Atour Lifestyle Holdings (NASDAQ:ATAT) Q3 2025 Earnings: Revenue Beat, EPS Miss

Atour Lifestyle Holdings Limited (NASDAQ:ATAT) has reported financial results for the third quarter of 2025, delivering a performance characterized by strong revenue growth that surpassed analyst expectations, while its profitability metric came in slightly below forecasts. The market's immediate reaction appears to reflect this mixed outcome, with pre-market trading showing a positive uptick.

Earnings and Revenue Versus Estimates

The company’s top-line performance demonstrated significant strength during the quarter. Net revenues reached RMB 2,628 million (approximately US$369 million), which translates to a robust 38.4% increase compared to the same period last year. More importantly, this figure exceeded the analyst revenue estimate for the quarter.

• Reported Revenue: RMB 2,628 million (US$369 million)
• Analyst Estimate for Revenue: RMB 2,504 million
• Result: Beat

On the bottom line, the company reported a non-GAAP adjusted net income of RMB 488 million (US$69 million). The diluted earnings per ADS (American Depositary Share) on a non-GAAP basis came in at RMB 3.39 (US$0.48). This result was slightly softer than what analysts had projected.

• Reported Non-GAAP EPS (per ADS): RMB 3.39 (US$0.48)
• Analyst Estimate for Non-GAAP EPS: RMB 3.55
• Result: Miss

Market Reaction and Price Action

The initial market response to this earnings report has been cautiously optimistic. In pre-market trading, the stock is indicating an opening gain of approximately 1.5%. This positive movement suggests that investors may be placing greater emphasis on the substantial revenue beat and the company's overall growth trajectory, potentially viewing the slight earnings miss as less consequential given the strong sales performance. This pre-market activity stands in contrast to the stock's performance over the past two weeks, which had seen a decline of over 7%.

Operational and Financial Highlights

Beyond the headline earnings figures, the press release detailed several key drivers of the company's growth. The expansion of the hotel network continues at a rapid pace, with the total number of hotels in operation increasing by 27.1% year-over-year to 1,948 properties. The retail business emerged as a standout segment, with Gross Merchandise Value (GMV) surging 75.5% year-over-year to RMB 994 million, indicating successful diversification beyond core hotel operations.

The company's profitability metrics also showed healthy expansion, albeit at a slower pace than revenue. Net income increased by 24.6% to RMB 474 million, while adjusted EBITDA grew 28.7% to RMB 685 million.

Forward-Looking Outlook

Atour has provided revenue guidance for the full 2025 fiscal year, projecting total net revenues to increase by 35% compared to full-year 2024. This outlook, based on current market conditions, appears ambitious but is generally in line with the growth trajectory demonstrated in the Q3 results. It provides a benchmark for investors to gauge the company's ability to maintain its momentum through the final quarter of the year.

For a detailed look at historical earnings, future analyst estimates, and the company's earnings surprise history, you can review the data available on the ATAT earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The performance data and estimates referenced are based on publicly available information and are subject to change. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.