ONE Group Hospitality, Inc. Revenue Disclosure
Note 9 – Revenue recognition
The following table provides information about contract liabilities, which include deferred license revenue, deferred gift card revenue, advanced party deposits and the Friends with Benefits rewards program (in thousands):
| December 28, | | December 31, | |||
2025 | 2024 | |||||
Deferred license revenue (1) |
| 116 |
| 204 | ||
Deferred gift card revenue (2) | 6,074 | 5,984 | ||||
Advanced party deposits (2) | 745 | 556 | ||||
Friends with Benefits rewards program (3) | 450 | 201 | ||||
| (1) | Includes the current and long-term portion of deferred license revenue which are included in other current liabilities and other long-term liabilities on the consolidated balance sheets. |
| (2) | Deferred gift card revenue and advance party deposits on goods and services yet to be provided are included in deferred gift card revenue and other on the consolidated balance sheets. |
| (3) | Friends with Benefits rewards program is included in accrued expenses on the consolidated balance sheets. |
Revenue recognized during the period from contract liabilities as of the preceding fiscal year end date is as follows (in thousands):
| December 28, | | December 31, | |||
2025 | 2024 | |||||
Revenue recognized from deferred license revenue | $ | 45 | $ | 33 | ||
Revenue recognized from deferred gift card revenue |
| 4,157 |
| 1,245 | ||
Revenue recognized from advanced party deposits | 523 | 361 | ||||
The estimated deferred license revenue to be recognized in the future related to performance obligations that are unsatisfied as of December 28, 2025 were as follows for each year ending (in thousands):
2026 | | $ | 25 |
2027 |
| 22 | |
2028 |
| 22 | |
2029 |
| 16 | |
2030 |
| 3 | |
Thereafter |
| 28 | |
Total future estimated deferred license revenue | $ | 116 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 19, 2021 | |
| 2019 | Mar 26, 2020 | |
| 2018 | Mar 28, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.