Filing Flows › Choice Hotels International (CHH) › Q1 2025
Choice Hotels International (CHH) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 8, 2025
Choice Hotels International (CHH) reported revenue of $333M for the first quarter 2025 (Q1 2025), +0.3% from a year earlier and -15% from the quarter before. Operating margin was 24.0%, net earnings $44.5M (13.4% of revenue).
Choice Hotels International, Q1 2025: revenue $333M (+0.3% year over year), operating margin 24.0%, net earnings $44.5M, operating cash flow $20.5M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $333M | -15% | +0.3% |
| Operating profit | $79.9M | -33% | +33% |
| Net earnings | $44.5M | -41% | +44% |
| Operating cash flow | $20.5M | -75% | 12× |
What changed
Revenue was $332.9M in Q1 2025, roughly flat year over year and down 15% from the previous quarter. Franchise and management fees was the largest line at 44% of revenue. Partnership services and fees added $5.5M year over year (up 28%), 608% of the total change. Other declined 24%.
Operating profit was $79.9M, a 24.0% margin (up 5.9 points year over year). Of the extra revenue versus a year earlier, 2172% reached operating profit, above the 18% margin then. Total costs fell 7% while revenue was flat. Net earnings were $44.5M, up 44% year over year. The effective tax rate was 25.5%.
Operating cash flow was $20.5M (up 1076% year over year), 46% of net earnings. Non-cash charges added back $13.7M of depreciation and amortization and $10.4M of share-based compensation. Working capital and other items used $48.2M. Capital expenditures of $35.5M exceeded it, leaving free cash flow of −$15.0M.
Questions
What was Choice Hotels International's revenue in the first quarter 2025?
Choice Hotels International (CHH) reported revenue of $333M for the first quarter 2025 (Q1 2025), +0.3% from a year earlier and -15% from the quarter before.
Was Choice Hotels International profitable in the first quarter 2025?
Operating profit was $79.9M (24.0% of revenue) and net earnings $44.5M.