RICHMOND, Va.--(BUSINESS WIRE)--
Lucky Strike Entertainment (NYSE: LUCK), one of the world’s premier owner/operators of location-based entertainment, today provided financial results for the first quarter of the 2027 fiscal year, which ended on September 27, 2026.
Highlights:
- Total revenue increased 3.5% to $302.6 million versus 1Q26
- Same-store revenue decreased 2.6% versus 1Q26
- Net loss of $25.7 million versus net loss of $13.8 million in 1Q26
- Adjusted EBITDA of $72.1 million versus $72.7 million in 1Q26
- Net cash provided by operating activities of $17.1 million versus net cash used of $6.4 million in 1Q26
- Capital expenditures of $21.5 million versus $25.9 million in 1Q26
- Unveiled the refreshed AMF brand and converted 42 additional locations to the Lucky Strike brand during the quarter; 182 Lucky Strike locations as of November 5, 2026
- Total locations in operation as of November 5, 2026, were 366
“Revenue grew in the first quarter, helped by our first full summer with two new water parks, and while same-store revenue was down, it improved every month and September comped positive,” said Thomas Shannon, Founder and CEO. “We are in a better place than a year ago, but a negative comp is a negative comp, and fixing it comes first.”
“The decline was in retail bowling, our walk-in business, and in alcohol, which is down across the restaurant industry. Events, leagues, food and non-alcoholic beverage grew. Events has now matched or beaten last year for six straight months, and the holiday book is ahead, led by corporate events, while smaller, price-sensitive parties remain under pressure, as the lower-end consumer has for several quarters. Leagues grew despite starting later this fall. California, still our weakest market, narrowed the gap every month and comped slightly positive in September.”
“The water parks were meaningfully more profitable than last year, and with the parks now closed, our focus is next season’s pass sales and pricing, where this year’s lesson is to sell earlier.”
“Capital spending in the quarter was the lowest in five years, and we expect the full year at roughly half its fiscal 2024 peak. With capital spending down, no acquisitions and lower litigation costs, we expect to direct meaningful free cash flow, plus proceeds from a few non-core asset sales, to debt reduction. The Board has also suspended our quarterly dividend. That is a decision about where the next dollar goes, not a change in our view of the long-term earnings power of the business.”
Fiscal Year 2027 Guidance
The Company is reaffirming the fiscal year 2027 guidance provided on August 27, 2026. We remain focused on delivering sustainable, profitable growth and creating meaningful long-term shareholder value. Our strategy is centered on accelerating revenue growth, expanding operating cash flow, and driving higher free cash flow per share through earnings growth and disciplined capital allocation. Looking ahead, our outlook reflects continued organic revenue growth, targeted investments in marketing and technology to strengthen our platform, and incremental contributions from our waterparks in FY27. Together, these initiatives position us to generate stronger cash flow, improve returns on invested capital, and build a more durable earnings growth profile.
Total Revenue Growth: | | | | 3% to 5% |
Total Revenue: | | | | $1,280M to $1,310M |
Adjusted EBITDA: | | | | $340M to $360M |
Capital Expenditures: | | | | Approximately $90M |
Dividend
The Board of Directors has suspended the Company's quarterly cash dividend on its common stock. The capital retained will be directed toward accelerating the Company's deleveraging plan and positioning the Company to drive shareholder value. The Board will continue to evaluate the dividend as part of its regular review of capital allocation priorities.
Investor Webcast Information
Listeners may access an investor webcast hosted by Lucky Strike Entertainment. The webcast and results presentation will be accessible at 9:00 AM ET on November 5, 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 27, 2026, 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 2027 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, System modernization 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) |
(Unaudited) |
| | September 27,
2026 | | June 28,
2026 |
Assets | | | | |
Current assets: | | | | |
Cash and cash equivalents | | $ | 37,912 | | | $ | 39,360 | |
Accounts and notes receivable, net | | | 6,871 | | | | 10,136 | |
Inventories, net | | | 16,245 | | | | 16,314 | |
Prepaid expenses and other current assets | | | 40,536 | | | | 37,356 | |
Assets held-for-sale | | | 756 | | | | 756 | |
Total current assets | | | 102,320 | | | | 103,922 | |
| | | | |
Property and equipment, net | | | 1,225,085 | | | | 1,237,484 | |
Operating lease right of use assets | | | 505,523 | | | | 514,731 | |
Finance lease right of use assets, net | | | 320,982 | | | | 324,124 | |
Intangible assets, net | | | 48,261 | | | | 50,604 | |
Goodwill | | | 887,823 | | | | 887,823 | |
Deferred income tax asset | | | 58,471 | | | | 62,225 | |
Other assets | | | 47,450 | | | | 46,508 | |
Total assets | | $ | 3,195,915 | | | $ | 3,227,421 | |
| | | | |
Liabilities, Temporary Equity and Stockholders’ Deficit | | | | |
Current liabilities: | | | | |
Accounts payable and accrued expenses | | $ | 149,295 | | | $ | 154,261 | |
Current maturities of long-term debt | | | 9,502 | | | | 9,543 | |
Current obligations of operating lease liabilities | | | 35,824 | | | | 35,053 | |
Earnout liability | | | — | | | | 2,163 | |
Other current liabilities | | | 9,057 | | | | 5,955 | |
Total current liabilities | | | 203,678 | | | | 206,975 | |
| | | | |
Long-term debt, net | | | 1,781,393 | | | | 1,771,759 | |
Long-term obligations of operating lease liabilities | | | 532,772 | | | | 541,360 | |
Long-term obligations of finance lease liabilities | | | 453,529 | | | | 453,097 | |
Long-term financing obligations | | | 459,933 | | | | 457,737 | |
Other long-term liabilities | | | 55,625 | | | | 55,854 | |
Deferred income tax liabilities | | | 4,394 | | | | 4,440 | |
Total liabilities | | | 3,491,324 | | | | 3,491,222 | |
| | | | |
Commitments and Contingencies | | | | |
| | | | |
| | September 27,
2026 | | June 28,
2026 |
Temporary Equity | | | | |
Series A preferred stock | | $ | 138,121 | | | $ | 134,424 | |
| | | | |
Stockholders’ Deficit | | | | |
Class A common stock | | | 13 | | | | 13 | |
Class B common stock | | | 6 | | | | 6 | |
Additional paid-in capital | | | 434,603 | | | | 444,103 | |
Treasury stock, at cost | | | (493,674 | ) | | | (493,676 | ) |
Accumulated deficit | | | (374,632 | ) | | | (348,958 | ) |
Accumulated other comprehensive income | | | 154 | | | | 287 | |
Total stockholders’ deficit | | | (433,530 | ) | | | (398,225 | ) |
Total liabilities, temporary equity and stockholders’ deficit | | $ | 3,195,915 | | | $ | 3,227,421 | |
Lucky Strike Entertainment Corporation |
Condensed Consolidated Statements of Operations |
(Amounts in thousands) |
(Unaudited) |
| | Three Months Ended |
| | September 27,
2026 | | September 28,
2025 |
Revenues | | | | |
Bowling | | $ | 122,055 | | | $ | 125,270 | |
Food & beverage | | | 98,531 | | | | 96,129 | |
Amusement & other | | | 82,058 | | | | 70,879 | |
Total revenues | | | 302,644 | | | | 292,278 | |
| | | | |
Costs and expenses | | | | |
Location operating costs, excluding depreciation and amortization | | | 99,250 | | | | 97,826 | |
Location payroll and benefit costs | | | 78,263 | | | | 75,244 | |
Location food and beverage costs | | | 22,593 | | | | 21,935 | |
Selling, general and administrative expenses, excluding depreciation and amortization | | | 40,334 | | | | 35,345 | |
Depreciation and amortization | | | 32,479 | | | | 33,195 | |
Loss on impairment and disposal of fixed assets, net | | | 1,843 | | | | 1,375 | |
Other operating income, net | | | (354 | ) | | | (888 | ) |
Total costs and expenses | | | 274,408 | | | | 264,032 | |
| | | | |
Operating income | | | 28,236 | | | | 28,246 | |
| | | | |
Other (income) expenses | | | | |
Interest expense, net | | | 52,039 | | | | 53,397 | |
Change in fair value of earnout liability | | | (2,163 | ) | | | (3,527 | ) |
Other expense | | | — | | | | 4,931 | |
Total other expense | | | 49,876 | | | | 54,801 | |
| | | | |
Loss before income tax expense (benefit) | | | (21,640 | ) | | | (26,555 | ) |
| | | | |
Income tax expense (benefit) | | | 4,034 | | | | (12,757 | ) |
Net loss | | $ | (25,674 | ) | | $ | (13,798 | ) |
Lucky Strike Entertainment Corporation |
Condensed Consolidated Statements of Cash Flows |
(Amounts in thousands) |
(Unaudited) |
| | Three Months Ended |
| | September 27,
2026 | | September 28,
2025 |
Net cash provided by (used in) operating activities | | $ | 17,104 | | | $ | (6,408 | ) |
Net cash used in investing activities | | | (21,521 | ) | | | (315,147 | ) |
Net cash provided by financing activities | | | 3,004 | | | | 292,671 | |
Effect of exchange rates on cash | | | (35 | ) | | | 230 | |
Net decrease in cash and cash equivalents | | | (1,448 | ) | | | (28,654 | ) |
| | | | |
Cash and cash equivalents at beginning of period | | | 39,360 | | | | 59,686 | |
| | | | |
Cash and cash equivalents at end of period | | $ | 37,912 | | | $ | 31,032 | |
Balance Sheet and Liquidity
As of September 27, 2026 and June 28, 2026, our calculation of net debt was as follows:
(in thousands) | | September 27,
2026 | | June 28,
2026 |
Cash and cash equivalents | | $ | 37,912 | | $ | 39,360 |
Bank debt and loans | | | 1,817,300 | | | 1,808,584 |
Net debt | | $ | 1,779,388 | | $ | 1,769,224 |
As of September 27, 2026 and June 28, 2026, our cash on hand and revolving borrowing capacity was as follows:
(in thousands) | | September 27,
2026 | | June 28,
2026 |
Cash and cash equivalents | | $ | 37,912 | | | $ | 39,360 | |
Revolver Capacity | | | 425,000 | | | | 425,000 | |
Amounts outstanding on Revolver | | | (112,000 | ) | | | (100,000 | ) |
Revolver capacity committed to letters of credit | | | (27,622 | ) | | | (24,122 | ) |
Total cash on hand and revolving borrowing capacity | | $ | 323,290 | | | $ | 340,238 | |
GAAP to non-GAAP Reconciliations
| | Same Store Revenue |
| | Three Months Ended |
(in thousands) | | September 28,
2025 | | September 27,
2026 |
Total Revenue - Reported | | $ | 292,278 | | | $ | 302,644 | |
| | | | |
less: Service Fee Revenue | | | (586 | ) | | | (383 | ) |
| | | | |
Revenue Excluding Service Fee Revenue | | $ | 291,692 | | | $ | 302,261 | |
| | | | |
less: Non-Location Related (including Closed Centers) | | | (5,617 | ) | | | (2,373 | ) |
| | | | |
Total Location Revenue | | $ | 286,075 | | | $ | 299,888 | |
| | | | |
less: Acquired Revenue | | | (6,487 | ) | | | (27,616 | ) |
| | | | |
Same Store Revenue | | $ | 279,588 | | | $ | 272,272 | |
| | | | |
% Year-over-Year Change | | | | |
Total Revenue – Reported | | | | | 3.5 | % |
Total Revenue excluding Service Fee Revenue | | | | | 3.6 | % |
Total Location Revenue | | | | | 4.8 | % |
Same Store Revenue | | | | | (2.6 | )% |
| | Adjusted EBITDA Reconciliation |
| | Three Months Ended |
(in thousands) | | September 27,
2026 | | September 28,
2025 |
Consolidated | | | | |
Revenue | | $ | 302,644 | | | $ | 292,278 | |
Net loss - GAAP | | | (25,674 | ) | | | (13,798 | ) |
Net loss margin | | | (8.5 | )% | | | (4.7 | )% |
Adjustments: | | | | |
Interest expense | | | 52,039 | | | | 53,397 | |
Income tax expense (benefit) | | | 4,034 | | | | (12,757 | ) |
Depreciation and amortization | | | 33,031 | | | | 33,500 | |
Loss on impairment, disposals, and other charges, net | | | 1,843 | | | | 1,375 | |
Share-based compensation | | | 3,005 | | | | 3,486 | |
Closed location EBITDA(1) | | | 155 | | | | 521 | |
Transactional and other advisory costs(2) | | | 3,115 | | | | 9,485 | |
System modernization costs(3) | | | 2,220 | | | | 512 | |
Changes in the value of earnouts(4) | | | (2,163 | ) | | | (3,527 | ) |
Other, net(5) | | | 498 | | | | 460 | |
Adjusted EBITDA | | $ | 72,103 | | | $ | 72,654 | |
Adjusted EBITDA Margin | | | 23.8 | % | | | 24.9 | % |
(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 system modernization costs represents non-capitalizable third-party consulting, professional, and related costs incurred on discrete initiatives to modernize the Company's technology platforms. They are incremental to, and not part of, the Company's normal, recurring operating expenses. The adjustment excludes depreciation and amortization, recurring software subscription and licensing fees, and costs to operate, support, or maintain the platforms after the applicable initiatives are complete. To date, substantially all of these costs relate to a discrete initiative to modernize the Company’s customer relationship management (CRM) platform, which began in fiscal 2026 and is expected to be completed in the fourth quarter of fiscal 2027. For the quarter ended September 28, 2025, the $512 of system modernization costs was previously included in transactional and other advisory costs and has been reclassified to conform to the current period presentation. |
(4) | | The adjustment for changes in the value of earnouts is to remove the impact of the revaluation of the earnouts. Changes in the fair value of the earnout liability are 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. |
(5) | | 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. |
Source: Lucky Strike Entertainment Corporation