The ONE Group Hospitality, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Leases (Tables)

Leases (Tables)

9 Months Ended

Sep. 28, 2025

The components of lease expense for the nine periods ended September 28, 2025 and the nine months ended September 30, 2024 are as follows (in thousands):


	September 28,			September 30,
	2025			2024
Lease cost
Operating lease cost	$	34,756		$	25,825
Finance lease cost
Amortization of ROU assets		155			157
Interest on lease liabilities		65			66
Total finance lease cost		220			223
Variable lease cost ⁽¹⁾		14,620			16,860
Short-term lease cost		3,073			1,447
Total lease cost	$	52,669		$	44,355

Weighted average remaining lease term
Operating leases		13 years			13 years
Finance leases		3 years			4 years
Weighted average discount rate
Operating leases		10.40	%		10.31	%
Finance leases		11.14	%		11.14	%

(1)	Variable lease cost is comprised of percentage rent and common area maintenance.

Summary of components of finance lease assets and liabilities on the condensed consolidated balance sheet

Supplemental cash flow information related to leases for the period was as follows (in thousands):


	September 28,		December 31,
	2025		2024
Finance lease right-of-use assets ⁽¹⁾	$	592	$	849
Current portion of finance lease liabilities ⁽¹⁾		178		189
Long-term portion of finance lease liabilities ⁽¹⁾		494		754

(1)	Finance lease assets and liabilities are included in other assets, other current liabilities, and other long-term liabilities on the condensed consolidated balance sheet.

Schedule of supplemental cash flow information related to leases


	September 28,		September 30,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	31,309	$	21,479
Operating cash flows from finance leases	$	155	$	157
Financing cash flows from finance leases	$	252	$	199
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	4,608	$	3,081

Schedule of maturities of operating lease liabilities

As of September 28, 2025, maturities of the Company’s operating lease liabilities are as follows (in thousands):


2025, three periods remaining	$	7,567
2026		40,365
2027		44,309
2028		44,442
2029		45,126
Thereafter		395,884
Total lease payments		577,693
Less: imputed interest		(278,822)
Present value of operating lease liabilities	$	298,871

Schedule of maturities of finance lease liabilities

As of September 28, 2025, maturities of the Company’s finance lease liabilities are as follows (in thousands):


2025, three periods remaining	$	94
2026		240
2027		240
2028		220
Total lease payments		794
Less: imputed interest		(122)
Present value of finance lease liabilities	$	672