Revenue during the quarter grew 20.69 percent to $43.36 million from $35.92 million in the previous year period. Gross margin for the quarter contracted 17 basis points over the previous year period to 65.17 percent. Operating margin for the quarter stood at negative 5.56 percent as compared to a negative 3.90 percent for the previous year period.

Operating loss for the quarter was $2.41 million, compared with an operating loss of $1.40 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $3.18 million compared with $2.80 million in the prior year period. At the same time, adjusted EBITDA margin contracted 48 basis points in the quarter to 7.33 percent from 7.81 percent in the last year period.

"Same-store sales rose 0.7% during the third quarter in the face of a soft casual dining environment and unprecedented flooding in Louisiana, which closed and limited operating hours at our Baton Rouge restaurant for several days. We are, however, pleased to have outpaced the industry benchmark by 180 basis points, extended our track record of same-store sales gains to 14 straight quarters, and to have grown same-store sales in 24 of the last 25 quarters despite these headwinds," said Berke Bakay, President and CEO of Kona Grill.

Working capital of Kona Grill, Inc. has turned negative to $6.57 million on Sep. 30, 2016 from positive $2.71 million on Sep. 30, 2015. Current ratio was at 0.65 as on Sep. 30, 2016, down from 1.16 on Sep. 30, 2015.

Days sales outstanding went down to 2 days for the quarter compared with 5 days for the same period last year.