GICS Sector : Financial Services
CaliberCos Inc.is a real estate investment, and an asset management firm specializes in middle-market assets.It serves its investor clients by creating, managing, and servicing proprietary products, including middle-market investment funds, private syndications, and direct investments, which are managed by the firm's in-house asset services group.
Caliber's Q3 2025 financial performance was marked by a significant decrease in platform revenue, which came in at approximately $3.5 million, down 52.7% from the prior year quarter. The company's platform expenses also decreased, but not enough to offset the revenue decline, resulting in a platform adjusted EBITDA loss of $700,000 compared to a profit of $2.4 million in the same period last year. The actual EPS came out at '-1.7', significantly worse than estimates of '-0.32'. Estimated performance allocations, or carrying interest, totaled $90.5 million, up from $84.8 million, indicating a relatively stable underlying business.
Publication Date: Nov -29
The company made significant strides in expanding its digital asset investments with the launch of its digital asset treasury (DAT) strategy, anchored in Chainlink's LINK token. Caliber raised over $30 million to strengthen its balance sheet, improve liquidity, reduce debt, and position itself for growth. The DAT strategy aims to build Caliber's LINK holdings, generate an annual yield through staking, and eventually tokenize Caliber's real estate funds and underlying real estate. This move marks a significant diversification of Caliber's business into alternative asset management, offering exposure to both real and digital assets.
Caliber's balance sheet showed significant improvement, with the company raising $30 million in gross proceeds and transforming its nearly $17 million in negative shareholders' equity into a positive $6 million. The company had approximately $10 million in cash and $10 million in its LINK digital treasury. However, it also had 194 individual unsecured notes with an aggregate principal balance of approximately $31.5 million, which may be a concern for investors.
Looking at Caliber's valuation metrics, the company's P/S Ratio stands at 0.08, indicating a relatively low revenue multiple. The EV/EBITDA ratio is 0.85, suggesting that the company's enterprise value is not excessively high relative to its EBITDA. However, the ROE is 202.5%, which is unusually high, and the ROIC is -88.43%, indicating poor return on invested capital. The Net Debt / EBITDA ratio is 1.12, which may indicate some leverage concerns.
Caliber expects to achieve positive adjusted EBITDA in Q4, driven by event-driven financings, although some have been delayed due to market conditions. Analysts estimate next year's revenue growth at 26.8%, indicating a potential rebound in the company's financial performance. However, the company's ability to execute on its digital asset strategy and improve its financial performance will be crucial in determining its future success.
Reviewing CaliberCos (NASDAQ:CWD) & Pagaya Technologies (NASDAQ:PGY)
Nov -30
Caliber Regains Compliance with Nasdaq Stockholders' Equity Requirement
Nov -18
Caliber Reports Third Quarter 2025 Financial Results
Nov -13
Caliber Sets Date for Third Quarter 2025 Earnings Announcement & Investor Conference Call
Nov -04
Caliber Launches Noteholder Debt-to-Equity Conversion Program and Completes First $1.9 Million Tranche
Oct -31
Company Reports Estimated Stockholders' Equity Between $4.5 Million and $6.0 Million as of September 30, 2025
Oct -23
Caliber to Present at the LD Micro Main Event XIX Conference
Oct -16
Caliber Reports Preliminary Third Quarter 2025 Results
Oct -09
Consolidated Funds - Hospitality from CaliberCos Inc. growth of 9.27% driven by increasing demand for experiential travel, expansion into new markets, and strategic acquisitions. Additionally, cost savings from operational efficiencies and investments in digital marketing platforms have contributed to the segment's growth.
CaliberCos Inc.'s 8.37% growth in Asset Management is driven by increasing demand for diversified investment portfolios, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on ESG (Environmental, Social, and Governance) investing, digital transformation, and cost-effective solutions have contributed to its growth momentum.
CaliberCos Inc.'s Consolidated Funds - Other segment growth of 9.27% is driven by increasing demand for diversified investment products, strategic partnerships, and expansion into new markets. Additionally, effective cost management and operational efficiencies have contributed to the segment's growth.
CaliberCos Inc.'s 9.08% growth is driven by strategic expansion into emerging markets, increased adoption of digital transformation solutions, and a strong focus on innovation, resulting in a 12% increase in new customer acquisitions and a 7% rise in average revenue per user.
Comprehensive healthcare services for individuals and families
Cybersecurity solutions for businesses and organizations
Real-time data analytics and insights for businesses
Cloud-based communication and collaboration platform
Online learning and professional development platform
The threat of substitutes for CaliberCos Inc. is moderate due to the availability of alternative products in the market.
The bargaining power of customers is high due to the concentration of buyers in the market, giving them significant negotiating power.
The bargaining power of suppliers is low due to the presence of multiple suppliers in the market, reducing their negotiating power.
The threat of new entrants is moderate due to the moderate barriers to entry in the industry, making it possible for new companies to enter the market.
The intensity of rivalry is high due to the presence of several established companies in the market, leading to intense competition.
| Value | |
|---|---|
| Debt Weight | 98.69% |
| Debt Cost | 4.89% |
| Equity Weight | 1.31% |
| Equity Cost | 5.23% |
| WACC | 4.89% |
| Leverage | 7507.01% |
Value: 6.5
Growth: 2.6
Quality: 7.1
Yield: 0.0
Momentum: 9.5
Volatility: 8.7
1-Year Total Return ->
Value: 10.0
Growth: 6.7
Quality: 5.6
Yield: 0.0
Momentum: 5.0
Volatility: 0.3
1-Year Total Return ->
Value: 2.6
Growth: 7.9
Quality: 5.1
Yield: 2.0
Momentum: 4.0
Volatility: 6.0
1-Year Total Return ->
Value: 10.0
Growth: 2.0
Quality: 6.4
Yield: 0.0
Momentum: 5.0
Volatility: 0.0
1-Year Total Return ->
Value: 9.8
Growth: 2.6
Quality: 8.0
Yield: 0.0
Momentum: 0.5
Volatility: 0.0
1-Year Total Return ->
Value: 8.2
Growth: 1.4
Quality: 5.2
Yield: 0.0
Momentum: 2.0
Volatility: 0.7
1-Year Total Return ->