The company's profitability has deteriorated significantly, with gross margins collapsing to 3.1% in 2025Q4 from a 20.2% peak in 2024Q3.
| Sales/Revenue | 1.28B | 1.39B | 1.56B | 1.01B | 643.37M | 212.08M | 57.26M |
| Revenue Growth % | -7.97% | -10.82% | 54.29% | 57.15% | 203.36% | 270.41% | - |
| Cost of Goods Sold | 1.2B | 1.18B | 1.4B | 978.01M | 629.57M | 205.47M | 74.4M |
| COGS % of Revenue | 93.94% | 84.65% | 89.98% | 96.73% | 97.85% | 96.88% | 129.95% |
| Gross Profit | 77.62M | 213.56M | 156.34M | 33.05M | 13.81M | 6.62M | -17.15M |
| Gross Margin % | 6.06% | 15.35% | 10.02% | 3.27% | 2.15% | 3.12% | -29.95% |
| Gross Profit Growth % | -63.65% | 36.6% | 373.01% | 139.4% | 108.64% | 138.59% | - |
| Operating Expenses | 324.72M | 502.21M | 696.43M | 598.18M | 385.72M | 147.79M | 74.11M |
| OpEx % of Revenue | 25.36% | 36.1% | 44.64% | 59.16% | 59.95% | 69.68% | 129.43% |
| Selling, General & Admin | 321.53M | 275.17M | 421.94M | 370.56M | 225.28M | 96.35M | 59.09M |
| SG&A % of Revenue | 25.11% | 19.78% | 27.05% | 36.65% | 35.02% | 45.43% | 103.2% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 3.19M | 227.04M | 274.5M | 227.62M | 160.44M | 51.44M | 15.02M |
| Operating Income | -247.1M | -288.65M | -540.09M | -565.13M | -371.92M | -141.17M | -91.26M |
| Operating Margin % | -19.3% | -20.75% | -34.62% | -55.89% | -57.81% | -66.56% | -159.38% |
| Operating Income Growth % | 14.39% | 46.56% | 4.43% | -51.95% | -163.45% | -54.7% | - |
| EBITDA | -142.11M | -118.97M | -376.94M | -431.72M | -297.64M | -113.33M | -82.56M |
| EBITDA Margin % | -11.1% | -8.55% | -24.16% | -42.7% | -46.26% | -53.44% | -144.18% |
| EBITDA Growth % | -19.45% | 68.44% | 12.69% | -45.05% | -162.62% | -37.28% | - |
| D&A (Non-Cash Add-back) | 104.99M | 169.68M | 163.15M | 133.4M | 74.28M | 27.84M | 8.7M |
| EBIT | -407.24M | -435.87M | -819.21M | -729.94M | -381.03M | -143.06M | -87.83M |
| Net Interest Income | -12.79M | -19.25M | -6.18M | -12.1M | -1.59M | 511.39K | 2.27M |
| Interest Income | 3.43M | 3.2M | 14.25M | 2.7M | 315.55K | 511.39K | 2.27M |
| Interest Expense | 16.22M | 22.45M | 20.43M | 14.8M | 1.9M | 0 | 0 |
| Other Income/Expense | -176.37M | -169.67M | -299.54M | -179.62M | -11.01M | -1.89M | 3.43M |
| Pretax Income | -423.47M | -458.31M | -839.63M | -744.75M | -382.93M | -143.06M | -87.83M |
| Pretax Margin % | -33.07% | -32.94% | -53.82% | -73.66% | -59.52% | -67.45% | -153.39% |
| Income Tax | 470.81K | 2.12M | 97.24K | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -0.11% | -0.46% | -0.01% | 0% | 0% | 0% | 0% |
| Net Income | -422.65M | -412.08M | -876.25M | -742.65M | -381.72M | -142M | -87.65M |
| Net Margin % | -33.01% | -29.62% | -56.17% | -73.45% | -59.33% | -66.95% | -153.09% |
| Net Income Growth % | -2.57% | 52.97% | -17.99% | -94.55% | -168.82% | -62% | - |
| Net Income (Continuing) | -423.94M | -460.43M | -839.73M | -744.75M | -382.93M | -143.06M | -87.83M |
| Discontinued Operations | 0 | 51.44M | -33.2M | 0 | 0 | 0 | 0 |
| Minority Interest | 6.56M | 7.87M | 4.78M | 1.45M | 3.56M | 4.76M | 5.83M |
| EPS (Diluted) | -13.01 | -12.70 | -28.40 | -28.99 | -14.18 | -6.68 | -3.25 |
| EPS Growth % | -2.44% | 55.28% | 2.04% | -104.44% | -112.28% | -105.54% | - |
| EPS (Basic) | -13.01 | -12.70 | -28.40 | -28.99 | -14.18 | -6.68 | -3.25 |
| Diluted Shares Outstanding | 32.52M | 32.45M | 30.84M | 25.62M | 26.93M | 21.24M | 26.93M |
| Basic Shares Outstanding | 32.52M | 32.45M | 30.84M | 25.62M | 26.93M | 21.24M | 26.93M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Persistent negative unit economics
As reported in recent financial filings, THCH experienced a -8.5% year-over-year revenue decline in 2025Q4, signaling that the company's transactional volume is struggling to maintain momentum against aggressive discounting from local competitors within the highly saturated Chinese coffee and quick-service restaurant market segments.
The consistent negative revenue growth trend suggests that the company's value proposition is failing to resonate in a deflationary consumer environment. Investors should monitor whether this contraction reflects a strategic pivot toward higher-margin franchising or a fundamental loss of market share in key urban centers.
Based on the provided income statement data, THCH reported a gross margin of just 3.1% in 2025Q4, a significant deterioration from the 20.2% peak observed in 2024Q3, which highlights the extreme difficulty of maintaining pricing power in a market dominated by ultra-low-price coffee promotions.
This razor-thin gross margin indicates that raw material costs and promotional discounting are consuming nearly all revenue generated at the store level. Such structural weakness suggests that the current business model lacks the necessary scale or operational efficiency to achieve sustainable profitability without substantial changes to the cost structure.
According to the latest quarterly results, THCH's operating margin plummeted to -28.2% in 2025Q4, demonstrating that the company's fixed-cost base, including significant rental and labor obligations, continues to scale inefficiently relative to the declining top-line revenue generated by its company-operated store footprint.
The inability to achieve positive operating leverage implies that corporate overhead and store-level expenses are currently outstripping the revenue generated per square foot. This trend warrants further investigation into whether the company can successfully transition to a more capital-light model to mitigate these persistent operating losses.
As evidenced by the 2025Q4 net loss of $225.0 million, the company's bottom-line performance remains severely strained, with net margins reaching -74.0%, a figure that underscores the significant disconnect between the firm's aggressive expansion strategy and its actual ability to generate recurring, high-quality earnings for shareholders.
The volatility in net income, exacerbated by large quarterly swings, suggests that the company is struggling to stabilize its core operations. Investors should be cautious, as the current level of losses appears to be a permanent reflection of a saturated market rather than a temporary byproduct of rapid scaling.
Quick answers to the most common questions about buying THCH stock.
For fiscal year 2025, TH International Limited (THCH) reported total revenue of $1.28B. This represents a 2136.1% increase compared to $57.3M in 2019.
TH International Limited (THCH) reported a net loss of $422.7M for the fiscal year ending 2025.
TH International Limited (THCH) reported an operating income of $-247.1M, resulting in an operating profit margin of -19.3%. This margin reflects the operational efficiency of the business before interest and taxes.
TH International Limited (THCH) generated $77.6M in gross profit for the year, representing a gross profit margin of 6.1%. This demonstrates the company's core pricing power and production efficiency.