Commercial real estate lender Ladder Capital (NYSE: LADR) fell short of the market’s revenue expectations in Q4 CY2025, with sales falling 26.4% year on year to $50.47 million. Its non-GAAP profit of $0.17 per share was 28.3% below analysts’ consensus estimates.
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Ladder Capital (LADR) Q4 CY2025 Highlights:
- Net Interest Income: $22.33 million vs analyst estimates of $25.9 million (18% year-on-year decline, 13.8% miss)
- Revenue: $50.47 million vs analyst estimates of $55.58 million (26.4% year-on-year decline, 9.2% miss)
- Adjusted EPS: $0.17 vs analyst expectations of $0.24 (28.3% miss)
- Market Capitalization: $1.41 billion
Company Overview
Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE: LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Unfortunately, Ladder Capital’s 10% annualized revenue growth over the last five years was mediocre. This fell short of our benchmark for the banking sector and is a poor baseline for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Ladder Capital’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 9.7% annually. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Ladder Capital missed Wall Street’s estimates and reported a rather uninspiring 26.4% year-on-year revenue decline, generating $50.47 million of revenue.
Net interest income made up 35.2% of the company’s total revenue during the last five years, meaning Ladder Capital is well diversified and has a variety of income streams driving its overall growth. Nevertheless, net interest income is critical to analyze for banks because they’re considered a higher-quality, more recurring revenue source by investors.
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Key Takeaways from Ladder Capital’s Q4 Results
We struggled to find many positives in these results. Its revenue missed and its net interest income fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $10.95 immediately following the results.
Ladder Capital may have had a tough quarter, but does that actually create an opportunity to invest right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
