Kura Sushi Revenue Climbs 23% to $80M in Q2 FY2026 Despite Net Loss

Kura Sushi USA, a technology-enabled Japanese restaurant chain, reported revenue of $80.0 million for the three months ending February 28, 2026, a 23% increase from $64.9 million in the same quarter of fiscal 2025. Despite the revenue gain, the company posted a net loss of $1.7 million, or $0.14 per diluted share, compared to a net loss of $3.8 million, or $0.31 per diluted share, in the prior-year quarter. Read more earnings reports.

For the six months ending February 28, 2026, revenue reached $153.5 million, up 19% from $129.4 million in the first half of fiscal 2025. The six-month net loss was $4.8 million, essentially flat compared to $4.7 million in the year-ago period.

Operating Performance and Costs

Operating expenses totaled $82.2 million in the second quarter, up from $69.5 million a year earlier, driven by expansion and higher labor costs. The operating loss for the quarter was $2.2 million, an improvement from the $4.6 million operating loss reported in the second quarter of fiscal 2025.

Cost of goods sold rose to $24.3 million in the quarter from $18.6 million in the prior-year period. For the six-month period, operating expenses climbed to $159.4 million from $135.4 million, while the operating loss narrowed slightly to $5.9 million from $6.1 million.

Cash Position and Capital Deployment

Cash and cash equivalents stood at $26.6 million as of February 28, 2026, down from $47.5 million at the end of fiscal 2025. Short-term investments increased to $21.4 million from $15.0 million over the same period.

Cash from operations for the six months was $8.1 million, slightly below the $8.6 million generated in the prior-year period. Cash used in investing activities totaled $29.1 million, primarily for property, plant, and equipment additions, which increased to $193.4 million from $171.2 million. Total assets rose to $461.0 million from $430.9 million at fiscal year-end.

Balance Sheet and Equity

Total liabilities increased to $232.2 million from $199.9 million at the end of fiscal 2025. Stockholders' equity declined to $228.8 million from $231.1 million, reflecting the accumulated deficit, which widened to $39.7 million from $34.9 million. Current liabilities remained relatively stable at $43.0 million compared to $42.8 million.

The company had 11.1 million common shares outstanding as of February 28, 2026, up from 11.1 million at the end of fiscal 2025.

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