The InterGroup Corporation delivered a modest top-line improvement in Q4 2024, with revenue of $13.43 million and gross profit of $3.15 million, driven by a gross margin of 23.46%. Despite a positive operating profit of $0.50 million and EBITDA of $1.54 million, the quarter ended with a net loss of $3.86 million due to substantial other expenses and financing costs. Interest expense totaled $4.73 million, and total other income/expenses net was a negative $5.31 million, underscoring the heavy debt burden and the associated carrying costs that continue to compress the bottom line.
From a liquidity and cash-flow perspective, the company generated $5.03 million of operating cash flow and $3.60 million of free cash flow, signaling improving operating efficiency relative to cash generation. However, the balance sheet remains structurally stressed: total assets are $107.8 million versus total liabilities of $214.3 million, resulting in negative shareholders’ equity of approximately $80.34 million. Net debt stands at roughly $187.0 million on $191.34 million in total debt, with a debt-to-capitalization metric of about 1.72 and an interest-coverage ratio of 0.11x, indicating limited cushions to service debt.
Looking ahead, absent a material deleveraging and capital-allocation program, the stock remains exposed to leverage risk and refinancing uncertainty. Potential catalysts include debt refinancing at more favorable terms, monetization or optimization of real estate assets, and ongoing cash-flow-driven improvements in occupancy and operating efficiency. Investors should monitor debt maturities, refinancing conditions, occupancies, and any management commentary on strategic pivots or asset-reallocations.