CaliberCos Inc.CWD
CaliberCos Inc. Segments Disclosure
Segments
Historically, the Company’s operations were organized into three reportable segments, fund management, development, and brokerage. During the year ended December 31, 2023, the Company reevaluated its reportable segments, considering (i) the evolution of the Company after closing its initial public offering and how the Company’s chief operating decision maker (“CODM”), the Company’s Chief Executive Officer, John C. Loeffler, assesses performance and allocates resources, (ii) changes to the budgeting process and in key personnel driven by the Company’s growth initiatives, and (iii) how management reports ongoing company performance to the Board of Directors. With the evolution and growth of the Company, the Company’s CODM assesses performance and resource allocation on an aggregate basis under the Company’s asset management platform (“Platform”), and no longer reviews operating results for development or brokerage activity separately. As such, management concluded that the Company operates through one operating segment, which it refers to as Platform.
The Company’s CODM assesses revenue, operating costs and key operating statistics to evaluate performance and allocate resources on a basis that eliminates the impact of the consolidated investment funds (intercompany eliminations required by U.S. GAAP) and noncontrolling interests. Operating costs consist primarily of payroll related costs that are provided quarterly to the CODM. Platform payroll and payroll related costs were $17.8 million and $19.4 million for the years ended December 31, 2024 and 2023, respectively. Management concluded that the consolidated investment funds do not meet the requirements in ASC 280, Segment Reporting, of operating segments, as the Company’s CODM does not review, nor is he provided with the operating results of these investment funds for the purposes of allocating resources, assessing performance or determining whether additional investments or advances will be made to these funds. The investment funds are consolidated based on the requirement in ASC 810, Consolidation, as the Company was determined to be the primary beneficiary of each of these variable interest entities since it has the power to direct the activities of the entities and the right to absorb losses, generally in the form of guarantees of indebtedness that are significant to the individual investment funds.
For the years ended December 31, 2024 and 2023, total revenues were $20.9 million and $20.6 million, respectively, representing a period-over-period increase of 1.5%. The table below (in thousands) compares the revenues earned for providing services under the Company’s asset management Platform as described in the Revenue Recognition section of Note 2 – Summary of Significant Accounting Policies for the year ended December 31, 2024, to the revenues earned for the same period in 2023.
| Year Ended December 31, 2024 | |||||||||||||||||
| Platform | Impact of Consolidated Funds | Consolidated | |||||||||||||||
| Revenues | |||||||||||||||||
| Fund management fees | $ | 12,318 | $ | (3,109) | $ | 9,209 | |||||||||||
| Financing fees | 650 | (254) | 396 | ||||||||||||||
| Development and construction fees | 6,751 | (331) | 6,420 | ||||||||||||||
| Brokerage fees | 844 | 10 | 854 | ||||||||||||||
| Total asset management | 20,563 | (3,684) | 16,879 | ||||||||||||||
| Performance allocations | 379 | (21) | 358 | ||||||||||||||
| Total Platform revenue | $ | 20,942 | $ | (3,705) | $ | 17,237 | |||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
| Platform | Impact of Consolidated Funds | Consolidated | |||||||||||||||
| Revenues | |||||||||||||||||
| Fund management fees | $ | 10,120 | $ | (4,635) | $ | 5,485 | |||||||||||
| Financing fees | 629 | (408) | 221 | ||||||||||||||
| Development and construction fees | 4,984 | (959) | 4,025 | ||||||||||||||
| Brokerage fees | 1,249 | (409) | 840 | ||||||||||||||
| Total asset management | 16,982 | (6,411) | 10,571 | ||||||||||||||
| Performance allocations | 3,656 | (17) | 3,639 | ||||||||||||||
| Total Platform revenue | $ | 20,638 | $ | (6,428) | $ | 14,210 | |||||||||||
The following tables present a reconciliation of Platform revenues, expenses and net loss to the most comparable GAAP measure for the years ended December 31, 2024 and 2023 (in thousands):
| Year Ended December 31, 2024 | |||||||||||||||||
| Unconsolidated | Impact of Consolidated Funds | Consolidated | |||||||||||||||
| Revenues | |||||||||||||||||
| Asset management | $ | 20,563 | $ | (3,684) | $ | 16,879 | |||||||||||
| Performance allocations | 379 | (21) | 358 | ||||||||||||||
| Consolidated funds – hospitality revenue | — | 26,476 | 26,476 | ||||||||||||||
| Consolidated funds – other revenue | — | 7,406 | 7,406 | ||||||||||||||
| Total revenues | 20,942 | 30,177 | 51,119 | ||||||||||||||
| Expenses | |||||||||||||||||
| Operating costs | 7,136 | (964) | 6,172 | ||||||||||||||
| Payroll and payroll related costs | 17,768 | (1) | 17,767 | ||||||||||||||
| General and administrative | 6,817 | (41) | 6,776 | ||||||||||||||
| Marketing and advertising | 751 | — | 751 | ||||||||||||||
| Depreciation and amortization | 598 | (5) | 593 | ||||||||||||||
| Consolidated funds – hospitality expenses | — | 26,503 | 26,503 | ||||||||||||||
| Consolidated funds – other expenses | — | 5,870 | 5,870 | ||||||||||||||
| Total expenses | 33,070 | 31,362 | 64,432 | ||||||||||||||
| Other income (loss), net | (2,654) | (439) | (3,093) | ||||||||||||||
| Interest income | 559 | (199) | 360 | ||||||||||||||
| Interest expense | (5,424) | — | (5,424) | ||||||||||||||
| Net loss before income taxes | (19,647) | (1,823) | (21,470) | ||||||||||||||
| Provision for income taxes | — | — | — | ||||||||||||||
| Net loss | (19,647) | (1,823) | (21,470) | ||||||||||||||
| Net loss attributable to noncontrolling interests | — | (1,693) | (1,693) | ||||||||||||||
| Net loss attributable to CaliberCos Inc. | $ | (19,647) | $ | (130) | $ | (19,777) | |||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
| Platform | Impact of Consolidated Funds | Consolidated | |||||||||||||||
| Revenues | |||||||||||||||||
| Asset management | $ | 16,982 | $ | (6,411) | $ | 10,571 | |||||||||||
| Performance allocations | 3,656 | (17) | 3,639 | ||||||||||||||
| Consolidated funds – hospitality revenue | — | 68,905 | 68,905 | ||||||||||||||
| Consolidated funds – other revenue | — | 7,822 | 7,822 | ||||||||||||||
| Total revenues | 20,638 | 70,299 | 90,937 | ||||||||||||||
| Expenses | |||||||||||||||||
| Operating costs | 2,387 | (497) | 1,890 | ||||||||||||||
| Payroll and payroll related costs | 19,421 | — | 19,421 | ||||||||||||||
| General and administrative | 6,807 | (37) | 6,770 | ||||||||||||||
| Marketing and advertising | 1,053 | (1) | 1,052 | ||||||||||||||
| Depreciation and amortization | 551 | (1) | 550 | ||||||||||||||
| Consolidated funds – hospitality expenses | — | 80,669 | 80,669 | ||||||||||||||
| Consolidated funds – other expenses | — | 9,162 | 9,162 | ||||||||||||||
| Total expenses | 30,219 | 89,295 | 119,514 | ||||||||||||||
| Consolidated funds – gain on sale of real estate investments | — | 4,976 | 4,976 | ||||||||||||||
| Other income, net | 649 | (275) | 374 | ||||||||||||||
| Interest income | 1,863 | (1,513) | 350 | ||||||||||||||
| Interest expense | (4,716) | (1) | (4,717) | ||||||||||||||
| Net loss before income taxes | (11,785) | (15,809) | (27,594) | ||||||||||||||
| Provision for income taxes | — | — | — | ||||||||||||||
| Net loss | (11,785) | (15,809) | (27,594) | ||||||||||||||
| Net loss attributable to noncontrolling interests | — | (14,891) | (14,891) | ||||||||||||||
| Net loss attributable to CaliberCos Inc. | $ | (11,785) | $ | (918) | $ | (12,703) | |||||||||||
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About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.