Alset Inc. Reports $1.96M Q3 Profit

Strong investment gains and cost-cutting efforts offset operating losses, supporting a turnaround in performance.

November 18, 2025

Revenue Pressure, Offset by Market Gains

Alset Inc. turned in a $1.96 million profit in Q3 2025, reversing last year’s $6.99 million loss for the same period. The company’s bottom line got a lift from strong investment gains, even as operating losses widened and revenue dropped sharply.

Total revenue came in at just under $1 million for the quarter, down from nearly $5 million last year. The primary driver behind the decline was the absence of property sales, which had contributed heavily to the top line in 2024. Rental income and other business activities helped fill the gap, but not enough to fully offset the drop.

On the operating side, Alset reported a $2.6 million loss —more than double the prior-year figure. However, that was more than offset by $4.5 million in other income. The largest contributors were gains tied to investment positions, foreign exchange activity, and interest income.

Strategic Moves: New Energy Stake and Equity Expansion

Alset completed an $83 million acquisition of New Energy Asia Pacific Inc. during the quarter. The deal was structured through a convertible promissory note, which was converted into 27.7 million shares of Alset common stock. This move brought a controlling stake in a Hong Kong-based electric vehicle and charging infrastructure business into the portfolio.

As a result, total assets grew to $169.1 million —up from $96.8 million at year-end. The equity method investment tied to New Energy accounted for the largest share of that growth, totaling $85.4 million.

Real Estate and Rental Operations

Real estate remains a core business line. Alset owns 132 single-family homes in Texas, with a combined investment value of roughly $31 million. These homes generated $2.1 million in rental revenue over the first nine months of 2025.

While the segment remained stable, property sales—which were a major source of revenue in 2024—contributed nothing this quarter. As a result, gross profit from real estate declined year-over-year, but margins on rental income stayed intact.

Liquidity and Cash Management

Cash and cash equivalents ended the quarter at $25.5 million, slightly down from the prior period. Operating cash flow was negative $5.5 million for the year to date, though that figure marked a significant improvement over the $8.8 million outflow in the first nine months of 2024.

Alset also raised capital during the quarter through stock issuance and reduced its outstanding liabilities modestly. Treasury stock repurchases and modest debt repayment were also reflected on the financing side.

Segment Overview

The company breaks out four business segments:

Real estate

Digital transformation technology

Biohealth

Other activities

While real estate delivered modest gross profits, each segment posted operating losses. Those losses were primarily driven by general and administrative costs and a $1.3 million impairment charge.

Outside of core operations, Alset’s market activity played a more meaningful role in quarterly performance. Securities holdings, including those in affiliates, added meaningful upside through both realized and unrealized gains.

Looking Ahead

Alset’s shift toward long-term strategic holdings continues. The recent acquisition of New Energy signals a broader interest in energy transition assets, particularly those based in Asia. With investment income playing a growing role in earnings and real estate generating consistent cash flow, the company appears focused on rebalancing its business model.

At the same time, liquidity remains strong and management believes prior concerns around its ability to continue as a going concern have been addressed. Still, execution will remain critical, particularly as the company leans more heavily on investment-related earnings and capital markets performance.