Company: FWRG
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001789940-25-000072
Chunk: 73

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 73
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 2025JUNE 30, 2024Net income $2,106 $8,900 $1,277 $16,114 Depreciation and amortization18,136 14,536 34,693 26,807 Interest expense4,003 3,381 7,337 5,980 Income tax expense1,470 4,879 762 7,678 EBITDA25,715 31,696 44,069 56,579 Strategic costs (1)799 161 2,033 396 Loss on extinguishment and modification of debt— — — 428 Stock-based compensation (2)2,790 2,452 5,049 4,318 Delaware Voluntary Disclosure Agreement Program (3)29 67 53 75 Transaction expenses, net (4)919 725 1,792 1,394 Impairments and loss on disposal of assets (5)127 153 136 272 Recruiting and relocation costs (6)— 71 — 275 Severance costs (7)— — — 178 Adjusted EBITDA$30,379 $35,325 $53,132 $63,915 Total revenues$307,887 $258,561 $590,127 $501,010 Net income margin0.7 %3.4 %0.2 %3.2 %Adjusted EBITDA margin9.9 %13.7 %9.0 %12.8 %Additional information Deferred rent expense (8)$293 $406 $478 $749 _____________________________

(1) Represents costs related to process improvements and strategic initiatives. These costs are recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.

(2) Represents non-cash, stock-based compensation expense, net of amounts capitalized, which is recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.

(3) Represents professional service costs incurred in connection with the Delaware Voluntary Disclosure Agreement Program related to unclaimed or abandoned property. These costs are recorded in General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.

(4) Represents costs incurred in connection with the acquisition of franchise-owned restaurants, secondary offering costs and, in 2024,  an offsetting