Lucky Strike Entertainment — Fiscal Year 2026 Earnings Summary

Financial Performance

• Total revenue for the fourth quarter of fiscal 2026 increased 0.9% year-over-year to $303.9 million, compared to $301.2 million in the prior year quarter.
• Same-store revenue for the fourth quarter decreased 2.5% year-over-year.
• Fiscal year 2026 total revenue increased 3.7% to $1,245.3 million, compared to $1,201.3 million in fiscal 2025.
• Same-store revenue for the full fiscal year decreased 0.2% year-over-year.
• Net loss for the fourth quarter was $26.2 million, an improvement from a net loss of $74.7 million in the prior year quarter.
• Net loss for the full fiscal year was $35.8 million, compared to a net loss of $10.0 million in the prior year.
• Adjusted EBITDA for the fourth quarter was $74.1 million, down from $88.7 million in the prior year quarter.
• Adjusted EBITDA for the full fiscal year was $333.2 million, down from $367.7 million in the prior year.
• Adjusted EBITDA margin for the fourth quarter was 24.4%, down from 29.5% in the prior year quarter.
• Adjusted EBITDA margin for the full fiscal year was 26.8%, down from 30.6% in the prior year.
• Cash and cash equivalents as of June 28, 2026, were $39.4 million, down from $59.7 million as of June 29, 2025.
• Net debt as of June 28, 2026, was $1.77 billion, up from $1.26 billion as of June 29, 2025.
• Long-term debt, net, increased to $1.77 billion as of June 28, 2026, from $1.30 billion as of June 29, 2025.
• Net cash used in investing activities for the full fiscal year was $453.3 million, compared to $220.3 million in the prior year.
• Net cash provided by financing activities for the full fiscal year was $328.5 million, compared to $35.9 million in the prior year.
• Net cash used in operating activities for the fourth quarter was $12.0 million, compared to net cash provided of $22.5 million in the prior year quarter.
• Net cash provided by operating activities for the full fiscal year was $103.9 million, down from $177.2 million in the prior year.

Guidance and Future Outlook

• Fiscal year 2027 total revenue growth is guided to be between 3% and 5%.
• Fiscal year 2027 total revenue is guided to be between $1.28 billion and $1.31 billion.
• Fiscal year 2027 Adjusted EBITDA is guided to be between $340 million and $360 million.
• Fiscal year 2027 capital expenditures are guided to be approximately $90 million.
• Management expects capital expenditures to continue declining as the portfolio is rationalized and existing investment programs are completed.
• The company anticipates incremental contributions from waterparks in fiscal 2027.
• Management expects to deliver profitable growth, stronger free cash flow, and a meaningfully improved balance sheet in fiscal 2027.

Business Segments and Product Lines

• The company operates 366 locations as of August 27, 2026, including 159 Lucky Strike branded locations.
• During fiscal 2026, the company added six locations (five through acquisitions and one new build) and closed five underperforming locations.
• Bowling revenue for the fourth quarter was $128.9 million, down slightly from $129.0 million in the prior year quarter; full year bowling revenue was $561.6 million, up from $549.9 million.
• Food and beverage revenue for the fourth quarter was $103.8 million, down from $104.8 million in the prior year quarter; full year food and beverage revenue was $431.1 million, up from $424.2 million.
• Amusement and other revenue for the fourth quarter was $71.3 million, up from $67.4 million in the prior year quarter; full year amusement and other revenue was $252.7 million, up from $227.2 million.
• Leagues grew and accelerated through the spring of fiscal 2026.
• Food remained strongly positive throughout fiscal 2026.
• Retail bowling continued to grow throughout fiscal 2026.
• Events turned positive in late spring for the first time in years and remained positive throughout the summer.
• Waterparks represented a significant operational step forward, with per-capita spending increasing meaningfully, labor costs declining, and both revenue and profitability growing substantially year-over-year.
• The majority of the summer earnings contribution from waterparks will be recognized in the September quarter.

Market and Competitive Landscape

• The first World Cup on American soil in a generation drew millions of consumers to their screens in June, resulting in sharply negative same-store comps for that month.
• Trends improved immediately following the World Cup Final, and management believes this headwind will not repeat next summer.
• A cool and wet start to the summer pressured attendance at waterparks, though strong pricing and disciplined cost management helped protect profitability.
• The company owns the Professional Bowlers Association, a major league of bowling and a growing media property with millions of fans globally.

Risks and Challenges

• The company faces risks associated with substantial indebtedness and limitations on future sources of liquidity.
• Risks include unfavorable publicity, risks associated with long-term non-cancellable leases, and the ability to retain key managers and qualified employees.
• The company is exposed to risks related to cybersecurity breaches, cyber-attacks, and interruptions to technological and physical infrastructures.
• Potential risks include catastrophic events, war, terrorism, public health emergencies, pandemics, and natural catastrophes.
• Economic conditions, including increasing interest rates, inflation, and recession, could impact operating results.
• The company faces risks related to its ability to successfully defend litigation and carry out expansion plans.

Management Commentary and Tone

• Thomas Shannon, Founder and CEO, described fiscal 2026 as a "meaningful step forward" with the strongest same-store sales performance in years and clear momentum across key revenue streams.
• Management characterized the business as a "coiled spring," noting that cumulative organic growth was positive through the first eleven months of the fiscal year before June's decline.
• Management distinguished the temporary disruption caused by the World Cup from the underlying health of the business.
• Management highlighted a structurally more disciplined approach to capital allocation, with capital expenditures down approximately $80 million from their fiscal 2024 peak.
• Management expressed confidence that the combination of operating momentum, declining capital intensity, and financial discipline positions the company for stronger free cash flow and accelerated deleveraging.

Other Key Points

• On August 27, 2026, the Board of Directors declared a quarterly cash dividend of $0.06 per share of common stock for the first quarter of fiscal year 2027.
• The dividend is payable on September 22, 2026, to stockholders of record on September 8, 2026.
• The company operates one of the world's premier location-based entertainment platforms with over 360 locations across North America.
• The company's fiscal year 2027 guidance measures (other than revenue) are provided on a non-GAAP basis without reconciliation to GAAP measures due to the inability to predict certain items with reasonable certainty.