Filing Flows › Choice Hotels International (CHH) › Q2 2025
Choice Hotels International (CHH) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 6, 2025
Choice Hotels International (CHH) reported revenue of $426M for the second quarter 2025 (Q2 2025), -2% from a year earlier and +28% from the quarter before. Operating margin was 29.2%, net earnings $81.7M (19.2% of revenue).
Choice Hotels International, Q2 2025: revenue $426M (-2% year over year), operating margin 29.2%, net earnings $81.7M, operating cash flow $95.6M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $426M | +28% | -2% |
| Operating profit | $125M | +56% | -6% |
| Net earnings | $81.7M | +84% | -6% |
| Operating cash flow | $95.6M | +367% | -15% |
| Free cash flow | $65.4M | — | -24% |
What changed
Revenue was $426.4M in Q2 2025, down 2% year over year and up 28% from the previous quarter. Franchise and management fees was the largest line at 42% of revenue. Revenue for reimbursable costs from franchised and managed properties lost $8.9M year over year (down 5%), 102% of the total change.
Operating profit was $124.6M, a 29.2% margin (down 1.3 points year over year). Total costs fell 0% while revenue fell 2%. Net earnings were $81.7M, down 6% year over year. The effective tax rate was 24.7%.
Operating cash flow was $95.6M (down 15% year over year), 117% of net earnings. Non-cash charges added back $13.4M of depreciation and amortization and $11.0M of share-based compensation. Working capital and other items used $10.5M. Capital expenditures of $30.2M left free cash flow of $65.4M.
Questions
What was Choice Hotels International's revenue in the second quarter 2025?
Choice Hotels International (CHH) reported revenue of $426M for the second quarter 2025 (Q2 2025), -2% from a year earlier and +28% from the quarter before.
Was Choice Hotels International profitable in the second quarter 2025?
Operating profit was $125M (29.2% of revenue) and net earnings $81.7M.