Choice Hotels

Q2 FY2026 EarningsQ2 FY26 results were mixed relative to consensus: revenue of $440.8M beat the $431.1M expectation, and adjusted diluted EPS of $2.02 outperformed the $1.97 mean estimate. However, GAAP net income of $64.3M significantly missed the $80.3M consensus due to higher reimbursable deficits and SG&A timing. Management raised FY26 Adjusted EBITDA guidance to $635M-$650M while lowering GAAP EPS expectations, signaling a focus on core asset-light fee growth despite temporary cost pressures.