The ONE Group Hospitality, Inc. reported its fourth‑quarter and full‑year 2025 financial results on March 13 2026. The company posted a GAAP net loss of $6 million for the quarter, a sharp improvement from the $76.7 million loss reported for the third quarter. Revenue for the quarter fell 6.7% to $207 million, a decline that aligns with analyst expectations of $218.6 million and $207.01 million, respectively.
Consolidated comparable sales for the quarter were down 1.8% year‑over‑year, a modest decline compared with the 5.9% drop reported for the third quarter. The company’s Restaurant Operating Profit margin increased to 19.5% from 19.4% in the prior year, reflecting a slight improvement in operating efficiency despite the overall loss.
Management highlighted that the acquisition of Benihana contributed to a 19.7% increase in full‑year revenue, bringing total GAAP revenue to approximately $805 million. CEO Emanuel "Manny" Hilario noted, "Guests continue to choose our differentiated Vibe Dining concepts when they want memorable experiences. In the fourth quarter, consolidated comparable sales improved by four percentage points sequentially from the third quarter, with every brand contributing. So far in the first quarter, we are delivering positive consolidated comparable sales. These results confirm that our strategy is working, even in a challenging consumer environment."
The company’s guidance for fiscal year 2026 was updated to a revenue range of $840–$855 million and a Consolidated Adjusted EBITDA range of $100–$110 million, up from the $820–$825 million and $95–$100 million guidance issued for the 2025 year. The revised outlook signals management’s confidence in continued revenue growth and improved profitability, even as the company navigates integration costs and margin compression.
Analysts had expected a GAAP net loss per share of $0.49 to $0.45, but the company reported a loss of $0.49 per share, a miss of $0.32 against the consensus profit of $0.17. The earnings miss, combined with the modest decline in comparable sales, contributed to a negative market reaction, with investors citing the earnings miss and margin compression as key concerns.
Overall, the results underscore the company’s ongoing challenges in achieving profitability while scaling through acquisitions. The updated FY2026 guidance reflects a cautious but optimistic outlook, with management emphasizing portfolio optimization, conversion of underperforming locations, and a focus on same‑store sales growth of 1% to 3% for the year.
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