Adjusted book value per share reached a record high of $176.95 and adjusted operating shareholders' equity per share reached $120.11 at the end of Q2 2025.
Adjusted operating income for Q2 2025 was $50 million or $1.01 per share, down from $80 million or $1.44 per share in Q2 2024.
Loss expense increased by $27 million in Q2 2025, primarily due to additional reserves on certain U.K. regulated utility and U.S. municipal revenue exposures.
Net earned premiums and net investment income both increased in Q2 2025 compared to Q2 2024, reflecting earnings from new large transactions and higher-yielding assets.
The Insurance segment contributed $76 million and the Asset Management segment $4 million to earnings in Q2 2025, offset by a $29 million loss in the corporate division.
Adjusted leverage was modest at 1.6x as of quarter end, with total gross leverage at 1.9x, below the target range of 2x to 3x.
Declared and paid a $0.23 per share dividend; repurchased $6.6 million of common stock in Q2 with $93.4 million remaining in the repurchase program.
Ladder generated distributable earnings of $30.9 million or $0.23 per share in Q2 2025, achieving a return on equity of 7.7%.
Loan portfolio totaled $1.6 billion with a weighted average yield of approximately 9%, and 5 loans on nonaccrual totaling $162.3 million (3.6% of total assets).
Real estate portfolio of $936 million generated $15.1 million in net operating income, primarily from net lease properties with long-term leases to investment-grade tenants.
Securities portfolio was $2 billion, up 82% from year-end, with a weighted average yield of 5.9%, 99% investment-grade and 97% AAA rated.
Declines were driven by lower U.S. agent count, broker fees, and revenue from previous acquisitions, partially offset by new revenue streams including RE/MAX Media Network and lead concierge initiatives.
Revenue excluding marketing funds was $54.5 million, down 6.8% year-over-year due to negative organic growth of 5.7% and adverse foreign currency movements of 1.1%.
Selling, operating, and administrative expenses decreased by $1 million or 2.8% to $33.9 million, primarily due to lower personnel expenses partially offset by severance and investments in flagship websites.
Total leverage ratio was 3.58:1 as of June 30, consistent with March 31, with expectations to decrease in the second half of the year.
Total revenue for Q2 2025 was $72.8 million, with adjusted EBITDA of $26.3 million and an adjusted EBITDA margin of 36.1%, up 30 basis points from Q2 2024.
Dafinchi