The ONE Group Hospitality (STKS) Q3 2026 earnings summary

Executive summary

• Q3 revenue declined 1.8% YoY to $177.0M; comparable transactions rose 1.8% while comparable sales fell 0.4%.

• Restaurant operating profit rose 14.7% to $23.1M and margin expanded 190 bps to 13.2%; Adjusted EBITDA increased 5.4% to $11.1M.

• YTD operating cash flow more than doubled to $41.8M from $17.2M; capital-efficient growth and portfolio optimization remain priorities.

Financial highlights

• Q3 owned restaurant sales were $174.3M versus $177.4M; fee revenue was $2.7M versus $2.8M. Grill Concepts closures reduced revenue by $4.5M, partly offset by new venues.

• Q3 GAAP operating loss narrowed to $5.8M from $7.9M; 9M operating income rose to $14.6M from $3.5M.

• Q3 net loss attributable to the company was $16.1M versus $76.7M; net loss available to common shareholders was $26.4M versus $85.3M.

• 9M revenue declined 1.4% to $590.3M; restaurant operating profit increased 9.6% to $95.2M.

Outlook and guidance

• FY 2026 revenue guidance is $800M-$810M, based on ~1% consolidated comparable sales; fee revenue guidance is $13M-$14M.

• FY 2026 Adjusted EBITDA guidance is $95M-$100M; owned operating expenses are expected at ~82% of restaurant net revenue, with G&A excluding stock compensation of $50M-$51M.

• FY 2026 net capex after landlord allowances is expected at $30M-$34M; interest expense net of interest income is $38M-$39M.

• Plans call for 6-8 systemwide openings in 2026, with 2027 activity expected to be similarly busy; growth includes owned, franchised and licensed concepts.

• Growth priorities include lower-cost conversions, franchising and licensing; new owned venues are targeted at $1.5M or less net of tenant allowances.