The company's operational performance has deteriorated significantly, evidenced by a sharp gross margin contraction to 26.1% in 2025Q4 alongside a 29.5% year-over-year revenue decline.
| Sales/Revenue | 1.1B | 1.34B | 1.63B | 945.14M | 1.97B | 930.01M | 1.09B | 945.01M | 778.13M | 647.79M | 634.72M |
| Revenue Growth % | -18.32% | -17.44% | 72.17% | -51.97% | 111.59% | -14.82% | 15.53% | 21.45% | 20.12% | 2.06% | - |
| Cost of Goods Sold | 714.39M | 822.59M | 947.44M | 594.02M | 651.38M | 392.52M | 338.83M | 280.95M | 233.65M | 240.13M | 264.34M |
| COGS % of Revenue | 65.1% | 61.23% | 58.22% | 62.85% | 33.1% | 42.21% | 31.03% | 29.73% | 30.03% | 37.07% | 41.65% |
| Gross Profit | 382.96M | 520.85M | 679.82M | 351.12M | 554.77M | 537.49M | 752.97M | 664.05M | 544.49M | 407.66M | 370.39M |
| Gross Margin % | 34.9% | 38.77% | 41.78% | 37.15% | 28.19% | 57.79% | 68.97% | 70.27% | 69.97% | 62.93% | 58.35% |
| Gross Profit Growth % | -26.47% | -23.38% | 93.61% | -36.71% | 3.22% | -28.62% | 13.39% | 21.96% | 33.56% | 10.06% | - |
| Operating Expenses | 242.48M | 358.93M | 344.17M | 788.87M | 313.05M | 218.24M | 248.41M | 129.03M | 157.04M | 95.39M | 82.61M |
| OpEx % of Revenue | 22.1% | 26.72% | 21.15% | 83.47% | 15.91% | 23.47% | 22.75% | 13.65% | 20.18% | 14.73% | 13.02% |
| Selling, General & Admin | 268.12M | 291.91M | 359.64M | 805.07M | 335.17M | 247.9M | 269.96M | 145.65M | 166.69M | 104.54M | 88.95M |
| SG&A % of Revenue | 24.43% | 21.73% | 22.1% | 85.18% | 17.03% | 26.66% | 24.73% | 15.41% | 21.42% | 16.14% | 14.01% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -25.64M | 67.02M | -15.47M | -16.2M | -22.12M | -29.67M | -21.55M | 35.74M | 1.19M | 1.32M | -6.34M |
| Operating Income | 140.48M | 161.92M | 335.65M | -486.53M | 129.2M | 319.25M | 504.55M | 535.02M | 387.45M | 312.26M | 287.77M |
| Operating Margin % | 12.8% | 12.05% | 20.63% | -51.48% | 6.57% | 34.33% | 46.21% | 56.62% | 49.79% | 48.2% | 45.34% |
| Operating Income Growth % | -13.24% | -51.76% | 168.99% | -476.57% | -59.53% | -36.73% | -5.7% | 38.09% | 24.08% | 8.51% | - |
| EBITDA | 229.41M | 277.67M | 452.52M | -361.19M | 248.54M | 385.12M | 544.92M | 560.57M | 412.41M | 347.62M | 329.46M |
| EBITDA Margin % | 20.91% | 20.67% | 27.81% | -38.22% | 12.63% | 41.41% | 49.91% | 59.32% | 53% | 53.66% | 51.91% |
| EBITDA Growth % | -17.38% | -38.64% | 225.29% | -245.33% | -35.47% | -29.33% | -2.79% | 35.93% | 18.64% | 5.51% | - |
| D&A (Non-Cash Add-back) | 88.93M | 115.75M | 116.87M | 125.34M | 119.34M | 65.87M | 40.37M | 25.55M | 24.96M | 35.35M | 41.68M |
| EBIT | 212.72M | 203.52M | 394.43M | -476.18M | 210.78M | 319.25M | 628.59M | 532.78M | 458.1M | 360.19M | 332.96M |
| Net Interest Income | 30.16M | 33.76M | 27.32M | 20.12M | 45.36M | 69.48M | 63.58M | 49.12M | 24.8M | 22.04M | 19.64M |
| Interest Income | 37.81M | 40.07M | 41.37M | 48.11M | 60.66M | 72.93M | 66.09M | 49.66M | 26.24M | 22.04M | 19.64M |
| Interest Expense | 7.64M | 6.31M | 14.05M | 27.99M | 15.3M | 3.46M | 2.51M | 541.88K | 1.44M | 0 | 0 |
| Other Income/Expense | 68.76M | 34.12M | 43.33M | -19.23M | 66.28M | 35.91M | 122.79M | 27.08M | 84.25M | 37.46M | 27.97M |
| Pretax Income | 209.24M | 196.04M | 378.98M | -505.76M | 195.48M | 355.16M | 626.08M | 562.1M | 472.6M | 360.19M | 332.96M |
| Pretax Margin % | 19.07% | 14.59% | 23.29% | -53.51% | 9.93% | 38.19% | 57.34% | 59.48% | 60.74% | 55.6% | 52.46% |
| Income Tax | 45.88M | 88.73M | 118.45M | -44.07M | 112.29M | 110.46M | 189.57M | 160.19M | 186.65M | 83.92M | 80.08M |
| Effective Tax Rate % | 21.93% | 45.26% | 31.26% | 8.71% | 57.44% | 31.1% | 30.28% | 28.5% | 39.49% | 23.3% | 24.05% |
| Net Income | 166.79M | 110M | 269.32M | -425.15M | 88.71M | 261.34M | 442.72M | 394.1M | 285.4M | 265.97M | 235.79M |
| Net Margin % | 15.2% | 8.19% | 16.55% | -44.98% | 4.51% | 28.1% | 40.55% | 41.7% | 36.68% | 41.06% | 37.15% |
| Net Income Growth % | 51.63% | -59.16% | 163.35% | -579.28% | -66.06% | -40.97% | 12.34% | 38.09% | 7.3% | 12.8% | - |
| Net Income (Continuing) | 163.36M | 107.31M | 260.53M | -461.69M | 83.57M | 244.7M | 437.77M | 371.22M | 273.19M | 265.8M | 235.67M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 31.62M | 33.86M | 37.82M | 46.6M | 185.24M | 146.89M | 156.59M | 8.38M | 360.12K | 708.67K | 881.71K |
| EPS (Diluted) | 1.65 | 1.08 | 2.64 | -4.13 | 0.86 | 2.54 | 4.34 | 3.97 | 1.41 | 1.31 | 1.16 |
| EPS Growth % | 52.78% | -59.09% | 163.92% | -580.23% | -66.14% | -41.47% | 9.32% | 181.56% | 7.63% | 12.93% | - |
| EPS (Basic) | 1.65 | 1.08 | 2.64 | -4.13 | 0.86 | 2.54 | 4.34 | 3.97 | 1.41 | 1.31 | 1.16 |
| Diluted Shares Outstanding | 101.13M | 101.54M | 102.08M | 102.96M | 103.05M | 103.05M | 102.08M | 99.15M | 203.1M | 203.1M | 203.1M |
| Basic Shares Outstanding | 101.13M | 101.54M | 102.08M | 102.96M | 103.05M | 103.05M | 102.08M | 99.15M | 203.1M | 203.1M | 203.1M |
| Dividend Payout Ratio | 25.09% | 64.49% | - | - | 361.02% | - | 51.26% | 50.88% | 202.89% | 6.75% | 22.08% |
Sustained Revenue Contraction
As reported in recent quarterly filings, GreenTree Hospitality Group's top-line performance has deteriorated significantly, with revenue declining by 29.5% in 2025Q4 alone, signaling a challenging environment for the company's core lodging operations within the highly competitive and cooling Chinese domestic travel market.
The consistent year-over-year revenue decline suggests that the company is struggling to maintain occupancy levels or pricing power in its economy-focused segment. Investors should monitor whether this trend reflects a structural loss of market share to larger, more diversified competitors or a broader cyclical downturn in regional travel demand.
Based on the provided income statement data, GreenTree Hospitality Group's gross margin experienced a sharp contraction to 26.1% in 2025Q4, down from historical peaks exceeding 40%, which highlights the vulnerability of the company's leased-and-operated portfolio to fixed cost absorption during periods of declining occupancy.
The significant compression in gross margins indicates that the company's hybrid model is failing to provide the expected insulation against revenue volatility. This suggests that the fixed lease obligations are becoming a substantial burden, potentially necessitating a more aggressive pivot toward an asset-light franchise model to stabilize profitability.
According to the latest financial statements, GreenTree Hospitality Group has entered a period of negative operating leverage, as evidenced by the 2025Q4 operating margin of -7.0%, which demonstrates that SG&A expenses are not scaling down in proportion to the rapid decline in top-line revenue.
The inability to effectively manage overhead costs during a revenue downturn suggests a lack of operational flexibility within the current cost structure. This trend warrants further investigation into whether management can implement sufficient cost-cutting measures to prevent further erosion of operating income in subsequent quarters.
As indicated by the company's recent income statements, net income has exhibited extreme volatility, swinging from a $100.7M profit in 2025Q2 to an $89.5M loss in 2025Q4, which suggests that non-operating items or accounting adjustments may be significantly distorting the underlying quality of reported earnings.
The wide variance in net income relative to operating performance implies that investors should exercise caution when relying on bottom-line figures as a proxy for operational health. The lack of consistent profitability suggests that the company's core business model may be currently insufficient to cover its total cost base.
While the company maintains a robust cash position, the income statement data reveals a concerning trend of sustained revenue contraction, which suggests that the market's focus on liquidity may be overlooking the fundamental risks associated with the company's inability to generate consistent organic growth.
Short-sellers would likely focus on the persistent revenue decline and the potential for further margin compression if the company fails to optimize its leased hotel portfolio. The reliance on cash reserves to offset operational losses may not be a sustainable strategy if the current downward trajectory in revenue continues.
Quick answers to the most common questions about buying GHG stock.
For fiscal year 2025, GreenTree Hospitality Group Ltd. (GHG) reported total revenue of $1.10B. This represents a 72.9% increase compared to $634.7M in 2015.
GreenTree Hospitality Group Ltd. (GHG) is profitable, generating $166.8M in net income for the fiscal year ending 2025 with a net profit margin of 15.2%.
GreenTree Hospitality Group Ltd. (GHG) reported an operating income of $140.5M, resulting in an operating profit margin of 12.8%. This margin reflects the operational efficiency of the business before interest and taxes.
GreenTree Hospitality Group Ltd. (GHG) generated $383.0M in gross profit for the year, representing a gross profit margin of 34.9%. This demonstrates the company's core pricing power and production efficiency.