One Group Hospitality (STKS) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue declined 7.1% year-over-year to $180.2 million, with comparable sales down 5.9% amid a challenging consumer environment and macro pressures.

• Net loss attributable to shareholders was $76.7 million ($2.75 per share), primarily due to non-cash tax valuation allowance and impairment charges.

• Adjusted EBITDA fell to $10.6 million from $14.9 million year-over-year, reflecting margin pressure from rising costs and lower traffic.

• Grill portfolio optimization included closure of underperforming units and up to nine conversions planned; first RA Sushi to STK conversion completed.

• Benihana integration and new prototype outperformed expectations, supporting asset-light growth and franchise/license momentum.

Financial highlights

• Q3 consolidated GAAP revenues were $180.2 million, down 7.1% year-over-year; company-owned net revenue was $177.4 million, down 6.9%.

• Comparable sales declined 5.9% year-over-year, impacted by closures and market pressures.

• Restaurant operating profit was $20.1 million (11.3% margin), down from $24.5 million (12.8% margin) last year.

• Net loss attributable to shareholders was $76.7 million, compared to $9.3 million last year, mainly due to non-cash tax and impairment charges.

• Adjusted EBITDA was $10.6 million, a 28.9% decrease year-over-year.

Outlook and guidance

• FY2025 GAAP revenues projected at $820–$825 million, with comparable sales expected at -3% to -2%.

• Adjusted EBITDA guidance of $95–$100 million; G&A (excl. stock comp) of ~$46 million.

• Five to seven new venue openings planned for 2025, with several under construction.

• CapEx (net of landlord allowances) expected at $45–$50 million.

• Fourth quarter sales trends have improved, with strong holiday bookings and operational enhancements expected to drive momentum.