Wed, Aug 14, 9:11 PM (153 days ago)
CaliberCos Inc. reported significant financial challenges in its Q2 2024 results, reflecting a substantial decrease in total revenues to $8.2 million, down 60% from $20.4 million in Q2 2023. This decline was largely driven by the deconsolidation of hospitality funds, which resulted in a drop in hospitality revenues from $16.3 million to $2.9 million. Despite a 70% increase in asset management revenues due to new fund management activities, overall revenue was adversely impacted. Expenses also decreased by 59.7% to $12.7 million, primarily due to reduced hospitality expenses following the deconsolidation. The net loss for the quarter narrowed to $5.3 million from $11.6 million year-over-year. For the six months ended June 30, 2024, total revenues fell 37.7% to $31.1 million, with net losses increasing to $10.6 million. The company faces liquidity concerns, with $31.2 million in unsecured notes maturing within 12 months, raising substantial doubt about its ability to continue as a going concern. Management is pursuing extensions on its notes, cost reductions, and capital raises to address these challenges. Future operations depend on successful fundraising and market conditions in the real estate sector.