GEN Restaurant Group (GENK) Q3 2025 Financial Results Summary

2025-11-07 · Stocks · QuoteReporter

GEN Restaurant Group (GENK) Q3 2025 Financial Results Summary

CERRITOS, CA, November 7, 2025 – GEN Restaurant Group, Inc. (“GEN” or the “Company”) (Nasdaq: GENK) announced its financial results for the third quarter ended September 30, 2025.

Third Quarter 2025 Financial and Operational Highlights

Total Revenue:
Grew 2.7% year-over-year to $50.4 million compared to $49.1 million in Q3 2024.
Loss from Operations:
Recorded a loss of $3.7 million, representing 7.4% of revenue.
This is a significant decrease compared to an income from operations of $88 thousand, or 0.2% of revenue, in Q3 2024.
Restaurant-Level Adjusted EBITDA:
Amounted to $7.6 million, or 15.0% of revenue, slightly down from 16.3% in Q2 2025.
Demonstrates a decrease compared to $8.9 million in Q3 2024.
New Openings:
Opened 5 additional restaurants in South Korea during the quarter.
Total restaurant count grew to 57 locations across eleven states and South Korea, exceeding the 2025 target of 12-13 new stores.
Cash and Cash Equivalents:
As of September 30, 2025, cash and cash equivalents stood at $4.8 million.
Comparison of Operating Metrics:
Comparable Restaurant Sales Performance: Recorded at (9.9%) for Q3 2025 vs. (9.1%) in Q3 2024.
General and Administrative Expenses: Increased to $6.5 million, or 12.8% of revenue, from $5.2 million or 10.6% of revenue year-over-year.
Net Loss:
Net loss before income taxes was $3.9 million (approximately $(0.11) per share) for Q3 2025, contrasting sharply with a net income of $284 thousand (or $0.01 per share) in Q3 2024.
Non-GAAP Measures:
Adjusted EBITDA was reported at $226 thousand, down from $3.4 million in the same quarter last year.
Restaurant Operating Expenses:
Total restaurant operating expenses increased as a percentage of revenue to 95.4% from 89.1% year-over-year.
Cost of Goods Sold: Increased by 334 basis points year-over-year, driven by inflation and new restaurant startups.
Payroll and Benefits: Decreased by 196 basis points compared to Q3 2024.
Occupancy Costs: Increased by 238 basis points due to new openings.
Other Operating Costs: Increased by 58 basis points year-over-year.
Additional Highlights:
Continued focus on expanding the GEN brand through various product offerings including ready-to-cook meats available in over 600 grocery stores and new projects from its incubator division.

Shareholder Actions

The Company did not declare a quarterly dividend.
There were no announcements pertaining to share repurchase programs.

Financial Outlook

Management expressed a strong confidence moving into the remainder of 2025, with potential further openings projected. They acknowledged the challenges faced by the restaurant industry while emphasizing a commitment to brand recognition and customer service.

In conclusion, GEN Restaurant Group’s third quarter results showcased a mixture of operational growth against the backdrop of increasing operational costs and net losses. The company’s efforts in expanding its restaurant portfolio and diversifying its offerings provide insights into its strategic direction for 2025 and beyond.

Here are the extracted tables from the press release:

GEN RESTAURANT GROUP Condensed Consolidated Comprehensive Income (Loss) Statements (in thousands, except per share amounts)

	Three months ended September 30,		Nine months ended September 30,
	2025	2024	2025	2024
Revenue	$ 50,418	$ 49,105	$ 162,795	$ 153,726
Restaurant operating expenses:
Food cost	17,538	15,442	55,422	50,110
Payroll and benefits	14,390	14,977	49,140	47,491
Occupancy expenses	5,427	4,116	15,639	12,799
Operating expenses	6,174	5,728	18,005	16,185
Depreciation and amortization	2,277	1,695	6,491	4,938
Pre-opening costs	2,315	1,807	7,015	5,354
Total restaurant operating expenses	48,121	43,765	151,712	136,877
General and administrative	6,466	5,221	19,239	14,952
Depreciation and amortization – corporate	41	31	111	89
Gain on lease terminations	(471)	—	(471)	—
Total costs and expenses	54,157	49,017	170,591	151,918
(Loss) income from operations	(3,739)	88	(7,796)	1,808
Employee retention credits	—	—	313	200
Gain on remeasurement of previously held interest	—	—	—	3,402
Other income (loss)	(39)	—	(339)	—
Loss on foreign currency	—	—	(14)	—
Interest income (expense), net	(121)	196	7	734
Equity in income (loss) of equity method investee	—	—	—	(17)
Net (loss) income before income taxes	(3,899)	284	(7,829)	6,127
(Benefit) provision for income taxes	(271)	(115)	(540)	198
Net (loss) income	(3,628)	169	(7,289)	5,929
Less: Net (loss) income attributable to	(3,062)	144	(6,162)	5,133
non-controlling interest
Net (loss) income attributable to GEN Restaurant Group, Inc.	(566)	25	(1,127)	796
Net (loss) income attributable to Class A common stock per share – basic and diluted	(566)	25	(1,127)	796
Weighted-average shares of Class A common stock outstanding – basic and diluted	5,245	4,861	5,131	4,585
Net (loss) income per share of Class A common stock -basic and diluted	(0.11)	$ 0.01	(0.22)	$ 0.17

GEN RESTAURANT GROUP Selected Balance Sheet Data and Selected Operating Data (in thousands, except restaurants and percentages)

Selected Balance Sheet Data:	September 30,	December 31, 2024
Cash and cash equivalents	$ 4,793	$ 23,675
Total assets	$ 245,539	$ 240,415
Total liabilities	$ 205,952	$ 194,798
Total Stockholders’ equity	$ 38,087	$ 44,117

Selected Operating Data	Three months ended September 30,		Nine months ended September 30,
	2025	2024	2025	2024
Restaurants at end of period	57	41	57	41
Comparable restaurant sales performance	(9.9)%	(9.1)%	(5.9)%	(5.6)%
Net (loss) income	$ (3,628)	$ 169	$ (7,289)	$ 5,929
Net (loss) income margin	(7.2)%	0.3%	(4.5)%	3.9%
Adjusted EBITDA	$ 226	$ 3,436	$ 3,329	$ 11,276
Adjusted EBITDA margin	0.4%	7.0%	2.0%	7.3%
(Loss) income from operations	$ (3,739)	$ 88	$ (7,796)	$ 1,808
(Loss) income from operations margin	(7.4)%	0.2%	(4.8)%	1.2%
Restaurant level Adjusted EBITDA	7,555	8,961	25,473	27,636
Restaurant level Adjusted EBITDA margin	15.0%	18.2%	15.6%	18.0%