Despite a steady revenue outlook, analysts warn of rising losses and slower growth ahead.
Denver, Colorado, 11 November 2025 – The ONE Group Hospitality, Inc. (NASDAQ: STKS) reported its third-quarter financial results last week, and the update was challenging for investors. The company reported revenue of around US$180 million, slightly below expectations. However, the bigger concern came from earnings, which showed a loss of US$2.75 per share, significantly worse than analysts had predicted.
With these results now in hand, analysts are revising their forecasts for the company’s future performance. For 2026, six industry analysts expect The ONE Group Hospitality to generate about US$879.4 million in revenue, which would represent a modest 7.2% growth compared to the past year. Losses, however, are still expected, though they are predicted to decrease to about US$0.49 per share.
Before the latest earnings report, estimates were slightly more optimistic, with expected revenue at US$880.5 million and projected losses at US$0.46 per share. While the revenue forecast remains mostly unchanged, analysts now expect losses to be slightly higher, signaling some caution.
A Slower Growth Outlook Than the Industry
The ONE Group Hospitality has expanded rapidly in recent years, with revenue growing at an average rate of 32% annually over the past five years. However, the latest forecasts suggest a much slower pace ahead, around 5.7% yearly growth through 2026.
In comparison, other restaurant and hospitality companies in the same industry are expected to grow revenue at an average of around 10% annually. This indicates that The ONE Group Hospitality may face more challenges than its competitors in maintaining momentum.
What This Means for Investors
The key takeaway is that analysts expect losses to continue into next year, which may concern shareholders. Revenue projections remain steady, meaning the business is still generating demand, but profitability pressures are becoming harder to ignore.
Even with these adjustments, the average analyst price target for the stock remains unchanged at roughly US$5.05, suggesting that expectations for long-term value have not shifted dramatically yet.
However, investors looking beyond next year may want to review longer-term forecasts. Projections extending to 2027 are available, offering a clearer picture of whether the company can return to stronger growth over time.
