Mobile Infrastructure (NASDAQ:BEEP) executives said the company spent 2025 strengthening its operating and financial foundation, even as revenue and net operating income declined year-over-year due to softer transient volumes and localized disruptions at several assets.
On the company’s fourth-quarter and full-year 2025 earnings call, CEO Stephanie Hogue said management executed key strategic priorities—most notably a focus on building recurring contract parking revenue, completing the first phase of an asset rotation plan, and taking steps to improve the balance sheet. While results fell short of the growth the company originally expected, Hogue pointed to “green shoots” in demand and identifiable catalysts that management believes can support progress in 2026.
Contract parking growth and a “volume first” playbook
Management described a deliberate approach to improving performance: “volume first, rate second.” Hogue said the company accepted lower initial pricing at some assets to win market share and stabilize occupancy, with the intention of raising rates and optimizing mix as utilization improves. She cited Cleveland as an example where utilization approached stabilized levels and the company was able to implement roughly 5% rate increases on monthly contracts.
Hogue also highlighted shifting demand dynamics tied to return-to-office trends. She said the company has seen an increase in inbound block parking inquiries—something management said it had not experienced in nearly five years—though she noted demand is not back to pre-pandemic patterns.
Residential contracts rise as office buildings convert
In addition to office-related demand, Hogue said residential parking contracts rose about 60% year-over-year in 2025, reflecting office-to-apartment conversions in several markets. She said this shift diversifies the company’s exposure and turns assets that were historically weekday-centric into “24-hour revenue platforms,” potentially improving long-term utilization and pricing flexibility.
During the Q&A session, Hogue said residential contracts are still not a large portion of total contracts, but she expects the category to continue growing. She also said residential growth is constrained by the pace at which apartment units lease, though she characterized the company’s capture rate as strong once residents move in.
Transient revenue pressured by disruptions, but catalysts ahead
Management said transient volumes declined 6% in 2025, driven by temporary disruptions tied to projects in specific markets. Hogue added that transient rates increased despite the volume decline, which she said reinforced management’s view that the assets remain well-positioned.
Looking ahead, the company pointed to projects shifting from headwinds to potential demand drivers, including the reopening of the renovated Cincinnati Convention Center and the completion of Denver’s Sixteenth Street Mall redevelopment and Nashville’s Second Avenue rebuild. In response to an analyst question, Hogue said Cincinnati appeared to be showing early impact, noting seven events in the first quarter and saying they were well attended. She also said contract revenue was up in Cincinnati and that the company has received inbound inquiries connected to return-to-office trends.
Hogue cautioned that Nashville’s recovery may be more back-half weighted as parkers “get reused to going there” and resume pre-booking behavior. Management also noted that January is typically the slowest month of the year and said a winter storm affecting markets including Nashville, Cincinnati, and New York had some impact, but executives described the effect as nominal in the context of full-year expectations.
Financial results: revenue down, Adjusted EBITDA stable in Q4
CFO Paul Gohr reported fourth-quarter revenue of $8.8 million, down from $9.2 million in the prior-year quarter, citing lower transient volumes due to fewer events and continued construction-related impacts. Fourth-quarter RevPAS (revenue per available stall) was $190 versus $200 a year earlier, a 5% decline. Adjusting for the Detroit location, Gohr said RevPAS was down 3.4% year-over-year, attributing the decrease to transient weakness and rate compression tied to the company’s volume-first strategy.
- Q4 net operating income: $5.3 million vs. $5.5 million
- Q4 Adjusted EBITDA: $3.9 million, flat year-over-year
- Q4 property operating expenses: flat at $1.9 million
- Q4 G&A: $1.1 million vs. $1.2 million (excluding non-cash compensation)
For the full year, Gohr reported revenue of $35.1 million, down from $37.0 million in 2024, a decline of 5.2%. Same-location RevPAS was $199 compared with $209 in 2024, down 4.7%. Full-year net operating income was $20.7 million compared with $22.6 million, while Adjusted EBITDA was $14.3 million versus $15.8 million in 2024.
Asset rotation, securitization, and capital allocation priorities
Hogue said the company completed phase I of its asset rotation strategy, selling or entering contracts to sell more than $30 million of non-core assets. She said the aggregate cap rate of sold assets was approximately 2% to date and argued that this supports management’s view that the market value implied by the stock price is disconnected from the portfolio’s value.
In the Q&A, executives said one asset remained to close in the first quarter, with an anticipated closing in the next 14 to 20 days. Management said there are additional assets in the pipeline, but characterized the disposition process as balancing speed and finding the right buyer, with more activity expected toward the back half of 2026.
Gohr said the company completed a $100 million asset-backed securitization in the third quarter with three new institutional investors, which he said extended maturities and enhanced flexibility around asset rotation. The company also paid down about $10 million on its line of credit in the fourth quarter using proceeds from asset sales.
As of December 31, 2025, the company reported $15.3 million in cash and restricted cash, compared with $15.8 million a year earlier. Total debt was $207.7 million at year-end 2025, down from $213.2 million at the end of 2024. Gohr also noted the company had repurchased more than 1.6 million shares at an average price of $3.25 per share, and said repurchases would remain a focus given management’s view of valuation relative to net asset value.
When asked about disposition proceeds and the line of credit, management said the remaining first-quarter sale is part of a CMBS portfolio and will move through a “waterfall” that includes prepayments, with excess proceeds expected to go toward the line of credit, though they did not quantify the amount.
2026 guidance calls for growth, excluding additional asset sales
Gohr provided 2026 guidance that assumes continued contract parking growth, a rebound in transient volumes where disruptions have been resolved, and incremental uplift from return-to-office momentum. The outlook excludes additional future asset sales or acquisitions beyond transactions already under contract.
- 2026 revenue: $35 million to $38 million (midpoint +4% vs. 2025; ~8% on an adjusted, same-portfolio basis excluding 2025 asset sales)
- 2026 net operating income: $21.5 million to $23.0 million (midpoint +7%; ~10% adjusted)
- 2026 Adjusted EBITDA: $15.0 million to $16.5 million (midpoint +10%; ~13% adjusted)
Management said it expects to update guidance if additional dispositions occur during 2026, though Gohr said the NOI impact should be modest because the company is selling lower-contributing assets.
About Mobile Infrastructure (NASDAQ:BEEP)
Mobile Infrastructure Corporation is a Maryland corporation. The Company owns a diversified portfolio of parking assets primarily located in the Midwest and Southwest. As of December 31, 2023, the Company owned 43 parking facilities in 21 separate markets throughout the United States, with a total of 15,700 parking spaces and approximately 5.4 million square feet. The Company also owns approximately 0.2 million square feet of retail/commercial space adjacent to its parking facilities.
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