The One 2025 Q1 Earnings Strong Performance as Net Income Swings 125.6%
Thursday, May 8, 2025 5:19 am ET
3min read The One (STKS) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company exceeded expectations with a significant revenue increase of 148.4%, driven by segment performance and strategic acquisitions. While earnings per share showed a wider loss compared to the previous year, net income demonstrated a substantial positive turnaround. The guidance for the fiscal year remains in line with projections, indicating confidence in future growth. Investors will note the company's commitment to strategic synergies and expansion plans, with five to seven new venues anticipated in 2025.
Revenue
The One's total revenue soared to $211.13 million in 2025 Q1, marking a 148.4% increase from $85 million in 2024 Q1. Owned restaurant net revenue significantly contributed, reaching $207.40 million, while management, licensing, franchise, and incentive fee revenue added $3.73 million. This diversification underscores the company's robust financial performance across its various business segments.
Earnings/Net Income
The One experienced an expanded loss of $0.21 per share in 2025 Q1 compared to $0.07 per share in 2024 Q1, reflecting a 200% wider loss. Nevertheless, the company achieved a remarkable turnaround, registering a net income of $622,000, marking a 125.6% positive swing from the net loss of $-2.43 million in the previous year. This indicates a challenging EPS performance despite net income improvements.
Price Action
The stock price of The One edged up 1.30% on the latest trading day, climbed 3.65% over the recent full trading week, and jumped 11.43% month-to-date.
Post-Earnings Price Action Review
Over the past five years, The One's shares have consistently delivered positive returns when purchased after a revenue increase and held for 30 days. From 2020 to 2024, this strategy yielded a CAGR of 12.5%, resulting in a total return of 57.3%. Despite experiencing some fluctuations, such as a 14.2% drawdown in 2022, the strategy has proven effective for long-term investors seeking steady gains. The company's performance underscores a trend of moderate returns, making it a suitable investment approach for those focused on long-term growth. This historical data highlights the potential benefits of investing in The One following positive revenue announcements.
CEO Commentary
Emanuel “Manny” Hilario, President and CEO of The ONE Group, expressed satisfaction with the company's performance, highlighting that revenues, comparable sales, and adjusted EBITDA reached or exceeded the higher end of their guided ranges. He emphasized the sequential improvement in comparable sales and transaction growth at STK, noting strong adjusted EBITDA growth of 233%. Hilario reinforced the company's commitment to delivering at least $20 million in acquisition synergies by 2026 and their strategy to balance unit growth opportunities between company-owned and asset-light development.
Guidance
The ONE Group reaffirms its full-year guidance for 2025, anticipating total GAAP revenues between $835 million and $870 million. The company expects consolidated comparable sales to range from -3% to 1%. For the second quarter, they project total GAAP revenues of $205 million to $210 million and consolidated adjusted EBITDA between $23 million and $25 million. The company plans to open five to seven new venues throughout 2025 and estimates consolidated capital expenditures of $45 million to $50 million.
Additional News
In recent developments, The ONE Group Hospitality has opened a new company-owned STK Steakhouse at the Westfield Topanga Shopping Center in Topanga, California, featuring signature design elements and diverse menu offerings. Additionally, the company marked a milestone by opening its first Benihana location under its ownership in San Mateo, California, expanding its footprint in the Bay Area. In strategic moves, The ONE Group announced its participation in the 27th Annual ICR Conference, where CEO Emanuel Hilario and CFO Tyler Loy presented insights into the company’s expansion strategy and market position, reinforcing their commitment to growth.
Revenue
The One's total revenue soared to $211.13 million in 2025 Q1, marking a 148.4% increase from $85 million in 2024 Q1. Owned restaurant net revenue significantly contributed, reaching $207.40 million, while management, licensing, franchise, and incentive fee revenue added $3.73 million. This diversification underscores the company's robust financial performance across its various business segments.
Earnings/Net Income
The One experienced an expanded loss of $0.21 per share in 2025 Q1 compared to $0.07 per share in 2024 Q1, reflecting a 200% wider loss. Nevertheless, the company achieved a remarkable turnaround, registering a net income of $622,000, marking a 125.6% positive swing from the net loss of $-2.43 million in the previous year. This indicates a challenging EPS performance despite net income improvements.
Price Action
The stock price of The One edged up 1.30% on the latest trading day, climbed 3.65% over the recent full trading week, and jumped 11.43% month-to-date.
Post-Earnings Price Action Review
Over the past five years, The One's shares have consistently delivered positive returns when purchased after a revenue increase and held for 30 days. From 2020 to 2024, this strategy yielded a CAGR of 12.5%, resulting in a total return of 57.3%. Despite experiencing some fluctuations, such as a 14.2% drawdown in 2022, the strategy has proven effective for long-term investors seeking steady gains. The company's performance underscores a trend of moderate returns, making it a suitable investment approach for those focused on long-term growth. This historical data highlights the potential benefits of investing in The One following positive revenue announcements.
CEO Commentary
Emanuel “Manny” Hilario, President and CEO of The ONE Group, expressed satisfaction with the company's performance, highlighting that revenues, comparable sales, and adjusted EBITDA reached or exceeded the higher end of their guided ranges. He emphasized the sequential improvement in comparable sales and transaction growth at STK, noting strong adjusted EBITDA growth of 233%. Hilario reinforced the company's commitment to delivering at least $20 million in acquisition synergies by 2026 and their strategy to balance unit growth opportunities between company-owned and asset-light development.
Guidance
The ONE Group reaffirms its full-year guidance for 2025, anticipating total GAAP revenues between $835 million and $870 million. The company expects consolidated comparable sales to range from -3% to 1%. For the second quarter, they project total GAAP revenues of $205 million to $210 million and consolidated adjusted EBITDA between $23 million and $25 million. The company plans to open five to seven new venues throughout 2025 and estimates consolidated capital expenditures of $45 million to $50 million.
Additional News
In recent developments, The ONE Group Hospitality has opened a new company-owned STK Steakhouse at the Westfield Topanga Shopping Center in Topanga, California, featuring signature design elements and diverse menu offerings. Additionally, the company marked a milestone by opening its first Benihana location under its ownership in San Mateo, California, expanding its footprint in the Bay Area. In strategic moves, The ONE Group announced its participation in the 27th Annual ICR Conference, where CEO Emanuel Hilario and CFO Tyler Loy presented insights into the company’s expansion strategy and market position, reinforcing their commitment to growth.
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