Beeline Holdings Inc. (BLNE:NASDAQ) reported revenues of US$1.7 million in its financial results for the second quarter of 2025, excluding its discontinued spirits division, which is approximately in line with Landenburg Thalmann's forecast of US$1.88 million, also excluding spirits, noted firm Analyst Glenn Matson in an updated research note on August 19.
The mortgage origination segment performed strongly, with loan sales increasing by US$300,000 sequentially, a 36% rise, and title fees reaching US$405,000 compared to the firm's estimate of US$382,000. The adjusted EBITDA was a negative US$2.8 million, which was better than the projected negative US$3 million, as expenses were controlled effectively.
"We expect further gains from cost reductions that will flow through by the end of 3Q:25," the analyst wrote.
Possible Surge in Demand?
The cash-out equity offering is a distinctive product that could experience a surge in demand. This offering is unique because it is not linked to interest rates and provides an appealing option for homeowners who do not want a second mortgage or a reverse mortgage. It allows homeowners to sell a portion of their home for immediate cash.
Beeline has established the necessary infrastructure for this offering and will serve as a broker between the homeowner and the asset acquirer, earning a fee for this service. The acquirer will be a third-party stable coin issuer. There is potentially strong demand; Beeline's management mentioned a backlog of potential interest originating from its own mortgage business, Matson wrote.
The transaction fee is expected to be around 3% of the transaction size, which could significantly boost revenue with high profit margins. Additionally, this will contribute to further growth in title revenue. Although the product was initially planned to launch in the summer, it has been postponed to October to ensure compliance with the recently passed Genius Act.
Sector Expanding, Despite Challenging Conditions
Despite challenging market conditions, the mortgage origination business is expanding, Matson noted. Home sales and refinancing are at multi-decade lows, yet Beeline is experiencing growth by concentrating on non-QM loans for the increasing number of younger professionals who often have more variable income streams and may not qualify for a standard QM loan.
The company also offers technology solutions that enhance lead generation and expedite the home loan origination process. These products are now being offered to third-party mortgage brokers, providing another potential high-margin revenue source.
Matson said in his firm's model, they removed the spirits business since the company has exited that segment. Previously, they had included US$1.3 million for spirits in the 2025 model. The only other change to the top line is the delay in the Cash-out Equity revenue stream, as the full launch has been postponed to October.
The firm still anticipate transactions in the third quarter, although the ramp-up is delayed by about one quarter from earlier expectations, Mattson wrote.
"The result is our new revenue forecast of US$8.2 million," the analyst wrote. "For 2026, our top line falls to US$27.1 million for the same reasons. That said, we note that lower interest rates (as the Fed has signaled) and/or faster acceptance of the equity product, could both lead to significant potential upside to our model."
Analyst Projects Positive Adjusted EBITDA
Current expenses can support much higher revenue levels, the analyst said. Therefore, he said Landenburg Thalmann expects Beeline to achieve positive adjusted EBITDA in the first quarter of 2026 and significant profitability for the fiscal year 2025.
The analyst maintained a Buy rating on the stock with a US$4.50 per share price target, a more than 175% increase from the price at the time of writing.
"We use a set of peers in the real-estate technology sector to determine a market multiple of 3.1x revenue, applied to our 2026 estimate to determine our PT and our Buy rating," the analyst noted.
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Important Disclosures:
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Beeline Holdings Inc.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for Landenburg Thalmann, Beeline Holdings, August 19, 2025:
ANALYST CERTIFICATION: I, Glenn G. Mattson, attest that the views expressed in this research report accurately reflect my personal views about the subject security and issuer. Furthermore, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report, provided, however, that:
The research analyst primarily responsible for the preparation of this research report has or will receive compensation based upon various factors, including the volume of trading at the firm in the subject security, as well as the firm’s total revenues, a portion of which is generated by investment banking activities.
Additional information regarding the contents of this publication will be furnished upon request. Please contact Ladenburg Thalmann, Compliance Department, 640 Fifth Avenue, 4th floor, New York, New York 10019 (or call 212-409-2000) for any information regarding current disclosures, and where applicable, relevant price charts, in regard to companies that are the subject of this research report.
COMPANY BACKGROUND: Beeline Holdings, Inc. is an independent mortgage broker which is expanding into new offerings such as AI software and new products such as cash out equity offerings for homeowners.
VALUATION METHODOLOGY: We use a peer multiple applied to our out year forecast to determine our $4.50 price target.
RISKS: In addition to normal economic and market risk factors that impact most all equities, we believe that the primary risks to our recommendation and price target of an investment in Beeline Holdings, Inc. shares include, but are not limited to:
Financial Risks Related to the Company: Because there is substantial doubt as to the company’s ability to continue as a going concern, Beeline's ability to continue Beeline's operations is in doubt unless Beeline can access sufficient working capital within the timeframe needed. Beeline has a history of continued operating losses, and Beeline may not become profitable in future periods.
Risks Related to Beeline’s Mortgage Lending Business: Because Beeline depends on third party partners and vendors to maintain and grow its business, the loss of some or all of these third parties may have a material adverse effect on its results of operations. Beeline is also subject to regulatory risks associated with all of the above relationships, including changes in law or interpretations of law that could result in increased scrutiny of these relationships, require restructuring of these relationships, and/or diminish the value of these relationships.
Because Beeline depends on its ability to sell loans and MSRs in the secondary market to a limited number of loan purchasers and to secondary market participants for each relevant product, its ability to originate loans and offer related mortgage service rights would be materially and adversely affected, if its ability to sell loans and mortgage service rights became impaired.
Because Beeline relies on the secondary mortgage market for loan sales, an economic downturn or other adverse market trends or development could halt or limit its ability to sell its loans and lend money to future borrowers.
Beeline's mortgage business faces intense competition that could materially and adversely affect it if it cannot adequately address competitive challenges.
Beeline's loans to customers originated outside of GSE guidelines or the guidelines of the Federal Housing Authority or Veterans Administration
involve a high degree of business and financial risk, which can result in substantial losses to Beeline.
Because Beeline relies on highly-skilled personnel with knowledge of the mortgage industry, the loss of key personnel which may negatively impact its business.
If Beeline encounter material fraud, it could result in significant financial losses and harm to Beeline's reputation. There can be no assurance that any increased marketing and advertising spend to maintain and increase the number of visitors directed to
Beeline's website will be effective. The company’s business is subject to underwriting limitations and the potential of mortgage defaults.
A majority of the company’s loan originations have been Non-QM loans. Accordingly, there may be more risk of non-payment, especially if the real estate rental market collapses and rents decrease or rental vacancies increase.
Because Beeline relies on indebtedness to fund Beeline's mortgage operations and growth objectives, its future results of operations and financial condition are subject to numerous risks arising from its incurring this indebtedness.
Borrowings under the warehouse lines of credit are at variable rates of interest, which also expose Beeline to interest rate risk. Beeline's ability to comply with the terms and conditions of Beeline's debt may be affected by events beyond Beeline's control, and if Beeline are unable to meet or maintain the necessary covenant requirements or satisfy, or obtain waivers for, the covenants, Beeline may lose the ability to borrow under all of Beeline's debt facilities, which could materially and adversely affect Beeline's business. If Beeline are unable to access or utilize the warehouse lines of credit in the future, Beeline will be unable to fund loans and thus continue its business operations as a lender and would need to act as a broker on all loans it originates or completely discontinue operations. If Beeline originate loans ineligible for warehouse funding or experience increases in buybacks, Beeline's loan advance rates may be negatively impacted which may present a liquidity risk.
Beeline’s mortgage lending business relies on technology infrastructure, which exposes Beeline to cybersecurity and technology infrastructure risks. Beeline are dependent on the secure, efficient, and uninterrupted operation of Beeline's technology infrastructure, including computer systems, and related software applications, as well as those of certain third parties. Its website and computer/telecommunication networks must accommodate a high volume of traffic and deliver frequently updated information, the accuracy and timeliness of which is critical to its business. If the company is not able to protect the privacy, use, and security of customer information, it could sustain damages that may have a material adverse effect on its business, financial condition and results of operations. Beeline’s Mortgage Regulatory Risks: Beeline’s mortgage business is a heavily regulated industry, and its business operations expose it to risks of noncompliance with a large and increasing body of complex mortgage and lending laws and regulations at the federal and state levels. Changes in GSEs and other applicable government programs could negatively impact Beeline’s business operations.
Beeline’s business model and competitive edge requires the use of AI and various technologies to process loans and service its customers. While there is currently no federal legislation regarding AI, it is possible that new federal legislation regarding AI may be adopted, which could negatively impact Beeline’s business operations.
In addition, the emergent nature of AI presents numerous risks and uncertainties, including the potential for defects in the design and development of the technologies used to automate processes.
Since the lending laws and regulations to which Beeline is subject are constantly evolving, its compliance costs continue to increase. Beeline must maintain adequate terms from Beeline's supply partner Agaveros Unidos de Amatitan, SA. de CV, which if not done, will likely result in deteriorating performance of Beeline's Azuñia brand.
Failure of Beeline's distributors to distribute Beeline's products adequately within their territories or any “under-investment” by Beeline's distributors in Beeline's brands could result in deteriorating operating performance.
Risks Relating to Beeline's Common Stock: The market price of Beeline's shares of common stock is subject to volatility, which could result in substantial losses to investors. A failure to maintain Beeline's Nasdaq listing could negatively impact Beeline's future capital-raising abilities. The sale or issuance of Beeline's Common Stock under the ELOC and other financing transactions could cause dilution to existing holders. An active trading market for Beeline's common stock may not develop. Beeline's failure to maintain effective disclosure controls and internal controls over financial reporting could have an adverse impact on Beeline.
Beeline is required to establish and maintain appropriate disclosure controls and internal controls over financial reporting. Beeline's Board may authorize and issue shares of new series of preferred stock that could be superior to or adversely affect current holders of Beeline's common stock. From time to time, the company is a party to, or otherwise involved in, legal proceedings arising in the normal course of business. As of the date of this report, the company is not aware of any pending legal proceedings to which the company or any of its subsidiaries is a party.
COMPANY SPECIFIC DISCLOSURES:
Ladenburg Thalmann & Co. Inc. intends to seek compensation for investment banking and/or advisory services from Beeline Holdings, Inc.
within the next 3 months.
Ladenburg Thalmann & Co. Inc received compensation for investment banking services from Beeline Holdings, Inc. within the past 12 months.
Ladenburg Thalmann & Co. Inc had an investment banking relationship with Beeline Holdings, Inc. within the last 12 months.
Ladenburg Thalmann & Co. Inc. served as exclusive sales agent in a securities offering for the subject company in the last 12 months.
GENERAL DISCLAIMERS: Information and opinions presented in this report have been obtained or derived from sources believed by Ladenburg Thalmann & Co. Inc. to be reliable. The opinions, estimates and projections contained in this report are those of Ladenburg Thalmann as of the date of this report and are subject to change without notice.
Ladenburg Thalmann & Co. Inc. accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Ladenburg Thalmann & Co. Inc. This report is not to be relied upon in substitution for the exercise of independent judgment. Ladenburg Thalmann & Co. Inc. may have issued, and may in the future issue, other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect the different assumptions, views and analytical methods of the analysts who prepared them and Ladenburg Thalmann & Co. Inc. is under no obligation to ensure that such other reports are brought to the attention of any recipient of this report. Investors should consider this report as only a single factor in making their investment decisions.
Some companies that Ladenburg Thalmann & Co. Inc. follows are emerging growth companies whose securities typically involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Ladenburg Thalmann & Co. Inc. research reports may not be suitable for some investors. Investors must make their own determination as to the appropriateness of an investment in any securities referred to herein, based on their specific investment objectives, financial status and risk tolerance. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. The price, value of and income from any of the securities mentioned in this report can fall as well as rise. The value of securities is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities. Investors in securities such as ADRs, the values of which are influenced by currency volatility, effectively assume this risk. Securities recommended, offered or sold by Ladenburg Thalmann & Co. Inc. (1) are not insured by the Federal Deposit Insurance Company; (2) are not deposits or other obligations of any insured depository institution; and (3) are subject to investment risks, including the possible loss of some or all of principal invested. Indeed, in the case of some investments, the potential losses may exceed the amount of initial investment and, in such circumstances; you may be required to pay more money to support these losses.
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