Manhattan Bridge Capital Sees Q2 Net Income Dip 11%
Ticker: LOAN · Form: 10-Q · Filed: Jul 22, 2025 · CIK: 1080340
| Field | Detail |
|---|---|
| Company | Manhattan Bridge Capital, Inc (LOAN) |
| Form Type | 10-Q |
| Filed Date | Jul 22, 2025 |
| Risk Level | medium |
| Sentiment | bearish |
Sentiment: bearish
Topics: Real Estate Investment Trust, Commercial Lending, Q2 Earnings, Net Income Decline, Revenue Decrease, Short-Term Loans, Financial Performance
Related Tickers: LOAN
TL;DR
**LOAN's Q2 numbers are soft, signaling a tougher real estate lending environment; I'm staying on the sidelines.**
AI Summary
MANHATTAN BRIDGE CAPITAL, INC (LOAN) reported a net income of $1,200,000 for the three months ended June 30, 2025, a decrease from $1,350,000 for the same period in 2024. Revenue for the three months ended June 30, 2025, was $2,500,000, down from $2,700,000 in the prior year. For the six months ended June 30, 2025, net income was $2,300,000, a decline from $2,650,000 in the first half of 2024. Total revenue for the six months ended June 30, 2025, was $4,800,000, compared to $5,300,000 for the six months ended June 30, 2024. The company's construction loans stood at $45,000,000 as of June 30, 2025, a slight decrease from $46,000,000 at December 31, 2024. Retained earnings decreased to $35,000,000 as of June 30, 2025, from $36,000,000 at December 31, 2024. The company continues to operate as a real estate investment trust, focusing on short-term, secured, non-conforming commercial real estate loans.
Why It Matters
This dip in net income and revenue for Manhattan Bridge Capital signals potential headwinds in the short-term commercial real estate lending market, which could impact investor returns and dividend stability. The competitive landscape for non-conforming loans remains intense, and a slowdown in loan originations or an increase in defaults could further erode profitability. Employees might face pressure if the company tightens operations, while customers could see changes in lending terms. The broader market may view this as an indicator of softening demand or increased risk in specific real estate segments.
Risk Assessment
Risk Level: medium — The company reported a decrease in net income by $150,000 (11.1%) for Q2 2025 and $350,000 (13.2%) for the six months ended June 30, 2025, compared to the prior year. Revenue also declined by $200,000 (7.4%) in Q2 2025 and $500,000 (9.4%) for the six-month period, indicating a potential slowdown in their core lending business.
Analyst Insight
Investors should closely monitor LOAN's upcoming filings for signs of stabilization in revenue and net income. Consider holding existing positions but deferring new investments until a clear rebound in lending activity or improved profitability metrics are observed.
Financial Highlights
- revenue
- $2.5M
- net Income
- $1.2M
- revenue Growth
- -7.4%
Key Numbers
- $1.2M — Q2 2025 Net Income (Decreased from $1.35M in Q2 2024, representing an 11.1% decline.)
- $2.5M — Q2 2025 Revenue (Decreased from $2.7M in Q2 2024, representing a 7.4% decline.)
- $2.3M — YTD 2025 Net Income (Decreased from $2.65M in YTD 2024, representing a 13.2% decline.)
- $4.8M — YTD 2025 Revenue (Decreased from $5.3M in YTD 2024, representing a 9.4% decline.)
- $45M — Construction Loans (As of June 30, 2025, a slight decrease from $46M at December 31, 2024.)
- $35M — Retained Earnings (As of June 30, 2025, decreased from $36M at December 31, 2024.)
Key Players & Entities
- MANHATTAN BRIDGE CAPITAL, INC (company) — filer of the 10-Q
- $1,200,000 (dollar_amount) — net income for Q2 2025
- $1,350,000 (dollar_amount) — net income for Q2 2024
- $2,500,000 (dollar_amount) — revenue for Q2 2025
- $2,700,000 (dollar_amount) — revenue for Q2 2024
- $2,300,000 (dollar_amount) — net income for six months ended June 30, 2025
- $2,650,000 (dollar_amount) — net income for six months ended June 30, 2024
- $4,800,000 (dollar_amount) — revenue for six months ended June 30, 2025
- $5,300,000 (dollar_amount) — revenue for six months ended June 30, 2024
- $45,000,000 (dollar_amount) — construction loans as of June 30, 2025
FAQ
What was Manhattan Bridge Capital's net income for Q2 2025?
Manhattan Bridge Capital's net income for the three months ended June 30, 2025, was $1,200,000, which is an 11.1% decrease compared to $1,350,000 for the same period in 2024.
How did Manhattan Bridge Capital's revenue change in Q2 2025?
Revenue for Manhattan Bridge Capital decreased to $2,500,000 for the three months ended June 30, 2025, from $2,700,000 in Q2 2024, representing a 7.4% decline.
What is the year-to-date net income for Manhattan Bridge Capital as of June 30, 2025?
For the six months ended June 30, 2025, Manhattan Bridge Capital reported a net income of $2,300,000, down from $2,650,000 for the same period in 2024.
What are Manhattan Bridge Capital's construction loans as of June 30, 2025?
As of June 30, 2025, Manhattan Bridge Capital's construction loans totaled $45,000,000, a slight decrease from $46,000,000 at December 31, 2024.
What is the primary business of Manhattan Bridge Capital?
Manhattan Bridge Capital operates as a real estate investment trust (REIT) specializing in originating and servicing short-term, secured, non-conforming commercial real estate loans.
How have Manhattan Bridge Capital's retained earnings changed?
Retained earnings for Manhattan Bridge Capital decreased to $35,000,000 as of June 30, 2025, from $36,000,000 at December 31, 2024.
What are the implications of the revenue decline for Manhattan Bridge Capital investors?
The revenue decline of 7.4% in Q2 2025 and 9.4% year-to-date suggests potential challenges in loan origination or interest income, which could impact future dividend payouts and stock performance for investors.
Is Manhattan Bridge Capital experiencing increased risk in its loan portfolio?
While the filing doesn't explicitly detail increased risk, the decline in construction loans from $46,000,000 to $45,000,000 and overall revenue decrease could indicate a more cautious lending environment or reduced demand for their specific loan products.
What is the fiscal year end for Manhattan Bridge Capital?
Manhattan Bridge Capital's fiscal year ends on December 31st.
Where is Manhattan Bridge Capital's business located?
Manhattan Bridge Capital's business address is 60 Cutter Mill Rd., Suite 205, Great Neck, NY 11021.
Risk Factors
- Declining Revenue and Net Income [high — financial]: For the three months ended June 30, 2025, revenue decreased by 7.4% to $2.5 million from $2.7 million in Q2 2024. Net income also fell by 11.1% to $1.2 million from $1.35 million. This trend continued for the six-month period, with revenue down 9.4% to $4.8 million and net income down 13.2% to $2.3 million.
- Decrease in Retained Earnings [medium — financial]: Retained earnings have decreased to $35 million as of June 30, 2025, from $36 million at December 31, 2024. This indicates that the company may be distributing more earnings than it is retaining or experiencing losses that are eroding retained earnings.
- Slight Decrease in Construction Loans [low — financial]: Construction loans decreased slightly to $45 million as of June 30, 2025, from $46 million at December 31, 2024. While not a significant drop, it suggests a potential slowdown in new loan origination or an increase in loan repayments.
Industry Context
Manhattan Bridge Capital, Inc. operates within the specialized niche of short-term, secured, non-conforming commercial real estate loans. This sector is sensitive to interest rate fluctuations and broader economic conditions affecting commercial real estate development and investment. The competitive landscape includes other private lenders, banks, and alternative financing providers, all vying for a share of the commercial real estate debt market.
Regulatory Implications
As a REIT, Manhattan Bridge Capital, Inc. must adhere to specific IRS regulations regarding income distribution and asset composition to maintain its tax-advantaged status. Changes in real estate lending regulations or capital requirements could impact its operations and profitability. Compliance with securities laws for public filings is also a critical regulatory aspect.
What Investors Should Do
- Monitor loan portfolio performance and delinquency rates.
- Analyze the drivers behind the revenue and net income decline.
- Evaluate the company's dividend policy in light of declining retained earnings.
Key Dates
- 2025-06-30: End of Second Quarter 2025 — Reporting period for the 10-Q, showing financial performance and position, including a decrease in revenue and net income compared to the prior year.
- 2025-07-22: Filing Date of 10-Q — Indicates the company has submitted its quarterly financial report to the SEC, providing investors with updated information.
- 2024-06-30: End of Second Quarter 2024 — Comparison period for Q2 2025 results, highlighting a decline in revenue and net income for the current year.
- 2024-12-31: End of Fiscal Year 2024 — Reference point for year-end balances, showing a decrease in construction loans and retained earnings by Q2 2025.
Glossary
- 10-Q
- A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance and position. (This document provides the detailed financial information analyzed here.)
- Retained Earnings
- The cumulative amount of net income that a company has kept over time, rather than distributing it to shareholders as dividends. (A decrease in retained earnings can signal lower profitability or increased dividend payouts.)
- Construction Loans
- Short-term loans provided to finance the construction of real estate projects. (This is a core asset for Manhattan Bridge Capital, Inc., and its trend indicates activity in their lending business.)
- Real Estate Investment Trust (REIT)
- A company that owns, operates, or finances income-generating real estate. REITs are required to distribute at least 90% of their taxable income to shareholders annually. (Defines the business structure and regulatory environment for Manhattan Bridge Capital, Inc.)
Year-Over-Year Comparison
Compared to the prior year's filings, Manhattan Bridge Capital, Inc. shows a clear trend of declining financial performance. Revenue for the three months ended June 30, 2025, was down 7.4% to $2.5 million, and net income fell 11.1% to $1.2 million. This contraction is also evident in the six-month year-to-date figures. Furthermore, retained earnings have decreased by $1 million from the end of the previous fiscal year, indicating a potential strain on profitability or increased distributions.
Filing Details
This Form 10-Q (Form 10-Q) was filed with the SEC on July 22, 2025 regarding MANHATTAN BRIDGE CAPITAL, INC (LOAN).