Lucky Strike Entertainment Reports Second Quarter Results for Fiscal Year 2026

View all news 02/04/2026 Lucky Strike Entertainment (NYSE: LUCK), one of the world’s premier owner/operators of location-based entertainment, today provided financial results for the second quarter of the 2026 fiscal year, which ended on December 28, 2025. Quarter Highlights: Total revenue increased 2.3% to $306.9 million from $300.1 million in the previous yearSame Store Revenue increased 0.3% versus the prior yearNet loss of $12.7 million versus prior year net income of $28.3 millionAdjusted EBITDA of $77.5 million versus $98.8 million in the prior yearFrom September 29, 2025 through February 4, 2026, we acquired one water park. Total locations in operation as of February 4, 2026 is 369, which reflects the closure of an unprofitable locationContinued progress on Lucky Strike rebrand initiative with 98 current Lucky Strike locations "We delivered positive same-center sales growth this quarter, marking a clear inflection point for the business," said Thomas Shannon, Chief Executive Officer and Founder of Lucky Strike Entertainment. "Performance was driven by sustained strength in walk-in retail and league play, increased marketing investment to expand brand awareness and build momentum for the remainder of the year, and meaningful progress rebuilding our Events business. Same store Event sales turned positive in January 2026 for the first time in nearly two years — a trend that has carried into February — reinforcing improving demand and stronger execution across the portfolio.” "While investments during the quarter supported top-line momentum, we have taken decisive action to align growth with profitability and cash flow generation. Disciplined capital allocation has materially reduced both maintenance and growth capital expenditures over the past 18 months, strengthening free cash flow. Looking ahead, we remain focused on profitable same-center growth, margin expansion, and returns-driven investment, and we expect significant margin expansion this summer as our non-bowling entertainment assets enter their peak seasons." Fiscal Year 2026 Guidance The Company is reaffirming fiscal year 2026 guidance provided on August 28, 2025. We remain focused on delivering profitable growth by driving revenues, expanding operating cash flow, and increasing free cash flow – including FCF/share. Our outlook reflects attractive growth supported by organic operating leverage and increased investment in high-ROI, revenue-generating initiatives. Additionally, recent acquisitions typically take 12-18 months to achieve our company-wide margins. The Company’s fiscal year 2026 performance guidance is presented below. Total Revenue Growth: 5% to 9% Total Revenue: $1,260M to $1,310M Adjusted EBITDA: $375M to $415M Common Stock Dividend On February 3, the Board of Directors of Lucky Strike Entertainment declared a quarterly cash dividend of $0.06 per common share for the third quarter of fiscal year 2026. The dividend will be payable on March 6, 2026, to stockholders of record on February 20, 2026. Investor Webcast Information Listeners may access an investor webcast hosted by Lucky Strike Entertainment. The webcast and results presentation will be accessible at 5:00 PM ET on February 4, 2026 in the Events & Presentations section of the Lucky Strike Entertainment Investor Relations website at https://ir.luckystrikeent.com/. About Lucky Strike Entertainment Lucky Strike Entertainment is one of the world’s premier location-based entertainment platforms. With over 360 locations across North America, Lucky Strike Entertainment provides experiential offerings in bowling, amusements, water parks, and family entertainment centers. The Company also owns the Professional Bowlers Association, the major league of bowling and a growing media property that boasts millions of fans around the globe. For more information on Lucky Strike Entertainment, please visit IR.LuckyStrikeEnt.com. Forward Looking Statements Some of the statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risk, assumptions, and uncertainties, such as statements of our plans, objectives, expectations, intentions, and forecasts. These forward-looking statements reflect our views with respect to future events as of the date of this release and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs, and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to: our ability to design and execute our business strategy; changes in consumer preferences and buying patterns; our ability to compete in our markets; the occurrence of unfavorable publicity; risks associated with long-term non-cancellable leases for our locations; our ability to retain key managers; risks associated with our substantial indebtedness and limitations on future sources of liquidity; our ability to carry out our expansion plans; our ability to successfully defend litigation brought against us; failure to hire and retain qualified employees and personnel; cybersecurity breaches, cyber-attacks and other interruptions to our and our third-party service providers’ technological and physical infrastructures; catastrophic events, including war, terrorism and other conflicts; public health emergencies and pandemics, such as the COVID-19 pandemic, or natural catastrophes and accidents; fluctuations in our operating results; economic conditions, including the impact of increasing interest rates, inflation and recession; and other factors described under the section titled “Risk Factors” in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) by the Company on August 28, 2025, as well as other filings that the Company will make, or has made, with the SEC, such as Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in other filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, except as required by applicable law. Non-GAAP Financial Measures To provide investors with information in addition to our results as determined under Generally Accepted Accounting Principles (“GAAP”), we disclose Same Store Revenue and Adjusted EBITDA as “non-GAAP measures”, which management believes provide useful information to investors because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period, and management relies on these measures for planning and forecasting of future periods. Additionally, these measures allow management to compare our results with those of other companies that have different financing and capital structures. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for revenue or net income as calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Our fiscal year 2026 guidance measures (other than revenue) are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measure because the Company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Such items include, but are not limited to, acquisition-related expenses, share-based compensation, and other items not reflective of the Company's ongoing operations. Same Store Revenue represents total Revenue less Non-Location Related Revenue, Revenue from Closed Locations, Service Fee Revenue, if applicable, and Acquired Revenue. Adjusted EBITDA represents Net Income (Loss) before Interest Expense, Income Taxes, Depreciation and Amortization, Impairment and Other Charges, Share-based Compensation, EBITDA from Closed Locations, Foreign Currency Exchange Loss (Gain), Asset Disposition Loss (Gain), Transactional and other advisory costs, changes in the value of earnouts, and other. The Company considers Same Store Revenue as an important financial measure because it provides comparable revenue for locations open for the entire duration of both the current and comparable measurement periods. The Company considers Adjusted EBITDA as an important financial measure because it provides a financial measure of the quality of the Company’s earnings. Other companies may calculate Adjusted EBITDA differently than we do, which might limit its usefulness as a comparative measure. Adjusted EBITDA is used by management in addition to and in conjunction with the results presented in accordance with GAAP. We have presented Adjusted EBITDA solely as a supplemental disclosure because we believe it allows for a more complete analysis of results of operations and assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. GAAP Financial Information Lucky Strike Entertainment Corporation Condensed Consolidated Balance Sheets (Amounts in thousands, except share and per share amounts) (Unaudited) December 28, 2025 June 29, 2025 Assets Current assets: Cash and cash equivalents $ 95,912 $ 59,686 Accounts and notes receivable, net 6,377 7,998 Inventories, net 15,776 15,500 Prepaid expenses and other current assets 39,840 29,366 Assets held-for-sale 756 — Total current assets 158,661 112,550 Property and equipment, net 1,229,452 944,917 Operating lease right of use assets 553,653 588,594 Finance lease right of use assets, net 305,165 507,701 Intangible assets, net 50,539 45,562 Goodwill 863,391 844,351 Deferred income tax asset 60,060 67,919 Other assets 46,960 48,145 Total assets $ 3,267,881 $ 3,159,739 Liabilities, Temporary Equity and Stockholders’ Deficit Current liabilities: Accounts payable and accrued expenses $ 166,797 $ 145,188 Current maturities of long-term debt 6,604 10,162 Current obligations of operating lease liabilities 33,911 33,103 Earnout liability 12,748 — Other current liabilities 8,514 5,932 Total current liabilities 228,574 194,385 Long-term debt, net 1,761,509 1,300,708 Long-term obligations of operating lease liabilities 569,246 606,692 Long-term obligations of finance lease liabilities 427,521 683,161 Long-term financing obligations 453,489 449,215 Earnout liability — 36,183 Other long-term liabilities 55,905 56,307 Deferred income tax liabilities 4,659 4,434 Total liabilities 3,500,903 3,331,085 Commitments and Contingencies December 28, 2025 June 29, 2025 Temporary Equity Series A preferred stock $ 130,827 $ 127,325 Stockholders’ Deficit Class A common stock 12 12 Class B common stock 6 6 Additional paid-in capital 458,227 472,889 Treasury stock, at cost (482,802 ) (457,917 ) Accumulated deficit (339,635 ) (313,181 ) Accumulated other comprehensive loss 343 (480 ) Total stockholders’ deficit (363,849 ) (298,671 ) Total liabilities, temporary equity and stockholders’ deficit $ 3,267,881 $ 3,159,739 Lucky Strike Entertainment Corporation Condensed Consolidated Statements of Operations (Amounts in thousands) (Unaudited) Three Months Ended Six Months Ended December 28, 2025 December 29, 2024 December 28, 2025 December 29, 2024 Revenues Bowling $ 142,867 $ 138,967 $ 268,137 $ 261,170 Food & beverage 112,397 110,902 208,526 198,941 Amusement & other 51,597 50,205 122,476 100,158 Total revenues 306,861 300,074 599,139 560,269 Costs and expenses Location operating costs, excluding depreciation and amortization 99,667 82,694 197,493 168,922 Location payroll and benefit costs 77,882 70,876 153,126 138,312 Location food and beverage costs 23,955 23,225 45,890 43,755 Selling, general and administrative expenses, excluding depreciation and amortization 39,072 34,384 74,417 69,195 Depreciation and amortization 30,422 39,118 63,617 76,101 Loss on impairment and disposal of fixed assets, net 2,338 2,575 3,713 4,047 Other operating expense (income), net 198 329 (690 ) 118 Total costs and expenses 273,534 253,201 537,566 500,450 Operating income 33,327 46,873 61,573 59,819 Other (income) expenses Interest expense, net 50,116 48,795 103,513 97,465 Change in fair value of earnout liability (19,919 ) (19,682 ) (23,446 ) (68,603 ) Other expense — 800 4,931 800 Total other expense 30,197 29,913 84,998 29,662 Income (loss) before income tax expense (benefit) 3,130 16,960 (23,425 ) 30,157 Income tax expense (benefit) 15,786 (11,347 ) 3,029 (21,245 ) Net (loss) income $ (12,656 ) $ 28,307 $ (26,454 ) $ 51,402 Lucky Strike Entertainment Corporation Condensed Consolidated Statements of Cash Flows (Amounts in thousands) (Unaudited) Three Months Ended Six Months Ended December 28, 2025 December 29, 2024 December 28, 2025 December 29, 2024 Net cash provided by operating activities $ 48,064 $ 38,734 $ 41,656 $ 68,147 Net cash used in investing activities (38,994 ) (93,290 ) (354,141 ) (133,214 ) Net cash provided by financing activities 55,655 96,905 348,326 79,099 Effect of exchange rate changes on cash 155 (42 ) 385 (249 ) Net increase in cash and cash equivalents 64,880 42,307 36,226 13,783 Cash and cash equivalents at beginning of period 31,032 38,448 59,686 66,972 Cash and cash equivalents at end of period $ 95,912 $ 80,755 $ 95,912 $ 80,755 Balance Sheet and Liquidity As of December 28, 2025 and June 29, 2025, our calculation of net debt was as follows: (in thousands) December 28, 2025 June 29, 2025 Cash and cash equivalents $ 95,912 $ 59,686 Bank debt and loans 1,797,138 1,321,790 Net debt $ 1,701,226 $ 1,262,104 As of December 28, 2025 and June 29, 2025, our cash on hand and revolving borrowing capacity was as follows: (in thousands) December 28, 2025 June 29, 2025 Cash and cash equivalents $ 95,912 $ 59,686 Revolver Capacity 425,000 335,000 Amounts outstanding on Revolver (85,000 ) (30,000 ) Revolver capacity committed to letters of credit (24,122 ) (22,422 ) Total cash on hand and revolving borrowing capacity $ 411,790 $ 342,264 GAAP to non-GAAP Reconciliations Same Store Revenue Three Months Ended (in thousands) December 29, 2024 December 28, 2025 Total Revenue - Reported $300,074 $306,861 less: Service Fee Revenue (544) (477) Revenue Excluding Service Fee Revenue $299,530 $306,384 less: Non-Location Related (including Closed Centers) (5,787) (2,039) Total Location Revenue $293,743 $304,345 less: Acquired Revenue (2,498) (12,161) Same Store Revenue $291,245 $292,184 % Year-over-Year Change Total Revenue – Reported 2.3% Total Revenue excluding Service Fee Revenue 2.3% Total Location Revenue 3.6% Same Store Revenue 0.3% Adjusted EBITDA Reconciliation Three Months Ended (in thousands) December 28, 2025 December 29, 2024 Consolidated Revenue $306,861 $300,074 Net (loss) income - GAAP (12,656) 28,307 Net (loss) income margin (4.1)% 9.4% Adjustments: Interest expense 51,334 48,795 Income tax expense (benefit) 15,786 (11,347) Depreciation and amortization 30,783 39,573 Loss on impairment, disposals, and other charges, net 3,911 2,575 Share-based compensation 2,833 4,664 Closed location EBITDA(1) 822 1,189 Transactional and other advisory costs(2) 4,364 4,020 Changes in the value of earnouts(3) (19,919) (19,682) Other, net(4) 212 663 Adjusted EBITDA $77,470 $98,757 Adjusted EBITDA Margin 25.2% 32.9% (1) The closed location adjustment is to remove EBITDA for closed locations. Closed locations are those locations that are closed for a variety of reasons, including permanent closure, newly acquired or built locations prior to opening, locations closed for renovation or rebranding and conversion. If a location is not open on the last day of the reporting period, it will be considered closed for that reporting period. If the location is closed on the first day of the reporting period for permanent closure, the location will be considered closed for that reporting period. (2) The adjustment for transaction costs and other advisory costs is to remove charges incurred in connection with any transaction, including mergers, acquisitions, refinancing, amendment or modification to indebtedness, and dispositions, in each case, regardless of whether consummated. (3) The adjustment for changes in the value of earnouts is to remove of the impact of the revaluation of the earnouts. Changes in the fair value of the earnout liability is recognized in the statement of operations. Decreases in the liability will have a favorable impact on the statement of operations and increases in the liability will have an unfavorable impact. (4) Other includes the following related to transactions that do not represent ongoing or frequently recurring activities as part of the Company’s operations: (i) non-routine expenses, net of recoveries for matters outside the normal course of business, (ii) severance expense, and (iii) other individually de minimis expenses. Lucky Strike Entertainment Corporation Investor Relations [email protected] Source: Lucky Strike Entertainment Corporation Multimedia Files: View all news