What portion of the revenue ($26,000) is recurring rental income versus one‑time or non‑recurring sources?
Revenue composition: The Company reported $40 k of total revenue for Q2 2025. Of that, $26 k (65 %) is rental income, which the company’s filings describe as “rental income” – a line‑item that historically has been generated from ongoing lease contracts and therefore is considered recurring. The remaining $14 k (35 %) comes from other sources (likely non‑recurring or one‑time items such as service fees, equipment sales or short‑term contracts), as implied by the split in the press release.
Trading implications: Because roughly two‑thirds of the top line is recurring, the company’s cash‑flow visibility remains relatively strong despite the net loss of ($18 k) from continuing operations. Investors should focus on the quality and durability of those lease contracts: if the leases are long‑term with credit‑worthy tenants, the $26 k provides a predictable revenue floor, which can be a supportive factor for the stock in a risk‑off environment. However, the $14 k non‑recurring component signals that the company still relies on occasional “boost” items to fill the gap to the $40 k total—an aspect that could cause earnings volatility if those one‑off streams dry up.
Actionable insight: Given the high proportion of recurring revenue, the stock may be less vulnerable to short‑term demand shocks but remains sensitive to any deterioration in tenant occupancy or rent‑level renegotiations. Traders could consider a buy‑on‑dip approach if the stock falls below its 200‑day moving average, with a stop just below the recent low to protect against a potential downturn in the non‑recurring segment. Conversely, a break above the 20‑day bullish engulfing pattern on the daily chart could trigger a short‑term long with a target near the 52‑week high, using the recurring $26 k as the fundamental tailwind. Monitoring upcoming guidance on lease renewals will be key to confirming the sustainability of the recurring component.