Revenue growth has moderated to 10.5% in 2026Q1, yet the company maintains a resilient 24.9% operating margin through effective scaling of its centralized IT infrastructure.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Sales/Revenue | 25.78B | 24.62B | 23.89B | 21.88B | 13.86B | 12.79B | 10.2B | 11.21B | 10.06B | 8.23B | 6.57B | 5.77B | 4.96B | 4.17B | 3.22B | 2.25B | 1.74B | 1.26B | 764.25M | 235.3M |
| Revenue Growth % | 7.39% | 3.04% | 9.18% | 57.86% | 8.41% | 25.41% | -9.06% | 11.42% | 22.29% | 25.19% | 13.83% | 16.31% | 19.1% | 29.28% | 43.34% | 29.4% | 37.95% | 64.89% | 224.79% | - |
| Cost of Goods Sold | 15.33B | 14.92B | 14.03B | 14.34B | 12.26B | 11.29B | 9.73B | 7.19B | 6.48B | 5.67B | 4.93B | 4.51B | 3.88B | 3.18B | 2.45B | 1.7B | 1.18B | 1B | 687.36M | 228.36M |
| COGS % of Revenue | - | 60.61% | 58.73% | 65.54% | 88.44% | 88.26% | 95.42% | 64.13% | 64.35% | 68.96% | 75.06% | 78.14% | 78.11% | 76.32% | 76.1% | 75.72% | 67.89% | 79.71% | 89.94% | 97.05% |
| Gross Profit | 10.45B | 9.7B | 9.86B | 7.54B | 1.6B | 1.5B | 467M | 4.02B | 3.59B | 2.55B | 1.64B | 1.26B | 1.09B | 986.96M | 770.63M | 546.26M | 558.29M | 255.72M | 76.88M | 6.94M |
| Gross Margin % | 40.54% | 39.39% | 41.27% | 34.46% | 11.56% | 11.74% | 4.58% | 35.87% | 35.65% | 31.04% | 24.94% | 21.86% | 21.89% | 23.68% | 23.9% | 24.28% | 32.11% | 20.29% | 10.06% | 2.95% |
| Gross Profit Growth % | - | -1.66% | 30.75% | 370.72% | 6.73% | 221.41% | -88.39% | 12.13% | 40.45% | 55.83% | 29.82% | 16.18% | 10.11% | 28.07% | 41.07% | -2.15% | 118.32% | 232.6% | 1007.3% | - |
| Operating Expenses | 3.47B | 3.44B | 4.66B | 2.83B | 1.9B | 1.34B | 2.15B | 1.91B | 1.24B | 1.13B | 798M | 661.32M | 697.34M | 606.42M | 550.89M | 439.11M | 301.99M | 179.3M | 230.54M | 144.25M |
| OpEx % of Revenue | - | 13.96% | 19.51% | 12.92% | 13.68% | 10.46% | 21.12% | 17.07% | 12.35% | 13.71% | 12.14% | 11.45% | 14.05% | 14.55% | 17.08% | 19.52% | 17.37% | 14.23% | 30.17% | 61.31% |
| Selling, General & Admin | 3.62B | 3.53B | 3.68B | 3.19B | 2.29B | 2.19B | 2.12B | 1.49B | 1.44B | 1.17B | 770M | 582.58M | 529.56M | 422.88M | 320.2M | 439.11M | 301.99M | 179.3M | 230.54M | 144.25M |
| SG&A % of Revenue | - | 14.35% | 15.42% | 14.57% | 16.51% | 17.11% | 20.81% | 13.26% | 14.29% | 14.27% | 11.71% | 10.09% | 10.67% | 10.14% | 9.93% | 19.52% | 17.37% | 14.23% | 30.17% | 61.31% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -4M | -96.23M | 976M | -362M | -392M | -851M | 31M | 427M | -195M | -46M | 28M | 78.75M | 167.77M | 183.53M | 230.69M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 6.98B | 6.26B | 5.2B | 4.71B | -294M | 164M | -1.69B | 2.11B | 2.34B | 1.43B | 841M | 601.15M | 389.36M | 380.54M | 219.73M | 107.15M | 256.31M | 76.41M | -153.65M | -137.31M |
| Operating Margin % | 27.06% | 25.43% | 21.77% | 21.54% | -2.12% | 1.28% | -16.54% | 18.8% | 23.29% | 17.33% | 12.79% | 10.41% | 7.84% | 9.13% | 6.81% | 4.76% | 14.74% | 6.06% | -20.11% | -58.35% |
| Operating Income Growth % | - | 20.4% | 10.31% | 1703.4% | -279.27% | 109.73% | -179.98% | -10.07% | 64.38% | 69.56% | 39.9% | 54.39% | 2.32% | 73.18% | 105.08% | -58.2% | 235.42% | 149.73% | -11.9% | - |
| EBITDA | 8.19B | 7.42B | 6.53B | 6.13B | 1.16B | 1.67B | -324M | 3.1B | 3.23B | 2.21B | 1.54B | 1.26B | 960.09M | 843.69M | 567.31M | 344M | 427.85M | 221.99M | -62.82M | -104.41M |
| EBITDA Margin % | 31.76% | 30.13% | 27.34% | 28% | 8.38% | 13.04% | -3.18% | 27.64% | 32.15% | 26.92% | 23.37% | 21.86% | 19.34% | 20.24% | 17.59% | 15.29% | 24.61% | 17.62% | -8.22% | -44.37% |
| EBITDA Growth % | 24.36% | 13.57% | 6.59% | 427.37% | -30.29% | 614.51% | -110.45% | -4.2% | 46.05% | 44.21% | 21.66% | 31.5% | 13.8% | 48.72% | 64.91% | -19.6% | 92.74% | 453.38% | 39.84% | - |
| D&A (Non-Cash Add-back) | 1.21B | 1.16B | 1.33B | 1.41B | 1.46B | 1.5B | 1.36B | 991M | 891M | 789M | 695M | 661.4M | 570.72M | 463.15M | 347.57M | 236.86M | 171.54M | 145.57M | 90.84M | 32.9M |
| EBIT | 7.57B | 6.26B | 5.12B | 5.73B | -1.2B | -3M | -1.75B | 2.88B | 1.64B | 1.68B | 1.06B | 642.66M | 415.16M | 389.33M | 234.5M | 143.84M | 281.74M | 78.22M | -155.21M | -131M |
| Net Interest Income | -99.6M | -110.89M | -108M | -137M | -322M | -316M | -414M | -155M | -96M | 26M | 56M | 22.86M | 21.63M | 6.04M | 13.73M | 17.23M | 13.26M | -6.92M | 2.54M | 1.22M |
| Interest Income | 237.75M | 216.92M | 210M | 248M | 87M | 89M | 119M | 160M | 148M | 113M | 67M | 26.71M | 23.16M | 6.86M | 14.55M | 18.11M | 15.95M | 1.87M | 3.79M | 1.22M |
| Interest Expense | 337.35M | 327.82M | 318M | 385M | 409M | 405M | 533M | 315M | 244M | 87M | 11M | 3.85M | 1.53M | 813K | 822K | 882K | 2.68M | 8.79M | 1.25M | 0 |
| Other Income/Expense | 290.13M | 817.11M | -436M | 621M | -1.35B | -632M | -733M | 293M | -951M | 159M | 212M | 34.76M | 26.13M | 7.97M | 13.94M | 35.81M | 22.75M | -6.98M | -2.81M | 6.31M |
| Pretax Income | 7.27B | 7.08B | 4.76B | 5.33B | -1.64B | -468M | -2.42B | 2.4B | 1.39B | 1.58B | 1.05B | 635.91M | 415.5M | 388.51M | 233.67M | 142.95M | 279.06M | 69.44M | -156.46M | -131M |
| Pretax Margin % | 28.19% | 28.75% | 19.94% | 24.38% | -11.85% | -3.66% | -23.72% | 21.41% | 13.84% | 19.26% | 16.02% | 11.01% | 8.37% | 9.32% | 7.25% | 6.35% | 16.05% | 5.51% | -20.47% | -55.67% |
| Income Tax | 2.25B | 2.1B | 1.66B | 1.2B | 207M | 12M | -335.31M | 640M | 569M | 357M | 279M | 196.53M | 113.11M | 104.82M | 54.17M | 24.82M | 57.26M | 17.99M | -23.88M | -17.26M |
| Effective Tax Rate % | 31.02% | 29.7% | 34.89% | 22.57% | -12.61% | -2.56% | 13.86% | 26.66% | 40.85% | 22.52% | 26.5% | 30.91% | 27.22% | 26.98% | 23.18% | 17.36% | 20.52% | 25.91% | 15.26% | 13.18% |
| Net Income | 4.98B | 4.94B | 3.05B | 4.08B | -1.81B | -465M | -2.07B | 1.77B | 716M | 1.23B | 782M | 436.6M | 307.35M | 279.86M | 174.89M | 114.83M | 215.75M | 42.54M | -136.16M | -111.62M |
| Net Margin % | 19.32% | 20.07% | 12.76% | 18.67% | -13.08% | -3.64% | -20.32% | 15.78% | 7.12% | 14.92% | 11.9% | 7.56% | 6.19% | 6.71% | 5.42% | 5.1% | 12.41% | 3.38% | -17.82% | -47.44% |
| Net Income Growth % | 51.75% | 62.13% | -25.39% | 325.32% | -289.89% | 77.56% | -217.15% | 147.07% | -41.69% | 57.03% | 79.11% | 42.05% | 9.82% | 60.02% | 52.3% | -46.78% | 407.12% | 131.25% | -21.98% | - |
| Net Income (Continuing) | 5.01B | 4.98B | 3.1B | 4.13B | -1.85B | -480M | -2.08B | 1.76B | 727M | 1.23B | 774M | 439.38M | 302.39M | 283.69M | 179.5M | 118.14M | 221.79M | 51.45M | -132.58M | -113.74M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 153.43M | 154.1M | 94M | 114M | 74M | 109M | 102M | 121M | 145M | 35.58M | 16.56M | 10.64M | 1.75M | 12.04M | 25.38M | 9.79M | 9.18M | 11.36M | 6.11M | 2.33M |
| EPS (Diluted) | 15.23 | 15.20 | 9.60 | 12.50 | -5.90 | -1.50 | -7.50 | 5.80 | 2.40 | 4.20 | 2.80 | 1.70 | 1.20 | 1.10 | 0.71 | 0.47 | 0.92 | 0.23 | -2.50 | -2.90 |
| EPS Growth % | 51.07% | 58.33% | -23.2% | 311.86% | -293.33% | 80% | -229.31% | 141.67% | -42.86% | 50% | 64.71% | 41.67% | 9.09% | 54.93% | 51.06% | -48.91% | 300% | 109.2% | 13.79% | - |
| EPS (Basic) | - | 16.10 | 9.80 | 12.80 | -5.80 | -1.50 | -7.50 | 6.20 | 2.40 | 4.40 | 2.80 | 1.70 | 1.20 | 1.10 | 0.72 | 0.47 | 1.10 | 0.74 | -2.50 | -2.90 |
| Diluted Shares Outstanding | 327.06M | 324.75M | 327.83M | 335.14M | 311.12M | 311.41M | 292.74M | 304.31M | 303.61M | 293.07M | 282.89M | 256.1M | 253M | 249.49M | 246.98M | 246.18M | 234.48M | 183.63M | 54.07M | 45.25M |
| Basic Shares Outstanding | 307.27M | 307.09M | 311.51M | 325.58M | 311.12M | 310M | 292.27M | 297.58M | 303.61M | 279.27M | 275.14M | 250.53M | 248.96M | 245.19M | 243.28M | 241.93M | 198.52M | 57.56M | 54.07M | 45.25M |
| Dividend Payout Ratio | - | 76.91% | 115.79% | - | - | - | - | 37.2% | 0.7% | 0.9% | 35.29% | 1.05% | 1.74% | - | - | 2.74% | 1.07% | 5.17% | - | - |
Macroeconomic sensitivity in China
As reported in recent financial statements, H World Group's revenue growth has decelerated to 10.5% in 2026Q1 from a peak of 50.7% in 2023Q4, reflecting the normalization of travel demand and the inherent cyclicality of the company's core Chinese market operations.
The deceleration in top-line expansion suggests that the post-pandemic recovery phase has largely concluded, shifting the focus toward organic unit growth and RevPAR optimization. Investors should monitor whether the company can maintain mid-to-high single-digit growth as the domestic lodging market reaches higher levels of saturation.
According to the provided income statement data, H World Group achieved a gross margin of 38.8% in 2026Q1, demonstrating a structural improvement from the 28.4% level observed in 2023Q4, which likely indicates successful execution of the company's asset-light manachised business model strategy.
The expansion in gross margins appears to be driven by the increasing mix of franchise-based revenue, which carries significantly lower variable costs than the leased-and-owned portfolio. This trend suggests that the company is successfully leveraging its proprietary technology stack to improve unit-level profitability across its expanding network.
Based on the reported figures, H World Group maintained an operating margin of 24.9% in 2026Q1, which suggests that the company is effectively scaling its centralized IT infrastructure to manage overhead costs even as revenue growth rates have moderated compared to previous periods.
The ability to maintain operating margins above 20% despite revenue fluctuations implies a high degree of operational discipline and the benefits of a centralized management platform. This efficiency warrants further investigation into whether the company can continue to decouple its SG&A growth from its top-line expansion.
As indicated by the income statement, H World Group's net income volatility, including a significant dip in 2024Q4, appears partially influenced by the timing of stock-based compensation, which reached $170 million in 2025Q2, potentially obscuring the underlying cash-generative capacity of the core business.
The fluctuation in EPS, ranging from $0.16 to $4.80 over the last ten quarters, suggests that investors should focus on normalized earnings metrics rather than headline net income. The absence of stock-based compensation in several quarters may indicate a non-linear approach to equity-based incentives that warrants closer scrutiny.
While the company's shift toward an asset-light model is evident, the potential for margin compression remains a risk, as evidenced by the 2026Q1 gross margin of 38.8% which sits below the 41.6% peak observed in 2025Q3, suggesting that competitive pressures may be intensifying.
Short-term volatility in margins may indicate that the company is facing increased competition for franchise partners or rising costs associated with maintaining its digital platform. Investors should monitor whether the company's reliance on the manachised model can withstand potential downturns in consumer discretionary spending.
Quick answers to the most common questions about buying HTHT stock.
For fiscal year 2025, H World Group Limited (HTHT) reported total revenue of $24.62B. This represents a 10362.0% increase compared to $235.3M in 2007.
H World Group Limited (HTHT) is profitable, generating $4.94B in net income for the fiscal year ending 2025 with a net profit margin of 20.1%.
H World Group Limited (HTHT) reported an operating income of $6.26B, resulting in an operating profit margin of 25.4%. This margin reflects the operational efficiency of the business before interest and taxes.
H World Group Limited (HTHT) generated $9.70B in gross profit for the year, representing a gross profit margin of 39.4%. This demonstrates the company's core pricing power and production efficiency.