Atour Lifestyle Holdings Limited (NASDAQ:ATAT) Earnings Preview and Financial Analysis

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.

• Atour Lifestyle Holdings Limited (NASDAQ:ATAT) has shown significant growth with a 37.9% increase in the number of hotels year-over-year and plans for further expansion.
• The consensus price target for ATAT's stock is $37.30, reflecting growing optimism among analysts due to the company's rapid expansion and strong performance.
• Atour is diversifying its revenue streams by expanding branded retail sales, alongside its high-margin manachised business model, indicating a robust growth trajectory.

Atour Lifestyle Holdings Limited (NASDAQ:ATAT) operates a chain of themed hotels in China, catering to diverse lifestyles and interests. As of March 31, 2021, Atour had 608 hotels across 131 cities in China, with plans for further expansion. The company is known for its manachised business model, which generates high-margin revenues through franchising fees, distinguishing it from traditional hotel chains like Marriott and Hilton.

The consensus price target for ATAT's stock has shown stability over the last month and quarter at $37.30, up from $31.98 a year ago. This increase reflects growing optimism among analysts, likely due to Atour's rapid expansion and strong performance. The company has seen a 37.9% increase in the number of hotels year-over-year by the third quarter of 2024, as highlighted by Morgan Stanley analyst Dan Chee.

Atour's growth is not limited to its hotel network. The company is also expanding its branded retail sales, introducing a new revenue stream. This diversification, along with its asset-light model, has facilitated rapid expansion and revenue growth. Atour's consistent revenue guidance raises for 2024 further bolster investor confidence, as noted by Dan Chee, who estimates a 58% upside with a fair value of $43.1 for the stock.

Despite a recent sell-off following its earnings report, ATAT is attempting to rebound. The company opened 140 new hotels in the third quarter, showcasing its commitment to growth. The introduction of a new dividend policy and a Zacks Rank #2 (Buy) upgrade indicate increased optimism about Atour's earnings potential. Investors should consider these factors when evaluating ATAT's stock potential.

• Atour Lifestyle Holdings Limited, trading as (NASDAQ:ATAT), is set to release its quarterly earnings with an anticipated EPS of $0.30 and projected revenue of $274.25 million.
• The company's price-to-earnings (P/E) ratio stands at 26.34, indicating positive investor sentiment towards its future earnings potential.
• ATAT's financial health is highlighted by a current ratio of 1.97, suggesting it is well-equipped to meet short-term obligations and support future growth.

Atour Lifestyle Holdings Limited, trading as (NASDAQ:ATAT), is a leading hospitality and lifestyle company in China. It is known for its innovative approach to the hospitality industry, offering a unique blend of lifestyle and accommodation services. The company is set to release its quarterly earnings on March 25, 2025, with Wall Street estimating an earnings per share (EPS) of $0.30 and projected revenue of approximately $274.25 million.

ATAT's financial metrics provide a deeper understanding of its market position. The company has a price-to-earnings (P/E) ratio of 26.34, indicating that investors are willing to pay $26.34 for every dollar of earnings. This suggests a positive investor sentiment towards the company's future earnings potential. The price-to-sales ratio of 1.52 shows that investors are paying $1.52 for every dollar of sales, reflecting confidence in the company's revenue-generating capabilities.

The enterprise value to sales ratio of 1.37 highlights ATAT's total valuation compared to its sales, suggesting a balanced valuation. Additionally, the enterprise value to operating cash flow ratio of 5.33 indicates efficient cash flow generation relative to the company's enterprise value. This efficiency is crucial for sustaining operations and funding future growth initiatives.

ATAT's earnings yield of 3.80% provides insight into the return on investment, serving as the inverse of the P/E ratio. This yield suggests a reasonable return for investors, considering the company's growth prospects. The debt-to-equity ratio of 0.67 indicates a moderate level of debt, which is manageable and suggests a balanced approach to financing.

The company's current ratio of 1.97 is a strong indicator of its short-term financial health, showing that ATAT has nearly twice as many current assets as current liabilities. This ratio suggests that the company is well-positioned to meet its short-term obligations, providing a stable foundation for future growth.

• Atour Lifestyle Holdings Limited (NASDAQ:ATAT) has shown significant growth with a 37.9% increase in the number of hotels year-over-year and plans for further expansion.
• The consensus price target for ATAT's stock is $37.30, reflecting growing optimism among analysts due to the company's rapid expansion and strong performance.
• Atour is diversifying its revenue streams by expanding branded retail sales, alongside its high-margin manachised business model, indicating a robust growth trajectory.

Atour Lifestyle Holdings Limited (NASDAQ:ATAT) operates a chain of themed hotels in China, catering to diverse lifestyles and interests. As of March 31, 2021, Atour had 608 hotels across 131 cities in China, with plans for further expansion. The company is known for its manachised business model, which generates high-margin revenues through franchising fees, distinguishing it from traditional hotel chains like Marriott and Hilton.

The consensus price target for ATAT's stock has shown stability over the last month and quarter at $37.30, up from $31.98 a year ago. This increase reflects growing optimism among analysts, likely due to Atour's rapid expansion and strong performance. The company has seen a 37.9% increase in the number of hotels year-over-year by the third quarter of 2024, as highlighted by Morgan Stanley analyst Dan Chee.

Atour's growth is not limited to its hotel network. The company is also expanding its branded retail sales, introducing a new revenue stream. This diversification, along with its asset-light model, has facilitated rapid expansion and revenue growth. Atour's consistent revenue guidance raises for 2024 further bolster investor confidence, as noted by Dan Chee, who estimates a 58% upside with a fair value of $43.1 for the stock.

Despite a recent sell-off following its earnings report, ATAT is attempting to rebound. The company opened 140 new hotels in the third quarter, showcasing its commitment to growth. The introduction of a new dividend policy and a Zacks Rank #2 (Buy) upgrade indicate increased optimism about Atour's earnings potential. Investors should consider these factors when evaluating ATAT's stock potential.