Claros Mortgage Trust (CMTG) AI Stock Analysis

• Market Cap: $335.12M
• Dividend Yield: N/A
• Average Volume (3M): 418.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -65.32%
• EPS Growth: -325.73%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): -0.71
• Shares Outstanding: 140,218,770
• 10 Day Avg. Volume: 417,564
• 30 Day Avg. Volume: 418,274
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 2.13
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 9.87
• Enterprise Value/Revenue: 7.98
• Enterprise Value/Gross Profit: -52.57
• Enterprise Value/Ebitda: 307.51
• 1Y Price Target: $2.75
• Price Target Upside: 15.06% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.52
• Revenue Forecast (FY): $202.32M

• Rating: 43 Neutral
• Price Target: $2.50 ▲(4.60% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is primarily held down by weak financial performance, driven by steep revenue decline, large recent losses, negative ROE, and an abrupt drop to zero reported operating/free cash flow in 2025. Technical signals also remain bearish with the price below key moving averages and negative MACD. The earnings call adds some offset from measurable cleanup and refinancing progress, but guidance highlights continued near-term earnings pressure and ongoing credit risk.

Positive Factors

Resolution Execution

Successfully resolving $2.5B UPB in 2025 demonstrates durable workout capability and active loss mitigation. Clearing watchlist loans materially reduces problem-asset runoff risk, improves transparency into asset quality, and shortens the timeline to re-establish normalized interest income and redeploy capital.

Deleveraging & Liquidity

Meaningful deleveraging and a larger liquidity cushion reduce rollover and covenant pressure, extending the runway to execute dispositions. Extended debt maturities and improved leverage provide structural breathing room to monetize REO and resolve remaining credits without immediate refinancing stress.

Active Portfolio Repositioning

Shrinking and rebalancing the portfolio away from higher-risk sectors lowers concentration risk and aligns assets with stronger submarkets. A smaller, cleaner book makes asset performance easier to manage, accelerates cash realizations from REO, and positions the trust to selectively originate when markets normalize.

Negative Factors

Elevated Credit Reserves

Large CECL additions reflect material underlying credit deterioration that will suppress earnings and book value until recoveries or disposals occur. Persistent elevated reserves constrain distributable income and require successful asset workouts over multiple quarters to restore investor returns and capital stability.

Weak Cash Generation

A sudden collapse to zero operating and free cash flow undermines the REIT's internal funding for interest, asset work-outs and dividends. Absent durable cash conversion recovery, dependence on external financing increases, limiting strategic flexibility and slowing the pace at which balance-sheet improvement translates into sustainable earnings.

Costly Financing & Governance Tightening

High-cost debt elevates interest expense and compresses net interest margin, reducing long-term earnings potential. Warrants add dilution risk, while lender governance and covenants can limit strategic choices in stressed scenarios, constraining capital allocation and potentially delaying recovery initiatives.

Claros Mortgage Trust Business Overview & Revenue Model

Company Description

Claros Mortgage Trust, Inc. is a real estate investment trust that focuses primarily on originating senior and subordinate loans on transitional commercial real estate assets located in principal markets across the United States. The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code. As a REIT, its net income would be exempt from federal taxation to the extent that it is distributed as dividends to shareholders. The company was incorporated in 2015 and is based in New York, New York.

How the Company Makes Money

Claros Mortgage Trust generates revenue primarily through interest income earned on the commercial mortgage loans it originates and holds in its portfolio. The company typically charges borrowers an interest rate that is higher than its own cost of capital, creating a profit margin. Additionally, CMTG may earn fees from loan origination, servicing, and other related activities. The trust also seeks to maximize returns through strategic investments in high-quality, income-producing real estate assets, which can appreciate over time. Partnerships with real estate developers, brokers, and financial institutions may enhance CMTG's ability to source attractive investment opportunities, thereby contributing to its overall earnings.

Claros Mortgage Trust Financial Statement Overview

Summary

Financial statements indicate significant deterioration: revenue fell sharply in 2025 (~46% YoY) and profitability swung deeply negative (2025 net margin ~-260%). Balance-sheet risk remains elevated with equity erosion and negative ROE in 2024–2025, and cash generation is a key concern with operating cash flow and free cash flow reported at zero in 2025 after prior stability.

Income Statement

Earnings performance has deteriorated sharply. Revenue fell materially in 2025 (down ~46% year over year) and profitability swung deeply negative, with 2025 net margin around -260% versus already-weak -130% in 2024. While 2023 showed modest profitability, the last two annual periods reflect significant losses and high volatility, indicating weak earnings quality and limited near-term visibility.

Balance Sheet

Leverage and equity erosion are key concerns. Debt-to-equity was high in 2021–2024 (roughly 1.8x–2.4x), and returns on equity turned negative in 2024 and worsened in 2025 alongside large losses. Although 2025 shows no reported debt (which could indicate paydown or data classification changes), equity also declined meaningfully, and overall balance-sheet risk remains elevated given the recent profitability shock.

Cash Flow

Cash generation weakened materially in the most recent year. Operating cash flow and free cash flow were solid and generally close to reported earnings in 2020–2024, but both are reported at zero in 2025 with free cash flow growth at -100%. This abrupt drop raises concerns around sustainability of cash generation and financial flexibility, even though prior years showed relatively stable cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	201.65M	170.67M	129.83M	270.20M	215.02M
Gross Profit	77.16M	-48.81M	80.33M	270.20M	215.02M
EBITDA	10.75M	-178.46M	185.65M	0.00	0.00
Net Income	-489.07M	-221.26M	6.03M	112.06M	170.55M
Balance Sheet
Total Assets	4.72B	6.97B	8.07B	8.24B	7.46B
Cash, Cash Equivalents and Short-Term Investments	173.19M	99.08M	188.20M	306.46M	310.19M
Total Debt	3.15B	4.89B	5.56B	5.40B	4.57B
Total Liabilities	3.19B	4.96B	5.77B	5.79B	4.85B
Stockholders Equity	1.53B	2.01B	2.30B	2.46B	2.57B
Cash Flow
Free Cash Flow	0.00	83.17M	109.05M	108.69M	202.09M
Operating Cash Flow	0.00	84.52M	111.14M	111.03M	213.56M
Investing Cash Flow	0.00	779.91M	-39.34M	-773.30M	-373.20M
Financing Cash Flow	-1.78B	-945.82M	-205.07M	676.30M	62.80M

Claros Mortgage Trust Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMTG, the sentiment is Negative. The current price of 2.39 is below the 20-day moving average (MA) of 2.59, below the 50-day MA of 2.82, and below the 200-day MA of 3.11, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 40.02 is Neutral, neither overbought nor oversold. The STOCH value of 38.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMTG.

Claros Mortgage Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
TRTX	59 Neutral	$662.88M	14.78	5.32%	10.48%	-10.86%	-5.90%
IVR	58 Neutral	$701.97M	6.39	13.26%	16.08%	-53.20%	97.96%
ACRE	51 Neutral	$277.95M	-247.29	-0.17%	13.75%	-30.60%	87.95%
KREF	49 Neutral	$449.47M	-6.64	-3.86%	11.33%	-24.37%	-19.19%
GPMT	45 Neutral	$82.49M	-1.48	-7.12%	7.97%	-28.13%	62.49%
CMTG	43 Neutral	$335.12M	-0.68	-19.24%	―	-65.32%	-325.73%

Claros Mortgage Trust Corporate Events

Claros Mortgage Trust Reports Large Losses, Restructures Portfolio

Claros Mortgage Trust reported a GAAP net loss of $219.2 million for the fourth quarter and $489.1 million for full-year 2025, reflecting significant credit provisioning and stress across parts of its transitional commercial real estate loan book. The REIT also posted distributable loss for both periods, as it increased CECL reserves to $443.1 million, or about 10.9% of unpaid principal balance, while its book value stood at $10.69 per share at year-end.

Operationally, the company accelerated balance-sheet cleanup in 2025 by resolving 21 loans totaling $2.5 billion in unpaid principal balance and reducing net financings outstanding by $1.7 billion through deleveraging payments. Subsequent to year-end, Claros resolved an additional four loans totaling $388.7 million, cut its watchlist loans by 45% from the prior year-end, refinanced its secured term loan with a new $500 million facility maturing in 2030, and modestly improved liquidity, moves management says support its ongoing portfolio repositioning strategy.

The most recent analyst rating on (CMTG) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Claros Mortgage Trust stock, see the CMTG Stock Forecast page.

Claros Mortgage Trust Adds Veteran Independent Director to Board

On February 5, 2026, Claros Mortgage Trust disclosed that director Vincent Tese will retire from its board at the end of his current term and will not stand for re-election at the 2026 annual shareholders meeting, with the company emphasizing that his departure reflects personal retirement plans and not any dispute over operations or governance. The board expressed appreciation for his service and signaled a planned transition in its composition following the meeting.

On February 9, 2026, the board elected veteran real estate investor Denise Olsen as an independent director effective March 2, 2026, temporarily expanding the board to ten members until Tese’s term concludes, when it will revert to nine. Olsen, who will also join the audit committee and receive standard cash and equity-based director compensation, brings more than three decades of experience in public and private real estate, bolstering the company’s governance and sector expertise for shareholders.

The most recent analyst rating on (CMTG) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Claros Mortgage Trust stock, see the CMTG Stock Forecast page.

Claros Mortgage Trust Secures New $500 Million Loan

On January 30, 2026, Claros Mortgage Trust, Inc. entered into a new secured term loan credit facility totaling $500 million with investment funds and accounts managed by HPS Investment Partners, LLC, bearing interest at SOFR plus 6.75% and maturing in 2030. The company used the proceeds, together with cash on hand, to fully repay its existing $556.2 million Term Loan B that was scheduled to mature on August 9, 2026, aligning financial covenants across its facilities and issuing 10-year detachable warrants to HPS-managed lenders to purchase 7,542,227 common shares at a premium exercise price of $4.00 per share. The new facility introduces detailed leverage, net worth and interest coverage covenants, allows for additional term loans at lenders’ discretion, and provides lenders with governance rights including board observers and, upon a material event of default, automatic board seats and a restructuring committee empowered to review and recommend on the status of the external manager. On January 30, 2026, the board also adopted amended and restated bylaws to embed these governance arrangements, including restrictions on altering the observer and related governance rights without lender consent while any indebtedness under the new credit agreement remains outstanding, a package that collectively extends debt maturities, stabilizes the capital structure, and potentially reshapes oversight in stressed scenarios.

The most recent analyst rating on (CMTG) stock is a Sell with a $3.00 price target. To see the full list of analyst forecasts on Claros Mortgage Trust stock, see the CMTG Stock Forecast page.