One Group Hospitality | 8-K: FY2025 Q3 Revenue Misses Estimate at USD 180.2 M

Revenue: As of FY2025 Q3, the actual value is USD 180.2 M, missing the estimate of USD 191.14 M.

EPS: As of FY2025 Q3, the actual value is USD -2.75, missing the estimate of USD -0.44.

EBIT: As of FY2025 Q3, the actual value is USD 2.61 M.

Financial Metrics by Segment

Segment Revenue

• Total GAAP revenues decreased 7.1% to $180.2 million from $194.0 million.
• Consolidated comparable sales decreased 5.9%.

Operational Metrics

• GAAP net loss attributable to The ONE Group Hospitality, Inc. increased $67.4 million to $76.7 million from a GAAP net loss of $9.3 million, primarily due to an increase in income tax expense of $64.0 million and a non-cash loss on impairment of $3.4 million.
• Adjusted EBITDA attributable to The ONE Group Hospitality, Inc. decreased to $10.6 million from $14.9 million.

Cash Flow

• As of September 28, 2025, the company held $16.3 million in cash and short-term credit card receivables and had $28.1 million available under its revolving credit facility.

Unique Metrics

• The company completed six closures and identified up to nine additional conversions to enhance overall profitability.
• The Benihana integration continues to exceed expectations, with the new Benihana prototype delivering strong results.

Outlook / Guidance

• The company plans to open five to seven new venues in 2025.
• Updated 2025 targets include total GAAP revenues of $820 to $825 million, consolidated comparable sales of -3% to -2%, and consolidated Adjusted EBITDA of $95 to $100 million.

Additional Information

• The company recorded a non-cash loss on impairment of $3.4 million on property and equipment, net and operating lease right of use assets.
• The income tax expense for the third quarter was $59.1 million, primarily due to the establishment of a non-cash valuation allowance against deferred tax assets and liabilities.