RMRHIGH SIGNALFINANCIAL10-K

RMR experienced a severe cash burn with cash and equivalents plummeting 47.2% from $268.0M to $141.6M alongside a 22% revenue decline, despite improved operating cash flow.

The dramatic cash reduction combined with declining revenues and increased total liabilities suggests significant operational challenges or major capital deployment that warrants immediate investor scrutiny. While operating cash flow improved 23.4%, this couldn't offset the substantial cash drain, indicating potential one-time expenditures or working capital issues that need explanation.

Comparing 2025-11-12 vs 2024-11-12View on EDGAR →
FINANCIAL ANALYSIS

RMR's financial position deteriorated significantly with revenue falling 22% to $700.3M and net income dropping 24% to $17.6M, while total liabilities increased 12.5% to $316.2M. The most alarming change is the 47% cash burn from $268M to $142M, which dramatically outpaced the operating cash flow generation of $75.7M, suggesting major capital outflows or working capital consumption. Despite some positive signals like improved operating cash flow and reduced current liabilities, the overall picture indicates financial stress requiring immediate management explanation.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-47.2%
$268.0M→$141.6M

Cash declined 47.2% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Current Assets
Balance Sheet
-34.5%
$294.1M→$192.7M

Current assets declined 34.5% — monitor working capital adequacy and short-term liquidity.

Net Income
P&L
-23.9%
$23.1M→$17.6M

Net income declined 23.9% — review whether driven by operations, interest costs, or non-recurring items.

Operating Cash Flow
Cash Flow
+23.4%
$61.4M→$75.7M

Operating cash flow grew 23.4% — strong conversion of earnings to cash, healthy business fundamentals.

Revenue
P&L
-22%
$897.6M→$700.3M

Revenue softened 22% — monitor whether this is cyclical or structural.

Share Buybacks
Cash Flow
-20.5%
$1.1M→$903K

Buyback activity reduced 20.5% — capital being redeployed elsewhere or cash conservation underway.

Total Liabilities
Balance Sheet
+12.5%
$281.1M→$316.2M

Liabilities increased 12.5% — monitor debt-to-equity ratio and interest coverage.

Current Liabilities
Balance Sheet
-11.7%
$133.4M→$117.8M

Current liabilities reduced — improved short-term financial position and working capital health.

LANGUAGE CHANGES
NEW — 2025-11-12
PRIOR — 2024-11-12
ADDED
As of November 7, 2025, there were 16,061,399 shares of Class A common stock, par value $0.001 per share, 1,000,000 shares of Class B-1 common stock, par value $0.001 per share, and 15,000,000 shares of Class B-2 common stock, par value $0.001 per share, outstanding.
These forward-looking statements include, among others, statements about: our business strategy; economic and industry conditions, including as a result of changing tariffs or trade policies and the related uncertainty thereof; the impact and opportunities for our and our clients businesses from business cycles in the U.S.
real estate industry as well as economic and industry conditions, including interest rates; our belief that it is possible to grow real estate based businesses in selected property types or geographic areas despite national trends; our liquidity, including its sufficiency to pursue a range of capital allocation strategies and fund our operations and enhance our technology infrastructure and limit risk exposure; our future profitability; and our sustainability practices.
is a Maryland corporation and RMR LLC is a Maryland limited liability company.
owns represent approximately 53.2% of the economic interest of RMR LLC.
A wholly owned subsidiary of ABP Trust owns 15,000,000 redeemable Class A Units, representing approximately 46.8% of the economic interest of RMR LLC.
As of September 30, 2025, Adam Portnoy beneficially owned (including through ABP Trust), in aggregate, (i) 245,361 shares of Class A common stock of RMR Inc., or Class A Common Shares; (ii) all the outstanding shares of Class B-1 common stock of RMR Inc., or Class B-1 Common Shares; and (iii) all the outstanding shares of Class B-2 common stock of RMR Inc., or Class B-2 Common Shares.
As of September 30, 2025, we had $39.0 billion of assets under management.
Effective as of the opening of business on October 6, 2025, OPI s securities were delisted from Nasdaq and listed on OTCPK.
As of September 30, 2025, DHC owned 335 properties located in 34 states and the District of Columbia.
REMOVED
As of November 5, 2024, there were 15,845,601 shares of Class A common stock, par value $0.001 per share, 1,000,000 shares of Class B-1 common stock, par value $0.001 per share, and 15,000,000 shares of Class B-2 common stock, par value $0.001 per share, outstanding.
These forward-looking statements include, among others, statements about: our business strategy; economic and industry conditions; the impact and opportunities for our and our clients businesses from business cycles in the U.S.
real estate industry as well as economic and industry conditions; our belief that it is possible to grow real estate based businesses in selected property types or geographic areas despite general national trends; our cash and cash equivalents, including their sufficiency to pursue a range of capital allocation strategies and fund our operations and enhance our technology infrastructure and risk exposure; and our sustainability practices.
owns represent approximately 52.9% of the economic interest of RMR LLC.
A subsidiary of ABP Trust owns 15,000,000 redeemable Class A Units, representing approximately 47.1% of the economic interest of RMR LLC.
Portnoy beneficially owned (including through ABP Trust), in aggregate, (i) 211,561 shares of Class A common stock of RMR Inc., or Class A Common Shares; (ii) all the outstanding shares of Class B-1 common stock of RMR Inc., or Class B-1 Common Shares; and (iii) all the outstanding shares of Class B-2 common stock of RMR Inc., or Class B-2 Common Shares.
As of September 30, 2024, we had $40.9 billion of assets under management.
We provide management services to four publicly traded equity real estate investment trusts, or REITs, whose securities are listed on The Nasdaq Stock Market LLC, or Nasdaq: Diversified Healthcare Trust, a Maryland REIT, including its subsidiaries, or DHC; Industrial Logistics Properties Trust, a Maryland REIT, including its subsidiaries, or ILPT; Office Properties Income Trust, a Maryland REIT, including its subsidiaries, or OPI; and Service Properties Trust, a Maryland REIT, including its subsidiaries, or SVC.
As of September 30, 2024, DHC owned 368 properties located in 36 states and the District of Columbia.
OPI (Nasdaq: OPI) owns office properties primarily leased to single tenants and those with high credit quality characteristics.
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