Summary of BEEP Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 Revenue: $8.8 million, down from $9.2 million YoY.

Full Year Revenue: $35.1 million, a decrease of 5.2% from $37 million in 2024.

Net Operating Income (NOI): Q4 NOI was $5.3 million, down from $5.5 million YoY; full year NOI was $20.7 million, down from $22.6 million.

Adjusted EBITDA: Q4 remained flat at $3.9 million; full year adjusted EBITDA was $14.3 million, down from $15.8 million.

Revenue per Available Stock (RevPAS): Q4 RevPAS was $190, down 5% YoY; full year RevPAS was $199, down 4.7%.

Debt: Total debt decreased to $207.7 million from $213.2 million YoY; $10 million paydown on the line of credit in Q4.

2Strategic Updates and Business Highlights

Contract Parking Growth: Ended 2025 with over 6,700 contracts, achieving 10% same-store sales growth YoY.

Asset Rotation Strategy: Phase 1 completed with over $30 million in non-core asset sales; ongoing focus on further divestitures in 2026.

Technology Optimization: Initiatives underway to improve customer experience and revenue management, transitioning to more effective operators.

Residential Parking Contracts: Increased by approximately 60% YoY, diversifying revenue streams as downtown offices convert to residential spaces.

3Forward Guidance and Outlook

2026 Revenue Guidance: Expected between $35 million and $38 million, representing 4% growth over 2025; on an adjusted basis, approximately 8% growth.

NOI Guidance: Expected between $21.5 million and $23 million, indicating 7% growth; adjusted for sold assets, about 10% growth.

Adjusted EBITDA Guidance: Expected between $15 million and $16.5 million, reflecting 10% growth; adjusted for sold assets, about 13% growth.

Key Assumptions: Continued growth in Contract Parking, recovery in transient revenue, and improved demand from return-to-office trends.

4Bad News, Challenges, or Points of Concern

Revenue Decline: Both consolidated revenue and NOI declined year-over-year, attributed to lower transient volumes and temporary disruptions in certain markets.

Weather Impact: January weather disruptions affected performance, although deemed nominal overall.

Market Uncertainty: Concerns regarding how AI and evolving work patterns may impact office usage and productivity.

Operational Challenges: Some technology initiatives have not yet produced the expected operational improvements.

5Notable Q&A Insights

Dispositions: One asset sale is expected to close soon, with ongoing discussions for additional sales later in 2026.

Market Recovery: Positive trends noted in Cincinnati and Nashville as local disruptions resolve, with expectations for improved contract revenue.

Technology Initiatives: Focus on creating a frictionless parking experience and enhancing data capture for better operational insights.

Office to Residential Conversions: Continued growth in residential contracts anticipated, although leasing speed is a limiting factor. Overall, while BEEP faced challenges in 2025, management expressed optimism about future growth driven by strategic initiatives and market recovery.