The One 2025 Q2 Earnings Significant Revenue Growth but Wider Net Losses

The One (STKS) reported its fiscal 2025 Q2 earnings on August 5, 2025. While the company delivered a strong revenue performance, it missed expectations on the bottom line. The 20.2% year-over-year revenue increase was in line with analyst estimates, but the widening net loss and negative returns from post-earnings strategies highlighted the mixed performance. The company also revised its full-year guidance in a conservative direction.

Revenue
The One posted robust revenue growth, with total revenue climbing 20.2% year-over-year to $207.38 million. The majority of this growth was driven by its owned restaurant net revenue, which reached $203.91 million, reflecting continued momentum following the Benihana acquisition. Management, license, franchise, and incentive fee revenue contributed an additional $3.47 million, rounding out the total revenue.

Earnings/Net Income
Despite the strong top-line performance, The One’s earnings performance deteriorated significantly. The company reported a net loss of $10.33 million for the quarter, a 37.7% increase from the $7.50 million loss in the same period last year. On a per-share basis, the loss widened to $0.59 from $0.38, representing a 55.3% increase in losses, indicating continued operational challenges despite revenue gains.

Price Action
The stock price of The One has seen a steady decline in recent periods, with a 0.33% drop on the latest trading day, a 3.48% decline over the past week, and a sharp 40.55% drop month-to-date, reflecting investor skepticism about the company’s profitability outlook and market positioning.

Post-Earnings Price Action Review
A strategy of buying The One shares following the earnings report underperformed significantly. Holding the stock for 30 days post-earnings resulted in a total return of -40.56%, a CAGR of -16.44%, and a Sharpe ratio of -0.26. This negative return far underperformed the benchmark’s 48.58% gain, highlighting the stock’s volatility and poor post-earnings momentum. The strategy also recorded a maximum drawdown of 0.00%, further emphasizing the high-risk nature of the trade.

CEO Commentary
Emanuel "Manny" Hilario, President and CEO, noted the successful integration of the Benihana brand and the continued execution of strategic initiatives. He highlighted positive same store sales growth at Benihana and transaction growth at STK, while emphasizing plans to accelerate asset-light expansion and open five to seven new venues in 2025. Hilario expressed confidence in the company’s long-term growth trajectory and the ongoing optimization of operations to enhance shareholder value.

Guidance
For Q3 2025, The One expects total GAAP revenues to fall between $190 million and $195 million, with consolidated comparable sales expected to decline between -4% and -2%. Adjusted EBITDA guidance stands at $15 to $18 million. Looking ahead to full-year 2025, the company projects total GAAP revenues of $835 to $870 million, with consolidated comparable sales expected to range from -3% to 1%, and Consolidated Adjusted EBITDA between $95 million and $115 million.

Additional News
The One Group Hospitality (STKS) is set to release its Q2 2025 earnings report after market close on August 5, 2025. Analysts expect the company to report revenue of $209 million, a year-over-year increase of 21.31%. The expected earnings per share loss is estimated at -$0.175, a 51.40% improvement from the previous year. Investors are encouraged to participate in the earnings call, where management will provide further insights into the company’s performance. It is important to note that U.S. publicly traded companies have flexible fiscal year structures, and earnings reports are typically followed by investor calls.