Filing Flows › Sunstone Hotel Investors (SHO) › Q2 2025
Sunstone Hotel Investors (SHO) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 6, 2025
Sunstone Hotel Investors (SHO) reported revenue of $260M for the second quarter 2025 (Q2 2025), +5% from a year earlier and +11% from the quarter before. Operating margin was 4.2%, net earnings $6.8M (2.6% of revenue).
Sunstone Hotel Investors, Q2 2025: revenue $260M (+5% year over year), operating margin 4.2%, net earnings $6.8M, operating cash flow $58.7M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $260M | +11% | +5% |
| Operating profit | $10.8M | +102% | -59% |
| Net earnings | $6.8M | +437% | -70% |
| Operating cash flow | $58.7M | +83% | +7% |
| Free cash flow | $30.9M | +704% | +124% |
What changed
Revenue was $259.8M in Q2 2025, up 5% year over year and up 11% from the previous quarter. Occupancy was the largest line at 60% of revenue. Food and Beverage added $6.7M year over year (up 9%), 54% of the total change.
Operating profit was $10.8M, a 4.2% margin (down 6.5 points year over year). Operating profit fell $15.6M even though revenue rose $12.3M versus a year earlier, so costs grew faster than sales. Total costs grew 13% against revenue growth of 5%. The fastest-growing cost line was Other operating costs (+13%). Net earnings were $6.8M, down 70% year over year. The effective tax rate was 0.3%.
Operating cash flow was $58.7M (up 7% year over year), 545% of net income including minority interests. Non-cash charges added back $34.1M of depreciation and amortization and $2.8M of share-based compensation. Working capital and other items added $11.1M. Capital expenditures of $27.9M left free cash flow of $30.9M.
Questions
What was Sunstone Hotel Investors' revenue in the second quarter 2025?
Sunstone Hotel Investors (SHO) reported revenue of $260M for the second quarter 2025 (Q2 2025), +5% from a year earlier and +11% from the quarter before.
Was Sunstone Hotel Investors profitable in the second quarter 2025?
Operating profit was $10.8M (4.2% of revenue) and net earnings $6.8M.