Zoned Properties (ZDPY -4.10%), a real estate company specialized in cannabis sector properties, reported its second quarter 2025 earnings on August 14, 2025. The most important news from the release was a strong 35% year-over-year gain in GAAP revenue to $937,774 and a swing to positive GAAP net income of $26,326, recovering from a loss in the same quarter last year. With no Wall Street estimates published, the results are best measured against internal trends and last year’s performance, both of which show notable improvement. Robust operating income growth was reported. Overall, the quarter reflects underlying business and financial progress, but management offered no explicit guidance and highlighted industry headwinds.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| EPS (GAAP) | $0.00 | $0.00 | N/A |
| Revenue | $937,774 | $692,326 | 35.5% |
| Income from Operations | $272,188 | $103,138 | 164% |
| Operating Expenses | $665,586 | $589,188 | 13.0% |
| Net Income | $26,326 | ($32,283) | 182% |
Company Overview and Business Model
Zoned Properties provides property investment and real estate services focused on the regulated cannabis sector. It operates as a non-plant touching business, meaning it does not directly grow or handle cannabis. Instead, it acquires, develops, and manages specialized properties that are leased to cannabis operators such as retailers and cultivators. The company also offers brokerage and advisory services designed for cannabis-related businesses to support complex zoning and regulatory requirements across its main regions.
Recently, the company has prioritized expanding its presence in new, regulated markets and building a diversified portfolio. Technology-enabled real estate solutions are a growing focus, with the company’s AI-powered zoning and land-use platform, REZONE, aiming to unlock commercialization opportunities. The most critical factors for continued success include managing regulatory risk, maintaining a high-quality tenant base, and efficiently acquiring or repositioning properties to maximize stable, long-term income.
Notable Highlights from the Quarter
GAAP revenue increased 35%, underlining the success of recent operating and investment strategies. For the six months ended June 30, 2025, total GAAP revenue rose 25%. Income from operations jumped 164%, reflecting the impact of cost management as operating expenses rose just 13%, well below the pace of revenue. This produced substantial operating leverage and marked the second consecutive quarter of profitability for the company, based on reported GAAP net income. GAAP net income transitioned from a $32,283 loss to a $26,326 profit, driven primarily by higher revenue and controlled costs.
GAAP cash on hand as of June 30, 2025, was $985,847, just below the end of 2024. The share repurchase program continued, with 170,687 shares held in treasury at the quarter’s close.
Zoned Properties remains focused on its “technology-driven property investment” strategy in the regulated cannabis real estate sector. It completed two strategic acquisitions in Ohio, onboarding new tenants operated by multi-state cannabis companies Trulieve Cannabis Corp. and Verano Holdings Corp. The company also assigned a real estate project to a private operator, reflecting flexibility in its revenue model as more property management assignments are expected in coming quarters. Management streamlined the Board of Directors from seven to four members, which should lower recurring board costs and further enhance cost structure discipline.
On the technology side, the company emphasized potential commercialization of its REZONE software, an artificial intelligence-driven zoning and land use platform. The goal is to use this software not only in cannabis, but also in adjacent industries. While this platform is still in the early stages of commercialization, it reflects a new area of business focus going forward.
Looking Forward
The company’s management did not offer explicit financial guidance for upcoming quarters or the full fiscal year. Instead, the focus remains on developing more direct ways for shareholders to benefit from growth and value creation, including continued share buybacks, and management maintains a flexible, cost-conscious approach to future investments and real estate activity.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
