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Jun 30
Sachem Capital Q2 2025 Earnings Report
Sachem Capital's Q2 2025 earnings report detailed a decrease in total revenue but a significant improvement in net income, driven by reduced operating costs and expenses.
Key Takeaways
Sachem Capital Corp. reported a decrease in total revenue to $10.8 million in Q2 2025, down from $15.1 million in Q2 2024, primarily due to lower net new loan origination and an elevated amount of nonperforming loans. However, the company achieved a net income of $0.8 million, or $0.02 per common share, a substantial improvement from a net loss of $4.1 million in the prior year, largely due to a significant reduction in the provision for credit losses.
Total revenue for Q2 2025 was $10.8 million, a decrease from $15.1 million in Q2 2024.
Net income attributable to common shareholders was $0.8 million ($0.02 per share) in Q2 2025, a significant improvement from a net loss of $4.1 million ($0.09 per share) in Q2 2024.
Total operating costs and expenses decreased to $9.7 million in Q2 2025 from $18.3 million in Q2 2024, mainly due to an 89.1% reduction in the provision for credit losses.
Total assets increased to $501.8 million as of June 30, 2025, from $492.0 million at year-end 2024, supported by a stable cash position and a successful Senior Secured Notes private placement.
Sachem Capital
Sachem Capital
Forward Guidance
Sachem Capital remains committed to prudent capital allocation and disciplined portfolio management to navigate the current environment and capitalize on high-quality lending opportunities as markets stabilize, aiming to drive long-term shareholder value.
Positive Outlook
- Continued focus on portfolio management and capital preservation.
- Strengthening of financial position through decisive steps.
- Liquidity remained strong, supported by a stable cash position.
- Successful execution of a Senior Secured Notes private placement offering.
- Encouraging signs of stable credit reserves, net new loan deployment, and continuing income from LLC investments.
Challenges Ahead
- Elevated nonperforming loans have impacted year-over-year revenue.
- Materially lower net new origination over the last twelve months.
- Reduction in the unpaid principal balance of loans held for investment.
- Book value per common share decreased due to cash dividends paid.
- The company is navigating a challenging market environment.