Dec 31, 2024

Sachem Capital Q4 2024 Earnings Report

Sachem Capital reported a steep quarterly loss amid lower revenues and high provisions for credit losses.

Key Takeaways

Sachem Capital ended Q4 2024 with a significant net loss of $37.3 million as revenue declined and credit loss provisions surged. Loan originations remained weak, impacting interest and fee income.

Revenue for Q4 2024 was $10.4 million, the lowest of the year.

Net loss attributable to common shareholders reached $37.3 million in Q4.

Substantial provisions for credit losses continued to weigh on profitability.

Loan originations and fee income remained subdued due to market conditions.

Total Revenue
$10.4M
Previous year: $16.9M
-38.5%
EPS
-$0.79
Previous year: -$0.05
+1480.0%
Total Indebtedness
$301M
Cash and Equivalents
$18.1M
Previous year: $50.4M
-64.1%
Total Assets
$492M
Previous year: $626M
-21.3%

Sachem Capital

Sachem Capital

Sachem Capital Revenue by Segment

Forward Guidance

Management remains focused on navigating market volatility, improving asset quality, and capitalizing on opportunistic investments in 2025.

Positive Outlook

  • Strong liquidity position to support operations
  • Disciplined capital allocation strategy
  • Active management of non-performing assets
  • Growing income from partnership investments
  • Reduction in total liabilities through debt repayment

Challenges Ahead

  • Substantial net loss driven by credit loss provisions
  • Lower loan originations compared to prior periods
  • Declining interest and fee income
  • Weak demand from borrowers amid market uncertainty
  • Continued drag on earnings from legacy underperforming loans