Ladder Capital Corp Stock

1. Executive Summary

• Current Financial Position: Ladder Capital Corp's financial position as of Q2 2025 shows a mixed picture with significant changes in various financial metrics.
• Key Findings:
  • Net income decreased to $11.555 million from $16.43 million in the same quarter last year.
  • Total assets decreased to $4.469 billion from $4.845 billion at the end of 2024.
  • Cash and cash equivalents significantly decreased to $479.77 million from $1.323 billion at the end of 2024.
  • EBITDA was $7.336 million, down from $8.302 million in Q2 2024.
• Overall Trend: The financial trend appears to be negative, with declining profitability and significant decreases in cash and total assets.

2. Profitability Analysis

• Revenue and Profit Trends:
  • Interest and dividend income decreased to $64.326 million from $95.912 million in Q2 2024.
  • Net interest income was $20.329 million, down from $37.141 million in Q2 2024.
  • Net income attributable to common stockholders was $11.755 million, down from $16.609 million in Q2 2024.
• Profit Margins:
  • The decrease in net interest income and net income indicates a decline in profit margins.
• Operating Efficiency:
  • Operating expenses remained relatively stable, but the decrease in income led to reduced profitability.
  • Costs and expenses were $40.567 million, down from $44.873 million in Q2 2024.

3. Balance Sheet Strength

• Assets, Liabilities, and Equity:
  • Total assets decreased to $4.469 billion from $4.845 billion at the end of 2024.
  • Total liabilities decreased to $2.955 billion from $3.312 billion at the end of 2024.
  • Stockholders' equity decreased to $1.516 billion from $1.533 billion at the end of 2024.
• Liquidity and Solvency:
  • Cash and cash equivalents significantly decreased to $479.77 million from $1.323 billion at the end of 2024.
  • The company has substantial secured and unsecured debt obligations, amounting to $2.769 billion.

4. Cash Flow Assessment

• Cash Flows:
  • Net cash used in operating activities was -$28.727 million, compared to -$20.375 million in Q2 2024.
  • Net cash used in investing activities was -$373.783 million, compared to $337.135 million provided in Q2 2024.
  • Net cash used in financing activities was -$410.202 million, compared to -$160.211 million in Q2 2024.
• Cash Generation:
  • The significant decrease in cash and cash equivalents indicates potential cash flow concerns.

5. Growth and Investment

• Capital Expenditures and Investments:
  • Payments for capital improvements were -$0.872 million.
  • The company continues to invest in loans and securities, with significant payments for loan origination and security acquisitions.
• Growth Trajectory:
  • The decrease in net income and cash and cash equivalents suggests a negative growth trajectory.

6. Risk Factors

• Financial Risks:
  • Significant decrease in cash and cash equivalents.
  • Decrease in net income and profitability.
  • Substantial debt obligations.
• Concerning Trends:
  • Decline in interest and dividend income.
  • Decrease in total assets.

7. Valuation Context

• Valuation Metrics:
  • Earnings per share (EPS) was $0.09, down from $0.13 in Q2 2024.
  • The stock price was $9.0 as of April 28, 2025.
• Historical Trends:
  • The decrease in EPS indicates a decline in the company's profitability.

8. Key Considerations

• Key Factors:
  • Investors should consider the decline in profitability and cash and cash equivalents.
  • The substantial debt obligations and decrease in total assets are potential concerns.
  • The company's ability to manage its cash flows and maintain profitability will be crucial for its financial health.