Executive Summary

Q3 revenue was $99.74M vs $90.41M a year ago and $100.62M in Q2; GAAP net loss of $5.29M (−$20.38 per Class A equivalent share) was driven by investment partnership losses despite positive operating segment performance . Steak n Shake delivered strong same‑store sales growth (~15%), signaling continued operational momentum .
Operating businesses generated $12.45M of pre-tax earnings, but investment partnership losses of $15.90M swung consolidated results negative; management reiterates that investment fluctuations are not meaningful to evaluating operating performance .
Steak n Shake closed a $225M, 5‑year, 8.8% fixed-rate mortgage loan on 9/30, with proceeds distributed to the parent; cash and cash equivalents rose to $272.49M, materially enhancing liquidity .
Book value per Class A equivalent share was $2,244.26 at quarter‑end; internal control material weaknesses remain under remediation with Grant Thornton Advisors engaged as internal auditor .

What Went Well and What Went Wrong

What Went Well
- Steak n Shake’s same‑store sales rose 15.6% at company‑operated units and 14.8% at franchise partner units in Q3; a Reg FD update also cited ~15% U.S. operations SSS for the third fiscal quarter .
- Insurance earnings improved: segment EBT was $5.25M in Q3 vs $3.12M in Q3’24, with both First Guard and Southern Pioneer contributing to underwriting gains .
- Management emphasized focus on operating businesses over investment mark‑to‑market volatility: “We do not regard the quarterly or annual fluctuations in our investments to be meaningful” .
What Went Wrong
- Investment partnership losses of $15.90M (pre‑tax) in Q3 (vs +$35.31M in Q3’24) dominated consolidated results; contribution to net earnings from partnerships was −$12.48M .
- Oil & gas revenues declined to $7.37M from $9.57M y/y and segment EBT fell to $0.67M (from $0.71M), reflecting commodity price pressure despite cost controls .
- Brand licensing (Maxim) remained a headwind with Q3 EBT of −$1.11M on $1.45M of revenue as media costs increased with new digital initiatives .

Financial Results

Overall results (USD unless noted):

Metric	Q3 2024	Q2 2025	Q3 2025
Total Revenues ($MM)	$90.41	$100.62	$99.74
Pre‑tax Operating Earnings ($MM)	$3.27	$3.67	$6.85
Investment Gains (Losses) ($MM)	$40.05	$61.43	$(14.41)
Net Earnings (Loss) ($MM)	$32.13	$50.93	$(5.29)
EPS per avg eq. Class A share	$114.77	$194.57	$(20.38)

Restaurant segment margin metrics:

Restaurant KPIs	Q3 2024	Q3 2025
Cost of Food (% of Net Sales)	30.8%	31.3%
Labor (% of Net Sales)	33.2%	30.7%
Occupancy & Other (% of Net Sales)	27.3%	26.2%
G&A (% of Total Revenue)	16.6%	16.9%
Marketing (% of Total Revenue)	5.1%	7.5%
Depreciation & Amortization (% of Total Revenue)	10.8%	9.0%

Segment revenue and earnings:

Segment	Q3 2024 Revenue ($MM)	Q3 2025 Revenue ($MM)	Q3 2024 EBT ($MM)	Q3 2025 EBT ($MM)
Restaurants	$62.38	$71.74	$6.51	$7.65
Insurance	$18.25	$19.18	$3.12	$5.25
Oil & Gas	$9.57	$7.37	$0.71	$0.67
Brand Licensing (Maxim)	$0.20	$1.45	$(0.27)	$(1.11)
Total Operating Businesses	$90.41	$99.74	$10.08	$12.45

Selected KPIs:

KPI	Q3 2025	Prior Period(s)
Steak n Shake SSS – Company-Operated	+15.6% Q3	+10.7% Q2
Steak n Shake SSS – Franchise Partner	+14.8% Q3	+10.7% Q2 (combined disclosed)
Steak n Shake SSS – U.S. ops (Reg FD)	~+15% 3rd fiscal quarter	—
Book value per Class A equivalent share	$2,244.26 at 9/30/25	—
Cash & Cash Equivalents	$272.49M at 9/30/25	$32.77M at 6/30/25
Steak n Shake mortgage loan	$225.0M, 5 years, 8.8% (proceeds distributed to BH)	—

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2025	Not provided in Q2 materials	Not provided in Q3 8‑K/10‑Q	—
Margins	FY/Q4 2025	Not provided	Not provided	—
OpEx/Tax/Other	FY/Q4 2025	Not provided	Not provided	—
Note: The company did not issue quantitative guidance in its Q3 2025 press release or 10‑Q .

Earnings Call Themes & Trends

Note: No Q3 earnings call transcript was furnished; themes reflect company filings.

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2025)	Trend
Steak n Shake SSS	Q2 SSS +10.7%; Q1 release did not disclose SSS	SSS ~+15% (company‑op +15.6%, franchise +14.8%)	Improving momentum
Restaurant model transition	Focus on franchise partner economics; revenue mix impacted by unit transitions	Continued partner model; partner fees/rental income support revenue	Stable execution
Insurance underwriting	Mixed in Q2 (Southern Pioneer elevated loss ratio), overall profitable	Stronger underwriting; segment EBT up YoY	Improving
Oil & gas	Q2 benefited from asset sales; price sensitivity noted	Lower revenue YoY; modest EBT; price volatility reiterated	Softer underlying
Internal controls	Material weaknesses ongoing; remediation in progress	Material weaknesses persist; Grant Thornton Advisors engaged as internal auditor	Remediation progressing

Management Commentary

“We do not regard the quarterly or annual fluctuations in our investments to be meaningful. Therefore, our operating businesses are best analyzed before the impact of investment gains.” (Press release)
“We generate most of our revenue from our share of the franchise partners’ profits.” (Restaurant revenue model)
“Our balance sheet continues to maintain significant liquidity.” (Liquidity discussion)
“On September 30, 2025, Steak n Shake obtained a loan of $225,000… the proceeds from the loan were distributed to Biglari Holdings.” (Capital allocation/liquidity)

Q&A Highlights

No earnings call transcript was available in company filings for Q3 2025; no Q&A disclosures to report .

Estimates Context

Wall Street consensus (S&P Global) for Q3 2025 EPS and revenue was not available; as a result, estimate comparisons are unavailable at this time. Values retrieved from S&P Global.*

Key Takeaways for Investors

Operating momentum is real: Restaurants and Insurance delivered higher YoY revenues and EBT, led by Steak n Shake SSS ~+15% in Q3 .
Consolidated GAAP remains volatile due to investment partnerships; Q3’s $(15.90)M pre‑tax loss erased operating gains—a structural feature investors should expect quarter‑to‑quarter .
Liquidity is significantly bolstered by a $225M Steak n Shake mortgage and higher cash ($272.49M), but interest expense is rising and SNS debt is secured by restaurant real estate (8.8% fixed) .
Restaurant cost structure improved on labor and occupancy percentages, while marketing spend stepped up to support growth; mix and partner economics continue to shape reported revenue .
Oil & gas is a smaller contributor with commodity sensitivity; watch pricing and potential asset sales for episodic gains .
Internal control remediation is ongoing; Grant Thornton Advisors’ engagement is a positive step but weaknesses persist, representing a governance overhang until remediated .
No formal guidance; near‑term narrative hinges on sustaining SSS strength, underwriting discipline, and investment partnership marks—key catalysts for stock reaction around prints and disclosures .

Notes and sources: All figures and statements are sourced from the company’s Q3 2025 8‑K (press release) , Q3 2025 10‑Q , the Reg FD 8‑K on SSS , and prior quarters’ filings including Q2 2025 10‑Q/8‑K and Q1 2025 8‑K . *Estimates note: Values retrieved from S&P Global.

Biglari Holdings Inc. (BH-A)·Q3 2025 Earnings Summary