ONE Group Hospitality, Inc 10-Q for FY2026 Q3

ONE Group Hospitality, Inc. (STKS)

10-Q 2026-11-04 For: 2026-09-27

Added on November 04, 2026

About this 10-Q

ONE Group Hospitality, Inc filed this 10-Q on November 4, 2026, covering the quarter ended September 27, 2026 (FY2026 Q3).

For nine periods ended September 27, 2026, The ONE Group Hospitality, Inc. reported revenue of $590.3 million, down $8.5 million, while operating income rose $11.1 million to $14.6 million; net loss narrowed to $15.0 million from $85.9 million. AI summary

Headline figures

Quarter ended September 27, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $176.96M; down 1.8% from $180.2M a year earlier
Net loss: $16.11M; compared with a net loss of $76.74M a year earlier
Diluted EPS: -$0.79; compared with -$2.59 a year earlier

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	(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended September 27, 2026

	OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to


Delaware		14-1961545
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1624 Market Street, Suite 311, Denver, Colorado		80202
(Address of principal executive offices)		Zip Code


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	STKS	Nasdaq


Large accelerated filer ◻	Accelerated filer ⌧
Non-accelerated filer ◻	Smaller reporting company ☒
	Emerging growth company ☐


	Page
PART I – Financial Information
Item 1. Financial Statements	3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3. Quantitative and Qualitative Disclosures About Market Risk	32
Item 4. Controls and Procedures	32

PART II – Other Information
Item 1. Legal Proceedings	32
Item 1A. Risk Factors	32
Item 5. Other Information	33
Item 6. Exhibits	33

Signatures	34


	September 27,		December 28,
	2026		2025
ASSETS
Current assets:
Cash and cash equivalents	$	3,574	$	4,168
Credit card receivable		10,139		19,480
Restricted cash and cash equivalents		499		499
Accounts receivable		11,201		15,389
Inventory		9,388		9,839
Other current assets		7,880		7,521
Total current assets		42,681		56,896

Property and equipment, net		281,510		278,195
Operating lease right-of-use assets		257,578		253,228
Goodwill		155,783		155,783
Intangibles, net		128,915		128,988
Other assets		8,371		8,852
Security deposits		2,259		2,254
Total assets	$	877,097	$	884,196

LIABILITIES, SERIES A PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	40,291	$	36,633
Accrued payroll expenses		17,713		19,286
Accrued expenses		43,119		46,356
Current portion of operating lease liabilities		16,324		13,803
Deferred gift card revenue and other		5,320		6,819
Current portion of long-term debt		9,465		9,302
Other current liabilities		819		1,017
Total current liabilities		133,051		133,216

Long-term debt, net of current portion, unamortized discount and debt issuance costs		329,958		334,013
Operating lease liabilities, net of current portion		303,984		293,985
Other long-term liabilities		6,381		6,319
Deferred tax liabilities, net		5,187		5,187
Total liabilities		778,561		772,720

Commitments and contingencies (Note 16)

Series A preferred stock, $0.0001 par value, 160,000 shares authorized; 160,000 issued and outstanding at September 27, 2026 and December 28, 2025		220,894		191,303

Stockholders’ deficit:
Common stock, $0.0001 par value, 75,000,000 shares authorized; 35,205,282 issued and 31,939,118 outstanding at September 27, 2026 and 34,520,226 issued and 31,242,344 outstanding at December 28, 2025		3		3
Preferred stock, other than Series A preferred stock, $0.0001 par value, 9,840,000 shares authorized; no shares issued and outstanding at September 27, 2026 and December 28, 2025		—		—
Treasury stock, at cost, 3,402,881 shares at September 27, 2026 and December 28, 2025		(19,308)		(19,308)
Additional paid-in capital		12,954		39,712
Accumulated deficit		(108,242)		(93,216)
Accumulated other comprehensive loss		(3,057)		(3,029)
Total stockholders’ deficit		(117,650)		(75,838)
Noncontrolling interests		(4,708)		(3,989)
Total deficit		(122,358)		(79,827)
Total liabilities, Series A preferred stock and stockholders' deficit	$	877,097	$	884,196


		For the three periods ended September 27,			For the three periods ended September 28,			For the nine periods ended September 27,			For the nine periods ended September 28,
		2026			2025			2026			2025
Revenues:
Owned restaurant net revenue		$	174,288		$	177,424		$	580,864		$	588,729
Management, license, franchise and incentive fee revenue			2,670			2,776			9,387			9,979
Total revenues			176,958			180,200			590,251			598,708
Cost and expenses:
Owned operating expenses:
Owned restaurant cost of sales			33,936			37,412			113,014			123,722
Owned restaurant operating expenses			117,283			119,901			372,636			378,169
Total owned operating expenses			151,219			157,313			485,650			501,891
General and administrative (including stock-based compensation of $1,006 and $3,277 for the three and nine periods ended September 27, 2026, respectively, and $1,246 and $4,348 for the three and nine periods ended September 28, 2025, respectively)			13,323			13,274			42,353			38,027
Depreciation and amortization			11,727			11,530			33,152			32,229
Loss on impairment of long-lived assets			—			3,386			—			3,386
Lease termination and restaurant closure expenses (income)			1,362			(278)			4,246			5,428
Pre-opening expenses			2,727			698			7,057			3,958
Transition and integration expenses			2,364			2,607			3,023			10,275
Transaction costs			—			13			26			143
Other expenses (income)			84			(470)			138			(147)
Total costs and expenses			182,806			188,073			575,645			595,190
Operating (loss) income			(5,848)			(7,873)			14,606			3,518
Other expenses, net:
Interest expense, net of interest income			10,021			10,483			29,390			30,600
Total other expenses, net			10,021			10,483			29,390			30,600
Loss before provision for income taxes			(15,869)			(18,356)			(14,784)			(27,082)
Provision for income taxes			515			59,141			961			60,125
Net loss			(16,384)			(77,497)			(15,745)			(87,207)
Less: net loss attributable to noncontrolling interest			(278)			(757)			(719)			(1,338)
Net loss attributable to The ONE Group Hospitality, Inc.		$	(16,106)		$	(76,740)		$	(15,026)		$	(85,869)
Series A Preferred Stock paid-in-kind dividend and accretion			(10,340)			(8,535)			(29,591)			(24,263)
Net loss available to common stockholders		$	(26,446)		$	(85,275)		$	(44,617)		$	(110,132)

Net loss per common share (as restated, see Note 10):
Basic		$	(0.79)		$	(2.59)		$	(1.33)		$	(3.35)
Diluted		$	(0.79)		$	(2.59)		$	(1.33)		$	(3.35)

Weighted average common shares outstanding (as restated, see Note 10):
Basic			33,647,994			32,872,423			33,438,816			32,887,768
Diluted			33,647,994			32,872,423			33,438,816			32,887,768


														Accumulated
									Additional					other
	Series A Preferred Stock			Common stock			Treasury		paid-in		Accumulated			comprehensive		Stockholders’		Noncontrolling
	Shares	Amount		Shares	Par value		stock		capital		deficit			loss		(deficit) equity		interests		Total
Balance at December 28, 2025	160,000	$	191,303	31,242,344	$	3	$	(19,308)	$	39,712	$	(93,216)		$	(3,029)	$	(75,838)	$	(3,989)	$	(79,827)
Stock-based compensation	—		—	122,892		—		—		1,134		—			—		1,134		—		1,134
Issuance of vested restricted shares, net of tax withholding	—		—	141,125		—		—		(209)		—			—		(209)		—		(209)
Series A Preferred Stock paid-in kind dividend and accretion	—		9,395	—		—		—		(9,395)		—			—		(9,395)		—		(9,395)
Loss on foreign currency translation, net	—		—	—		—		—		—		—			(26)		(26)		—		(26)
Net income (loss)	—		—	—		—		—		—		3,202			—		3,202		(213)		2,989
Balance at March 29, 2026	160,000	$	200,698	31,506,361	$	3	$	(19,308)	$	31,242	$	(90,014)		$	(3,055)	$	(81,132)	$	(4,202)	$	(85,334)
Stock-based compensation	—		—	108,829		—		—		1,137		—			—		1,137		—		1,137
Issuance of vested restricted shares, net of tax withholding	—		—	69,678		—		—		(100)		—			—		(100)		—		(100)
Series A Preferred Stock paid-in kind dividend and accretion	—		9,856	—		—		—		(9,856)		—			—		(9,856)		—		(9,856)
Loss on foreign currency translation, net	—		—	—		—		—		—		—			(1)		(1)		—		(1)
Net loss	—		—	—		—		—		—		(2,122)			—		(2,122)		(228)		(2,350)
Balance at June 28, 2026	160,000	$	210,554	31,684,868	$	3	$	(19,308)	$	22,423	$	(92,136)		$	(3,056)	$	(92,074)	$	(4,430)	$	(96,504)
Stock-based compensation	—		—	136,717		—		—		1,006		—			—		1,006		—		1,006
Issuance of vested restricted shares, net of tax withholding	—		—	117,533		—		—		(135)		—			—		(135)		—		(135)
Series A Preferred Stock paid-in-kind dividend and accretion	—		10,340	—		—		—		(10,340)		—			—		(10,340)		—		(10,340)
Loss on foreign currency translation, net	—		—	—		—		—		—		—			(1)		(1)		—		(1)
Net loss	—		—	—		—				—		(16,106)			—		(16,106)		(278)		(16,384)
Balance at September 27, 2026	160,000	$	220,894	31,939,118	$	3	$	(19,308)	$	12,954	$	(108,242)		$	(3,057)	$	(117,650)	$	(4,708)	$	(122,358)

Balance at December 31, 2024	160,000	$	158,085	31,037,843	$	3	$	(18,202)	$	67,118	$	—		$	(3,028)	$	45,891	$	(2,645)	$	43,246
Stock-based compensation	—		—	61,453		—		—		1,632		—			—		1,632		—		1,632
Issuance of vested restricted shares, net of tax withholding	—		—	54,557		—		—		(129)		—			—		(129)		—		(129)
Purchase of treasury stock	—		—	(110,595)				(307)		—		—			—		(307)		—		(307)
Series A Preferred Stock paid-in kind dividend and accretion	—		7,591	—		—		—		(6,616)		(975)			—		(7,591)		—		(7,591)
Loss on foreign currency translation, net	—		—	—		—		—		—		—			(13)		(13)		—		(13)
Net income (loss)	—		—	—		—		—		—		975			—		975		(353)		622
Balance at March 30, 2025	160,000	$	165,676	31,043,258	$	3	$	(18,509)	$	62,005	$	—		$	(3,041)	$	40,458	$	(2,998)	$	37,460
Stock-based compensation	—		—	45,367		—		—		1,470		—			—		1,470		—		1,470
Issuance of vested restricted shares, net of tax withholding	—		—	65,848		—		—		(167)		—			—		(167)		—		(167)
Purchase of treasury stock	—		—	(202,883)		—		(598)		—		—			—		(598)		—		(598)
Series A Preferred Stock paid-in kind dividend and accretion	—		8,137	—		—		—		(8,137)		—			—		(8,137)		—		(8,137)
Gain on foreign currency translation, net	—		—	—		—		—		—		—			123		123		—		123
Net loss	—		—	—		—		—		—		(10,104)			—		(10,104)		(228)		(10,332)
Balance at June 29, 2025	160,000	$	173,813	30,951,590	$	3	$	(19,107)	$	55,171	$	(10,104)		$	(2,918)	$	23,045	$	(3,226)	$	19,819
Stock-based compensation	—		—	73,899		—		—		1,246		—			—		1,246		—		1,246
Issuance of vested restricted shares, net of tax withholding	—		—	137,445		—		—		(273)		—			—		(273)		—		(273)
Purchase of treasury stock	—		—	(69,749)		—		(201)		—		—			—		(201)		—		(201)
Series A Preferred Stock paid-in kind dividend and accretion	—		8,535	—		—		—		(8,535)		—			—		(8,535)		—		(8,535)
Loss on foreign currency translation, net	—		—	—		—		—		—		—			(14)		(14)		—		(14)
Net loss	—		—	—		—		—		—		(76,740)			—		(76,740)		(757)		(77,497)
Balance at September 28, 2025	160,000	$	182,348	31,093,185	$	3	$	(19,308)	$	47,609	$	(86,844)		$	(2,932)	$	(61,472)	$	(3,983)	$	(65,455)


2026, three periods remaining	$	36
2027		22
2028		22
2029		16
2030		4
Thereafter		37
Total future estimated deferred license revenue	$	137


	September 27,			September 28,
	2026			2025
Lease cost
Operating lease cost	$	35,111		$	34,756
Finance lease cost
Amortization of ROU assets		152			155
Interest on lease liabilities		48			65
Total finance lease cost		200			220
Variable lease cost ⁽¹⁾		17,032			14,620
Short-term lease cost		2,862			3,073
Total lease cost	$	55,205		$	52,669

Weighted average remaining lease term
Operating leases		12 years			13 years
Finance leases		2 years			3 years
Weighted average discount rate
Operating leases		10.47	%		10.40	%
Finance leases		11.14	%		11.14	%


2026, three periods remaining	$	10,157
2027		45,643
2028		50,956
2029		49,968
2030		49,702
Thereafter		390,225
Total lease payments		596,651
Less: imputed interest		(276,343)
Present value of operating lease liabilities	$	320,308


			Warrants	Exercise		Shares available for purchase
Issuance date	Holder of warrants	Expiration date	Issued	Price		September 27, 2026	December 28, 2025
May 1, 2024	HPC III Kaizen LP	May 1, 2029	1,000,000	$	10.00	1,000,000	1,000,000
May 1, 2024	HPS and affiliates	May 1, 2029	66,667	$	10.00	66,667	66,667
May 1, 2024	HPC III Kaizen LP	May 1, 2034	1,786,582	$	0.01	1,786,582	1,786,582
May 1, 2024	HPS and affiliates	May 1, 2034	119,105	$	0.01	119,105	119,105


							Weighted
				Weighted			average		Intrinsic
				average exercise			remaining		value
		Shares		price			contractual life		(thousands)
Outstanding at December 28, 2025		803,156		$	2.99		3.53 years		$	114
Granted		—			—
Exercised		—			—
Cancelled, expired or forfeited		(65,942)			2.73
Outstanding at September 27, 2026		737,214		$	3.02		3.08 years		$	66
Exercisable at September 27, 2026		737,214		$	3.02		3.08 years		$	66


		Weighted average
	Shares	grant date fair value
Non-vested RSUs at December 28, 2025	1,227,938	$	3.90
Granted	1,183,692		1.92
Vested	(529,790)		4.04
Cancelled, expired or forfeited	(111,991)		2.78
Non-vested RSUs at September 27, 2026	1,769,849	$	2.54


	STK		Benihana		Grill Concepts		Other⁽¹⁾		Total
For the three periods ended September 27, 2026
Owned restaurant net revenue	$	47,004	$	102,081	$	24,981	$	222	$	174,288
Owned restaurant cost of sales		(11,188)		(17,448)		(5,292)		(8)		(33,936)
Owned restaurant operating expenses		(29,593)		(68,531)		(19,139)		(20)		(117,283)
Restaurant operating profit		6,223		16,102		550		194		23,069
Management, license, franchise and incentive fee revenue		2,167		380		—		123		2,670
General and administrative (including stock-based compensation of $1,006)										(13,323)
Depreciation and amortization										(11,727)
Lease termination and restaurant closure expenses (income)										(1,362)
Pre-opening expenses										(2,727)
Transition and integration expenses										(2,364)
Transaction costs										—
Other expenses (income)										(84)
Interest expense, net of interest income										(10,021)
Loss before provision for income taxes										(15,869)

Reconciliation of total revenues
Owned restaurant net revenue										174,288
Management, license, franchise and incentive fee revenue										2,670
Total revenues									$	176,958


	September 27,		December 28,
	2026		2025
Furniture, fixtures and equipment	$	92,364	$	88,823
Leasehold improvements		282,733		266,224
Less: accumulated depreciation		(131,273)		(117,365)
Subtotal		243,824		237,682
Construction in progress		31,908		35,097
Restaurant smallwares		5,778		5,416
Total	$	281,510	$	278,195


		September 27,			December 28,
		2026			2025
Indefinite-lived intangible assets
Tradenames		$	130,200		$	130,200
Finite-lived intangible assets
Franchise agreements			800			800
Other finite-lived intangible assets			342			335
Total finite-lived intangible assets			1,142			1,135
Less: accumulated amortization			(2,427)			(2,347)
Total intangibles, net		$	128,915		$	128,988


	September 27,		December 28,
	2026		2025
VAT, sales and property taxes		10,453		10,572
Interest		5,976		6,053
Amounts due to landlords		3,661		4,507
New restaurant construction		2,855		3,521
Insurance		3,997		4,130
Legal, professional and other services		1,472		2,196
Lease termination		662		462
Income taxes		440		449
Other⁽¹⁾		13,603		14,466
Total	$	43,119	$	46,356


		Venues
		STK		Benihana		Grill Concepts⁽¹⁾		ONE Hospitality⁽²⁾		Total
Domestic
Owned		23		73		32		1		129
Sports Arenas⁽³⁾		—		4		—		—		4
Managed		1		—		—		1		2
Licensed		1		—		—		—		1
Franchised		—		5		—		—		5
Total domestic		25		82		32		2		141
International
Owned		—		—		—		—		—
Sports Arenas⁽³⁾		—		—		—		—		—
Managed		3		—		—		4		7
Licensed		3		—		—		—		3
Franchised		—		4		—		—		4
Total international		6		4		—		4		14
Total venues		31		86		32		6		155


	2025 vs. 2024					2026 vs. 2025
	Q1	Q2	Q3	Q4	YTD	Q1	Q2	Q3	YTD
US STK Owned Restaurants	(2.3)%	(4.9)%	(6.2)%	(0.7)%	(3.4)%	(0.1)%	2.5%	(1.2)%	0.4%
US STK Managed Restaurants	(12.7)%	(9.5)%	(4.7)%	4.2%	(4.6)%	8.1%	6.4%	0.3%	5.1%
US STK Total Restaurants	(3.6)%	(6.0)%	(5.8)%	0.3%	(3.7)%	1.4%	3.2%	(0.9)%	1.3%
Benihana Owned Restaurants	0.7%	0.4%	(4.0)%	(0.4)%	(0.8)%	—%	0.8%	0.7%	0.5%
Grill Concepts Owned Restaurants	(13.7)%	(14.6)%	(11.8)%	(9.4)%	(12.5)%	(5.3)%	(2.9)%	(4.0)%	(4.1)%
Combined Same Store Sales	(3.2)%	(4.1)%	(5.9)%	(1.8)%	(3.7)%	(0.3)%	0.9%	(0.4)%	0.1%


Owned restaurant net revenue for the nine periods ended September 28, 2025	$	588,729
Decrease in sales for Grill Concepts restaurants closed⁽¹⁾		(20,016)
Decrease in sales due to the elimination of auto-gratuities⁽²⁾		(3,076)
Increase in sales due to fiscal calendar shift⁽³⁾		8,291
Other changes in sales⁽⁴⁾		6,936
Owned restaurant net revenue for the nine periods ended September 27, 2026		580,864


Three Periods Ended September 27, 2026		Preopen Expenses			Preopen Rent ⁽¹⁾		Total
Training Team		$	103		$	—	$	103
Restaurants			1,470			1,154		2,624
Total		$	1,573		$	1,154	$	2,727

Three Periods Ended September 28, 2025		Preopen Expenses			Preopen Rent ⁽¹⁾		Total
Training Team		$	133		$	—	$	133
Restaurants			289			276		565
Total		$	422		$	276	$	698


Nine Periods Ended September 27, 2026		Preopen Expenses			Preopen Rent ⁽¹⁾		Total
Training Team		$	413		$	—	$	413
Restaurants			2,859			3,785		6,644
Total		$	3,272		$	3,785	$	7,057

Nine Periods Ended September 28, 2025		Preopen Expenses			Preopen Rent ⁽¹⁾		Total
Training Team		$	978		$	—	$	978
Restaurants			1,800			1,180		2,980
Total		$	2,778		$	1,180	$	3,958


Exhibit		Description
3.1		Amended and Restated Certificate of Incorporation (Incorporated by reference to Form 8-K filed on September 5, 2014).
3.2		Certificate of Designations of Series A Preferred Stock (Incorporated by reference to Form 8-K filed on May 1, 2024).
3.3		Amended and Restated Bylaws (Incorporated by reference to Form 8-K filed on October 25, 2011).
31.1*		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes – Oxley Act of 2002
31.2*		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes – Oxley Act of 2002
32.1*		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes – Oxley Act of 2002, 18 U.S.C. Section 1350.
32.2*		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes – Oxley Act of 2002, 18 U.S.C. Section 1350.
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.INS*		Inline XBRL Instance Document
101.SCH*		Inline XBRL Taxonomy Extension Schema Document
104*		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


Dated: November 4, 2026

	THE ONE GROUP HOSPITALITY, INC.

	By:	/s/ Nicole Thaung
		Nicole Thaung, Chief Financial Officer


/s/ Emanuel Hilario
Emanuel Hilario
Title: Chief Executive Officer
(Principal Executive Officer)


/s/ Nicole Thaung
Nicole Thaung
Title: Chief Financial Officer
(Principal Financial Officer)


Dated: November 4, 2026	/s/ Emanuel Hilario
	Emanuel Hilario
	Title: Chief Executive Officer
	(Principal Executive Officer)


Dated: November 4, 2026	/s/ Nicole Thaung
	Nicole Thaung
	Title: Chief Financial Officer
	(Principal Financial Officer)