New Concept Energy (GBR 16.52%), a micro-cap company focused on real estate leasing and oil and gas consulting, released its earnings for the second quarter of fiscal 2025 on August 15, 2025. The report showed modest revenue growth (GAAP), with revenue rising to $40,000 from $37,000 year-over-year. However, general and administrative expenses rose at a faster rate. This resulted in a net loss of $18,000 (GAAP), down from net income of $3,000 (GAAP) a year earlier. No analyst estimates were available for comparison, but highlighted ongoing challenges with cost escalation outpacing incremental top-line progress.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| EPS (GAAP) | $(0.00) | $0.00 | N/A |
| Revenue (GAAP) | $40,000 | $37,000 | 8.1% |
| Net Income (GAAP) | $(18,000) | $3,000 | -700.0% |
| Corporate General & Administrative Expenses | $85,000 | $78,000 | 9.0% |
| Interest Income | $42,000 | $56,000 | (25.0%) |
Business Overview and Key Areas of Focus
New Concept Energy operates two primary business lines. It owns approximately 190 acres of land and over 53,000 square feet of building space in Parkersburg, West Virginia, providing a predictable flow of rental income. Rental income was the largest single component of the company’s revenue during the period.
Its second key activity is through a consulting management agreement within the oil and gas sector. Here, it advises the current owner of oil and gas wells, receiving a share of revenue from these operations. This arrangement allows the company to generate additional management fees without owning the physical assets. The agreement is subject to cancellation with sixty days’ notice, adding a layer of risk to this income.
Quarterly Performance and Financial Trends
Revenue increased by 8.1% compared to the same period in 2024. Rental income (GAAP) grew to $26,000 from $25,000 year-over-year. There was no disclosure of new tenants or upgrades that might have spurred more meaningful growth.
Management fee income rose to $14,000 from $12,000 year-over-year, an increase of almost 17%. The company continues to serve the same oil and gas client. However, with the agreement able to be ended on 60 days’ notice, this income stream remains modest and vulnerable to loss. No information in the release referenced expanded services or new clients in the sector.
Corporate general and administrative expenses were $85,000, up 9% from $78,000 year-over-year. Overall operating expenses rose 11% to $100,000 compared to the same period in 2024. New Concept Energy’s structure is lean, with just two employees and a heavy reliance on third-party contractors, exaggerating the impact of even small increases in core expenses on bottom-line results.
The release did not elaborate on the reason for the decline in interest income.
Strategic Initiatives and Balance Sheet Position
No material one-time events, asset sales, or acquisitions were mentioned in the recent earnings release. The company did not describe any new initiatives to improve occupancy or increase rental rates at its Parkersburg property. Its key consulting agreement in the oil and gas space remained intact but unchanged, without mention of new partnerships or expanded service lines. While the absence of negative events signals business continuity, the company’s concentration in two revenue streams remains a risk, especially if any significant tenant or the consulting client were to withdraw.
On the balance sheet, total assets stood at $4.57 million at the quarter’s end, with $356,000 in cash and equivalents at quarter-end. Notes receivable remained unchanged at $3.54 million. Liabilities stayed low, with only $75,000 in total current liabilities reported (GAAP). Stockholders’ equity edged down slightly, reflecting the quarter’s small net loss, but growth remains elusive, and no new business lines, contracts, or capital projects were highlighted in the release.
Outlook and What to Watch
The company did not provide any financial outlook or guidance for future quarters or the full year. Management made no statements about expected changes to revenue, cost structure, or strategic plans.
GBR does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
