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% |
