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Sep 28
One Group Hospitality Q3 2025 Earnings Report
One Group Hospitality reported its financial results for the third quarter ended September 28, 2025, with a decrease in total GAAP revenues and adjusted EBITDA, alongside a significant net loss due to a non-cash tax valuation allowance and impairment loss.
Key Takeaways
The ONE Group Hospitality experienced a challenging third quarter in 2025, with total GAAP revenues decreasing by 7.1% to $180.2 million and adjusted EBITDA falling to $10.6 million from $14.9 million in the prior year. The company reported a substantial GAAP net loss of $76.7 million, primarily driven by a $64.0 million non-cash tax valuation allowance and a $3.4 million non-cash impairment loss related to its Grill portfolio optimization strategy. Despite these headwinds, the company is actively optimizing its Grill portfolio through closures and conversions, with early fourth-quarter sales trends showing improvement and strong holiday bookings.
Total GAAP revenues decreased by 7.1% to $180.2 million in Q3 2025 compared to $194.0 million in Q3 2024.
The company reported a GAAP net loss of $76.7 million, a significant increase from a $9.3 million net loss in the prior year, primarily due to a $64.0 million non-cash tax valuation allowance and a $3.4 million impairment loss.
Adjusted EBITDA decreased to $10.6 million in Q3 2025 from $14.9 million in Q3 2024.
The company is executing a Grill portfolio optimization strategy, having closed six underperforming locations and planning up to nine additional conversions to Benihana or STK formats by the end of 2026.
One Group Hospitality
One Group Hospitality
One Group Hospitality Revenue by Segment
Revenue by Segment
Owned Restaurant Net Revenue
CapyFin.comManagement, License, Franchise and Incentive Fee Revenue
CapyFin.com Forward Guidance
The ONE Group Hospitality has updated its 2025 targets, anticipating total GAAP revenues between $820 million and $825 million, and consolidated comparable sales to decrease by 3% to 2%. The company expects consolidated Adjusted EBITDA to be between $95 million and $100 million, with plans to open 5-7 new system-wide venues.
Positive Outlook
- Anticipated total GAAP revenues of $820 million to $825 million for 2025.
- Consolidated Adjusted EBITDA projected to be between $95 million and $100 million.
- Plans to open 5-7 new system-wide venues in 2025, indicating continued expansion.
- Managed, license and franchise fee revenues expected to be $14 million to $15 million.
- Consolidated effective income tax rate, excluding valuation allowance, projected at 1% to 4%.
Challenges Ahead
- Consolidated comparable sales are expected to decrease by 3% to 2% for 2025.
- Total owned operating expenses as a percentage of owned restaurant net revenue are expected to be approximately 83.5%.
- Consolidated total G&A, excluding stock-based compensation, is expected to be approximately $46 million.
- Consolidated restaurant pre-opening expenses are projected at $5 million to $6 million.
- Consolidated total capital expenditures, net of allowances received by landlords, are expected to be $45 million to $50 million.