Manhattan Bridge Capital 2025 Q2 Earnings Stable EPS Despite Revenue Decline

Manhattan Bridge Capital (LOAN) reported a 3.6% revenue decrease for Q2 2025, falling to $2.36 million from $2.44 million in the same period the previous year. Despite the revenue drop, the company maintained stable earnings per share (EPS) at $0.12, consistent with Q2 2024. Net income rose slightly to $1.41 million, indicating strong cost management amid challenging real estate market conditions. The company anticipates ongoing challenges due to high interest rates but remains committed to navigating these hurdles effectively.

Revenue

Manhattan Bridge Capital reported a decline in total revenue for Q2 2025, reaching $2.36 million, down from $2.44 million in Q2 2024. This decrease was primarily attributed to reduced loans receivable, which impacted interest income. However, the company saw an increase in origination fees, rising to $456,000 from $411,000 year-over-year.

Earnings/Net Income

Manhattan Bridge Capital maintained a steady EPS of $0.12 in Q2 2025, matching the prior year's figure, while net income showed a slight increase to $1.41 million. This performance underscores effective financial management amid market challenges, though the EPS remained unchanged, indicating stability rather than growth.

Post-Earnings Price Action Review

The investment strategy of buying Manhattan Bridge Capital shares following revenue increase announcements and holding for 30 days has proven profitable over the past three years. This approach yielded a cumulative return of 24.8%, with an average annual return of 7.9%, indicating that the strategy captured consistent growth despite market volatility. The company's ability to sustain this performance is notable, given the fluctuations in the broader market. It reflects the efficacy of the approach in leveraging revenue growth announcements to capture returns, suggesting that past performance has been a reliable indicator for strategic investors.

CEO Commentary

Assaf Ran, CEO of Manhattan Bridge Capital, highlighted ongoing pressures from high interest rates affecting the real estate market, leading to slower loan closings and extended loan terms. Despite these challenges, he expressed confidence in the company's ability to maintain profitability, as evidenced by the stable EPS of $0.12 per share for the quarter.

Guidance

Looking ahead, Manhattan Bridge Capital expects continued challenges in the lending environment due to prevailing interest rates. Although specific revenue and EPS targets were not disclosed, management remains focused on navigating refinancing needs and managing credit risk to ensure operational stability and growth in a competitive market.

Additional News

In recent weeks, Manhattan Bridge Capital announced the approval of a quarterly cash dividend of $0.115 per share, payable on July 15, 2025, to shareholders of record as of July 8, 2025. This decision, declared by the board on April 17, 2025, underscores the company's commitment to rewarding shareholders and maintaining a consistent dividend policy. Additionally, Manhattan Bridge Capital has been actively engaging with stakeholders to address market conditions and potential strategic initiatives. The company remains vigilant in monitoring market trends to ensure its business strategies align with shareholder interests and long-term value creation.