The RMR Group Inc. (RMR)
NASDAQ:RMR
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The RMR Group
(NASDAQ:RMR)
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Rating:64Neutral
Price Target:
$16.50
▲(0.67% Upside)
Action:ReiteratedDate:04/03/26
The score is driven primarily by stable-but-mixed financial performance (solid cash generation but declining revenue and higher leverage). Valuation is a clear positive (low P/E and high yield), while technical indicators are a notable drag due to weak momentum. Earnings call factors are moderately positive on liquidity and execution, but tempered by guidance-driven near-term earnings/revenue pressure and OPI bankruptcy uncertainty.
Positive Factors
Durable fee contracts & high margins
Long-dated, evergreen management contracts create predictable recurring fee streams and reduce revenue volatility versus transaction-heavy models. Coupled with adjusted EBITDA margins north of 40%, this supports durable cash conversion and stable fee economics that can underpin returns and dividend coverage over multiple years.
Negative Factors
Declining recurring service revenue
A multi-quarter decline in recurring management fees signals fading organic fee base from contract wind‑downs and client deleveraging. Persisting lower recurring revenues compress long-term fee scalability, making growth more dependent on private capital deployment and transactional activity to restore top-line momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable fee contracts & high margins
Long-dated, evergreen management contracts create predictable recurring fee streams and reduce revenue volatility versus transaction-heavy models. Coupled with adjusted EBITDA margins north of 40%, this supports durable cash conversion and stable fee economics that can underpin returns and dividend coverage over multiple years.
Read all positive factors
The RMR Group (RMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$525.43M
Dividend Yield11.98%
Average Volume (3M)122.03K
Price to Earnings (P/E)5.1
Beta (1Y)0.67
Revenue Growth-21.98%
EPS Growth-25.08%
CountryUS
Employees1,000
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.20
Shares Outstanding16,058,178
10 Day Avg. Volume114,878
30 Day Avg. Volume122,035
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)1.15
Price to Sales (P/S)0.37
P/FCF Ratio3.63
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit1.13
Enterprise Value/Ebitda7.84
Forecast
1Y Price Target
$21.00Price Target Upside28.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.75
Revenue Forecast (FY)$730.40M
The RMR Group Business Overview & Revenue Model
Company Description
The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States. The company provides management services to its four publicly traded real estate investment trusts and three re...
How the Company Makes Money
RMR primarily makes money by earning contractual fees for managing real estate assets and providing management services to client companies. Its revenue model is largely fee-based and typically includes: (1) Base management fees: recurring fees pa...
The RMR Group Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call reported several meaningful strategic wins — notably strong incentive fee receipts ($23.6M), material asset sales and deleveraging across client REITs, significant refinancing actions, robust leasing performance (+13% on rental rates) and a solid liquidity position (~$150M). The company is proactively building private capital capabilities (multifamily focus) and Seven Hills’ capital raise and loan pipeline support future growth. Near-term headwinds include sequential declines in recurring service revenues (~$2.5M), the wind-down of AlerisLife, Q2 guidance showing lower adjusted net income (midpoint roughly 35% lower), ongoing OPI bankruptcy uncertainty and some GAAP drag from wholly owned assets. Overall, the positive operational results, balance sheet improvements and liquidity buffer outweigh the near-term revenue and earnings pressures, supporting a constructive outlook while acknowledging short-term headwinds.Positive Updates
Beat Guidance on Key Profitability Metrics
Distributable earnings of $0.47 per share, adjusted net income of $0.20 per share and adjusted EBITDA of $19.5 million — all exceeded or were at the high end of guidance for the quarter.
Negative Updates
Sequential Decline in Recurring Service Revenues
Recurring service revenues were approximately $43 million, a sequential quarter decrease of approximately $2.5 million driven primarily by the wind down of AlerisLife and decreases in SVC enterprise value as hotel sale proceeds repaid debt; revenues are expected to decline further to ~ $41 million next quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Beat Guidance on Key Profitability Metrics
Distributable earnings of $0.47 per share, adjusted net income of $0.20 per share and adjusted EBITDA of $19.5 million — all exceeded or were at the high end of guidance for the quarter.
Read all positive updates
Company Guidance
RMR guided next-quarter adjusted EBITDA of approximately $17 million to $19 million, distributable earnings of $0.41–$0.43 per share and adjusted net income of $0.12–$0.14 per share, based on expected recurring service revenues of about $41 million (down from ~$43M this quarter) driven by lower construction supervision fees, the wind‑down of AlerisLife (which contributed ~$400k this quarter), and reduced management fees as clients repay debt; they also expect an ~$800k increase in quarterly adjusted EBITDA beginning next quarter from higher Seven Hills dividends. Recurring cash compensation is expected to remain at or slightly below $37.4 million with a ~45% cash compensation reimbursement rate (vs. 46% this quarter), recurring G&A roughly $10.5 million (excluding annual director grants), interest expense near the current ~$2.6 million level, and a modeled tax rate rising to ~17% (from 14.8% this quarter). RMR noted it ended the quarter with nearly $150 million of liquidity (~$50M cash and $100M revolver capacity) bolstered by $23.6 million of incentive fees collected in January.The RMR Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 661.23M | 700.28M | 897.61M | 962.32M | 832.50M | 607.24M |
| Gross Profit | 557.02M | 538.56M | 288.46M | 305.92M | 263.74M | 237.20M |
| EBITDA | 80.50M | 61.30M | 69.94M | 150.64M | 91.69M | 78.57M |
| Net Income | 23.41M | 17.60M | 23.13M | 57.15M | 34.00M | 35.70M |
Balance Sheet | ||||||
| Total Assets | 687.12M | 718.25M | 700.49M | 582.42M | 542.40M | 497.91M |
| Cash, Cash Equivalents and Short-Term Investments | 49.31M | 62.30M | 141.60M | 267.99M | 189.09M | 159.84M |
| Total Debt | 158.23M | 204.04M | 114.31M | 30.11M | 30.32M | 34.07M |
| Total Liabilities | 272.28M | 316.23M | 281.08M | 158.76M | 172.67M | 150.20M |
| Stockholders Equity | 232.70M | 227.66M | 237.57M | 240.07M | 206.62M | 195.12M |
Cash Flow | ||||||
| Free Cash Flow | 58.23M | 72.10M | 57.51M | 105.23M | 100.15M | 70.65M |
| Operating Cash Flow | 61.46M | 75.75M | 61.38M | 109.22M | 101.27M | 71.79M |
| Investing Cash Flow | -144.37M | -183.86M | -209.84M | 49.50M | -10.59M | -1.14M |
| Financing Cash Flow | -15.36M | 28.81M | 22.07M | -79.81M | -61.43M | -280.48M |
The RMR Group Technical Analysis
Positive
16.39
Price Trends
16.28
Positive
15.70
Positive
15.49
Positive
Market Momentum
-0.04
Negative
58.71
Neutral
91.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMR, the sentiment is Positive. The current price of 16.39 is above the 20-day moving average (MA) of 15.81, above the 50-day MA of 16.28, and above the 200-day MA of 15.49, indicating a bullish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 58.71 is Neutral, neither overbought nor oversold. The STOCH value of 91.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMR.
The RMR Group Risk Analysis
The RMR Group disclosed 2 risk factors in its most recent earnings report. The RMR Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The RMR Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $525.43M | 5.12 | 10.11% | 11.98% | -21.98% | -25.08% | |
61 Neutral | $997.41M | -556.71 | -1.09% | 1.80% | 20.74% | 78.92% | |
60 Neutral | $3.06B | 42.44 | 4.65% | ― | 6.77% | 150.72% | |
56 Neutral | $2.79B | 24.52 | 8.82% | 0.68% | 22.22% | 94.52% | |
51 Neutral | $1.51B | 283.77 | 0.30% | 4.96% | -3.75% | 90.10% |
* Real Estate Sector Average
RMR
The RMR Group
16.39
2.70
19.68%
KW
Kennedy-Wilson
10.90
4.48
69.65%
MMI
Marcus & Millichap
26.20
-4.72
-15.26%
NMRK
Newmark Group
15.15
4.53
42.63%
CWK
Cushman & Wakefield
13.22
4.95
59.85%
The RMR Group Corporate Events
Business Operations and StrategyFinancial Disclosures
RMR Highlights Growth Potential in Updated Investor Presentation
Positive
Apr 2, 2026
On April 2, 2026, The RMR Group published an updated investor presentation outlining its diversified revenue base, durable 20-year evergreen contracts, strong adjusted EBITDA margins above 40% and growing dividend track record, positioning the com...
Executive/Board ChangesShareholder Meetings
The RMR Group Shareholders Approve Directors and Governance Items
Positive
Mar 26, 2026
At its annual meeting of shareholders held on March 26, 2026, The RMR Group’s investors elected six directors to the board for terms running until the 2027 annual meeting, with each nominee receiving strong majority support and only modest w...
Executive/Board Changes
The RMR Group Announces Executive Leadership Retirement Agreement
Neutral
Jan 12, 2026
On January 12, 2026, The RMR Group LLC and Sonesta International Hotels Corporation entered into a retirement agreement with John G. Murray, under which he will remain executive vice president of RMR LLC and president, chief executive officer and ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.