TH International (THCH) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues declined 21.7% year-over-year, driven by store closures, increased competition, and a 17.3% drop in same-store sales for company-owned stores.

• Store network expanded to 1,028 locations with a net increase of 2 stores and entry into 3 new cities.

• Registered loyalty club members surged 41.7% year-over-year to 37.1 million, with digital orders comprising 91.8% of total orders.

• Leadership transition brought a new CEO focused on innovation, operational excellence, and targeted expansion.

• Product innovation and brand collaborations, including new fruit coffee series and partnerships, drove customer engagement.

Financial highlights

• Total revenues were RMB 273.4 million, down 21.7% year-over-year; system sales were RMB 347.8 million, down 15.1%.

• Company-owned and operated store contribution margin fell to 5.7% from 9.6% year-over-year.

• Adjusted corporate EBITDA margin was -7.6%, compared to +0.6% in the prior year.

• Net loss increased to RMB 97.4 million (RMB 3.00 per share), with adjusted net loss at RMB 54.9 million (RMB 1.69 per share).

• Cash and cash equivalents stood at RMB 121.1 million as of June 30, 2026, down from RMB 129.7 million at year-end 2025.

Outlook and guidance

• Near-term focus is on sustainable revenue growth, supply chain enhancement, and achieving corporate EBITDA breakeven.

• Management plans to drive innovation, invest in marketing, and pursue a balanced store network strategy, including both company-owned and franchised stores.

• Marketing investment is set to increase in the second half of 2026, with a focus on effectiveness and customer acquisition.

• Store expansion will prioritize top-tier cities and balanced growth between company-owned and franchise stores.

• Proceeds from a US$15.8 million convertible note financing will support these initiatives.