$GENK

GEN Restaurant Group, Inc.

CIK:0001891856|SEC Filings

Condensed Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue	$ 55,729	$ 55,041	$ 109,626	$ 112,377
Restaurant operating expenses:
Food cost	21,775	18,623	42,278	37,885
Payroll and benefits	15,614	16,561	32,892	34,749
Occupancy expenses	5,334	5,121	11,113	10,212
Operating expenses	6,755	5,905	13,238	11,831
Depreciation and amortization	2,354	2,221	4,690	4,214
Pre-opening costs	1,327	2,051	3,108	4,699
Total restaurant operating expenses	53,159	50,482	107,319	103,590
General and administrative	7,113	6,403	14,010	12,773
Loss on lease termination	611	0	611	0
Gain on deconsolidation of restaurants	(53)	0	(53)	0
Depreciation and amortization - corporate	51	36	99	70
Total costs and expenses	60,881	56,921	121,986	116,433
(Loss) income from operations	(5,152)	(1,880)	(12,360)	(4,056)
Employee retention credits		313		313
Other gain (loss)	621	(300)	615	(300)
Gain (loss) on foreign currency	1	(14)	(11)	(14)
Interest (expense) income, net	(314)	67	(540)	127
Net loss before taxes	(4,844)	(1,814)	(12,296)	(3,930)
(Benefit) provision for income taxes	(211)	(116)	(464)	(268)
Net loss	(4,633)	(1,698)	(11,832)	(3,662)
Less: Net loss attributable to non-controlling interest	(3,879)	(1,437)	(9,910)	(3,100)
Net loss attributable to GEN Restaurant Group, Inc.	(754)	(261)	(1,922)	(562)
Net loss attributable to Class A common stockholders - basic	(754)	(261)	(1,922)	(562)
Net loss attributable to Class A common stockholders - diluted	$ (754)	$ (261)	$ (1,922)	$ (562)
Weighted-average shares of Class A common stock outstanding - basic	5,364	5,132	5,348	5,073
Weighted-average shares of Class A common stock outstanding - diluted	5,364	5,132	5,348	5,073
Net loss per share of Class A common stock - basic	$ (0.14)	$ (0.05)	$ (0.36)	$ (0.11)
Net loss per share of Class A common stock - diluted	$ (0.14)	$ (0.05)	$ (0.36)	$ (0.11)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment	$ (20)	$ 150	$ (154)	$ 150
Comprehensive loss	(4,653)	(1,548)	(11,986)	(3,512)
Less: Comprehensive loss attributable to non-controlling interest	(3,879)	(1,310)	(9,910)	(2,973)
Comprehensive loss attributable to GEN Restaurant Group, Inc.	$ (774)	$ (238)	$ (2,076)	$ (539)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net loss	$ (11,832)	$ (3,662)
Adjustments to reconcile net loss to cash provided by operating activities
Depreciation and amortization	4,789	4,284
Stock-based compensation	1,468	1,468
Amortization of operating lease assets	3,647	3,235
Loss on lease termination	611	0
Gain on deconsolidation of restaurants	(53)	0
Deferred tax expense	(440)	(268)
Changes in operating assets and liabilities:
Accounts receivable	8,396	2,378
Inventories	(898)	(173)
Income tax receivable	(91)	(563)
Prepaid expenses and other current assets	1,645	1,385
Other assets	104	(386)
Accounts payable	1,721	(284)
Accrued salaries and benefits	484	(282)
Accrued interest	(1)	13
Gift card liabilities	(7,922)	(3,092)
Other current liabilities	(477)	2,014
Operating lease liabilities	(1,977)	(587)
Net cash (used in) provided by operating activities	(826)	5,480
Cash flows from investing activities
Purchase of property and equipment	(5,318)	(16,467)
Net cash used in investing activities	(5,318)	(16,467)
Cash flows from financing activities
Payments on EIDL Loans	(53)	(52)
Payments on finance leases	(4)	(9)
Payments on third party loans	(1,589)	(979)
Payment on line of credit	(2,500)	(3,000)
Proceeds from line of credit	13,550
Proceeds from third party loans		2,000
Payments under stock repurchase plan		(200)
Distributions paid on NCI		(831)
Dividends paid on common stock		(157)
Net cash provided by (used in) financing activities	9,404	(3,228)
Effects of exchange rate changes on cash	(154)	150
Net change in cash and cash equivalents	3,106	(14,065)
Cash and cash equivalents at beginning of period	2,824	23,675
Cash and cash equivalents at end of the period	5,930	9,610
Supplemental disclosures of other cash flow information:
Cash paid for interest	225	114
Cash paid for taxes	3	291
Non-cash investing and financing activities:
Reduction in accounts payable and accruals for purchases of property and equipment	93	843
Leased assets obtained in exchange for new operating lease liabilities	9,472	13,717
Effect of lease modification	(475)
Adjustments to tax liabilities and assets under TRA		141
Exchange of NCI for Class A common stock	171	$ 225
Reclassification of ROU assets and property and equipment, net into assets held for sale	(11,710)
Reclassification of operating lease liabilities into liabilities held for sale	$ 14,701

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 5,930	$ 2,824
Inventories	2,111	1,212
Accounts receivable	2,026	10,422
Income tax receivable	834	742
Prepaid expenses and other current assets	5,901	7,546
Total current assets	16,802	22,746
Property and equipment, net	63,281	65,747
Goodwill	9,498	9,498
Operating lease assets, net	139,519	146,473
Deferred tax asset	13,449	13,009
Assets held for sale	2,955	0
Other assets	2,280	2,383
Total assets	247,784	259,856
Current liabilities
Accounts payable	16,538	14,822
Accrued salaries and benefits	2,935	2,450
Accrued interest	76	77
Notes payable, current	2,761	2,812
Line of credit	12,050	1,000
Obligations under finance leases, current	9	8
Operating lease liabilities, current	6,305	6,707
Deferred Restaurant Revitalization Fund grant	3,806	3,806
Gift card liabilities	6,747	14,669
Other current liabilities	7,247	7,723
Total current liabilities	58,474	54,074
Notes payable, net of current portion	9,205	10,795
Tax receivable agreement liability	1,088	1,088
Obligations under finance leases, net of current	10	14
Operating lease liabilities, net of current portion	157,848	165,879
Lease liabilities held for sale	3,692	0
Total liabilities	230,317	231,850
Commitments and contingencies (Note 11)
Mezzanine equity
EB-5 Members' equity; Redeemable units for 30% of Gen Restaurant Investment, LLC, redemption amount of $1,500 as of June 30, 2026 and December 31, 2025.	1,500	1,500
Permanent equity
Additional paid-in capital	16,414	14,796
Accumulated other comprehensive income	(147)	7
Retained Earnings (accumulated deficit)	(4,031)	(2,111)
Non-controlling interest	3,899	13,982
Treasury stock	(201)	(201)
Total permanent equity	15,967	26,506
Total liabilities, mezzanine equity, and permanent equity	247,784	259,856
Class A Common Stock
Permanent equity
Common stock	5	5
Class B Common Stock
Permanent equity
Common stock	$ 28	$ 28