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RMR Group (RMR) Q2 FY25 earnings results (second quarter fiscal 2025)

10-Q filed May 6, 2025

RMR Group (RMR) reported revenue of $167M for the second quarter fiscal 2025 (Q2 FY25), -24% from a year earlier and -24% from the quarter before. Operating margin was 4.5%, net earnings $3.6M (2.2% of revenue).

Revenue$167M
Year over year-24%
Quarter over quarter-24%
Operating margin4.5%
Net earnings$3.6M

RMR Group, Q2 FY25: revenue $167M (-24% year over year), operating margin 4.5%, net earnings $3.6M, operating cash flow $13.0M. The chart follows the revenue to costs, profit and cash.

Q2 FY25AmountQ/QY/Y
Revenue$167M-24%-24%
Operating profit$7.6M-44%-38%
Net earnings$3.6M-43%-38%
Operating cash flow$13.0M-48%+155%
Free cash flow$12.3M-48%+184%

What changed

Revenue was $166.7M in Q2 FY25, down 24% year over year and down 24% from the previous quarter. Management services was the largest line at 27% of revenue. Management services lost $4.1M year over year (down 8%), 8% of the total change.

Operating profit was $7.6M, a 4.5% margin (down 1.0 points year over year). Total costs fell 23% while revenue fell 24%. Net earnings were $3.6M, down 38% year over year. The effective tax rate was 15.2%.

Operating cash flow was $13.0M (up 155% year over year), 169% of net income including minority interests. Non-cash charges added back $2.5M of depreciation and amortization and $1.6M of share-based compensation. Working capital and other items added $1.2M. Capital expenditures of $662K left free cash flow of $12.3M.

Questions

What was RMR Group's revenue in the second quarter fiscal 2025?

RMR Group (RMR) reported revenue of $167M for the second quarter fiscal 2025 (Q2 FY25), -24% from a year earlier and -24% from the quarter before.

Was RMR Group profitable in the second quarter fiscal 2025?

Operating profit was $7.6M (4.5% of revenue) and net earnings $3.6M.

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Source: RMR Group 10-Q on SEC EDGAR.