Operating income has deteriorated to a loss of $11.6M in 2025Q2, driven by a surge in SG&A expenses to $24.9M and a net margin compression of -23.7%.
| Sales/Revenue | 345.1M | 353.8M | 230.87M | 165.86M |
| Revenue Growth % | - | 53.25% | 39.2% | - |
| Cost of Goods Sold | 272.66M | 257.8M | 168.37M | 108.25M |
| COGS % of Revenue | - | 72.87% | 72.93% | 65.27% |
| Gross Profit | 72.44M | 96M | 62.5M | 57.6M |
| Gross Margin % | 20.99% | 27.13% | 27.07% | 34.73% |
| Gross Profit Growth % | - | 53.6% | 8.49% | - |
| Operating Expenses | 95.74M | 104.33M | 49.56M | 45.93M |
| OpEx % of Revenue | - | 29.49% | 21.47% | 27.69% |
| Selling, General & Admin | 66.84M | 79.18M | 36.04M | 36.57M |
| SG&A % of Revenue | - | 22.38% | 15.61% | 22.05% |
| Research & Development | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - |
| Other Operating Expenses | 4M | 25.15M | 13.51M | 9.36M |
| Operating Income | -23.3M | -8.33M | 12.94M | 11.68M |
| Operating Margin % | -6.75% | -2.35% | 5.61% | 7.04% |
| Operating Income Growth % | - | -164.37% | 10.83% | - |
| EBITDA | -1.19M | 15.19M | 25.32M | 20.13M |
| EBITDA Margin % | -0.34% | 4.29% | 10.97% | 12.14% |
| EBITDA Growth % | - | -40.02% | 25.74% | - |
| D&A (Non-Cash Add-back) | 22.11M | 23.52M | 12.38M | 8.46M |
| EBIT | -25.35M | -10.44M | 15.64M | 11.74M |
| Net Interest Income | -46M | -46.14M | -29.71M | -24.51M |
| Interest Income | 0 | 0 | 0 | 0 |
| Interest Expense | 46M | 46.14M | 29.71M | 24.51M |
| Other Income/Expense | -48.05M | -48.24M | -27.01M | -24.45M |
| Pretax Income | -71.35M | -56.57M | -14.07M | -12.77M |
| Pretax Margin % | -20.68% | -15.99% | -6.09% | -7.7% |
| Income Tax | -10.24M | -8.4M | -230K | 0 |
| Effective Tax Rate % | 14.35% | 14.85% | 1.63% | 0% |
| Net Income | -61.11M | -48.17M | -13.84M | -12.77M |
| Net Margin % | -17.71% | -13.61% | -5.99% | -7.7% |
| Net Income Growth % | - | -248.05% | -8.37% | - |
| Net Income (Continuing) | -61.11M | -48.17M | -13.84M | -12.77M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.07 | -0.96 | -0.28 | -0.25 |
| EPS Growth % | - | -242.86% | -12% | - |
| EPS (Basic) | - | -0.96 | -0.28 | -0.25 |
| Diluted Shares Outstanding | 57.31M | 50.17M | 50.17M | 50.17M |
| Basic Shares Outstanding | 57.31M | 50.17M | 50.17M | 50.17M |
| Dividend Payout Ratio | - | - | - | - |
Negative Net Margin Sustainability
As reported in the most recent quarterly filings, TWNP experienced a 4.1% revenue decline in 2025Q2, signaling a deceleration from the volatility observed post-reorganization, with top-line figures struggling to maintain the $90M threshold seen in early 2024 as the company navigates its new corporate structure.
The revenue trajectory appears to be in a state of contraction, suggesting that the initial post-merger momentum has failed to translate into sustainable organic growth. Investors should monitor whether this decline reflects a broader softening in consumer discretionary spending or specific operational friction within the newly integrated Smokey Bones portfolio.
Based on the provided financial data, gross margins have fluctuated significantly, dropping to 20.0% in 2025Q2 from a peak of 26.3% in 2024Q4, which highlights the inherent difficulty in managing input costs within a high-touch, scratch-kitchen restaurant model during periods of corporate transition.
The inconsistency in gross margin performance suggests that the company lacks the pricing power necessary to offset inflationary pressures in labor and commodities. This volatility warrants further investigation into whether the current menu pricing strategy is sufficient to protect unit-level economics against rising operational overhead.
According to the income statement, operating income has deteriorated into negative territory, reaching -$11.6M in 2025Q2, as SG&A expenses surged to $24.9M, indicating that the company is currently failing to achieve the operating leverage required to scale its business model effectively.
The sharp increase in SG&A relative to gross profit suggests that corporate-level costs are currently outpacing the revenue-generating capacity of the restaurant fleet. This trend implies that the current organizational structure may be too heavy for the existing unit volume, necessitating a potential rationalization of administrative expenses.
As indicated by the 2025Q2 financial statements, the company reported a significant $12.6M in stock-based compensation, which exacerbates the net loss of -$20.8M and raises concerns regarding the quality of earnings and the potential for shareholder dilution during this period of negative profitability.
The reliance on stock-based compensation while the company is generating substantial net losses suggests a misalignment between executive incentives and operational performance. Investors should be wary of how these non-cash charges mask the underlying cash-burn reality of the business.
Based on the reported figures, the combination of a -23.7% net margin and a limited cash position of $9.37M suggests that the current operational trajectory may be unsustainable without an immediate capital infusion or a drastic improvement in unit-level profitability metrics.
Short-sellers would likely focus on the widening gap between revenue and net income, which points to a fundamental inability to convert sales into bottom-line growth. The lack of a clear path to profitability suggests that the company may face significant liquidity risks if the current trend of negative operating cash flow persists.
Quick answers to the most common questions about buying TWNP stock.
For fiscal year 2024, Twin Hospitality Group (TWNP) reported total revenue of $353.8M. This represents a 113.3% increase compared to $165.9M in 2022.
Twin Hospitality Group (TWNP) reported a net loss of $48.2M for the fiscal year ending 2024.
Twin Hospitality Group (TWNP) reported an operating income of $-8.3M, resulting in an operating profit margin of -2.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Twin Hospitality Group (TWNP) generated $96.0M in gross profit for the year, representing a gross profit margin of 27.1%. This demonstrates the company's core pricing power and production efficiency.