GEN Restaurant Group, Inc. announced its financial results for the second quarter ended June 30, 2025. Total revenue increased by 2.2% year-over-year to $55.0 million, driven by having 50 restaurants open compared to 40 in the prior year. This growth rate represents a significant slowdown compared to previous quarters.
Comparable restaurant sales fell by 7.2% in Q2 2025, a more pronounced decline than in previous periods. The company reported a loss from operations of $(1.9) million, or 3.4% of revenue, compared to income from operations of $1.6 million, or 3.0% of revenue, in Q2 2024. Net loss before income taxes was $1.8 million, or $(0.05) per diluted share, a decrease from net income of $2.1 million, or $0.06 per diluted share, in Q2 2024.
Adjusted EBITDA for the quarter was $1.9 million, or 3.4% of revenue, down from $4.9 million, or 9.1% of revenue, in the prior year period. Restaurant-level adjusted EBITDA margin was 16.3%, an improvement from 15.6% in Q1 2025 but below the 19.0% reported in Q2 2024. Cash and cash equivalents declined to $9.6 million as of June 30, 2025, from $15.4 million in Q1 2025.
Despite these financial headwinds, GEN continues its expansion, having opened seven new locations in the first half of 2025, including its first international restaurant in South Korea. Management stated the company is on pace to exceed its target of 12 to 13 new restaurants by year-end 2025. The company also highlighted early success with its dual-concept GEN Korean BBQ and Kan Sushi format.
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