Dave & Buster's — Q2 2026 Earnings Summary

Financial Performance

• Revenue for the second quarter of fiscal 2026 was $544.1 million, a 2.4% decrease from $557.4 million in the second quarter of fiscal 2025.
• Comparable store sales decreased 2.9% year-over-year.
• Net loss was $12.5 million ($0.36 per diluted share), compared to net income of $11.4 million ($0.32 per diluted share) in the prior year quarter.
• Adjusted net loss was $9.5 million ($0.27 per diluted share), compared to adjusted net income of $14.2 million ($0.40 per diluted share) in the prior year quarter.
• Adjusted EBITDA was $98.9 million, down from $129.8 million in the prior year quarter.
• Adjusted free cash flow was positive $19.5 million for the six months ended August 4, 2026, compared to negative $36.5 million for the same period in 2025.
• Operating income was $19.4 million (3.6% of revenue) for the quarter, compared to $53.0 million (9.5% of revenue) in the prior year.
• Total operating costs were $524.7 million (96.4% of revenue) for the quarter, compared to $504.4 million (90.5% of revenue) in the prior year.
• Interest expense, net, was $38.0 million for the quarter.
• Company-owned stores at the end of the period totaled 250, up from 237 in the prior year.

Guidance and Future Outlook

• The company expects to complete two additional store remodels during the remainder of fiscal 2026, bringing the total remodels for the fiscal year to eight.
• The company expects to open at least one additional international franchise store during the remainder of fiscal 2026.
• Management expressed confidence in the "Back-to-Basics" strategy, citing ongoing growth in food and beverage sales and Special Events sales.
• Management noted that same store sales of remodels continue to outperform the system.
• Management reported improved overall same store sales in July and continued improvement in the third quarter to date.
• Strategic goals include returning to same-store sales and EBITDA growth, sharpening margin management with cost-saving initiatives, and generating significant free cash flow.

Business Segments and Product Lines

• Entertainment revenues were $332.6 million for the quarter, down from $364.5 million in the prior year.
• Food and beverage revenues were $211.5 million for the quarter, up from $192.9 million in the prior year.
• The company opened six new domestic stores in the second quarter.
• The company operates 184 Dave & Buster's branded stores and 66 Main Event branded stores.
• International operations currently include six franchise stores.

Market and Competitive Landscape

• The company operates in the entertainment and dining industry with a focus on "Eat, Drink, Play, and Watch" experiences.
• Remodeled stores are outperforming the system average in terms of same store sales.
• The company is in early-stage international growth as a franchisor.

Risks and Challenges

• The press release notes risks including substantial indebtedness and covenants in debt agreements that may restrict business plan implementation.
• Risks include the ability to successfully design and execute the business strategy, integrate acquisitions, and obtain leases on favorable terms.
• Potential risks involve cybersecurity breaches, commodity costs, and changes in consumer behavior.
• The company reported a net loss and a decrease in revenue and comparable store sales for the quarter.

Management Commentary and Tone

• Darin Harper, Chief Executive Officer, stated the company is "energized by the obvious, actionable, and enormous opportunities ahead."
• Management described the "Back-to-Basics strategy" as gaining momentum with "enhanced executional urgency."
• Harper expressed "tremendous confidence in the direction of our business" and excitement about shaping the future of the company.
• Management emphasized a laser focus on returning to growth and delivering shareholder value.

Other Key Points

• Available liquidity at the end of the quarter was $492.1 million, defined as cash and cash equivalents plus availability under the $650.0 million revolving credit facility.
• Cash and cash equivalents were $16.0 million as of August 4, 2026.
• Long-term debt, net, was $1,500.5 million as of August 4, 2026.
• The Net Total Leverage Ratio for the trailing four quarters ended August 4, 2026, was 3.5x.
• Credit Adjusted EBITDA for the trailing four quarters ended August 4, 2026, was $435.8 million.
• The company's Quarterly Report on Form 10-Q is available on the SEC website and the company's investor relations site.
• A conference call to discuss results was scheduled for September 14, 2026, at 4:00 p.m. Central Time.