Filing Flows › Ares Commercial Real Estate (ACRE) › Q1 2025
Ares Commercial Real Estate (ACRE) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 7, 2025
Ares Commercial Real Estate (ACRE) reported revenue of $14.9M for the first quarter 2025 (Q1 2025), -20% from a year earlier and -15% from the quarter before. Operating margin was 64.4%, net earnings $9.3M (62.5% of revenue).
Ares Commercial Real Estate, Q1 2025: revenue $14.9M (-20% year over year), operating margin 64.4%, net earnings $9.3M, operating cash flow $8.0M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $14.9M | -15% | -20% |
| Operating profit | $9.6M | — | — |
| Net earnings | $9.3M | — | — |
| Operating cash flow | $8.0M | +13% | -30% |
| Free cash flow | $8.0M | — | -30% |
What changed
Revenue was $14.9M in Q1 2025, down 20% year over year and down 15% from the previous quarter.
Operating profit was $9.6M, a 64.4% margin (up 130.3 points year over year). Total costs fell 83% while revenue fell 20%. Net earnings were $9.3M. The effective tax rate was 2.9%.
Operating cash flow was $8.0M (down 30% year over year), 86% of net earnings. Non-cash charges added back $2.2M of depreciation and amortization and $1.1M of share-based compensation. Working capital and other items used $4.6M. Capital expenditures of $15K left free cash flow of $8.0M.
Questions
What was Ares Commercial Real Estate's revenue in the first quarter 2025?
Ares Commercial Real Estate (ACRE) reported revenue of $14.9M for the first quarter 2025 (Q1 2025), -20% from a year earlier and -15% from the quarter before.
Was Ares Commercial Real Estate profitable in the first quarter 2025?
Operating profit was $9.6M (64.4% of revenue) and net earnings $9.3M.