The RMR Group (26R) AI Stock Analysis

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The RMR Group

(Frankfurt:26R)

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Positive Factors

Strong cash generationRobust operating and free cash flow provide internal funding for investment, debt service, and shareholder distributions. Free cash flow remains close to net income, indicating that reported earnings are broadly supported by cash and strengthening RMR’s financial flexibility over the next several quarters.

Negative Factors

Revenue contractionA nearly 19% TTM revenue decline after multiple annual declines indicates that RMR’s top-line trajectory remains under pressure. Persistent contraction can reduce operating leverage, constrain investment capacity, and make future earnings growth more dependent on incentive fees or new client wins.

The RMR Group (26R) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 268.54M
Dividend Yield: 10.92%
Average Volume (3M): 400
Price to Earnings (P/E): 14.6
Beta (1Y): 0.36
Revenue Growth: -21.08%
EPS Growth: -7.01%
Country: Germany
Employees: 900
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Services

The RMR Group Business Overview & Revenue Model

Company Description

The RMR Group Inc., operating through its subsidiary, The RMR Group LLC, specializes in delivering business and property management solutions across the United States. The firm primarily serves four publicly traded real estate investment trusts (REIT...

The RMR Group Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q3-2026)|% Change Since:-4.32%|Next Earnings Date:Nov 11, 2026

Earnings Call SentimentPositive

The call conveyed substantial operational and financial progress across RMR's managed REITs (DHC, ILPT, SVC) and growth in private capital AUM, supported by strong liquidity and a meaningful incentive-fee pipeline. These positives were balanced by near-term headwinds in private fundraising (laid out as a macro/geopolitical issue), a one-time noncash impairment related to OPI, elevated quarterly tax and compensation timing effects, and a notable valuation discount for RMR shares. On balance, the company presented multiple clear wins in operations, balance-sheet improvement at its managed REITs, and tangible transactional progress that outweigh the described cyclical and one-time challenges.

Positive Updates

Quarterly Profitability Metrics Met Guidance

Distributable earnings of $0.48 per share and adjusted EBITDA of $19.7 million for the fiscal third quarter, both in line with company guidance. Next-quarter guidance: adjusted EBITDA $19M–$21M and distributable earnings $0.48–$0.50 per share.

Negative Updates

Fundraising Headwinds for Private Capital

Global real estate fundraising in H1 of the calendar year was at a 9-year low. The ongoing conflict in the Middle East and extended fundraising cycles (now 18–24 months) have paused many investors (notably Middle Eastern capital), slowing fundraising for the Enhanced Growth Venture and other private capital initiatives.

Company Guidance

Management guided next-quarter adjusted EBITDA of $19.0M–$21.0M and distributable earnings of $0.48–$0.50 per share, with recurring service revenues expected to stay roughly flat at ≈$45M (this quarter $45.5M); recurring cash compensation is forecast to decline to ≈$38.5M (this quarter $39.6M) with ≈$600k of incremental equity compensation expected next quarter, recurring G&A to be modestly lower (this quarter $10.7M), and a reimbursement-rate run‑rate of ~42%. For the full year, RMR expects adjusted EBITDA of approximately $76.5M–$78.5M (excluding $23.6M of 2025 incentive fees and a possible >$40M of 2026 incentive fees), targets an annual tax rate of 17%–18% (this quarter was 20.4%), and finished the quarter with over $130M of liquidity (>$55M cash and $75M revolver capacity).

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.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

The RMR Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

DE:26R against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JLL	72Outperform	$17.11B	16.57	14.64%	―	11.40%	76.93%
MMI	67Neutral	$1.08B	80.69	2.44%	1.69%	11.89%	―
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CWK	62Neutral	$3.20B	51.16	3.48%	―	11.04%	-66.92%
CBRE	60Neutral	$39.06B	30.02	16.03%	―	14.17%	15.41%
NMRK	60Neutral	$2.16B	14.73	9.93%	1.46%	16.50%	41.22%

* Real Estate Sector Average

Performance Comparison

DE:26R and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:26R	The RMR Group Inc.	14.30	2.29	19.07%
CBRE	Cbre Group	141.11	-8.88	-5.92%
JLL	Jones Lang Lasalle	390.33	102.26	35.50%
MMI	Marcus & Millichap Inc	29.55	0.59	2.03%
NMRK	Newmark	12.36	-4.51	-26.74%
CWK	Cushman & Wakefield	14.93	-0.49	-3.18%

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.

The RMR Group AI Stock Analysis