Atour Lifestyle Holdings Limited (NASDAQ:ATAT) Reports Strong Q2 2025 Earnings, Beating Estimates

Atour Lifestyle Holdings Limited (NASDAQ:ATAT) reported robust second-quarter 2025 results, with both revenue and earnings per share comfortably exceeding analyst expectations. The Chinese hospitality firm posted net revenues of RMB2.47 billion (approximately $345 million), marking a 37.4% year-over-year increase and surpassing the consensus estimate of RMB2.40 billion. Earnings performance was equally strong, with diluted earnings per American Depositary Share (ADS) reaching RMB3.03 ($0.42), compared to the estimated RMB2.92.

The market responded positively to these results, with pre-market trading showing a notable uptick of approximately 4.7%. This immediate reaction suggests investor approval of both the earnings beat and the company's operational performance during the quarter. The positive movement is particularly significant given the stock's relatively flat performance over the past month, indicating these results may have exceeded market expectations.

Key operational highlights from the quarter include:

• Substantial network expansion with 1,824 hotels operational by June 30, 2025, representing 29.2% year-over-year growth • Retail business showing remarkable momentum with gross merchandise value increasing 84.6% year-over-year to RMB1.14 billion • Strong profitability metrics with net income growing 39.8% to RMB425 million and adjusted EBITDA increasing 37.7% to RMB610 million

The company's revenue growth was primarily driven by its manachised hotel business, which saw revenues increase by 26.5% year-over-year, and the retail segment, which experienced explosive growth of 79.8%. This diversification beyond traditional hotel operations appears to be paying dividends, with the retail segment now representing a significant portion of total revenue.

Looking forward, management provided full-year 2025 guidance expecting total net revenues to increase by 30% compared to full-year 2024. This outlook appears conservative relative to analyst expectations, which project full-year sales of approximately RMB9.57 billion. The company's guidance suggests potential revenue of around RMB9.30 billion, assuming similar growth patterns, which may indicate a more cautious stance despite the strong quarterly performance.

For investors seeking more detailed earnings information and future estimates, additional data can be found through the company's earnings and estimates portal.

Disclaimer: This article provides financial analysis for informational purposes only and should not be construed as investment advice. Readers should conduct their own research and consult with financial professionals before making investment decisions.