Commercial real estate lender Ladder Capital (NYSE: LADR) missed Wall Street’s revenue expectations in Q3 CY2025, with sales falling 15.4% year on year to $57.48 million. Its non-GAAP profit of $0.25 per share was 8.7% above analysts’ consensus estimates.

Is now the time to buy Ladder Capital? Find out by accessing our full research report, it’s free for active Edge members.

Company Overview

Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE: LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.

Sales Growth

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, Ladder Capital grew its revenue at an impressive 10% compounded annual growth rate. Its growth beat the average banking company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Ladder Capital’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 15.4% over the last two years. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Ladder Capital missed Wall Street’s estimates and reported a rather uninspiring 15.4% year-on-year revenue decline, generating $57.48 million of revenue.

Net interest income made up 32.9% of the company’s total revenue during the last five years, meaning Ladder Capital is well diversified and has a variety of income streams driving its overall growth. Nevertheless, net interest income is critical to analyze for banks because they’re considered a higher-quality, more recurring revenue source by investors.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

Key Takeaways from Ladder Capital’s Q3 Results

We were impressed by how significantly Ladder Capital blew past analysts’ net interest income expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its revenue slightly missed. Overall, this print had some key positives. Investors were likely hoping for more, and shares traded down 4% to $10.55 immediately following the results.

Big picture, is Ladder Capital a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.