Filing Flows › Choice Hotels International (CHH) › Q3 2026
Choice Hotels International (CHH) Q3 2026 earnings results (third quarter 2026)
10-Q filed Nov 2, 2026
Choice Hotels International (CHH) reported revenue of $458M for the third quarter 2026 (Q3 2026), +2% from a year earlier and +4% from the quarter before. Operating margin was 23.2%, net earnings $57.9M (12.6% of revenue).
Choice Hotels International, Q3 2026: revenue $458M (+2% year over year), operating margin 23.2%, net earnings $57.9M, operating cash flow $54.6M. The chart follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $458M | +4% | +2% |
| Operating profit | $106M | +2% | -25% |
| Net earnings | $57.9M | -10% | -68% |
| Operating cash flow | $54.6M | -40% | -21% |
| Free cash flow | $44.3M | -45% | -10% |
What changed
Revenue was $458.3M in Q3 2026, up 2% year over year and up 4% from the previous quarter. Franchise and management fees was the largest line at 44% of revenue. Franchise and management fees added $9.9M year over year (up 5%), 90% of the total change. Other declined 31%.
Operating profit was $106.5M, a 23.2% margin (down 8.6 points year over year). Operating profit fell $35.9M even though revenue rose $11.0M versus Q3 2025, so costs grew faster than sales. Total costs grew 15% against revenue growth of 2%. The fastest-growing cost line was Other operating costs (+20%). Net earnings were $57.9M, down 68% year over year. The effective tax rate was 22.8%.
Operating cash flow was $54.6M (down 21% year over year), 94% of net earnings. Non-cash charges added back $16.9M of depreciation and amortization and $2.8M of share-based compensation. Working capital and other items used $23.1M. Capital expenditures of $10.2M left free cash flow of $44.3M.
Questions
What was Choice Hotels International's revenue in the third quarter 2026?
Choice Hotels International (CHH) reported revenue of $458M for the third quarter 2026 (Q3 2026), +2% from a year earlier and +4% from the quarter before.
Was Choice Hotels International profitable in the third quarter 2026?
Operating profit was $106M (23.2% of revenue) and net earnings $57.9M.