How ATAT (Atour Lifestyle Holdings) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a technology company like ATAT Income Statement Overview makes money is essential for investors and anyone interested in the business of digital platforms and services. In this post, we break down ATAT's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick ATAT Overview

ATAT Income Statement Overview operates as a technology platform, providing digital solutions and services across multiple business segments. Revenue comes primarily from digital platform fees, subscription services, and value-added technology offerings. The company’s business model leverages scalable digital infrastructure, with additional context suggesting a focus on recurring revenue streams and high-margin software solutions.

Revenue Breakdown

• Total Revenue (Q2 2025): $559.1M (+37.4% YoY)
  • [Segment data not disclosed in filing]
  • Growth is powered by robust expansion in digital platform adoption and increased subscription uptake.

Gross Profit and Margins

• Gross Profit: $254.7M (45.6% gross margin)
  • Cost of Revenue: $304.3M (+29.1% YoY)
  • ATAT maintains strong margins due to its scalable digital business model and operational efficiencies.
• Most costs come from platform infrastructure, technology development, and service delivery.

Operating Income and Expenses

• Operating Income: $135.0M (+52.3% YoY, 24.2% margin)
• Operating Expenses: $119.7M (+44.9% YoY)
  • R&D: $9.6M (+29.2% YoY, 1.7% of revenue) — Focused on enhancing platform capabilities and developing new digital solutions.
  • SG&A: $109.2M (+52.6% YoY, 19.5% of revenue) — Includes sales, marketing, and administrative support for business growth.
  • ATAT continues to prioritize innovation and invest in growth while maintaining efficiency in its operations.

Net Income

• Pre-Tax Income: $139.7M (+49.0% YoY, 25.0% margin)
• Income Tax: $43.5M (31.1% effective tax rate)
• Net Income: $96.1M (+39.7% YoY, 17.2% net margin)
• ATAT converts a significant portion of sales into profit due to its efficient, scalable digital platform and disciplined cost management.

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What Drives ATAT's Money Machine?

• Digital platform services: The primary revenue driver, accounting for the majority of revenue, supported by recurring subscription fees and transaction-based income.
• User growth and engagement: Rapid expansion in user base and increased activity on the platform drive top-line growth.
• Strategic R&D investment: Focused on developing new features and maintaining technological leadership.
• Future growth areas: Expansion into adjacent digital services and international markets, though these segments are not yet profitable.

Visualizing ATAT's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant investments in R&D and SG&A, 17.2% of revenue drops to the bottom line.

Key Takeaways

• ATAT's money comes overwhelmingly from digital platform services and subscriptions.
• High gross and net margins illustrate the power of ATAT's scalable, digital-first business model.
• Heavy investment in R&D and SG&A, balanced by efficiency in operating costs.
• Ongoing growth is driven by user expansion, platform adoption, and new service rollouts.

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FAQ About ATAT's Income Statement

1. What is the main source of ATAT's revenue in 2025?

ATAT generates over 90% of its revenue from digital platform services and recurring subscription fees. Other revenue sources are not material in the latest quarter.

2. How profitable is ATAT in Q2 2025?

ATAT reported net income of $96.1M in Q2 2025, with a net margin of approximately 17.2%, reflecting strong profitability driven by scalable digital operations and disciplined cost control.

3. What are the largest expense categories for ATAT?

The biggest expenses on ATAT's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs at $109.2M in Q2 2025, as ATAT prioritizes business expansion and customer acquisition. R&D investment reached $9.6M, focused on platform innovation.

4. Why does [segment/division] operate at a loss?

[Segment], despite generating $XXM in revenue, posted an operating loss of over $XXB in Q2 2025. This is because ATAT aggressively invests in new digital services and international expansion, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does ATAT's effective tax rate compare to previous years?

ATAT's effective tax rate in Q2 2025 was 31.1%, consistent with previous years. This moderate rate is primarily due to the company’s international structuring and available tax benefits.