Sachem Capital Corp 800 Note (SCCG) reported Q1 2025 revenue of $11.44 million, down 32.8% year over year, with a modest operating profit of $1.03 million but a net loss of $0.21 million. The negative net result was driven by non-operating items and non-cash/one-off adjustments, while operating metrics suggest the core lending activity remained profitable at the segment level. Free cash flow was modest at $0.15 million for the quarter, and cash on hand stood at $24.41 million, providing some cushion to fund near-term liquidity needs. The company ended the period with a strong asset base ( total assets of $491.4 million) and a sizable equity base ($179.3 million), but liquidity indicated by the current ratio of 0.36 points to potential funding and rollover challenges in a tight funding environment typical for small mortgage REITs.
From a profitability standpoint, gross profit was reported at $11.44 million (gross margin effectively 100% in the disclosed figures, as cost of revenue is not provided), with operating income of $1.03 million and EBITDA of $1.03 million. Net income and EPS were negative (-$0.21 million; -$0.0046 per share), reflecting elevated other expenses (-$1.242 million) and a negative tax position in the quarter. The earnings trajectory QoQ improved meaningfully on the operating line, yet the bottom line remains pressured by non-operating items. Management commentary is not included in the provided transcript data; as a result, qualitative insights from an earnings call could not be incorporated, and readers should monitor upcoming 10-Q/10-K releases for any guidance or commentary on loan originations, pipeline, and cost discipline.
Overall, SCCG’s Q1 2025 results underscore a modestly profitable core lending operation within a high-leverage, liquidity-sensitive capital structure. The key investment considerations revolve around the durability of earnings from short-term real estate loans, the ability to grow originations, and the sustainability of cash flows amid a potentially volatile funding environment.