Lucky Strike Entertainment Reports Fourth Quarter and Full Year Results for Fiscal Year 2025
-
Total Revenue Growth of
6.1% in Fourth Quarter 2025 - Rapid expansion of Lucky Strike brand with 55 current Lucky Strike locations, targeting 100 by calendar year end
- Continued efforts to deploy capital efficiently, driving long-term returns
Quarter Highlights:
-
Total revenue increased
6.1% to$301.2 million -
Same-Store Revenue decreased
4.1% versus 4Q24 -
Net loss of
$74.7 million $62.2 million -
Adjusted EBITDA of
$88.7 million $83.4 million - From March 31, 2025, through August 28, 2025, we acquired three family entertainment centers and two water parks
Fiscal Year Highlights:
-
Revenue increased
4.0% to$1,201.3 million -
Same Store Revenue decreased
3.7% versus the prior year -
Net loss of
$10.0 million $83.6 million -
Adjusted EBITDA of
$367.7 million $361.5 million - Added 14 locations during the fiscal year, 10 through acquisitions and four new builds
- Total locations in operation as of August 28, 2025, were 370
“We closed fiscal year 2025 on a true high note, with organic revenue momentum accelerating every single month in the quarter and inflecting solidly positive as we entered June and July,” said Thomas Shannon, Founder and CEO. “Total growth in those two months reached double digits, powered by the incredible response to our revamped Summer Season Pass program and the continued integration of our recent acquisitions. Guests recognized the high quality and strong value we delivered — and they showed up in record numbers. Season Pass sales alone generated
“The Season Pass is more than just a ticket — it’s a connection point. With millions of visits each year, these passes give us access to rich customer data, enabling us to personalize and target offerings all year long. That means we’re not only driving visits in peak season but also building deeper loyalty, stronger repeat visitation, and new upsell opportunities across our entire portfolio.”
“Even as we’ve navigated through a period of complex macro volatility, the underlying story of Lucky Strike Entertainment remains clear and compelling: we are the leading out-of-home entertainment platform, built to thrive in every environment. Our ability to generate positive growth through uncertainty, and accelerate even further in stable economies, proves the resilience and scalability of our model. The future of connected play, events, and entertainment belongs to Lucky Strike.”
Fiscal Year 2026 Guidance
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. For fiscal year 2026, the Company is issuing the following performance guidance.
Total Revenue Growth: |
|
Total Revenue: |
|
Adjusted EBITDA: |
|
Share Repurchase and Capital Return Program Update
From March 31, 2025, through June 29, 2025, the Company repurchased 0.8 million shares of Class A common stock for approximately
On August 19, 2025, the Board of Directors declared a quarterly cash dividend of
Investor Webcast Information
Listeners may access an investor webcast hosted by Lucky Strike Entertainment. The webcast and results presentation will be accessible at 10:00 AM ET on August 28, 2025, 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
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
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 |
|||||||
Consolidated Balance Sheets |
|||||||
(Amounts in thousands, except share and per share amounts) |
|||||||
(Unaudited) |
|||||||
|
June 29, 2025 |
June 30, 2024 |
|||||
Assets |
|
|
|||||
Current assets: |
|
|
|||||
Cash and cash equivalents |
$ |
59,686 |
|
$ |
66,972 |
|
|
Accounts and notes receivable, net |
|
7,998 |
|
|
6,757 |
|
|
Inventories, net |
|
15,500 |
|
|
13,171 |
|
|
Prepaid expenses and other current assets |
|
29,366 |
|
|
25,316 |
|
|
Assets held-for-sale |
|
— |
|
|
1,746 |
|
|
Total current assets |
|
112,550 |
|
|
113,962 |
|
|
|
|
|
|||||
Property and equipment, net |
|
944,917 |
|
|
887,738 |
|
|
Operating lease right of use assets |
|
588,594 |
|
|
559,168 |
|
|
Finance lease right of use assets, net |
|
507,701 |
|
|
524,392 |
|
|
Intangible assets, net |
|
45,562 |
|
|
47,051 |
|
|
Goodwill |
|
844,351 |
|
|
833,888 |
|
|
Deferred income tax asset |
|
67,919 |
|
|
112,106 |
|
|
Other assets |
|
48,145 |
|
|
35,730 |
|
|
Total assets |
$ |
3,159,739 |
|
$ |
3,114,035 |
|
|
|
|
|
|||||
Liabilities, Temporary Equity and Stockholders’ Deficit |
|
|
|||||
Current liabilities: |
|
|
|||||
Accounts payable and accrued expenses |
$ |
145,188 |
|
$ |
135,784 |
|
|
Current maturities of long-term debt |
|
10,162 |
|
|
9,163 |
|
|
Current obligations of operating lease liabilities |
|
33,103 |
|
|
28,460 |
|
|
Other current liabilities |
|
5,932 |
|
|
9,399 |
|
|
Total current liabilities |
|
194,385 |
|
|
182,806 |
|
|
|
|
|
|||||
Long-term debt, net |
|
1,300,708 |
|
|
1,129,523 |
|
|
Long-term obligations of operating lease liabilities |
|
606,692 |
|
|
561,916 |
|
|
Long-term obligations of finance lease liabilities |
|
683,161 |
|
|
680,213 |
|
|
Long-term financing obligations |
|
449,215 |
|
|
440,875 |
|
|
Earnout liability |
|
36,183 |
|
|
137,636 |
|
|
Other long-term liabilities |
|
56,307 |
|
|
26,471 |
|
|
Deferred income tax liabilities |
|
4,434 |
|
|
4,447 |
|
|
Total liabilities |
|
3,331,085 |
|
|
3,163,887 |
|
|
|
|
|
|||||
Commitments and Contingencies |
|
|
|||||
|
June 29, 2025 |
June 30, 2024 |
|||||
Temporary Equity |
|
|
|||||
Series A preferred stock |
$ |
127,325 |
|
$ |
127,410 |
|
|
|
|
|
|||||
Stockholders’ Deficit |
|
|
|||||
Class A common stock |
|
12 |
|
|
11 |
|
|
Class B common stock |
|
6 |
|
|
6 |
|
|
Additional paid-in capital |
|
472,889 |
|
|
510,675 |
|
|
Treasury stock, at cost |
|
(457,917 |
) |
|
(385,015 |
) |
|
Accumulated deficit |
|
(313,181 |
) |
|
(303,159 |
) |
|
Accumulated other comprehensive (loss) income |
|
(480 |
) |
|
220 |
|
|
Total stockholders’ deficit |
|
(298,671 |
) |
|
(177,262 |
) |
|
Total liabilities, temporary equity and stockholders’ deficit |
$ |
3,159,739 |
|
$ |
3,114,035 |
|
|
Lucky Strike Entertainment Corporation |
|||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||
(Amounts in thousands) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
Fiscal Year End |
|||||||||||||
|
June 29,
|
June 30,
|
June 29,
|
June 30,
|
|||||||||||
Revenues |
|
|
|
|
|||||||||||
Bowling |
$ |
128,969 |
|
$ |
130,709 |
|
$ |
549,895 |
|
$ |
557,962 |
|
|||
Food & beverage |
|
104,821 |
|
|
97,246 |
|
|
424,214 |
|
|
401,383 |
|
|||
Amusement & other |
|
67,392 |
|
|
55,913 |
|
|
227,224 |
|
|
195,269 |
|
|||
Total revenues |
|
301,182 |
|
|
283,868 |
|
|
1,201,333 |
|
|
1,154,614 |
|
|||
|
|
|
|
|
|||||||||||
Costs and expenses |
|
|
|
|
|||||||||||
Location operating costs, excluding depreciation and amortization |
|
114,083 |
|
|
89,575 |
|
|
375,573 |
|
|
328,551 |
|
|||
Location payroll and benefit costs |
|
70,202 |
|
|
67,765 |
|
|
284,131 |
|
|
287,206 |
|
|||
Location food and beverage costs |
|
23,171 |
|
|
22,969 |
|
|
94,553 |
|
|
90,752 |
|
|||
Selling, general and administrative expenses, excluding depreciation and amortization |
|
32,736 |
|
|
36,927 |
|
|
143,173 |
|
|
148,007 |
|
|||
Depreciation and amortization |
|
40,426 |
|
|
40,614 |
|
|
156,852 |
|
|
145,364 |
|
|||
Loss on impairment and disposal of fixed assets, net |
|
6,210 |
|
|
60,373 |
|
|
10,905 |
|
|
61,433 |
|
|||
Other operating (income) expense, net |
|
(829 |
) |
|
(100 |
) |
|
(1,041 |
) |
|
1,711 |
|
|||
Total costs and expenses |
|
285,999 |
|
|
318,123 |
|
|
1,064,146 |
|
|
1,063,024 |
|
|||
|
|
|
|
|
|||||||||||
Operating income (loss) |
|
15,183 |
|
|
(34,255 |
) |
|
137,187 |
|
|
91,590 |
|
|||
|
|
|
|
|
|||||||||||
Other (income) expenses |
|
|
|
|
|||||||||||
Interest expense, net |
|
49,492 |
|
|
47,036 |
|
|
196,371 |
|
|
177,611 |
|
|||
Change in fair value of earnout liability |
|
(13,995 |
) |
|
10,915 |
|
|
(101,484 |
) |
|
25,456 |
|
|||
Other expense |
|
— |
|
|
10 |
|
|
817 |
|
|
76 |
|
|||
Total other expense |
|
35,497 |
|
|
57,961 |
|
|
95,704 |
|
|
203,143 |
|
|||
|
|
|
|
|
|||||||||||
(Loss) income before income tax expense (benefit) |
|
(20,314 |
) |
|
(92,216 |
) |
|
41,483 |
|
|
(111,553 |
) |
|||
|
|
|
|
|
|||||||||||
Income tax expense (benefit) |
|
54,402 |
|
|
(30,039 |
) |
|
51,505 |
|
|
(27,972 |
) |
|||
Net loss |
$ |
(74,716 |
) |
$ |
(62,177 |
) |
$ |
(10,022 |
) |
$ |
(83,581 |
) |
|||
Lucky Strike Entertainment Corporation |
|||||||||||||||
Consolidated Statements of Cash Flows |
|||||||||||||||
(Amounts in thousands) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
Twelve Months Ended |
|||||||||||||
|
June 29, 2025 |
June 30, 2024 |
June 29, 2025 |
June 30, 2024 |
|||||||||||
Net cash provided by operating activities |
$ |
22,454 |
|
$ |
6,732 |
|
$ |
177,221 |
|
$ |
154,830 |
|
|||
Net cash used in investing activities |
|
(53,899 |
) |
|
(99,696 |
) |
|
(220,311 |
) |
|
(385,656 |
) |
|||
Net cash provided by (used in) financing activities |
|
11,935 |
|
|
(52,130 |
) |
|
35,860 |
|
|
102,157 |
|
|||
Effect of exchange rate changes on cash |
|
108 |
|
|
(363 |
) |
|
(56 |
) |
|
8 |
|
|||
Net decrease in cash and cash equivalents |
|
(19,402 |
) |
|
(145,457 |
) |
|
(7,286 |
) |
|
(128,661 |
) |
|||
|
|
|
|
|
|||||||||||
Cash and cash equivalents at beginning of period |
|
79,088 |
|
|
212,429 |
|
|
66,972 |
|
|
195,633 |
|
|||
|
|
|
|
|
|||||||||||
Cash and cash equivalents at end of period |
$ |
59,686 |
|
$ |
66,972 |
|
$ |
59,686 |
|
$ |
66,972 |
|
|||
Balance Sheet and Liquidity |
||||||
As of June 29, 2025 and June 30, 2024, our calculation of net debt was as follows: |
||||||
|
|
June 29, 2025 |
|
June 30, 2024 |
||
Cash and cash equivalents |
|
$ |
59,686 |
|
$ |
66,972 |
Bank debt and loans |
|
|
1,321,790 |
|
|
1,152,200 |
Net debt |
|
$ |
1,262,104 |
|
$ |
1,085,228 |
As of June 29, 2025 and June 30, 2024, our cash on hand and revolving borrowing capacity was as follows: |
||||||||
(in thousands) |
|
June 29, 2025 |
|
June 30, 2024 |
||||
Cash and cash equivalents |
|
$ |
59,686 |
|
|
$ |
66,972 |
|
Revolver Capacity (1) |
|
|
335,000 |
|
|
|
285,000 |
|
Amounts outstanding on Revolver |
|
|
(30,000 |
) |
|
|
— |
|
Revolver capacity committed to letters of credit |
|
|
(22,422 |
) |
|
|
(15,834 |
) |
Total cash on hand and revolving borrowing capacity |
|
$ |
342,264 |
|
|
$ |
336,138 |
|
(1) |
On July 16, 2025, the Revolver commitment was increased by |
GAAP to non-GAAP Reconciliations |
||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||
(in thousands) |
|
June 29, 2025 |
|
June 30, 2024 |
|
June 29, 2025 |
|
June 30, 2024 |
Total Revenue - Reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
less: Service Fee Revenue |
|
(634) |
|
(939) |
|
(2,464) |
|
(5,462) |
|
|
|
|
|
|
|
|
|
Revenue Excluding Service Fee Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
less: Non-Location Related (including Closed Locations) |
|
(6,666) |
|
(5,416) |
|
(20,613) |
|
(23,093) |
|
|
|
|
|
|
|
|
|
Total Location Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
less: Acquired Revenue |
|
(27,861) |
|
— |
|
(187,578) |
|
(96,808) |
|
|
|
|
|
|
|
|
|
Same Store Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Year-over-Year Change |
|
|
|
|
|
|
|
|
Total Revenue – Reported |
|
|
|
6.1 % |
|
|
|
4.0 % |
Total Revenue excluding Service Fee Revenue |
|
|
|
6.2 % |
|
|
|
4.3 % |
Total Location Revenue |
|
|
|
5.9 % |
|
|
|
4.6 % |
Same Store Revenue |
|
|
|
(4.1) % |
|
|
|
(3.7) % |
|
|
Adjusted EBITDA Reconciliation |
||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||
(in thousands) |
|
June 29,
|
|
June 30,
|
|
June 29,
|
|
June 30,
|
Consolidated |
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
Net loss - GAAP |
|
(74,716) |
|
(62,177) |
|
(10,022) |
|
(83,581) |
Net loss margin |
|
(24.8)% |
|
(21.9)% |
|
(0.8)% |
|
(7.2)% |
Adjustments: |
|
|
|
|
|
|
|
|
Interest expense |
|
49,492 |
|
48,860 |
|
196,371 |
|
185,181 |
Income tax expense (benefit) |
|
54,402 |
|
(30,039) |
|
51,505 |
|
(27,972) |
Depreciation and amortization |
|
40,776 |
|
41,064 |
|
158,527 |
|
147,362 |
Loss on impairment, disposals, and other charges, net (1) |
|
23,920 |
|
61,502 |
|
28,615 |
|
62,562 |
Share-based compensation |
|
3,677 |
|
4,032 |
|
21,632 |
|
13,775 |
Closed location EBITDA (2) |
|
(591) |
|
2,228 |
|
3,054 |
|
9,006 |
Transactional and other advisory costs (3) |
|
5,353 |
|
4,157 |
|
17,117 |
|
21,303 |
Changes in the value of earnouts (4) |
|
(13,995) |
|
10,915 |
|
(101,484) |
|
25,456 |
Other, net (5) |
|
409 |
|
2,889 |
|
2,372 |
|
8,405 |
Adjusted EBITDA |
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
(1) |
For the fiscal year and period ended June 29, 2025 reflects a change in estimate in our self-insurance reserves related to claims that occurred prior to the beginning of the fiscal year, which resulted in a non-cash self-insurance reserve adjustment of |
|
(2) |
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. |
|
(3) |
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, dispositions and costs in connection with an initial public offering, in each case, regardless of whether consummated. Certain prior year amounts have been reclassified to conform to current year 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 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. |
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(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) costs incurred that have been expensed associated with obtaining an equity method investment in a subsidiary of VICI, (iii) severance expense, and (iv) other individually de minimis expenses. Certain prior year amounts have been reclassified to conform to current year presentation. |
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Lucky Strike Entertainment Corporation Investor Relations
IR@LSEnt.com
Source: Lucky Strike Entertainment Corporation
