First Watch Q4 EPS Beats by $0.17; 2026 EBITDA Guidance Misses by $9.2M
First Watch reported Q4 EPS of $0.24, beating estimates by $0.17, with revenue of $316.4 million in line with forecasts but adjusted EBITDA slightly below consensus. The company guided full-year 2026 EBITDA at $136 million, missing the $145.2 million analysts forecast and triggering an over 10% stock drop.
1. Q4 Financial Performance
First Watch delivered Q4 EPS of $0.24, surpassing consensus by $0.17, while generating revenue of $316.4 million in line with forecasts. However, adjusted EBITDA for the quarter fell slightly below analysts’ estimates, reflecting tighter operating margins and higher costs than anticipated.
2. 2026 Guidance Miss
Management set full-year 2026 EBITDA guidance at $136 million, falling short of the $145.2 million analysts had projected. This gap highlights potential challenges in scaling profitability and indicates more conservative margin expectations for the upcoming year.
3. Market Reaction
Shares declined more than 10% in early trading, representing one of the largest single-day drops for the company in the past year. Investors focused on the guidance shortfall despite the robust earnings beat, underscoring sensitivity to forward-looking profit metrics.