Filing Flows › Choice Hotels International (CHH) › Q1 2026
Choice Hotels International (CHH) Q1 2026 earnings results (first quarter 2026)
10-Q filed Apr 30, 2026
Choice Hotels International (CHH) reported revenue of $341M for the first quarter 2026 (Q1 2026), +2% from a year earlier and -13% from the quarter before. Operating margin was 17.6%, net earnings $20.3M (6.0% of revenue).
Choice Hotels International, Q1 2026: revenue $341M (+2% year over year), operating margin 17.6%, net earnings $20.3M, operating cash flow −$23.2M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $341M | -13% | +2% |
| Operating profit | $60.0M | -41% | -25% |
| Net earnings | $20.3M | -68% | -54% |
| Operating cash flow | −$23.2M | -127% | -213% |
What changed
Revenue was $340.6M in Q1 2026, up 2% year over year and down 13% from the previous quarter. Franchise and management fees was the largest line at 44% of revenue. Franchise and management fees added $4.6M year over year (up 3%), 59% of the total change. Partnership services and fees declined 3%.
Operating profit was $60.0M, a 17.6% margin (down 6.4 points year over year). Operating profit fell $19.9M even though revenue rose $7.7M versus Q1 2025, so costs grew faster than sales. Total costs grew 11% against revenue growth of 2%. The fastest-growing cost line was Other operating costs (+13%). Net earnings were $20.3M, down 54% year over year. The effective tax rate was 33.0%.
Operating cash flow was −$23.2M. Non-cash charges added back $16.8M of depreciation and amortization and $8.3M of share-based compensation. Working capital and other items used $68.6M. Capital expenditures of $16.8M exceeded it, leaving free cash flow of −$40.0M.
Questions
What was Choice Hotels International's revenue in the first quarter 2026?
Choice Hotels International (CHH) reported revenue of $341M for the first quarter 2026 (Q1 2026), +2% from a year earlier and -13% from the quarter before.
Was Choice Hotels International profitable in the first quarter 2026?
Operating profit was $60.0M (17.6% of revenue) and net earnings $20.3M.