Kura Sushi USA Q1 Earnings Disappoint: Revenue Surges 14%, But Losses Widen

Kura Sushi USA, Inc. (KRUS) reported its first-quarter results with mixed signals—while top-line growth caught some positive momentum, the bottom line stumbled, falling short of Wall Street expectations and deteriorating year-over-year.

The restaurant operator posted a net loss of $3.06 million, or $0.25 per share, significantly deeper than the prior-year quarter’s $0.96 million loss ($0.08 per share). On an adjusted basis excluding one-time items, Kura Sushi still recorded losses of $2.82 million, translating to $0.23 per share—a notable miss against the consensus estimate of $0.18 per share that analysts had penciled in.

Revenue Performance Stands Out

The lone bright spot came from revenue expansion. Kura Sushi’s quarterly sales climbed 14.0% year-over-year to $73.46 million from $64.46 million, demonstrating accelerating top-line momentum despite the margin pressure weighing on profitability.

Full-Year Outlook

Looking ahead, management guided for full-year revenue between $330 million and $334 million, signaling continued confidence in expansion despite near-term profit headwinds. The guidance suggests the company expects to sustain this growth trajectory through the remainder of the fiscal year.

The divergence between Kura Sushi’s solid revenue growth and expanding losses underscores mounting operational challenges—whether tied to labor costs, supply chain pressures, or other structural factors—that are outpacing the company’s ability to convert sales into earnings.