Revenue has contracted for six consecutive quarters, declining 0.8% year-over-year in 2026Q3, while FFO per share surged 116.9% to $0.93, indicating a significant and potentially unsustainable shift in earnings composition away from core operations.
The RMR Group Inc. (RMR) annual income statement — 13-year revenue, gross profit & net income history
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 |
|---|
| Revenue | 638.98M | 700.28M | 897.61M | 962.32M | 832.5M | 607.24M | 589.5M | 713.37M | 404.98M | 271.73M | 266.94M | 192.94M | 285.05M | 259.99M |
| Revenue Growth % | -15.21% | -21.98% | -6.72% | 15.59% | 37.1% | 3.01% | -17.36% | 76.15% | 49.04% | 1.79% | 38.36% | -32.31% | 9.64% | - |
| Property Operating Expenses | 38.51M | 161.73M | 609.15M | 656.4M | 568.77M | 370.04M | 360.57M | 469.07M | 108.76M | 99.75M | 91.98M | 83.46M | 127.84M | 123.61M |
| Net Operating Income (NOI) | 600.47M | 538.56M | 288.46M | 305.92M | 263.74M | 237.2M | 228.93M | 244.3M | 296.22M | 171.97M | 174.96M | 109.48M | 157.21M | 136.38M |
| NOI Margin % | 93.97% | 76.91% | 32.14% | 31.79% | 31.68% | 39.06% | 38.83% | 34.25% | 73.14% | 63.29% | 65.54% | 56.74% | 55.15% | 52.46% |
| Operating Expenses | 445.73M | 496.77M | 243.48M | 192.19M | 175.37M | 165.11M | 160.19M | 38.76M | 39.3M | 27.23M | 26.9M | 28.65M | 140.4M | 168.54M |
| G&A Expenses | 166.17M | 42.5M | 224.72M | 184.86M | 172.93M | 158.63M | 155.73M | 37.75M | 38.05M | 25.19M | 25.13M | 26.54M | 21.96M | 20.14M |
| EBITDA | 59.52M | 53.33M | 49.69M | 114.83M | 89.36M | 73.06M | 69.71M | 717.37M | 378.57M | 262.54M | 261.49M | 82.83M | 16.92M | -29.76M |
| EBITDA Margin % | 9.32% | 7.62% | 5.54% | 11.93% | 10.73% | 12.03% | 11.82% | 100.56% | 93.48% | 96.62% | 97.96% | 42.93% | 5.94% | -11.45% |
| Depreciation & Amortization | 17.29M | 11.55M | 4.71M | 1.1M | 993K | 973K | 968K | 519.58M | 126.6M | 126.98M | 114.79M | 2.12M | 2.45M | 2.4M |
| D&A / Revenue % | 2.71% | 1.65% | 0.53% | 0.11% | 0.12% | 0.16% | 0.16% | 72.84% | 31.26% | 46.73% | 43% | 1.1% | 0.86% | 0.92% |
| Operating Income | 42.23M | 41.78M | 44.98M | 113.73M | 88.37M | 72.09M | 68.74M | 197.79M | 251.97M | 135.56M | 146.7M | 80.71M | 14.47M | -32.16M |
| Operating Margin % | 6.61% | 5.97% | 5.01% | 11.82% | 10.61% | 11.87% | 11.66% | 27.73% | 62.22% | 49.89% | 54.96% | 41.83% | 5.08% | -12.37% |
| Interest Expense | 0 | 3.4M | 783K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Coverage | - | 14.63x | 83.31x | - | - | - | - | - | - | - | - | - | - | - |
| Non-Operating Income | -1.75M | -7.97M | -20.25M | -35.81M | -2.33M | -5.51M | -3.5M | -7.75M | -5.43M | -9.19M | -3.32M | -5.57M | -2.33M | 0 |
| Pretax Income | 53.08M | 46.35M | 64.45M | 149.54M | 90.7M | 94.17M | 77.89M | 196.36M | 276.87M | 137.13M | 146.93M | 82.15M | 10.41M | -32.04M |
| Pretax Margin % | 8.31% | 6.62% | 7.18% | 15.54% | 10.89% | 15.51% | 13.21% | 27.53% | 68.37% | 50.46% | 55.04% | 42.58% | 3.65% | -12.33% |
| Income Tax | 5.42M | 7.67M | 11.32M | 21.77M | 13.23M | 13.15M | 11.55M | 27.32M | 58.86M | 28.25M | 24.57M | 4.85M | 280K | -80K |
| Effective Tax Rate % | 10.2% | 16.55% | 17.56% | 14.56% | 14.59% | 13.97% | 14.83% | 13.91% | 21.26% | 20.6% | 16.72% | 5.9% | 2.69% | 0.25% |
| Net Income | 27.8M | 17.6M | 23.13M | 57.15M | 34M | 35.7M | 28.79M | 169.04M | 96.04M | 42.29M | 37.24M | 7.3M | 10.29M | -31.82M |
| Net Margin % | 4.35% | 2.51% | 2.58% | 5.94% | 4.08% | 5.88% | 4.88% | 23.7% | 23.72% | 15.56% | 13.95% | 3.79% | 3.61% | -12.24% |
| Net Income Growth % | 42.42% | -23.93% | -59.53% | 68.06% | -4.74% | 23.98% | -82.97% | 76.01% | 127.08% | 13.57% | 409.93% | -29.05% | 132.34% | - |
| Funds From Operations (FFO) | 45.09M | 29.15M | 27.84M | 58.25M | 35M | 36.67M | 29.76M | 688.63M | 222.64M | 169.27M | 152.03M | 9.42M | 12.74M | -29.42M |
| FFO Margin % | 7.06% | 4.16% | 3.1% | 6.05% | 4.2% | 6.04% | 5.05% | 96.53% | 54.98% | 62.3% | 56.95% | 4.88% | 4.47% | -11.32% |
| FFO Growth % | 199.91% | 4.68% | -52.2% | 66.44% | -4.56% | 23.22% | -95.68% | 209.29% | 31.53% | 11.34% | 1513.86% | -26.05% | 143.3% | - |
| FFO per Share | 2.69 | 1.75 | 1.68 | 1.85 | 1.12 | 1.17 | 0.95 | 42.66 | 13.81 | 10.55 | 9.50 | 0.59 | 0.80 | -1.84 |
| FFO Payout Ratio % | 84.95% | 104.12% | 102.08% | 45.62% | 73.52% | 381.2% | 83.3% | 3.3% | 7.26% | 9.5% | 11.32% | 2381.49% | 0% | 0% |
| EPS (Diluted) | 1.66 | 1.03 | 1.38 | 1.82 | 2.47 | 2.59 | 2.13 | 10.47 | 5.96 | 2.63 | 2.33 | 0.46 | 0.64 | -1.99 |
| EPS Growth % | -1.57% | -25.36% | -24.18% | -26.32% | -4.63% | 21.6% | -79.66% | 75.67% | 126.62% | 12.88% | 406.52% | -28.13% | 132.16% | - |
| EPS (Basic) | - | 1.03 | 1.38 | 3.44 | 4.74 | 4.98 | 4.10 | 10.48 | 5.97 | 2.63 | 2.33 | 0.46 | 0.64 | -1.99 |
| Diluted Shares Outstanding | 16.79M | 16.64M | 16.53M | 31.47M | 31.35M | 31.28M | 31.19M | 16.14M | 16.12M | 16.05M | 16M | 16M | 16M | 16M |
Quick answers to the most common questions about buying RMR stock.
For fiscal year 2025, The RMR Group Inc. (RMR) reported total revenue of $700.3M. This represents a 169.4% increase compared to $260.0M in 2013.
The RMR Group Inc. (RMR) is profitable, generating $17.6M in net income for the fiscal year ending 2025 with a net profit margin of 2.5%.
The RMR Group Inc. (RMR) reported an operating income of $41.8M, resulting in an operating profit margin of 6.0%. This margin reflects the operational efficiency of the business before interest and taxes.
The RMR Group Inc. (RMR) generated $538.6M in gross profit for the year, representing a gross profit margin of 76.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue and FFO volatility
Metrics are mathematically derived from official filings.
Revenue Contraction Amidst FFO Surge
RMR's revenue has contracted for six consecutive quarters, declining 0.8% year-over-year in 2026Q3, yet FFO surged 116.9% in the same period, suggesting a significant shift in the company's earnings composition away from top-line growth.
The persistent revenue decline, from a peak of $219.5M in 2025Q1 to $153.5M in 2026Q3, indicates a shrinking operational base, likely from asset sales or contract terminations. However, the dramatic FFO growth implies that the remaining portfolio or fee-based income streams are generating substantially higher cash flow per dollar of revenue, warranting investigation into the drivers of this improved conversion.
NOI Margin Volatility Signals Instability
NOI margin has been highly erratic, swinging from a low of 2.1% in 2025Q4 to 74.2% in 2026Q3, which, as reported in financial statements, suggests significant non-recurring items or accounting adjustments are distorting the underlying property-level profitability trend.
The extreme margin volatility, particularly the 2.1% margin in 2025Q4 followed by a rebound, makes it difficult to assess sustainable operational efficiency. This pattern may indicate large, irregular property-level charges or gains that obscure the true recurring cost structure, requiring analysts to normalize for these items to gauge core performance.
FFO Per Share Growth Decouples from Revenue
FFO per share has accelerated sharply, reaching $0.93 in 2026Q3 from $0.43 a year prior, yet this growth appears disconnected from the company's shrinking revenue base, raising questions about the sustainability and quality of the earnings improvement.
The 116.9% year-over-year FFO per share growth is impressive on the surface, but it coincides with a 0.8% revenue decline. This divergence suggests the FFO surge may be driven by non-operational factors such as asset dispositions, favorable settlements, or one-time fee income, rather than organic growth in the core business, which could limit future growth visibility.
GAAP Net Income Masked by Depreciation
GAAP net income of $11.2M in 2026Q3 is significantly lower than the $15.6M FFO, highlighting the substantial non-cash depreciation charge that depresses reported earnings and underscores why FFO is the critical metric for evaluating this REIT's performance.
The consistent gap between FFO and net income across all quarters confirms that depreciation is a major, recurring non-cash expense that makes GAAP earnings an unreliable indicator of cash generation. For RMR, which operates as a REIT and likely holds significant real estate assets, this distortion is structural and necessitates a focus on FFO and AFFO for any meaningful valuation.
Earnings Quality Under Scrutiny
The stark disconnect between declining revenue and surging FFO, coupled with extreme NOI margin swings, presents a significant analytical challenge that suggests the reported earnings may be heavily influenced by non-recurring or non-operational items.
Investors should scrutinize the composition of FFO to determine how much stems from core, recurring property management and advisory fees versus one-time events. The pattern of volatile margins and decoupled FFO growth could indicate aggressive accounting for straight-line rents, capitalized costs, or gains on asset sales, which would overstate the underlying business trajectory and pose a risk to future earnings predictability.