Choice Hotels Intl Inc Financials
This page shows Choice Hotels Intl Inc (CHH) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
A thin-equity, debt-backed model turns steady revenue into profit, but cash conversion weakened in FY2025.
From FY2024 to FY2025, net income rose to$370M even as operating income slipped to$448M and operating cash flow fell to$270M ; that spread means the profit improvement did not come from stronger core cash generation. At the same time, a small cash balance of$45M sits against$467M of current liabilities, so day-to-day liquidity relies more on continuing operating inflow than on cash already on hand.
Because equity is only
The business has looked more like a margin-repair story than a volume story since FY2023: revenue moved from
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Choice Hotels Intl Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Choice Hotels Intl Inc has an operating margin of 28.1%, meaning the company retains $28 of operating profit per $100 of revenue. This strong profitability earns a score of 84/100, reflecting efficient cost management and pricing power. This is down from 29.3% the prior year.
Choice Hotels Intl Inc's revenue grew a modest 0.8% year-over-year to $1.6B. This slow but positive growth earns a score of 36/100.
Choice Hotels Intl Inc has elevated debt relative to equity (D/E of 10.52), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 0/100, reflecting increased financial risk.
Choice Hotels Intl Inc's current ratio of 0.87 is below the typical benchmark, resulting in a score of 12/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Choice Hotels Intl Inc earns a strong 204.1% return on equity (ROE), meaning it generates $204 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100.
Choice Hotels Intl Inc scores 3.27, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Choice Hotels Intl Inc passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, all 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Choice Hotels Intl Inc generates $0.73 in operating cash flow ($270.4M OCF vs $369.9M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Choice Hotels Intl Inc earns $4.9 in operating income for every $1 of interest expense ($448.4M vs $91.1M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
Key Financial Metrics
Earnings & Revenue
Choice Hotels Intl Inc generated $1.6B in revenue in fiscal year 2025. This represents an increase of 0.8% from the prior year.
Choice Hotels Intl Inc's EBITDA was $508.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 1.5% from the prior year.
Choice Hotels Intl Inc reported $369.9M in net income in fiscal year 2025. This represents an increase of 23.4% from the prior year.
Choice Hotels Intl Inc earned $7.90 per diluted share (EPS) in fiscal year 2025. This represents an increase of 27.4% from the prior year.
Cash & Balance Sheet
Choice Hotels Intl Inc held $45.0M in cash against $1.9B in long-term debt as of fiscal year 2025.
Choice Hotels Intl Inc paid $1.15 per share in dividends in fiscal year 2025. This represents an increase of 0.0% from the prior year.
Choice Hotels Intl Inc had 46M shares outstanding in fiscal year 2025. This represents a decrease of 1.6% from the prior year.
Margins & Returns
Choice Hotels Intl Inc's operating margin was 28.1% in fiscal year 2025, reflecting core business profitability. This is down 1.2 percentage points from the prior year.
Choice Hotels Intl Inc's net profit margin was 23.2% in fiscal year 2025, showing the share of revenue converted to profit. This is up 4.3 percentage points from the prior year.
Choice Hotels Intl Inc's ROE was 204.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity.
Capital Allocation
Choice Hotels Intl Inc spent $138.3M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 63.7% from the prior year.
CHH Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $340.6M-12.7% | $390.1M-12.8% | $447.3M+4.9% | $426.4M+28.1% | $332.9M-14.6% | $389.8M-8.9% | $428.0M-1.7% | $435.2M |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $78.0M-9.1% | $85.8M+7.8% | $79.6M-10.8% | $89.3M+20.3% | $74.2M-9.9% | $82.4M+19.3% | $69.0M-22.2% | $88.7M |
| Operating Income | $60.0M-40.8% | $101.5M-28.8% | $142.4M+14.3% | $124.6M+55.9% | $79.9M-33.0% | $119.2M-21.5% | $151.8M+14.4% | $132.6M |
| Interest Expense | $24.0M+1.2% | $23.7M+0.8% | $23.5M+3.3% | $22.7M+7.0% | $21.2M+0.8% | $21.1M-4.4% | $22.0M-7.6% | $23.8M |
| Income Tax | $10.0M-28.1% | $13.9M-55.0% | $30.9M+15.0% | $26.9M+76.5% | $15.2M-41.2% | $25.9M-17.6% | $31.4M+6.7% | $29.4M |
| Net Income | $20.3M-68.1% | $63.6M-64.6% | $180.0M+120.2% | $81.7M+83.5% | $44.5M-41.3% | $75.8M-28.3% | $105.7M+21.3% | $87.1M |
| EPS (Diluted) | $0.44 | N/A | $3.86+120.6% | $1.75+86.2% | $0.94 | N/A | $2.22+23.3% | $1.80 |
CHH Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.9B+0.9% | $2.9B+0.4% | $2.9B+9.1% | $2.7B+3.4% | $2.6B+1.9% | $2.5B-0.5% | $2.5B+1.0% | $2.5B |
| Current Assets | $410.8M+1.2% | $406.0M-9.8% | $450.3M+12.4% | $400.7M+11.9% | $358.2M+5.6% | $339.1M+0.1% | $338.6M-24.4% | $448.2M |
| Cash & Equivalents | $43.9M-2.5% | $45.0M-14.4% | $52.6M-10.3% | $58.6M+46.3% | $40.1M-0.3% | $40.2M-31.4% | $58.6M-3.1% | $60.4M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $243.5M+17.4% | $207.5M-12.3% | $236.5M+8.3% | $218.5M+12.5% | $194.3M+10.0% | $176.7M-16.2% | $210.9M-10.4% | $235.4M |
| Goodwill | $304.6M-0.4% | $305.8M+0.4% | $304.5M+38.3% | $220.2M0.0% | $220.2M0.0% | $220.2M0.0% | $220.2M0.0% | $220.2M |
| Total Liabilities | $2.8B+2.6% | $2.7B-0.8% | $2.8B+2.5% | $2.7B+1.9% | $2.6B+2.6% | $2.6B-2.4% | $2.6B-1.0% | $2.7B |
| Current Liabilities | $434.0M-7.1% | $467.3M-0.3% | $468.5M+3.7% | $451.9M+5.7% | $427.4M-7.6% | $462.7M-3.4% | $478.8M+5.9% | $452.1M |
| Long-Term Debt | $2.0B+5.1% | $1.9B-0.6% | $1.9B+1.0% | $1.9B+1.3% | $1.9B+6.0% | $1.8B-2.3% | $1.8B-3.1% | $1.9B |
| Total Equity | $137.4M-24.2% | $181.2M+21.0% | $149.8M+670.8% | -$26.2M+59.0% | -$63.9M-41.2% | -$45.3M+52.9% | -$96.2M+34.5% | -$146.8M |
| Retained Earnings | $2.3B+0.3% | $2.3B+2.2% | $2.3B+7.9% | $2.1B+3.4% | $2.0B+1.6% | $2.0B+3.2% | $1.9B+5.0% | $1.8B |
CHH Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$23.2M-127.0% | $85.7M+24.8% | $68.7M-28.2% | $95.6M+367.1% | $20.5M-75.3% | $82.9M-32.6% | $122.9M+9.9% | $111.9M |
| Capital Expenditures | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Free Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Investing Cash Flow | -$6.2M+84.7% | -$40.4M+51.1% | -$82.7M-96.0% | -$42.2M+20.3% | -$53.0M-149.7% | -$21.2M-1493.4% | -$1.3M+93.1% | -$19.3M |
| Financing Cash Flow | $28.3M+153.2% | -$53.2M-943.0% | $6.3M+117.8% | -$35.4M-210.1% | $32.2M+140.5% | -$79.5M+35.6% | -$123.6M-64.7% | -$75.0M |
| Dividends Paid | $13.1M-1.2% | $13.3M-0.4% | $13.3M-0.5% | $13.4M-0.5% | $13.5M+3.6% | $13.0M-4.6% | $13.6M-3.5% | $14.1M |
| Share Buybacks | $56.5M+122.8% | $25.3M+12447.5% | $202K-99.6% | $48.1M-25.5% | $64.6M+103.4% | $31.8M-43.5% | $56.3M-75.9% | $233.3M |
CHH Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | 17.6%-8.4pp | 26.0%-5.8pp | 31.8%+2.6pp | 29.2%+5.2pp | 24.0%-6.6pp | 30.6%-4.9pp | 35.5%+5.0pp | 30.5% |
| Net Margin | 6.0%-10.3pp | 16.3%-23.9pp | 40.2%+21.1pp | 19.2%+5.8pp | 13.4%-6.1pp | 19.5%-5.2pp | 24.7%+4.7pp | 20.0% |
| Return on Equity | 14.8%-20.3pp | 35.1%-85.1pp | 120.2% | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | 0.7%-1.5pp | 2.2%-4.0pp | 6.2%+3.1pp | 3.1%+1.3pp | 1.7%-1.3pp | 3.0%-1.2pp | 4.2%+0.7pp | 3.5% |
| Current Ratio | 0.95+0.1 | 0.87-0.1 | 0.96+0.1 | 0.89+0.0 | 0.84+0.1 | 0.73+0.0 | 0.71-0.3 | 0.99 |
| Debt-to-Equity | 14.58+4.1 | 10.52-2.3 | 12.81+85.2 | -72.42-43.1 | -29.32+9.7 | -39.07-20.2 | -18.83-6.1 | -12.73 |
| FCF Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Note: The current ratio is below 1.0 (0.87), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Choice Hotels Intl Inc's annual revenue?
Choice Hotels Intl Inc (CHH) reported $1.6B in total revenue for fiscal year 2025. This represents a 0.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Choice Hotels Intl Inc's revenue growing?
Choice Hotels Intl Inc (CHH) revenue grew by 0.8% year-over-year, from $1.6B to $1.6B in fiscal year 2025.
Is Choice Hotels Intl Inc profitable?
Yes, Choice Hotels Intl Inc (CHH) reported a net income of $369.9M in fiscal year 2025, with a net profit margin of 23.2%.
What is Choice Hotels Intl Inc's EBITDA?
Choice Hotels Intl Inc (CHH) had EBITDA of $508.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Choice Hotels Intl Inc have?
As of fiscal year 2025, Choice Hotels Intl Inc (CHH) had $45.0M in cash and equivalents against $1.9B in long-term debt.
What is Choice Hotels Intl Inc's operating margin?
Choice Hotels Intl Inc (CHH) had an operating margin of 28.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Choice Hotels Intl Inc's net profit margin?
Choice Hotels Intl Inc (CHH) had a net profit margin of 23.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Choice Hotels Intl Inc pay dividends?
Yes, Choice Hotels Intl Inc (CHH) paid $1.15 per share in dividends during fiscal year 2025.
What is Choice Hotels Intl Inc's return on equity (ROE)?
Choice Hotels Intl Inc (CHH) has a return on equity of 204.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Choice Hotels Intl Inc's operating cash flow?
Choice Hotels Intl Inc (CHH) generated $270.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Choice Hotels Intl Inc's total assets?
Choice Hotels Intl Inc (CHH) had $2.9B in total assets as of fiscal year 2025, including both current and long-term assets.
What is Choice Hotels Intl Inc's current ratio?
Choice Hotels Intl Inc (CHH) had a current ratio of 0.87 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Choice Hotels Intl Inc's debt-to-equity ratio?
Choice Hotels Intl Inc (CHH) had a debt-to-equity ratio of 10.52 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Choice Hotels Intl Inc's return on assets (ROA)?
Choice Hotels Intl Inc (CHH) had a return on assets of 12.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Choice Hotels Intl Inc's Altman Z-Score?
Choice Hotels Intl Inc (CHH) has an Altman Z-Score of 3.27, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Choice Hotels Intl Inc's Piotroski F-Score?
Choice Hotels Intl Inc (CHH) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Choice Hotels Intl Inc's earnings high quality?
Choice Hotels Intl Inc (CHH) has an earnings quality ratio of 0.73x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Choice Hotels Intl Inc cover its interest payments?
Choice Hotels Intl Inc (CHH) has an interest coverage ratio of 4.9x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Choice Hotels Intl Inc?
Choice Hotels Intl Inc (CHH) scores 39 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.