CaliberCos Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand how CaliberCos performed this year. My goal is to turn complex financial filings into plain English so you can decide if this company belongs in your portfolio.

1. What does this company do?

CaliberCos manages alternative assets. They act as a middleman that pools money from investors to build and manage hotels, apartments, and industrial buildings. They earn money through three main channels:

• Management fees: 1% to 2% of the total assets they manage.
• Acquisition fees: 1% to 3% when they start new deals.
• Performance fees: 15% to 20% of the profit when they sell a property.

In 2025, they launched a "digital asset treasury," buying and "staking" the cryptocurrency Chainlink. They aim to use blockchain technology to make real estate investing more efficient, specifically by allowing smaller investors to buy fractional shares of properties.

2. Financial performance

CaliberCos manages about $2.6 billion in assets, split between $0.8 billion in income-producing properties and $1.9 billion in projects under construction.

Because they actively manage construction and operations, they are not classified as an "investment company" for accounting purposes. If they were, they would have reported $16.3 million in "unrealized gains" (paper profits) this year. Since these gains are excluded from their official profit report, their reported earnings do not fully reflect the rising value of their property portfolio.

3. Major wins and challenges

The company is currently in "stabilization mode." This includes cutting administrative costs by 12% and restructuring $45 million in high-interest debt. To maintain their exchange listing and support their share price, they completed a 1-for-20 reverse stock split in May 2025.

Their move into crypto has been a challenge. They invested $12.6 million in Chainlink tokens, but by year-end, those tokens were valued at $6.8 million. This 46% decline in value negatively impacted their total income for the year.

4. Financial health

CaliberCos relies on selling new shares to fund operations, which increased the total share count by 15% over the last two years. This dilutes existing shareholders. Furthermore, they have $1.9 billion in projects requiring additional capital to complete. While they anticipate earning $104 million in future performance fees, realizing this income depends on completing these projects profitably in an environment of high interest rates and construction costs.

5. Key risks

• Crypto Volatility: The company’s balance sheet is directly exposed to the unpredictable cryptocurrency market.
• Dilution: Frequent sales of new shares to cover daily operations make it difficult for earnings per share to grow.
• Project Uncertainty: Their $1.9 billion pipeline is capital-intensive. If they cannot secure construction loans or if rental demand softens, these projects face significant completion risks.
• Market Liquidity: With a market value of approximately $35 million, the stock is thinly traded, which can lead to significant price swings when investors buy or sell.

6. Future outlook

CaliberCos is attempting to pivot into a tech-focused real estate firm, betting that blockchain will define the future of property investing. For now, they remain a small-cap company with significant debt, balancing traditional construction activities with speculative crypto investments. Their long-term success hinges on their ability to complete their $1.9 billion project pipeline and successfully integrate blockchain technology to reduce operational costs.

---

Investor Takeaway: CaliberCos is a high-risk, speculative play. Before investing, consider whether you are comfortable with their reliance on crypto assets and the ongoing dilution caused by their need to fund operations through new share issuances. This is a "wait and see" situation where the company must prove it can turn its massive construction pipeline into actual cash flow.