Executive Summary
Ladder Capital Corp reported a solid Q2 2025 across core profitability metrics, with revenue of $97.8 million and a gross margin of approximately 80.4% (gross profit $78.6 million). Operating income reached $62.3 million, while EBITDA stood at $70.36 million and net income was $17.33 million (EPS $0.14). A key takeaway is the strong operating profitability on a relative basis, supported by a high gross margin and disciplined operating cost structure. However, the quarter also reflects the ongoing intensity of the company’s leverage and interest burden, with interest expense of $41.21 million and an EBITDAR of 0.72x, underscoring earnings sensitivity to funding costs in a real estate finance environment. Net income declined year-over-year by 46.4% but increased QoQ by 47.2%, suggesting cyclicality and potential one-off or portfolio management effects impacting quarterly results. The cash flow profile shows operating cash flow of $44.0 million and free cash flow of $44.0 million, but with a substantial negative external investing cash outflow (-$405.6 million) and a net cash decrease of $385.0 million for the period, driven by sizable non-operating investing activities and financing activities.
Key Performance Indicators
QoQ: 186.20% | YoY:-19.83%
QoQ: 47.16% | YoY:-46.43%
QoQ: 49.41% | YoY:-46.15%
Key Insights
Revenue: $97.75m, YoY +31.35%, QoQ +6.78%
Gross Profit: $78.60m, YoY +46.45%, QoQ +6.42%
Gross Margin: 80.40%
Operating Income: $62.31m, YoY -19.83%, QoQ +186.20%
Operating Margin: 63.75%
EBITDA: $70.36m, EBITDAR: 0.7197x
Net Income: $17.33m, YoY -46.43%, QoQ +47.16%
EPS (diluted): $0.14, YoY -46.15%, QoQ +49.41%
Interest Expense: $41.21m
Depreciation & Amortization: $8.04m
Cash Flow from Operating Activities: $44.05m
Free Cash Flow: $44.05m
Net Change in Cash: -$385.00m
Cash at End of Perio...
Financial Highlights
Revenue: $97.75m, YoY +31.35%, QoQ +6.78%
Gross Profit: $78.60m, YoY +46.45%, QoQ +6.42%
Gross Margin: 80.40%
Operating Income: $62.31m, YoY -19.83%, QoQ +186.20%
Operating Margin: 63.75%
EBITDA: $70.36m, EBITDAR: 0.7197x
Net Income: $17.33m, YoY -46.43%, QoQ +47.16%
EPS (diluted): $0.14, YoY -46.15%, QoQ +49.41%
Interest Expense: $41.21m
Depreciation & Amortization: $8.04m
Cash Flow from Operating Activities: $44.05m
Free Cash Flow: $44.05m
Net Change in Cash: -$385.00m
Cash at End of Period: $148.33m
Total Assets: $4.458b
Total Liabilities: $2.956b
Total Stockholders’ Equity: $1.502b
Long-Term Debt: $2.784b
Net Debt: $2.634b
Debt/Capitalization: ~0.651; Debt Ratio: ~0.628
Current Ratio: 11.48; Quick Ratio: 11.48
Dividends Paid: $29.00m; Share Repurchases: -$6.62m
Payout Ratio: 1.674x
Price to Book: 0.90x; P/E: 19.57x; P/S: 13.88x; Dividend Yield: 2.14%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
97.75M |
31.35% |
6.78% |
| Gross Profit |
78.60M |
46.45% |
6.42% |
| Operating Income |
62.31M |
-19.83% |
186.20% |
| Net Income |
17.33M |
-46.43% |
47.16% |
| EPS |
0.14 |
-46.15% |
49.41% |
Key Financial Ratios
operatingProfitMargin
63.7%
operatingCashFlowPerShare
$0.35
freeCashFlowPerShare
$0.35
dividendPayoutRatio
167.4%
Management Commentary
Transcript not provided in the supplied data. No earnings call quotes or management commentary were included for extraction. As a result, the synthesis relies on reported financials and disclosed ratios alone.
Transcript not available in the provided materials.
— N/A
Transcript not available in the provided materials.
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Forward Guidance
No explicit forward guidance was captured in the provided materials. In the absence of direct management commentary, the outlook should be inferred from the period’s metrics and prevailing market dynamics in real estate finance. Key factors to monitor include: (1) loan origination volume and mix (conduit loans vs. balance sheet loans) as interest rates normalize, (2) refinancing and debt servicing costs given elevated leverage and interest expense, (3) CRE realignment activity (leaseups, transitions, and renovations) that could influence asset quality and earnings stability, and (4) liquidity management given the substantial investing cash outflow observed this quarter. Potential catalysts include a favorable shift in interest rates reducing funding costs, stronger loan growth, and improved portfolio yields.