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CMCT Stock Analysis - Creative Media & Community Trust Corp AI Rating

CMCT Nasdaq Real Estate Investment Trusts MD CIK: 0000908311
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
STRONG SELL
92% Confidence

📊 CMCT Key Takeaways

Revenue: $116.7M
Net Margin: -33.4%
Free Cash Flow: $5.8M
Current Ratio: N/A
Debt/Equity: 1.92x
EPS: $-67.08
AI Rating: STRONG SELL with 92% confidence

Investment Thesis

CMCT demonstrates severe operational dysfunction with a -33.4% net margin despite 194% revenue growth, indicating the revenue expansion is destroying shareholder value through negative leverage. The company burns cash operationally despite positive FCF, carries 1.92x debt-to-equity with negative interest coverage (-1.0x), and is destroying equity value with -14.7% ROE, presenting an acute solvency and operational risk.

CMCT Strengths

  • + Significant revenue growth of 194% year-over-year shows market demand or business expansion
  • + Positive free cash flow of $5.8M provides short-term liquidity buffer
  • + Low capital expenditure requirements ($10K) suggest asset-light model

CMCT Risks

  • ! Massive operating losses (-$39.1M) with deteriorating profitability despite revenue surge indicates fundamental operational failure
  • ! Negative interest coverage (-1.0x) means operating income insufficient to service debt obligations
  • ! High leverage (1.92x D/E, $509.8M long-term debt) combined with negative earnings creates acute refinancing and solvency risk
  • ! Negative ROE (-14.7%) and ROA (-4.5%) demonstrate destruction of shareholder and asset value
  • ! Deteriorating net income improvement (+36.7% YoY) is insufficient given losses remain massive at -$39.0M

Key Metrics to Watch

CMCT Financial Metrics

Revenue
$116.7M
Net Income
$-39.0M
EPS (Diluted)
$-67.08
Free Cash Flow
$5.8M
Total Assets
$859.2M
Cash Position
$15.4M

💡 AI Analyst Insight

The relatively thin 5.0% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.

CMCT Profitability Ratios

Gross Margin N/A
Operating Margin -33.5%
Net Margin -33.4%
ROE -14.7%
ROA -4.5%
FCF Margin 5.0%

CMCT vs Default Sector

How Creative Media & Community Trust Corp compares to Default sector averages

Net Margin
CMCT -33.4%
vs
Sector Avg 12.0%
CMCT Sector
ROE
CMCT -14.7%
vs
Sector Avg 15.0%
CMCT Sector
Current Ratio
CMCT 0.0x
vs
Sector Avg 1.8x
CMCT Sector
Debt/Equity
CMCT 1.9x
vs
Sector Avg 0.7x
CMCT Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CMCT Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
1.92x
Debt/Assets
69.0%
Interest Coverage
-0.97x
Long-term Debt
$509.8M

CMCT 5-Year Financial Trend

CMCT 5-year financial data: Year 2021: Revenue $16.7M, Net Income -$15.0M, EPS $-2.27. Year 2022: Revenue $33.4M, Net Income -$850.0K, EPS $-1.04. Year 2023: Revenue $39.1M, Net Income $5.9M, EPS $-1.11. Year 2024: Revenue $39.1M, Net Income -$48.5M, EPS $-31.02. Year 2025: Revenue $39.6M, Net Income -$25.2M, EPS $-431.43.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Creative Media & Community Trust Corp's revenue has grown significantly by 137% over the 5-year period, indicating strong business expansion. The most recent EPS of $-431.43 indicates the company is currently unprofitable.

CMCT Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
5.0%
Free cash flow / Revenue

CMCT Quarterly Performance

Quarterly financial performance data for Creative Media & Community Trust Corp including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $6.8M -$10.4M $-23.52
Q2 2025 $11.2M -$796.0K $-18.94
Q1 2025 $11.3M -$3.7M $-20.73
Q3 2024 $6.8M -$10.4M $-0.94
Q2 2024 $11.2M -$796.0K $-0.43
Q1 2024 $10.9M -$3.7M $-0.54
Q3 2023 $7.5M -$237.0K $-0.50
Q2 2023 $9.1M $2.9M $-0.10

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CMCT Capital Allocation

Operating Cash Flow
$5.8M
Cash generated from operations
Capital Expenditures
$10.0K
Investment in assets
Dividends
None
No dividend program

CMCT SEC Filings

Access official SEC EDGAR filings for Creative Media & Community Trust Corp (CIK: 0000908311)

📋 Recent SEC Filings

Date Form Document Action
Mar 18, 2026 4 xslF345X06/wk-form4_1773872123.xml View →
Mar 18, 2026 4 xslF345X06/wk-form4_1773872090.xml View →
Mar 18, 2026 4 xslF345X06/wk-form4_1773872077.xml View →
Mar 10, 2026 10-K cmct-20251231.htm View →
Mar 9, 2026 8-K cmct-20260306.htm View →

Frequently Asked Questions about CMCT

What is the AI rating for CMCT?

Creative Media & Community Trust Corp (CMCT) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CMCT's key strengths?

Significant revenue growth of 194% year-over-year shows market demand or business expansion. Positive free cash flow of $5.8M provides short-term liquidity buffer.

What are the risks of investing in CMCT?

Massive operating losses (-$39.1M) with deteriorating profitability despite revenue surge indicates fundamental operational failure. Negative interest coverage (-1.0x) means operating income insufficient to service debt obligations.

What is CMCT's revenue and growth?

Creative Media & Community Trust Corp reported revenue of $116.7M.

Does CMCT pay dividends?

Creative Media & Community Trust Corp does not currently pay dividends.

Where can I find CMCT SEC filings?

Official SEC filings for Creative Media & Community Trust Corp (CIK: 0000908311) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CMCT's EPS?

Creative Media & Community Trust Corp has a diluted EPS of $-67.08.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI