Comstock Inc. (CHCI) reported third‑quarter 2025 financial results for the quarter ended September 30, 2025. Total revenue increased 2.5% to $13.3 million from $12.99 million in the same period last year, driven by a 3% rise in fee‑based revenue from its ParkX subsidiary and steady performance in its core asset‑management and property‑management businesses.
Segment analysis shows that asset‑management revenue accounted for 49.2% of total, property‑management 21.7%, and ParkX management 29.1%. The ParkX segment grew 96% in third‑party revenue and 30% in fee‑based revenue, reflecting the launch of new porter and janitorial services and the hiring of 139 new employees to support the expansion.
Net income fell 77% to $541,000, the lowest level since 2023, as higher operating costs from the ParkX expansion offset revenue gains. The company’s prior‑year net income was $2.38 million, and the decline is largely attributable to payroll and onboarding expenses for the new service lines.
Adjusted EBITDA contracted to $1.066 million from $3.133 million year‑over‑year, a 66% drop that mirrors the cost pressure from ParkX. The margin compression highlights the trade‑off between investing in growth and maintaining profitability.
Diluted earnings per share dropped to $0.05 from $0.23, a 79% decline. The sharp EPS decline reflects the same cost‑driven erosion of profitability, even as revenue grew modestly.
CEO Christopher Clemente said the quarter’s results demonstrate the company’s focus on long‑term, sustainable growth through diversified revenue streams. He emphasized that the investment in ParkX expansion is intended to broaden fee‑based revenue and support the company’s broader leasing momentum.
Investors reacted negatively to the sharp decline in profitability, despite the modest revenue growth. The market’s mixed sentiment reflects concerns about the cost impact of the ParkX expansion and the need to restore earnings momentum in future quarters.
Looking ahead, Comstock’s revenue growth remains strong, with a 13% year‑to‑date increase and significant gains in fee‑based and third‑party revenue. Management signals confidence that the strategic investments in ParkX and commercial leasing will ultimately translate into higher earnings, but the company must manage the cost trajectory to achieve profitability.
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