TH International 2025 Q3 Earnings Narrowed Losses by 15.6% Amidst Continued Challenges

TH International (THCH) reported fiscal 2025 Q3 earnings on Dec 9, 2025, with results aligning with expectations as the company reduced its net loss by 15.6% year-over-year. Despite ongoing financial headwinds, CEO Yongchen Lu highlighted progress in store openings and system sales growth, signaling cautious optimism for future recovery.

Revenue

Company-owned and operated stores accounted for $282.88 million, while other revenues contributed $75.13 million, bringing total revenues to $358.02 million. This marked a 5.5% decline from $299.45 million in 2024 Q3, driven by broader market challenges. The performance underscores the need for strategic adjustments in high-margin offerings and operational efficiency.

Earnings/Net Income

TH International narrowed its net loss to $-73.76 million in 2025 Q3, a 15.6% improvement from $-87.39 million in 2024 Q3. Earnings per share also improved, with losses decreasing to $2.24 from $2.75. While these reductions are positive, the company has sustained losses for four consecutive years, reflecting persistent operational challenges.

Price Action

The stock price of TH International declined 1.36% during the latest trading day, 4.51% over the past week, and 5.58% month-to-date. Post-earnings price action

Post-Earnings Price Action Review

The stock’s post-earnings performance reflected mixed investor sentiment. While the narrowing losses provided some optimism, the continued decline in revenue and prolonged losses weighed on confidence. The 5.58% month-to-date drop indicated broader market skepticism, though the CEO’s emphasis on store expansion and loyalty growth offered potential catalysts for future recovery.

CEO Commentary

Yongchen Lu emphasized progress in net new store openings and a 12.8% year-over-year increase in system sales, driven by the Light & Fit Lunch Box platform. Strategic priorities include expanding into 91 cities via sub-franchisee partnerships and optimizing unit economics. Challenges such as heightened coffee competition and summer price sensitivity remain, but leadership cited 27.9 million loyalty members and celebrity partnerships as growth drivers.

Guidance

Management aims to boost company-owned store contribution margins to mid- to high teens through supply chain optimization and high-margin product launches. Dong Li highlighted plans to reduce onshore leverage and secure alternative financing for expansion. While no explicit revenue or EPS targets were provided, the focus on special channel stores and operational efficiency signaled a path toward self-sustainable growth.

Additional News

1. Financing Actions: TH International issued $89.9 million in senior secured convertible notes due 2029, while restructuring unsecured convertible notes from 2027 to 2029. These moves aim to strengthen liquidity and reduce debt obligations.

2. Sustainability Initiative: The company launched an eco-friendly straw in collaboration with Tencent’s CarbonXmade program, promoting sustainable practices across key markets.

3. Loyalty Growth: Registered loyalty club members reached 27.9 million, a 22.3% year-over-year increase, underscoring the potential for recurring revenue and customer retention.

Image Suggestion: A visual representation of TH International’s store expansion map, highlighting new sub-franchisee cities and key product innovations like the Light & Fit Lunch Box.

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