Revenue growth of 16.8% in 2026Q1 is overshadowed by a sharp gross margin contraction to -13.1%, indicating that rising operating expenses are severely pressuring profitability.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 92.67M | 89.2M | 80.53M | 74.48M | 68.29M | 62.64M | 62.1M | 60.48M | 58.01M | 52.83M | 49.56M | 45.48M | 42.63M | 38.36M | 35.63M | 34.04M | 33.17M | 33.23M | 32.3M | 31.63M | 32.12M | 31.75M | 30.87M | 31.09M | 29.27M | 28.02M | 25.83M | 20.28M | 18.45M | 17.51M | 16.63M |
| Revenue Growth % | 13.94% | 10.76% | 8.12% | 9.06% | 9.03% | 0.86% | 2.69% | 4.25% | 9.82% | 6.6% | 8.96% | 6.68% | 11.12% | 7.67% | 4.69% | 2.62% | -0.21% | 2.9% | 2.12% | -1.53% | 1.17% | 2.85% | -0.73% | 6.21% | 4.47% | 8.46% | 27.4% | 9.92% | 5.37% | 5.24% | 33.51% |
| Cost of Goods Sold | 66.4M | 74.6M | 26.29M | 26.27M | 23.14M | 21.54M | 8.78M | 19.39M | 9.19M | 8.38M | 8.26M | 7M | 6.61M | 5.82M | 5.18M | 4.45M | 4.47M | 4.59M | 4.75M | 4.62M | 4.4M | 4.59M | 4.03M | 3.65M | 2.82M | 2.73M | 2.61M | 2.19M | 2.2M | 0 | 0 |
| COGS % of Revenue | - | 83.63% | 32.65% | 35.27% | 33.88% | 34.38% | 14.14% | 32.06% | 15.84% | 15.86% | 16.66% | 15.39% | 15.5% | 15.16% | 14.54% | 13.06% | 13.48% | 13.81% | 14.7% | 14.6% | 13.69% | 14.47% | 13.06% | 11.73% | 9.65% | 9.76% | 10.12% | 10.78% | 11.92% | - | - |
| Gross Profit | 26.27M | 14.6M | 54.24M | 48.21M | 45.16M | 41.1M | 53.32M | 41.09M | 48.83M | 44.45M | 41.3M | 38.48M | 36.02M | 32.55M | 30.45M | 29.59M | 28.7M | 28.64M | 27.55M | 27.01M | 27.72M | 27.15M | 26.83M | 27.45M | 26.45M | 25.29M | 23.22M | 18.09M | 16.25M | 17.51M | 16.63M |
| Gross Margin % | 28.35% | 16.37% | 67.35% | 64.73% | 66.12% | 65.62% | 85.86% | 67.94% | 84.16% | 84.14% | 83.34% | 84.61% | 84.5% | 84.84% | 85.46% | 86.94% | 86.52% | 86.19% | 85.3% | 85.4% | 86.31% | 85.53% | 86.94% | 88.27% | 90.35% | 90.24% | 89.88% | 89.22% | 88.08% | 100% | 100% |
| Gross Profit Growth % | - | -73.08% | 12.5% | 6.77% | 9.86% | -22.91% | 29.78% | -15.85% | 9.85% | 7.63% | 7.31% | 6.82% | 10.68% | 6.88% | 2.92% | 3.11% | 0.18% | 3.97% | 2.01% | -2.57% | 2.09% | 1.19% | -2.23% | 3.77% | 4.6% | 8.9% | 28.34% | 11.34% | -7.18% | 5.24% | 33.51% |
| Operating Expenses | 9.26M | -7.15M | 28.87M | 28.43M | 27.07M | 26.86M | 38.35M | 23.81M | 33.91M | 30.3M | 28.04M | 25.77M | 25.12M | 21.42M | 17.53M | 18.23M | 18.01M | 17.48M | 17.77M | 18.55M | 19M | 17.67M | 17.24M | 15.95M | 13.62M | 13.37M | 12.79M | 10.63M | 9.83M | 16.38M | 15.91M |
| OpEx % of Revenue | - | -8.02% | 35.85% | 38.17% | 39.64% | 42.88% | 61.76% | 39.38% | 58.45% | 57.36% | 56.58% | 56.66% | 58.93% | 55.83% | 49.2% | 53.55% | 54.3% | 52.58% | 55.01% | 58.66% | 59.15% | 55.66% | 55.85% | 51.29% | 46.51% | 47.71% | 49.51% | 52.44% | 53.27% | 93.58% | 95.64% |
| Selling, General & Admin | 2.28M | 0 | 4.08M | 3.91M | 3.37M | 3.72M | 3.07M | 3.45M | 2.98M | 2.64M | 2.74M | 2.58M | 2.64M | 2.32M | 2.01M | 8.17M | 8.2M | 7.95M | 7.93M | 2.9M | 2.74M | 2.63M | 2.62M | 2.74M | 2.6M | 2.52M | 2.32M | 2.01M | 1.83M | 1.73M | 1.55M |
| SG&A % of Revenue | - | - | 5.07% | 5.24% | 4.94% | 5.94% | 4.95% | 5.7% | 5.14% | 5% | 5.53% | 5.68% | 6.19% | 6.05% | 5.64% | 24% | 24.74% | 23.93% | 24.54% | 9.16% | 8.53% | 8.27% | 8.49% | 8.82% | 8.89% | 9% | 8.98% | 9.93% | 9.9% | 9.88% | 9.34% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 17.01M | 21.75M | 25.37M | 19.79M | 18.09M | 14.24M | 14.97M | 17.27M | 14.92M | 14.14M | 13.26M | 12.71M | 10.9M | 11.13M | 12.92M | 11.36M | 10.69M | 11.17M | 9.78M | 8.46M | 8.72M | 9.48M | 9.6M | 11.5M | 12.83M | 6M | 4.4M | 2.87M | 1.99M | 1.12M | 725.65K |
| Operating Margin % | 18.36% | 24.38% | 31.5% | 26.57% | 26.49% | 22.74% | 24.1% | 28.56% | 25.72% | 26.78% | 26.76% | 27.95% | 25.57% | 29.01% | 36.26% | 33.39% | 32.23% | 33.61% | 30.29% | 26.74% | 27.16% | 29.88% | 31.09% | 36.98% | 43.84% | 21.41% | 17.03% | 14.16% | 10.76% | 6.42% | 4.36% |
| Operating Income Growth % | - | -14.28% | 28.23% | 9.39% | 27% | -4.85% | -13.33% | 15.78% | 5.47% | 6.67% | 4.31% | 16.59% | -2.06% | -13.86% | 13.7% | 6.33% | -4.31% | 14.17% | 15.69% | -3.04% | -8.04% | -1.17% | -16.54% | -10.39% | 113.95% | 36.33% | 53.21% | 44.61% | 76.72% | 54.85% | 123.29% |
| EBITDA | 44.34M | 23.28B | 42.35M | 36.56M | 34.46M | 30.91M | 33.38M | 31.96M | 70.4M | 63.94M | 49.56M | 23.45M | 21.45M | 19.51M | 19.01M | 17.31M | 16.31M | 17.01M | 16.25M | 15.44M | 15.54M | 15.91M | 15.75M | 16.76M | 17.27M | 10.3M | 8.9M | 6.45M | 5.32M | 4.36M | 3.78M |
| EBITDA Margin % | 47.84% | 26105.06% | 52.59% | 49.08% | 50.46% | 49.35% | 53.75% | 52.84% | 121.36% | 121.04% | 100% | 51.55% | 50.32% | 50.86% | 53.36% | 50.85% | 49.18% | 51.18% | 50.31% | 48.82% | 48.39% | 50.13% | 51.04% | 53.89% | 59% | 36.78% | 34.44% | 31.78% | 28.86% | 24.92% | 22.73% |
| EBITDA Growth % | 4.28% | 54875.88% | 15.85% | 6.09% | 11.48% | -7.39% | 4.46% | -54.61% | 10.11% | 29.03% | 111.36% | 9.28% | 9.96% | 2.61% | 9.88% | 6.1% | -4.1% | 4.67% | 5.23% | -0.65% | -2.34% | 1.02% | -5.98% | -2.98% | 67.59% | 15.83% | 38.03% | 21.05% | 22.05% | 15.38% | 587.17% |
| D&A (Non-Cash Add-back) | 27.32M | 23.26B | 16.98M | 16.77M | 16.37M | 16.67M | 18.41M | 14.68M | 55.49M | 49.8M | 36.3M | 10.73M | 10.55M | 8.38M | 6.09M | 5.94M | 5.62M | 5.84M | 6.47M | 6.98M | 6.82M | 6.43M | 6.16M | 5.26M | 4.44M | 4.31M | 4.5M | 3.57M | 3.34M | 3.24M | 3.06M |
| EBIT | 18.84M | 24.62M | 31.12M | 24.18M | 18.77M | 10.93M | 14.97M | 18.75M | 16.56M | 18.05M | 15.15M | 13.75M | 1.35M | 11.13M | 11.3M | 9.34M | 6.47M | 11.17M | 9.78M | 8.67M | 8.43M | 9.12M | 30.14M | 29.95M | 43.66M | 26.98M | 38.75M | 7.46M | 6.42M | 5.64M | 725.65K |
| Net Interest Income | -5.42B | -16.79M | -10.99M | -11.24M | -13.99M | -13.63M | -13.71M | -12.2M | -12.39M | -11.11M | -10.2M | -9.98M | -9.74M | -8.01M | -7.69M | -7.85M | -8.05M | -7.89M | -7.53M | -6.96M | -7.31M | -7.57M | -7.49M | -7.29M | -6.29M | -5.92M | 424.76K | 0 | -4.43M | 0 | -4.54M |
| Interest Income | 37.86M | 1.8M | 4.47M | 4.49M | 1.06M | 87 | 195 | 607 | 344 | 1.28K | 1.02K | 1.6K | 753 | 1.12K | 2.22K | 3.86K | 5.93K | 48.95K | 172.13K | 382.15K | 433.92K | 224.35K | 216.15K | 202.12K | 275.69K | 605.14K | 424.76K | 0 | 171.44K | 0 | 156.13K |
| Interest Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | -1.67M | 6.03M | 15.66M | 8.45M | 3.72M | -2.7M | 1.42M | 6.55M | 4.17M | 6.94M | 4.95M | 3.77M | 1.02M | 1.96M | 3.63M | 9.29B | -1.36B | 6.58B | 6.58B | 1.19B | 9.46B | 9.46B | 1.61B | 2.77B | 7.83B | 6.04M | 6.97M | 3.29M | 2.05M | 1.14M | 756.3K |
| Pretax Margin % | -1.8% | 6.76% | 19.45% | 11.35% | 5.45% | -4.31% | 2.29% | 10.83% | 7.19% | 13.13% | 9.99% | 8.29% | 2.4% | 5.1% | 10.2% | 27298.71% | -4098.26% | 19803.86% | 20378.62% | 3752.42% | 29441.33% | 29786.12% | 5224.09% | 8906.02% | 26731.17% | 21.56% | 26.97% | 16.22% | 11.13% | 6.49% | 4.55% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.68M | 9.23M | 0 | 0 | 159.53K | 12.05M | 9.56M | 3.2M | 7.27M | 7.33M | 44.74K | 7.98M | 8.73M | 5.01M | 5.27M | 4.63M | 3.81M | 4.2M | -144.98K | -186.78K |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 283.04% | 900.41% | 0% | 0% | 0% | -0.89% | 0.15% | 0.05% | 0.61% | 0.08% | 0% | 0.5% | 0.32% | 0.06% | 87.23% | 66.44% | 115.8% | 204.38% | -12.77% | -24.7% |
| Net Income | -1.67M | 6.03M | 15.66M | 8.45M | 3.72M | -2.7M | 1.42M | 6.55M | 4.17M | 6.94M | 4.95M | 3.77M | 1.02M | 5.66M | 3.63M | 9.29M | -1.36M | 1.61M | 6.58M | 1.19M | 1.4M | 9.46M | 1.61M | 2.77M | 7.83M | 6.65M | 5.8M | 3.65M | 2.23M | 1.27M | 912.43K |
| Net Margin % | -1.8% | 6.76% | 19.45% | 11.35% | 5.45% | -4.31% | 2.29% | 10.83% | 7.19% | 13.13% | 9.99% | 8.29% | 2.4% | 14.74% | 10.2% | 27.3% | -4.1% | 4.85% | 20.38% | 3.75% | 4.37% | 29.79% | 5.22% | 8.91% | 26.73% | 23.72% | 22.45% | 17.99% | 12.06% | 7.25% | 5.49% |
| Net Income Growth % | -110.45% | -61.49% | 85.26% | 127.06% | 237.89% | -289.55% | -78.24% | 57.04% | -39.91% | 40.14% | 31.23% | 268.11% | -81.88% | 55.63% | -60.89% | 783.57% | -184.29% | -75.5% | 454.61% | -15.43% | -85.16% | 486.43% | -41.77% | -64.61% | 17.73% | 14.59% | 58.97% | 64% | 75.39% | 39.04% | 131.74% |
| Net Income (Continuing) | -1.67M | 6.03M | 15.66M | 8.45M | 3.72M | -2.7M | 1.42M | 6.55M | 4.17M | 6.94M | 4.95M | 3.77M | 1.02M | 1.96M | 3.63M | 1.48M | -1.58M | 1.61M | -3.41M | 1.19M | 1.4M | 3.27M | 1.7M | 2.87M | 6.76M | 6.44M | 5.65M | 3.65M | 2.2M | 1.27M | 912.43K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -797.1K | -742.74K | -626.88K | -654.38K | -600.19K | -491.51K | -413.28K | -376.83K | -354.83K | -351.75K | -340.84K | -306.87K | -272.86K | -218.16K | -224.93K | -212.94K | -269.03K | -213.16K | -177.17K | 80.63K | 116.59K | 151K | 104.87K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.48 | 1.72 | 4.46 | 2.38 | 1.03 | -0.74 | 0.39 | -1.94 | 1.11 | 1.84 | 1.31 | 0.99 | 0.26 | 1.44 | 0.91 | 0.78 | -0.11 | 0.13 | 0.53 | 0.08 | 0.09 | 0.60 | 0.10 | 0.18 | 0.50 | 0.42 | 0.37 | 0.23 | 0.14 | 0.08 | 0.06 |
| EPS Growth % | -110.55% | -61.43% | 87.39% | 131.07% | 239.19% | -289.74% | 120.1% | -274.77% | -39.67% | 40.46% | 32.32% | 280.77% | -81.94% | 58.24% | 16.67% | 809.09% | -184.62% | -75.47% | 597.37% | -14.7% | -85.15% | 500% | -44.44% | -64% | 19.05% | 13.51% | 60.87% | 64.29% | 74.35% | 41.12% | 110.54% |
| EPS (Basic) | - | 1.72 | 4.46 | 2.38 | 1.03 | -0.74 | 0.39 | -1.94 | 1.12 | 1.84 | 1.31 | 0.99 | 0.26 | 1.44 | 0.91 | 0.78 | -0.11 | 0.13 | 0.53 | 0.08 | 0.09 | 0.60 | 0.10 | 0.18 | 0.50 | 0.42 | 0.37 | 0.23 | 0.14 | 0.08 | 0.06 |
| Diluted Shares Outstanding | 3.49M | 3.5M | 3.54M | 3.59M | 3.61M | 3.65M | 3.65M | 3.67M | 3.77M | 3.77M | 3.79M | 3.83M | 3.9M | 3.94M | 3.98M | 11.95M | 11.97M | 12.09M | 12.52M | 15.62M | 15.75M | 15.75M | 15.75M | 15.75M | 15.75M | 15.75M | 15.75M | 15.86M | 15.84M | 15.8M | 16.05M |
| Basic Shares Outstanding | 3.49M | 3.5M | 3.54M | 3.59M | 3.61M | 3.65M | 3.65M | 3.67M | 3.73M | 3.73M | 3.75M | 3.79M | 3.86M | 3.9M | 3.94M | 11.95M | 11.97M | 12.09M | 12.52M | 15.62M | 15.75M | 15.75M | 15.75M | 15.75M | 15.75M | 15.75M | 15.75M | 15.75M | 15.75M | 15.8M | 16.05M |
| Dividend Payout Ratio | - | 278.44% | - | - | 248.92% | - | 328.23% | 71.74% | 107.41% | 115.1% | 135.93% | 100.35% | 376.48% | 68.85% | 108.22% | 39.62% | - | 230.31% | 59.53% | 403.05% | 345.16% | 51.22% | 291.79% | 183.65% | 56.59% | 46.06% | 43.83% | 62.57% | 63.75% | 120.43% | 131.49% |
Regulatory and Interest Rate Exposure
According to recent financial filings, NEN achieved a revenue growth rate of 10.76% year-over-year, reflecting strong pricing power within its core Boston-area residential portfolio despite broader macroeconomic headwinds that have pressured other regional real estate operators throughout the current fiscal period.
The acceleration in top-line growth suggests that the partnership's hyper-local density in high-barrier-to-entry submarkets like Brookline and Allston provides a durable demand floor. Investors should monitor whether this growth is sustainable or if it represents a temporary peak driven by localized supply constraints that may eventually invite regulatory intervention.
As reported in quarterly statements, NEN's gross margin experienced a sharp contraction to -13.1% in 2026Q1, a significant departure from the historical 60% range, suggesting that rising property-level operating expenses or non-cash charges are currently overwhelming the partnership's ability to maintain traditional profitability levels.
The sudden collapse in gross margins warrants further investigation into whether this reflects a permanent shift in maintenance costs or an accounting anomaly related to asset depreciation. The disparity between historical performance and recent figures implies that the partnership's cost structure may be more sensitive to inflationary pressures than previously assumed.
Based on the provided income statement data, NEN's operating income has failed to scale proportionally with revenue, as evidenced by the 2026Q1 operating margin of 6.2%, which sits well below the 30% levels observed in previous periods, indicating a potential loss of operational efficiency.
The inability to maintain operating margins suggests that fixed costs, such as property taxes and debt service, are consuming a larger share of revenue as the portfolio ages. This trend may indicate that the partnership is reaching a point where capital expenditure requirements are beginning to erode the benefits of its localized scale.
Data from the most recent quarterly filings reveals a net loss of $3.9 million in 2026Q1, which raises significant questions regarding the partnership's ability to sustain historical distribution levels while simultaneously managing the rising interest costs associated with its non-recourse mortgage debt portfolio.
Short-sellers would likely focus on the divergence between top-line growth and bottom-line losses, arguing that the current business model is becoming increasingly fragile. The reliance on legacy assets may mask underlying operational decay that could necessitate a reduction in capital returns to unit-holders if current trends persist.
Quick answers to the most common questions about buying NEN stock.
For fiscal year 2025, New England Realty Associates Limited Partnership (NEN) reported total revenue of $89.2M. This represents a 436.2% increase compared to $16.6M in 1996.
New England Realty Associates Limited Partnership (NEN) is profitable, generating $6.0M in net income for the fiscal year ending 2025 with a net profit margin of 6.8%.
New England Realty Associates Limited Partnership (NEN) reported an operating income of $21.7M, resulting in an operating profit margin of 24.4%. This margin reflects the operational efficiency of the business before interest and taxes.
New England Realty Associates Limited Partnership (NEN) generated $14.6M in gross profit for the year, representing a gross profit margin of 16.4%. This demonstrates the company's core pricing power and production efficiency.