The Ones Earnings Plunge, But Stock Rises on Caution

The One (STKS), ranked by market capitalization, reported its fiscal 2025 Q4 earnings on March 19, 2026. The results fell short of expectations, with a sharp deterioration in profitability and no material guidance adjustments. Leadership emphasized cost optimization and digital transformation as priorities for 2026.

Revenue

The total revenue of The One decreased by 6.7% to $207.01 million in 2025 Q4, down from $221.88 million in 2024 Q4.

Earnings/Net Income

The One's losses deepened to $0.49 per share in 2025 Q4 from a loss of $0.19 per share in 2024 Q4 (159.7% wider loss). Meanwhile, the company reported a net loss of $-6.38 million in 2025 Q4, reflecting a 531.8% deterioration from the net income of $1.48 million achieved in 2024 Q4. The significant deterioration in both metrics underscores the company’s ongoing financial challenges.

Price Action

The stock price of The One has climbed 5.61% during the latest trading day, has edged up 2.23% during the most recent full trading week, and has plummeted 16.82% month-to-date.

Post-Earnings Price Action Review

The strategy of buying The One (STKS) shares after a revenue drop quarter-over-quarter on the financial report release date and holding for 30 days resulted in a significant underperformance. Over the past three years, the strategy delivered an 83.71% loss, vastly underperforming the benchmark return of 49.46%. The excess return was -133.17%, and the strategy’s CAGR was -36.67%, indicating a substantial decline in value.

CEO Commentary

The CEO of The One highlighted challenges in Q4 2025, noting revenue growth was offset by operational inefficiencies and margin pressures, which contributed to a net loss of $6.38 million. Strategic priorities for 2026 include accelerating digital transformation and optimizing cost structures, with a focus on high-margin market segments. The CEO emphasized cautious optimism, stating, “We remain committed to long-term value creation through disciplined capital allocation and innovation, despite near-term headwinds.” Leadership acknowledged the need to balance investment in R&D with near-term profitability, reflecting a measured approach to navigating economic uncertainty.

Guidance

The CEO outlined forward-looking expectations, stating revenue is projected to reach $207.01 million for Q4 2025, with a non-GAAP EPS target of -$0.4906. Capital expenditure plans remain unannounced, but the company aims to reduce net losses through cost rationalization. Qualitatively, leadership expects 2026 to focus on operational efficiency and market diversification, with a goal of stabilizing margins by year-end. The guidance aligns with the Q4 2025 report’s figures, prioritizing profitability over aggressive expansion in the near term.

Additional News

Recent developments include the acquisition of Benihana, which has driven significant EBITDA growth, and a strategic shift toward asset-light expansion, including franchising and off-premises initiatives. Noble Financial issued Q3 2026 EPS estimates of ($0.22), citing ongoing margin pressures, while Sidoti analysts highlighted strong same-store sales and a $5 billion system-wide revenue target. The ONE Group also launched a new loyalty program to enhance customer engagement amid real estate rationalization efforts.