Ybox Real Estate (TASE:YBOX) Net Loss Widens in Q3 2025, Reinforcing Bearish Profitability Concerns

Ybox Real Estate (TASE:YBOX) just posted its Q3 2025 results, reporting revenue of ₪17.6 million and a basic EPS of -₪0.02 for the quarter. The company has seen revenue fluctuate over recent periods, with quarterly numbers ranging from ₪5.5 million to ₪17.6 million, while EPS has remained negative across the past year. With consistent net losses weighing on margins, investors will be watching for signs of improvement in future results.

See our full analysis for Ybox Real Estate.

Up next, we put this quarter’s numbers to the test by comparing them with the prevailing narratives to see what market assumptions get confirmed and what could be up for debate.

Curious how numbers become stories that shape markets? Explore Community Narratives

Losses Deepen Beyond Revenue Uptick

• Net income (excluding extra items) over the trailing twelve months stands at -₪12.1 million. Losses have widened by 15.5% per year over the last five years, despite transient revenue surges.
• Pressure on net profit margins heavily supports the more skeptical side of the market view, as ongoing losses such as -₪7.9 million in latest quarterly net income persist even when revenue spikes.
  • Revenue bounced from ₪5.9 million in Q1 to ₪17.6 million in Q3, but that was not enough to push net income into positive territory.
  • This lack of turnaround in profitability, even during top-line boosts, directly echoes the cautious expectations embedded in the last year’s analysis.

Premium Valuation Signals Caution

• Ybox is trading at a price-to-sales ratio of 11.8x, much higher than the Israeli industry average of 4.1x. Its current share price of ₪1.24 remains far above its DCF fair value of ₪0.23.
• Consensus narrative notes that despite peers being valued at 12.8x sales, Ybox’s persistent unprofitability and lack of earnings recovery make its premium to DCF fair value hard to justify.
  • With losses deepening and margins stuck negative, the premium valuation stands out more as a sign of market risk than confidence in a rebound.
  • The large gap between current price and underlying cash-flow-based value adds to caution, particularly when compared with stable peers and industry norms.

Despite the revenue rebound, risks around valuation and profitability linger. See the balanced view in our full Consensus Narrative breakdown. 📊 Read the full Ybox Real Estate Consensus Narrative.

Debt Coverage Flags Balance Sheet Risk

• Debt coverage by operating cash flow is flagged as a key risk for Ybox, a concern that is highlighted by ongoing negative net income and thin liquidity cushion.
• Critics highlight that with the company’s earnings quality remaining low and no signs of improvement in operating results, the ability to service or reduce debt becomes increasingly critical.
  • Trailing twelve month financials reveal consistent negative net income, which raises red flags on debt paydown from core operations.
  • Persistent losses erode flexibility, setting Ybox apart from industry peers that maintain more balanced cash flow-to-debt metrics.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Ybox Real Estate's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Explore Alternatives

Ybox’s deepening losses, stretched valuation, and weak debt coverage highlight a prolonged struggle to maintain financial stability when compared to industry benchmarks.

If you want more resilient financials in your portfolio, check out solid balance sheet and fundamentals stocks screener (1942 results) to discover companies built on robust balance sheets and stronger liquidity.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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