First Watch Restaurant Group, Inc.

investors.firstwatch.com

What Do They Do?

Serves made-to-order breakfast, brunch and lunch at restaurants under the First Watch name.

How Do They Make Money?

Restaurant customers pay for meals when they tender payment. For delivery orders, the company receives payment after the delivery partner transfers the food to the customer; franchisees also pay ongoing royalties and system fund contributions based on sales.

revenue

Segment	Share	How money arrives
In-restaurant dining sales Sold outright	80% FY2022: 78%	Sold outright
Third-party delivery sales Sold outright	12% FY2022: 11%	Sold outright
Take-out sales Sold outright	7.2% FY2022: 9.1%	Sold outright
Royalty and system fund contributions Usage-based	0.8% FY2022: 1.5%	Usage-based
Initial fees Recurring	<0.1% FY2022: <0.1%	Recurring
Business combinations - revenues recognized	<0.1% FY2022: 0.0%

Who Are Their Customers?

Customers dine at First Watch restaurants or order take-out and delivery through the company’s mobile app and website or through third-party delivery apps and websites. Franchisees operate some restaurants and pay royalties and system fund contributions based on sales.

Do Revenues Turn Into Profits?

Yes. It kept 2 cents of every revenue dollar as net income in FY2025, but spent more cash than it brought in: free cash flow was −$31M.

Operating income, FY2025

2% of revenue

▼ −29% vs FY2024 ($38.9M, 4%)

Net income, FY2025

2% of revenue

▲ +3% vs FY2024 ($18.9M, 2%)

Free cash flow, FY2025

−3% of revenue

▲ +153% (Loss) vs FY2024 (−$12.2M, −1%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 28, 2026

Revenue: ▲ +15%; vs $307.9M in Q2 FY2025
Net income: ▲ +11%; vs $2.1M in Q2 FY2025

In-restaurant dining sales share of revenue vs 80.4% in Q2 FY2025

Jun 8, 2026 Ashlee Weisser appointed CFO She became the company’s chief financial and accounting officer.

Growing. Revenue grew 2.0x in 4 years, from $601.2M in FY2021 to $1.2B in FY2025, about 19% a year.

Revenue over time

In-restaurant dining sales Third-party delivery sales Take-out sales Royalty and system fund contributions Initial fees Business combinations - revenues recognized

$2B$1B$0

FY2021 FY2022 FY2023 FY2024 FY2025

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