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One Group Hospitality Q1 2025 Earnings Report
The ONE Group Hospitality, Inc. reported its financial results for the first quarter ended March 30, 2025, with significant increases in total GAAP revenues, operating income, and Restaurant EBITDA compared to the prior year.
Key Takeaways
The ONE Group Hospitality, Inc. reported a strong first quarter for 2025, with total GAAP revenues increasing by 148.4% to $211.1 million. Operating income saw a substantial rise to $10.7 million from a loss in the prior year, and Adjusted EBITDA grew by 233% to $25.2 million, exceeding guided ranges.
Total GAAP revenues increased 148.4% to $211.1 million from $85.0 million in the prior year.
Operating income improved significantly to $10.7 million from an operating loss of $0.6 million in the prior year.
Adjusted EBITDA increased 233% to $25.2 million from $7.6 million in the prior year.
GAAP net loss available to common stockholders was $6.6 million, or $0.21 net loss per share, compared to $2.1 million, or $0.07 net loss per share in the prior year.
One Group Hospitality
One Group Hospitality
One Group Hospitality Revenue by Segment
Revenue by Segment
Owned Restaurant Net Revenue
CapyFin.comManagement, License, and Incentive Fee Revenue
CapyFin.com Forward Guidance
The ONE Group Hospitality, Inc. provided guidance for Q2 2025 and the full year 2025, expecting continued revenue growth and new venue openings.
Positive Outlook
- Total GAAP revenues are projected to be between $205 million and $210 million for Q2 2025, and $835 million to $870 million for the full year 2025.
- Consolidated comparable sales are expected to be between -5.5% and -4% for Q2 2025, and -3% to 1% for the full year 2025.
- Adjusted EBITDA is projected to be between $23 million and $25 million for Q2 2025, and $95 million to $115 million for the full year 2025.
- The company plans to open five to seven new venues in 2025.
- The company remains on track to deliver at least $20 million in acquisition synergies by 2026.
Challenges Ahead
- Consolidated comparable sales are still projected to be negative for Q2 2025 and potentially for the full year 2025.
- The guidance for Adjusted EBITDA is not reconciled to GAAP financial measures due to the inability to predict certain reconciling items.
- The company's ability to integrate new or acquired restaurants without disruptions is a risk.
- Factors beyond the company's control, such as weather conditions and regulatory issues, could affect new restaurant openings.
- Economic downturns, inflation, and labor shortages could adversely affect the business.