TH International (THCH) Q3 2025 earnings summary

Executive summary

• System sales grew 12.8% year-over-year to RMB419.9 million, with positive same-store sales growth of 3.3% for company-owned and operated stores and food revenues up 24.2%.

• Achieved 1,030 total stores at Q3 2025, up 8.9% year-over-year, with 15 net new stores in the quarter and a shift toward made-to-order stores.

• Registered loyalty club members reached 27.9 million, up 22.3% year-over-year, with digital orders accounting for 91% of company-owned store revenues.

• Delivery revenues increased 23.1% year-over-year, supported by promotional offers and market share gains.

• Franchise and retail business revenues rose 25% year-over-year, with franchise store count growing from 382 to 479.

Financial highlights

• Company-owned and operated store contribution margin was 7.7% in Q3 2025, down from 13.3% in Q3 2024.

• Adjusted corporate EBITDA margin declined to -4.2% in Q3 2025 from 0.6% in Q3 2024.

• Adjusted net loss was RMB53.8 million, with an adjusted net loss margin of -15.0% (vs. -11.5% last year).

• Total cash and equivalents stood at RMB159.3 million as of September 30, 2025, down from RMB184.2 million at year-end 2024.

• Adjusted general and administrative expenses rose to 13.2% of revenues, up 250bp year-over-year.

Outlook and guidance

• Aims to expand store contribution margin to mid- to high-teens by enhancing gross margins, optimizing network, and launching high-margin products.

• Expects double-digit store-level margin next year through supply chain optimization and pricing strategies.

• Plans to accelerate sub-franchising and expand special channel stores, leveraging current market conditions.

• Near-term priorities include expanding store-level profitability, improving adjusted corporate EBITDA margins, delivering sustainable revenue growth, accelerating franchising, and optimizing cost structure.

• Strategic financing transactions are expected to support future growth and network development.