Diversified Royalty (DIV) Q2 2025 earnings summary

Executive summary

• Achieved record adjusted revenue of $19.2 million in Q2 2025, the highest in company history.

• Weighted average organic royalty growth was 5.5% in Q2 2025, up from 4.2% in Q2 2024.

• Added Cheba Hut as a ninth royalty partner, expanding US presence.

• Mr. Lube + Tires and Oxford delivered strong same-store sales growth; Mr. Mikes was flat.

Financial highlights

• Revenue rose to $17.8 million in Q2 2025, up 6.4% year-over-year; adjusted revenue up 6.0%.

• Distributable cash increased 9.3% to $12.7 million in Q2 2025.

• Net income for Q2 2025 was $9.0 million, up from $8.2 million in Q2 2024.

• Payout ratio improved to 83.0% in Q2 2025 from 88.6% in Q2 2024.

Outlook and guidance

• Management intends to continue stable monthly dividends and pursue accretive royalty acquisitions.

• Sutton's 20% royalty deferral will continue until end of 2025.