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This article first appeared on GuruFocus.

Release Date: November 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• GEN Restaurant Group Inc (NASDAQ:GENK) has engineered a dual restaurant concept that improves operating margins by using a single labor force for two restaurants.

• The company has reached an agreement with Cisco to sell its proprietary Gen Korean barbecue meat products to third parties, expanding its market reach.

• GEN Restaurant Group Inc (NASDAQ:GENK) is making progress on international expansion, with plans to open three new restaurants in South Korea in 2025 at a lower cost than U.S. stores.

• The company anticipates achieving a restaurant-level adjusted EBITDA margin between 17% and 18% and revenue between $245 and $250 million for the full year of 2025.

• GEN Restaurant Group Inc (NASDAQ:GENK) has grown from 33 to 49 restaurants since going public in 2023 without incurring any long-term debt, demonstrating strong financial management.

• Cost of goods sold as a percentage of company restaurant sales increased due to inflationary pressures and a minor impact from the premium menu.

• Occupancy expenses and other operating expenses as a percentage of company restaurant sales increased due to new restaurant openings.

• The company reported a net loss before income taxes of $2.1 million in the first quarter of 2025, compared to a net income before income taxes of $3.8 million in the first quarter of 2024.

• Recent tariffs could materially impact equipment costs and construction materials sourced from China, potentially affecting new restaurant development costs.

• Same-store sales experienced a dip in March and continued to be negative in April and early May, attributed to macroeconomic factors.

Q: Can you discuss the same-store sales progression during the first quarter and any trends observed in the second quarter so far? A: January and February were strong months, but March saw a dip, ending slightly negative. This negative trend continued into April and early May. (Respondent: Unidentified_2)

Q: What do you attribute the recent weakness in sales to? A: The weakness is attributed to macroeconomic factors affecting customer sentiment. (Respondent: Unidentified_2)

Q: How do you plan to achieve the $300 million revenue run rate by the end of 2025? A: The growth to reach the $300 million revenue target is expected to come from new and existing restaurants, not from incubator projects. (Respondent: Unidentified_1)

This article first appeared on GuruFocus.

• Total Revenue: $38.8 million for the third quarter.

• Tool Rental Revenue: $31.9 million for the third quarter.

• Product Sales Revenue: $7 million for the third quarter.

• Net Loss: $903,000 or a loss of $0.03 per share for the third quarter.

• Adjusted Net Income: $751,000 or adjusted diluted EPS of $0.02 per share for the third quarter.

• Adjusted EBITDA: $9.1 million for the third quarter.

• Adjusted Free Cash Flow: $5.6 million for the third quarter.

• Capital Expenditures: $3.5 million for the third quarter.

• Debt Reduction: Paid down $5.6 million in debt during the third quarter.

• Cash Position Increase: Increased by $3.2 million during the third quarter.

• Share Buybacks: $550,000 of common shares bought back at an average of $2.09 per share during the third quarter.

• Eastern Hemisphere Revenue Growth: 41% year-over-year growth, contributing 15% of total revenue in the third quarter.

• 9-Month Revenue: $121.1 million.

• 9-Month Adjusted EBITDA: $29.2 million.

• 9-Month Capital Expenditures: $16.1 million.

• 9-Month Adjusted Free Cash Flow: $13.1 million.

• 2025 Revenue Guidance: Expected to be in the range of $145 million to $165 million.

• 2025 Adjusted EBITDA Guidance: Expected to be within the range of $32 million to $42 million.

• 2025 Capital Expenditures Guidance: Expected to be between $18 million and $23 million.

• 2025 Adjusted Free Cash Flow Guidance: Expected to range between $14 million to $19 million.

Release Date: November 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Drilling Tools International Corp (NASDAQ:DTI) reported better-than-anticipated third-quarter results, driven by proactive customer communications and flexible pricing strategies.

• The company successfully reduced debt by $5.6 million, increased cash reserves by $3.2 million, and executed $550,000 in share buybacks.

• DTI’s Eastern Hemisphere operations saw a 41% revenue growth year-over-year, contributing 15% of total revenue, highlighting successful integration of recent acquisitions.

• The company maintained its 2025 full-year guidance, expecting revenue between $145 million to $165 million and adjusted EBITDA between $32 million to $42 million.

• DTI’s strategic relocation of its US drill and repair facility to Houston, Texas, is delivering expected cost savings and efficiency benefits ahead of schedule.

• DTI reported a net loss attributable to common stockholders of $903,000 for the third quarter, equating to a loss of $0.03 per share.

• The company continues to face volatility in oil and gas markets due to geopolitical uncertainties, impacting commodity prices and rig counts.

• Despite positive results, DTI anticipates ongoing disruptions from pricing pressure and utilization fluctuations.

• The company had to implement a cost-cutting program to reduce expenses by $4 million, down from an initially planned $6 million, to align with customer activity levels.

• DTI’s net debt remains significant at $46.9 million as of September 30, 2025, despite efforts to reduce it.