Filing Flows › Choice Hotels International (CHH) › Q3 2025
Choice Hotels International (CHH) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 5, 2025
Choice Hotels International (CHH) reported revenue of $447M for the third quarter 2025 (Q3 2025), +5% from a year earlier and +5% from the quarter before. Operating margin was 31.8%, net earnings $180M (40.2% of revenue).
Choice Hotels International, Q3 2025: revenue $447M (+4% year over year), operating margin 31.8%, net earnings $180M, operating cash flow $68.7M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $447M | +5% | +5% |
| Operating profit | $142M | +14% | -6% |
| Net earnings | $180M | +120% | +70% |
| Operating cash flow | $68.7M | -28% | -44% |
| Free cash flow | $49.1M | -25% | -47% |
What changed
Revenue was $447.3M in Q3 2025, up 5% year over year and up 5% from the previous quarter. Franchise and management fees was the largest line at 43% of revenue. Other added $10.4M year over year (up 90%), 54% of the total change. Revenue for reimbursable costs from franchised and managed properties declined 1%.
Operating profit was $142.4M, a 31.8% margin (down 3.6 points year over year). Operating profit fell $9.4M even though revenue rose $19.4M versus a year earlier, so costs grew faster than sales. Total costs grew 10% against revenue growth of 5%. The fastest-growing cost line was SG&A (+15%). Net earnings were $180.0M, up 70% year over year. The effective tax rate was 14.7%. Non-operating items added $68.5M, 32% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $68.7M (down 44% year over year), 38% of net earnings. Non-cash charges added back $15.8M of depreciation and amortization and $11.2M of share-based compensation. Working capital and other items used $138.3M. Capital expenditures of $19.6M left free cash flow of $49.1M.
Questions
What was Choice Hotels International's revenue in the third quarter 2025?
Choice Hotels International (CHH) reported revenue of $447M for the third quarter 2025 (Q3 2025), +5% from a year earlier and +5% from the quarter before.
Was Choice Hotels International profitable in the third quarter 2025?
Operating profit was $142M (31.8% of revenue) and net earnings $180M.