Editor's Picks

Atour Lifestyle Holdings Limited’s Financial Performance Analysis

  • Earnings per Share (EPS) of $0.14 was below the estimated $0.41, yet revenue exceeded expectations at approximately $344.5 million.
  • Year-over-year revenue growth of 37.4%, with net income increasing by 39.8%.
  • Financial ratios indicate strong investor confidence and operational performance, with a P/E ratio of approximately 28.53 and a debt-to-equity ratio of 0.53.

Atour Lifestyle Holdings Limited, trading as NASDAQ:ATAT, is a leading hospitality and lifestyle company in China. The company operates a vast network of 1,824 hotels, offering 204,784 rooms as of June 30, 2025. Atour is known for its strong presence in the hospitality sector and continues to expand its operations.

On August 26, 2025, ATAT reported earnings per share (EPS) of $0.14, which was below the estimated $0.41. Despite this, the company exceeded revenue expectations, generating approximately $344.5 million compared to the estimated $333.1 million. This revenue growth is part of a broader trend, as the company’s net revenues for Q2 2025 surged by 37.4% year-over-year, reaching RMB 2,469 million, or $345 million.

Atour’s net income also saw a significant increase of 39.8% year-over-year, amounting to RMB 425 million, or $59 million. The adjusted net income rose by 30.2% year-over-year to RMB 427 million, or $60 million. These figures highlight the company’s strong financial performance, despite the EPS miss. The company’s EBITDA increased by 45.1% year-over-year to RMB 608 million, or $85 million, with adjusted EBITDA growing by 37.7% year-over-year to RMB 610 million, or $85 million.

The company’s financial ratios provide further insight into its performance. ATAT has a price-to-earnings (P/E) ratio of approximately 28.53, indicating investor confidence in its earnings potential. The price-to-sales ratio is about 4.67, reflecting the company’s market value relative to its revenue. The enterprise value to sales ratio is around 4.49, showing the company’s total value compared to its sales.

Atour’s financial health is also supported by a debt-to-equity ratio of approximately 0.53, indicating a balanced approach to financing its assets. The current ratio of about 2.29 suggests that the company is well-positioned to cover its short-term liabilities with its short-term assets. These metrics underscore Atour’s strong operational performance and its continued growth in the hospitality sector.

Leave a comment

Your email address will not be published. Required fields are marked *