Ark Restaurants (ARKR) Q4 2025 earnings summary

Executive summary

• Cash position at $11.32 million, up from $10.2 million year-over-year; debt at $3.61 million.

• Adjusted EBITDA for the year was $1.41 million, down from $6.13 million last year, mainly due to Bryant Park legal fees and catering business impact.

• Q4 adjusted EBITDA was negative $1.07 million, down from positive $503,000 year-over-year, primarily due to over $400,000 in Bryant Park litigation expenses.

• Net loss for the year was $11.47 million ($3.18/share), compared to $3.90 million ($1.08/share) last year, including a $4.8 million deferred tax asset valuation allowance.

• Las Vegas and New York properties saw positive cash flow improvements, while Alabama performed well and Florida properties declined 5-7%.

Financial highlights

• Full-year adjusted EBITDA dropped to $1.41 million from $6.13 million year-over-year.

• Q4 revenue was $37.32 million, down from $43.41 million year-over-year; full-year revenue was $165.75 million, down from $183.55 million.

• Legal fees and catering business issues at Bryant Park cost nearly $4 million combined.

• Tax provision recorded despite pre-tax loss due to deferred tax asset write-off and naked tax credits.

• Same store sales (excluding closed units) declined 10.1% in Q4 and 4.2% for the year.

Outlook and guidance

• December quarter expected to be significantly better than last year, with improved efficiency and cash flows.

• Anticipation of a potential casino license at Meadowlands, with exclusive food and beverage rights if approved.

• Ongoing search for new property acquisitions, with two letters of intent and another negotiation in progress.

• Management remains committed to the D.C. location despite market challenges.

• Company intends to continue operating Bryant Park properties until lease extensions are awarded or vacate is ordered, with ongoing litigation to protect its interests.