The ONE Group Posts 19.7% Revenue Growth to $806M, 2025 Net Loss $92M
The ONE Group Hospitality’s 2025 fiscal year GAAP revenue rose 19.7% to $806 million while GAAP net loss widened to $92 million due to a $69 million tax valuation allowance and impairments. In Q4 2025, revenues fell 6.7% to $207 million, GAAP net loss hit $6 million, and adjusted EBITDA slid to $28 million.
1. Fourth Quarter Financial Performance
In the fourth quarter of 2025, GAAP revenues declined 6.7% to $207 million from $222 million, influenced by a shifted New Year’s Eve holiday. GAAP net loss increased to $6 million from a $2 million net income, driven by a $7 million non-cash impairment, and adjusted EBITDA decreased to $28 million.
2. Full Year 2025 Results
For the full year, GAAP revenue increased 19.7% to $806 million, while consolidated comparable sales dipped 3.7%. The GAAP net loss expanded to $92 million from $17 million, primarily due to a $69 million tax valuation allowance and impairments, as adjusted EBITDA rose 16.3% to $89 million.
3. Portfolio Optimization Strategy
The company closed six underperforming Grill locations in 2025 and one in early 2026, targeting up to five additional Grill conversions to Benihana or STK by 2026. An RA Sushi-to-STK conversion in Scottsdale delivered approximately $7 million in annualized sales on a $1 million investment, validating the strategy.
4. Growth Initiatives and Pipeline
The ONE Group secured development rights for ten Benihana and Benihana Express sites in the San Francisco Bay Area—the largest franchise agreement in its history—and commitments for locations in the Florida Keys. The firm is prioritizing asset-light openings averaging $1.5 million in build-out costs, with a pipeline of 12 signed leases.