Breaking Down Manhattan Bridge Capital, Inc. (LOAN) Financial Health: Key Insights for Investors

If you are looking at Manhattan Bridge Capital, Inc. (LOAN), you need to look past the attractive dividend yield and focus on the core lending engine, which is showing clear signs of stress from the slow real estate market. Honestly, the headline numbers for the nine months ended September 30, 2025, show a revenue decline of 9.1%, with total revenues falling to approximately $6,665,000 compared to the same period last year, and net income dropping by 6.9% to roughly $3,988,000. This softening is directly tied to a reduction in loans receivable and a slowdown in new loan originations, which is understandable given the persistent interest rate environment, but it still impacts the bottom line. The company reported Q3 2025 net income of only about $1,202,000, which translated to earnings per share (EPS) of $0.11, missing analyst consensus. Still, the company's balance sheet remains solid with stockholders' equity at approximately $43,317,000 as of September 30, 2025, and the CEO recently bought 4,000 shares in November 2025, a classic insider signal of confidence. The P/E ratio is sitting at a relatively inexpensive 9.87, but you have to be comfortable with a 100.00% dividend payout ratio, which leaves zero margin for error if the real estate market doesn't pick up soon. That's the tightrope we're analyzing.

Revenue Analysis

You need to know where the money is coming from, especially with a specialized lender like Manhattan Bridge Capital, Inc. (LOAN). The direct takeaway is that while their core model remains solid-short-term, secured real estate loans-the top line is under pressure, with year-to-date revenue through Q3 2025 dropping by 9.1% due to a slower real estate market.

Manhattan Bridge Capital, Inc. operates as a real estate investment trust (REIT), and its revenue is highly concentrated in two areas derived from its hard money lending activities: interest income and origination fees. This focus on short-term, secured, non-banking loans to real estate investors in the New York metropolitan area and Florida is their niche.

Here's the quick math for the first nine months of the 2025 fiscal year (ending September 30, 2025), showing the clear dominance of interest income.

• Interest Income from Loans: The primary revenue source, contributing $5,504,000.
• Origination Fees: Fees charged for setting up the loans, adding $1,161,000.

To be fair, this is a very simple revenue structure, which makes it easy to analyze but also highly sensitive to the real estate and interest rate environment. This structure is detailed below, showing how much each segment contributes to the total revenue of $6,665,000 for the period.

The most significant change is the deceleration. Total revenues for the nine months ended September 30, 2025, were approximately $6,665,000, a decrease of 9.1% from the $7,330,000 reported for the same period in 2024. This drop is directly tied to lower interest income, which fell because the balance of loans receivable shrank. Plus, the high-interest-rate environment has slowed down new loan originations and extended redevelopment times for borrowers, meaning less new business and fewer fees. This is a defintely a headwind you need to factor into your future projections. If you want to dig deeper into who is holding the stock, you can check out Exploring Manhattan Bridge Capital, Inc. (LOAN) Investor Profile: Who's Buying and Why?

Profitability Metrics

You're looking for a clear read on Manhattan Bridge Capital, Inc. (LOAN)'s ability to turn its lending activity into real cash, and the 2025 numbers show a high-margin business model facing near-term revenue pressure. The key takeaway is that their unique structure as a hard money lender keeps their gross and net margins exceptionally high, but the current high-interest-rate environment is slowing their top line, which is impacting overall profit growth.

For the second quarter of 2025 (Q2 2025), Manhattan Bridge Capital, Inc. reported a Gross Profit Margin of nearly 100.00%. This isn't a typo; because their revenue is primarily interest income from loans, they report virtually no Cost of Revenue, making their Gross Profit essentially equal to Total Revenue, which was approximately $2,355,236 for the quarter.

Margin Analysis: Gross, Operating, and Net Profit

The company's profitability ratios are a direct reflection of its operational structure. The high gross margin immediately translates into strong operating and net margins, which is a hallmark of a well-run finance company with low direct operational costs. Here's the quick math for Q2 2025:

• Gross Profit Margin: Approximately 100.00%. This is an elite level of efficiency.
• Operating Profit Margin: Approximately 59.85%. (Operating Income of $1,409,678 on Revenue of $2,355,236).
• Net Profit Margin: Approximately 60.00%. (Net Income of $1,412,968 on Revenue of $2,355,236).

The difference between Operating Profit and Net Profit is minimal because the company has a very low effective tax rate, which helps keep a significant portion of its operating income as net income. That's a powerful financial lever.

Profitability Trends and Operational Efficiency

While the margins are impressive, the trend in 2025 shows the challenge of the current economic cycle. For the nine months ended September 30, 2025, Total Revenues dropped to approximately $6,665,000, a 9.1% decrease compared to the same period in 2024. Net Income also declined by 6.9% to approximately $3,988,000 for the nine-month period. The culprit is clear: persistent high interest rates are slowing down the real estate market, leading to a reduction in loans receivable and a slowdown in new loan originations.

To be fair, the company has shown defintely strong cost management. Despite the revenue drop in Q2 2025, net income remained stable at approximately $1.41 million, which indicates their ability to effectively manage interest expenses and general and administrative costs in a challenging environment. This is a critical sign of operational efficiency.

Industry Comparison of Profitability Ratios

When you stack Manhattan Bridge Capital, Inc. against the broader Finance sector, its valuation looks compelling, though its size is a limit. The company's trailing Price-to-Earnings (P/E) ratio is approximately 10.90, which is significantly lower than the Finance sector average P/E ratio of about 21.56. This suggests the stock is trading at a less expensive multiple relative to its earnings power compared to its industry peers. Plus, their Return on Equity (ROE) is a healthy 12.68%, which shows they are generating solid profits from shareholder capital.

For a deeper dive into the company's long-term strategy that supports these high margins, you can review their Mission Statement, Vision, & Core Values of Manhattan Bridge Capital, Inc. (LOAN).

Debt vs. Equity Structure

You want to know how Manhattan Bridge Capital, Inc. (LOAN) funds its operations, and the short answer is: very conservatively, favoring equity over the industry norm. This Real Estate Investment Trust (REIT) uses significantly less debt than its peers, which creates a strong balance sheet but also limits the potential for outsized returns that high leverage (debt financing) can provide.

As of the third quarter ending September 30, 2025, the company's capital structure is remarkably light on debt. Their total debt stands at approximately $15.19 million, a figure that is heavily skewed toward long-term obligations.

• Long-Term Debt: $15.06 million.
• Short-Term Debt: Approximately $0.13 million (the current portion of debt).
• Total Stockholders' Equity: Approximately $43,317,000.

Here's the quick math: with a total debt of $15.19 million against total equity of $43.317 million, Manhattan Bridge Capital, Inc.'s debt-to-equity (D/E) ratio is roughly 0.35 (or 35.1%).

Benchmarking Manhattan Bridge Capital's Leverage

A D/E ratio of 0.35 is defintely a low number for a financial company, especially a Mortgage REIT (Real Estate Investment Trust). This is a critical point for investors to understand.

To be fair, the average debt-to-equity ratio for the US Mortgage REIT industry as of November 2025 is significantly higher, landing at about 2.74.

What this estimate hides is the potential for higher returns. A low D/E ratio means the company is less exposed to rising interest rates or a real estate downturn, but it also means they are not 'leveraging synergies' like other REITs. They are simply not using as much borrowed money to acquire income-producing assets, which is the core business model for most REITs.

Debt Management and Capital Allocation

The company's existing debt is primarily tied to a $32.5 million credit line under an Amended and Restated Credit and Security Agreement, plus a $6,000,000 tranche of senior secured notes that mature in April 2026 and carry a fixed interest rate of 6% per annum. This fixed-rate debt helps shield them from recent interest rate volatility.

Instead of new debt issuances, Manhattan Bridge Capital, Inc. has focused its recent capital allocation on equity. On November 20, 2025, the Board authorized a stock buyback program for up to 100,000 shares. This move is a clear signal: management believes the stock is undervalued and is choosing to return capital to shareholders via repurchases rather than pursuing aggressive debt-fueled expansion.

Still, the market is cautious. Weiss Ratings downgraded the company's stock from a 'buy (b-)' to a 'hold (c+)' rating on October 26, 2025, which reflects a neutral outlook on its near-term performance. This conservative debt profile is a double-edged sword: it's safe, but it's not a growth accelerator. For a deeper look at who is buying and selling, you should check out Exploring Manhattan Bridge Capital, Inc. (LOAN) Investor Profile: Who's Buying and Why?

Finance: Track the utilization rate of the $32.5 million credit line in the next quarterly report to see if they are starting to increase leverage.

Liquidity and Solvency

You're looking at Manhattan Bridge Capital, Inc. (LOAN) because you want to know if their short-term financial position is rock-solid, and the quick answer is yes, their liquidity ratios look strong. A lender's balance sheet is different from a manufacturer's, but the core principle-can they cover their immediate debts-is sound. The company's Q3 2025 figures show a healthy buffer, which is crucial in a slower real estate market.

Their liquidity positions, measured through the Current Ratio (current assets divided by current liabilities) and the Quick Ratio (a more conservative measure that excludes less liquid assets like inventory), point to significant strength. For the quarter ending September 30, 2025, Manhattan Bridge Capital, Inc. (LOAN) reported a Current Ratio of 3.60 and a Quick Ratio of 2.79. This means for every dollar of short-term debt, the company has $3.60 in current assets to cover it. That's defintely a comfortable margin.

Working Capital and Near-Term Strength

The working capital (current assets minus current liabilities) for Manhattan Bridge Capital, Inc. (LOAN) is robust, sitting at approximately $43.23 million as of Q3 2025 (calculated from $59.85 million in Current Assets and $16.62 million in Current Liabilities) [cite: 2 in previous step]. This large positive figure shows the company has ample capital to cover its short-term obligations and still fund new loan originations. What this estimate hides, however, is that the majority of their current assets are secured commercial loans, which is their core business. They are a finance company, so their primary asset is their loans receivable portfolio, which turns over relatively quickly (short-term loans).

Here's the quick math on their current financial footing:

• Current Assets (Q3 2025): $59.85 million [cite: 2 in previous step]
• Current Liabilities (Q3 2025): $16.62 million [cite: 2 in previous step]
• Working Capital: $43.23 million

The Quick Ratio of 2.79 is still very high, indicating that even without relying on the full value of their loans receivable, their most liquid assets (like cash and equivalents) are more than sufficient to meet their current liabilities. This is a very strong sign for a lender.

Cash Flow Dynamics: A Clear Trend

When you look at the cash flow statement for the nine months ended September 30, 2025, you see a clear, intentional trend that maps to their business model as a short-term lender. The cash flow is less about day-to-day operations and more about the movement of capital to fund and pay down loans.

The $7.52 million cash inflow from investing activities [cite: 4 in previous step] is a critical liquidity strength. For a lender, this typically reflects a high rate of loan payoffs, which is what the CEO attributed to the company's strength despite the slow real estate market. The negative $-11.32 million in financing cash flow [cite: 4 in previous step] is largely due to their dividend payments, which is a deliberate use of capital for a company that operates as a REIT (Real Estate Investment Trust) and must distribute a high percentage of its taxable income. This outflow is a feature, not a flaw, but it does mean less cash is retained.

The key takeaway is that their core business is generating cash, and they have no immediate liquidity concerns. Still, the high dividend payout ratio (100.00% of earnings and 100.51% of cash flow) means they are distributing almost all their profit, limiting the internal capital available for rapid expansion without new debt or equity. You can dive deeper into who's investing in the company by reading Exploring Manhattan Bridge Capital, Inc. (LOAN) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at Manhattan Bridge Capital, Inc. (LOAN) and asking the core question: Is this stock a bargain or a trap? Based on its valuation multiples, the stock appears undervalued compared to its historical P/E and offers a compelling dividend yield, but the near-term risk is high due to a strained payout ratio and recent price weakness.

As of late November 2025, the stock closed around $4.54 a share, sitting near the lower end of its 52-week range of $4.29 to $6.05. The market seems to be pricing in caution, which makes sense when you look at the fundamentals, but this also creates a potential opportunity if you believe in the underlying asset quality of their short-term, secured, non-banking loans in the New York metropolitan area.

Here's the quick math on the core valuation metrics using trailing twelve months (TTM) data for the 2025 fiscal year:

• Price-to-Earnings (P/E): The TTM P/E ratio is approximately 9.90, which is notably lower than its historical ten-year average of 13.16. This suggests the stock is trading at a discount to its own history.
• Price-to-Book (P/B): The P/B ratio stands at about 1.38. For a finance company, this indicates investors are paying a modest premium over the company's net asset value, which is generally a healthy sign, but defintely not a deep-value play.
• Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA ratio is around 9.88. This metric, which is useful for comparing companies with different capital structures, is reasonable for its sector, showing the market is not overpaying for the company's operating cash flow.

The combination of these multiples points to a stock that is, at minimum, fairly valued and perhaps slightly undervalued based on earnings and book value.

The High-Yield Trade-Off: Dividend Sustainability

The biggest draw for many investors is the dividend. Manhattan Bridge Capital, Inc. (LOAN) offers an annualized dividend of $0.46 per share, translating to a substantial dividend yield of about 10.13%. That's a high yield, but you need to check the coverage.

The key risk here is the dividend payout ratio, which is currently running at about 100.00% of earnings. This means every dollar of profit is being paid out to shareholders, leaving no buffer for loan loss reserves or growth investments. A payout ratio this high is not sustainable long-term, especially if the real estate market in their core New York market softens. This is why the stock price has struggled, falling -6.77% over the last 52 weeks.

Analyst Consensus and Forward View

The limited analyst coverage reflects the company's small size, with a market capitalization around $52.10 million. The current analyst consensus is a 'Hold'. This neutral rating is a clear signal that the market is waiting for better clarity on the dividend's long-term safety and the future of the short-term lending market.

Still, some analysts see significant upside, with an average 12-month price target of $7.14. Here's the critical takeaway: achieving that target requires either a multiple expansion (investors paying a higher P/E) or a significant boost in earnings, which seems challenging given the high payout ratio. You can read more about their strategy here: Mission Statement, Vision, & Core Values of Manhattan Bridge Capital, Inc. (LOAN).

For a quick comparison of the key metrics:

Action: If you are comfortable with the high-yield risk, consider a small position, but only if you are confident in the company's ability to maintain its earnings per share (EPS) of around $0.46 to cover that dividend.

Risk Factors

You need to know the clear risks facing Manhattan Bridge Capital, Inc. (LOAN) right now, especially as we close out 2025. The core challenge is external-a sluggish real estate market-which is directly hitting their top line. But to be fair, their internal financial structure shows some real resilience.

The biggest near-term risk is the slowdown in the real estate sector (cyclical nature of real estate). This isn't a surprise, but it's quantifiable in their Q3 2025 numbers. Specifically, total revenues for the three months ended September 30, 2025, dropped to approximately $2,036,000, a 12.0% decrease from the $2,313,000 reported in the same quarter last year. This revenue dip is a direct result of lower interest income from a reduction in loans receivable and a slowdown in new loan originations. Extended redevelopment timelines in their operating areas-the New York metropolitan area and Florida-mean less churn and fewer new loans.

Operational and Financial Headwinds

Beyond the market, a few operational and financial risks stand out from the recent filings. The revenue trend is defintely concerning; for the nine months ended September 30, 2025, total revenues were approximately $6,665,000, down 9.1% from the $7,330,000 in the prior year period. This is the financial risk you need to track. Also, for a Real Estate Investment Trust (REIT) like Manhattan Bridge Capital, Inc., the high dividend payout ratio is a constant pressure point, posing a risk to the sustainability of future dividends if net income continues to decline.

Another risk is the concentration of leadership. The reliance on President & CEO Assaf Ran for business success is a key person risk. If he were to depart, it could jeopardize the company's future, given his visible role and commitment to the business strategy. Honestly, that's a risk for any small, focused company.

• Market Risk: Sluggish real estate markets extending project timelines.
• Financial Risk: Q3 2025 revenue decline to $2.04 million due to fewer new loan originations.
• Key Person Risk: High dependence on the current Chief Executive Officer.

Mitigation Strategies and Stability Factors

The management team is not sitting still; they are clearly focused on mitigating these risks. Their primary defense is the quality of their loan portfolio, which continues to show a higher-than-average volume of paid-off loans, demonstrating the robustness of their underwriting. They are strategically allocating available funds only into secure loans to maintain financial stability.

Here's the quick math on their leverage: the company maintains a very conservative debt-to-equity ratio of just 0.35 as of November 2025. This 'extraordinary low leverage' gives them a significant buffer against market volatility compared to more heavily indebted peers. Plus, as a direct action against the recent 'dramatic decline' in stock price, the Board authorized a stock repurchase program on November 20, 2025, to buy back up to 100,000 common shares over the next year. This signals management's confidence in the company's intrinsic value, especially with the stock trading at attractive valuation levels like a Price-to-Earnings (P/E) ratio of 9.43, close to its five-year low.

For a deeper dive into the company's long-term philosophy, you can review their Mission Statement, Vision, & Core Values of Manhattan Bridge Capital, Inc. (LOAN).

Growth Opportunities

You're looking for a clear path forward for Manhattan Bridge Capital, Inc. (LOAN) beyond the current real estate headwinds, and the story is one of niche resilience and capital management. The direct takeaway is that while revenue is down in 2025 due to market slowdown, the company's strategic focus on a high-margin, short-term lending niche, plus a recent share buyback, positions it for a strong rebound when the New York metropolitan real estate market stabilizes.

The core of Manhattan Bridge Capital, Inc.'s growth is its specialization in secured commercial loans (often called hard money loans) to real estate investors for acquisition and renovation projects in the New York metropolitan area, New Jersey, Connecticut, and Florida. This focus on relatively small loans-with a maximum loan amount typically limited to the lower of 9.9% of the aggregate loan portfolio or $4 million-allows them to operate in a segment less served by traditional banks. They are fast, which is a huge advantage for their customers.

Near-Term Financial Projections

The slowdown in new loan originations due to persistent high interest rates has impacted the top line in 2025. For the nine months ended September 30, 2025, total revenue was approximately $6,665,000, a 9.1% decrease from the prior year. However, the company has maintained strong profitability, with net income for the same period at approximately $3,988,000.

Here's the quick math for a full-year 2025 outlook, projecting a conservative Q4 based on the Q3 performance. What this estimate hides is how quickly the market could turn, but it gives us a realistic floor.

The analyst consensus for full-year 2025 EPS is $0.46. The company's ability to maintain a stable earnings per share (EPS) of $0.11 in Q3 2025 despite the revenue drop shows defintely strong cost management.

Strategic Levers and Competitive Edge

Manhattan Bridge Capital, Inc. isn't relying on a massive market expansion, but rather on deepening its moat in its existing, high-value territories. Their competitive advantages are rooted in operational discipline and local expertise, which are crucial in the hard money lending space.

• Local Market Intimacy: Deep knowledge of the New York metropolitan real estate market, which minimizes credit risk by allowing for disciplined underwriting.
• Agile Loan Origination: A vertically-integrated platform that allows for rapid loan approval and funding, meeting the speed requirements of real estate investors.
• Capital Management: A very low-leverage balance sheet, which provides a significant buffer against market volatility compared to more highly-leveraged peers.

A key strategic initiative announced recently is the common stock repurchase plan, authorized on November 20, 2025, to buy back up to 100,000 shares over the next twelve months. This move signals management's confidence in the company's future prospects and its belief that the stock is undervalued following the recent price decline. Reducing the share count will also help boost earnings per share (EPS), even if net income remains flat or slightly declines in the near term. To get a better sense of who is buying and selling, you might want to look at Exploring Manhattan Bridge Capital, Inc. (LOAN) Investor Profile: Who's Buying and Why?