The 21.7% revenue decline and 17.8% same-store sales drop signal accelerating market share loss in China's competitive coffee market. The $15.8M convertible note financing provides near-term liquidity but adds dilution risk. Watch for further store closures and any signs of stabilization in same-store sales in Q3 2026.
Price Chart
Executive Summary
TH International (Tims China) reported Q2 2026 revenue of RMB273.4M ($40.3M), a 21.7% YoY decline, and a net loss of RMB97.4M ($14.4M), widening from RMB75.9M a year ago. Same-store sales fell 17.8% system-wide and 17.3% at company-owned stores, while store contribution margin halved to 5.7%. The company closed 13 non-MTO stores and opened 15 MTO stores, and secured $15.8M in convertible note financing from its brand owner in July 2026, but fundamentals continue to deteriorate sharply with no consensus estimates available for comparison.
Key Financial Metrics
Key Facts
- Total revenues fell 21.7% YoY to RMB273.4M ($40.3M) in Q2 2026.
- System-wide same-store sales declined 17.8% (company-owned: -17.3%).
- Net loss widened to RMB97.4M ($14.4M) from RMB75.9M in Q2 2025.
- Company-owned store contribution margin dropped to 5.7% from 9.6% YoY.
- Adjusted corporate EBITDA swung to a loss of RMB21.0M from a gain of RMB2.2M.
- Basic and diluted loss per share worsened to RMB3.00 ($0.44) from RMB2.32.
- Net cash from operations was positive RMB34.0M in Q2 2026 vs negative RMB1.2M a year ago, but cash and equivalents fell to RMB121.1M.
- Closed 13 non-MTO stores and opened 15 MTO stores; total store count essentially flat at 1,028.
- Closed initial tranche of $15.8M in senior secured convertible notes from brand owner THRI in July 2026.
- Registered loyalty club members grew 41.7% YoY to 37.1 million.
Financial Impact
Revenue decline of 21.7% YoY; net loss widened by 28.3% YoY; store contribution margin halved to 5.7%
Risk Factors
- Continued same-store sales decline and market share loss to competitors like Luckin and Starbucks
- Dilution risk from convertible notes and potential future equity offerings
- Cash burn: only RMB121.1M cash vs RMB1.06B current liabilities; may require additional financing
- Franchise and royalty expenses as % of revenue rising due to higher royalty rate
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3346645 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 8d ago | 6-K | $1.00 | awaiting T+60 | — | $1.21 (+21.00%) |
Sep 10, 2026 6w ago | 6-K | $1.36 | awaiting T+60 | — | $1.21 (+11.03%) |
Aug 18, 2026 10w ago | 6-K | $1.38 | awaiting T+60 | — | $1.21 (+12.32%) |
Aug 18, 2026 10w ago | Press Release | $1.38 | awaiting T+60 | — | $1.21 (+12.32%) |
Aug 11, 2026 11w ago | Press Release | $1.60 | awaiting T+60 | — | $1.21 (−24.37%) |
Jul 7, 2026 16w ago | 6-K | $1.80 $1.32 | ▲ +26.46% | ▲ +28.96% | $1.21 (+32.59%) |
Jun 10, 2026 19w ago | 6-K | $1.75 $1.38 | ▲ +21.14% | ▲ +27.72% | $1.21 (+30.86%) |
Jun 9, 2026 20w ago | 6-K | $1.75 $1.38 | ▼ −21.14% | ▼ −27.72% | $1.21 (−30.86%) |
Jun 9, 2026 20w ago | Press Release | $1.80 $1.39 | ▲ +22.78% | ▲ +26.59% | $1.21 (+32.78%) |
Jun 1, 2026 21w ago | Press Release | $2.01 $1.25 | ▼ −38.06% | ▼ −39.29% | $1.21 (−39.80%) |
US Market Status
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