joint ventures. The company aims to diversify revenues and generate management fees, incentive fees, and potential carried interest. **Management Discussion:** - **Revenue Recognition:** RMR earns fees from managing real estate investment trusts (REITs) and providing advisory services. - **Investments:** RMR has investments in SEVN and joint ventures, with fair values measured using Level 3 inputs. - **Liquidity:** RMR has a revolving credit facility of $100 million, with no amounts outstanding as of April 30, 2025. **Ticker:** RMR **Note:** Amounts are in thousands, except per share amounts.