The ONE Group Hospitality, Inc.

Second-quarter GAAP revenue was $201 million, down 3.3% from $207 million a year ago. Company-owned restaurant net revenue was $197 million, down 3.2%, and comparable restaurant sales increased 0.9% with positive transaction growth in all segments. Restaurant operating profit was $32.4 million, or 16.4% of owned restaurant net revenue, up 110 basis points from 15.3% last year. Adjusted EBITDA was $21.1 million, down 9.7% from $23.4 million. Net loss attributable to The ONE Group was $2.1 million versus a $10.1 million loss last year. For the first six months of 2026, operating cash flow was $32 million, nearly triple the $11 million generated in the same period last year. The company ended the quarter with $17.1 million in cash and short-term credit card receivables and $28.7 million of availability under its revolver. Third-quarter guidance calls for revenue of $176 million to $180 million, comparable sales of 0% to 2%, adjusted EBITDA of $12 million to $15 million, company-owned operating expenses of 85% to 87% of company-owned net revenue, SG&A excluding stock comp of about $12.5 million, and preopening expenses of $1 million to $2 million. Full-year 2026 guidance was updated to revenue of $805 million to $820 million, comparable sales of 1% to 2%, adjusted EBITDA of $95 million to $105 million, restaurant preopening expenses of $6.5 million to $7.5 million, interest expense net of interest income of $38 million to $39 million, tax rate of about 10% to 20%, capital expenditures net of landlord allowances of $30 million, and 6 to 10 new venue openings.

Manny Hilario framed the quarter as evidence that the company’s operating playbook is working, pointing to positive traffic across all segments, margin expansion, and meaningfully higher cash generation. He emphasized a ‘barbell’ strategy that combines value-led traffic drivers like happy hour with premium occasions and menu innovation, and said temporary headwinds from World Cup viewing patterns and summer heat should fade. His tone was confident and execution-focused, repeatedly stressing capital discipline, asset-light growth, and the long-term opportunity in Benihana Express.

Nicole Thaung detailed the quarter’s financial performance and the updated outlook, citing $201 million in revenue, a 0.9% comparable sales increase, $32.4 million of restaurant operating profit, and $21.1 million of adjusted EBITDA. She highlighted cost discipline, including a 170-basis-point improvement in company-owned restaurant cost of sales to 19.5% and a 110-basis-point improvement in total owned operating expenses to 83.6%, while noting higher G&A from salaries, bonuses, IT, travel, and marketing. She also pointed to $17.1 million in cash and short-term credit card receivables, $28.7 million of revolver availability, and full-year capex guidance lowered to $30 million as the company prioritizes free cash flow and debt reduction.

Analysts focused on the STK Downtown New York relocation, the higher-than-expected owned operating expense ratio, third-quarter demand trends, beef costs, and the drop in full-year revenue guidance. Management said the New York relocation delayed roughly $150,000 to $200,000 of weekly revenue and that the expense miss was mainly due to unplanned World Cup-related marketing spending. On beef, Manny said the company has already locked in a significant amount of supply through the rest of the year and does not expect a negative margin impact; on guidance, he explained that the revenue reset mainly reflects a move toward asset-light openings and lower capex, not a deterioration in the core business.