The Intergroup 2025 Q3 Earnings Improved Net Loss by 81.3%
Daily EarningsFriday, May 16, 2025 6:27 am ET
15min readThe Intergroup(INTG) reported its fiscal 2025 Q3 earnings on May 15th, 2025. The company's earnings exceeded expectations as it narrowed its net loss by 81.3%, demonstrating significant improvement in cost management. The guidance for the upcoming quarter remains optimistic, as the company anticipates continued revenue growth and a further reduction in loss per share.
Revenue
The Intergroup's revenue saw a notable increase of 13.0% year-over-year, reaching $16.82 million in Q3 2025. This growth was primarily driven by its hotel operations, which contributed $12.21 million. Real estate operations added $4.61 million, while corporate activities made no contribution, culminating in the total revenue of $16.82 million.
Earnings/Net Income
The Intergroup narrowed its losses significantly, reporting a loss of $0.27 per share in Q3 2025, down from $1.44 per share a year earlier. This marks an 81.3% improvement, with the net loss reduced to $750,000 from $3.86 million in the previous year. The improved EPS indicates effective cost management.
Price Action
The stock price of The Intergroup edged down 0.96% during the latest trading day, rose by 2.06% over the past week, but experienced a month-to-date decline of 5.20%.
Post-Earnings Price Action Review
The strategy of purchasing The Intergroup (INTG) shares post-revenue increase on financial report release dates and holding for 30 days has historically underperformed the market over the past five years. With an annualized return of -0.44%, this approach falls short compared to the market average of 8.6% annualized returns, exemplified by competitors such as Alamos Gold (AGI). This underperformance highlights the need for investors to reconsider INTG as a viable investment option. The strategy's failure to capitalize on broader market growth, coupled with its poor performance relative to stocks like Stride (LRN) and O'Reilly Automotive (ORLY), which have delivered substantial returns, urges investors to reevaluate their positions in INTG.
CEO Commentary
In the recent earnings call, Mark L. Steinberg, CEO of The InterGroup, highlighted the company's improved sales performance, reporting revenue of $16.82 million for Q3 2025, an increase from $14.88 million a year ago. He noted that the net loss decreased to $0.578 million compared to $3.16 million in the previous year, showcasing effective cost management amidst ongoing market challenges. Steinberg emphasized the importance of strategic investments in key areas to enhance market positioning and drive future growth. He expressed cautious optimism regarding the company's trajectory, indicating confidence in overcoming hurdles while remaining vigilant of external economic factors.
Guidance
The InterGroup expects continued revenue growth, with targets set for the upcoming quarter to achieve sales in the range of $18 million. The company anticipates a gradual improvement in net income and aims to reduce the loss per share to approximately $0.25. Additionally, management is focused on enhancing operational efficiencies and investing in strategic initiatives to support long-term profitability, reflecting a commitment to sustainable growth amid a dynamic market landscape.
Additional News
In recent weeks, The InterGroup Corporation has announced a strategic refinancing of its Hilton San Francisco Financial District Hotel, aiming to improve its financial position and operational efficiency. Furthermore, the company has increased its share repurchase program, reflecting confidence in its long-term business strategy and commitment to enhancing shareholder value. These initiatives highlight The InterGroup's proactive approach to strengthening its market position and navigating the competitive landscape in the real estate sector.
Revenue
The Intergroup's revenue saw a notable increase of 13.0% year-over-year, reaching $16.82 million in Q3 2025. This growth was primarily driven by its hotel operations, which contributed $12.21 million. Real estate operations added $4.61 million, while corporate activities made no contribution, culminating in the total revenue of $16.82 million.
Earnings/Net Income
The Intergroup narrowed its losses significantly, reporting a loss of $0.27 per share in Q3 2025, down from $1.44 per share a year earlier. This marks an 81.3% improvement, with the net loss reduced to $750,000 from $3.86 million in the previous year. The improved EPS indicates effective cost management.
Price Action
The stock price of The Intergroup edged down 0.96% during the latest trading day, rose by 2.06% over the past week, but experienced a month-to-date decline of 5.20%.
Post-Earnings Price Action Review
The strategy of purchasing The Intergroup (INTG) shares post-revenue increase on financial report release dates and holding for 30 days has historically underperformed the market over the past five years. With an annualized return of -0.44%, this approach falls short compared to the market average of 8.6% annualized returns, exemplified by competitors such as Alamos Gold (AGI). This underperformance highlights the need for investors to reconsider INTG as a viable investment option. The strategy's failure to capitalize on broader market growth, coupled with its poor performance relative to stocks like Stride (LRN) and O'Reilly Automotive (ORLY), which have delivered substantial returns, urges investors to reevaluate their positions in INTG.
CEO Commentary
In the recent earnings call, Mark L. Steinberg, CEO of The InterGroup, highlighted the company's improved sales performance, reporting revenue of $16.82 million for Q3 2025, an increase from $14.88 million a year ago. He noted that the net loss decreased to $0.578 million compared to $3.16 million in the previous year, showcasing effective cost management amidst ongoing market challenges. Steinberg emphasized the importance of strategic investments in key areas to enhance market positioning and drive future growth. He expressed cautious optimism regarding the company's trajectory, indicating confidence in overcoming hurdles while remaining vigilant of external economic factors.
Guidance
The InterGroup expects continued revenue growth, with targets set for the upcoming quarter to achieve sales in the range of $18 million. The company anticipates a gradual improvement in net income and aims to reduce the loss per share to approximately $0.25. Additionally, management is focused on enhancing operational efficiencies and investing in strategic initiatives to support long-term profitability, reflecting a commitment to sustainable growth amid a dynamic market landscape.
Additional News
In recent weeks, The InterGroup Corporation has announced a strategic refinancing of its Hilton San Francisco Financial District Hotel, aiming to improve its financial position and operational efficiency. Furthermore, the company has increased its share repurchase program, reflecting confidence in its long-term business strategy and commitment to enhancing shareholder value. These initiatives highlight The InterGroup's proactive approach to strengthening its market position and navigating the competitive landscape in the real estate sector.
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