Lucky Strike Entertainment Reports First Quarter Results for Fiscal Year 2027
Lucky Strike Entertainment Corp (LUCK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Lucky Strike Entertainment Reports First Quarter Results for Fiscal Year 2027 RICHMOND, VA. November 5, 2026 – Lucky Strike Entertainment (NYSE: LUCK), one of the world’s premier owner/operators of location-based entertainment, today provided financial results for the first quart
How this was made
The 30-second read
Why it matters
The earnings miss and same-store decline could trigger short-term selling, but the reaffirmed FY guidance and cost reductions may mitigate longer-term risk.
Market read
The Q1 earnings release provides fresh data that can affect the stock price and sector sentiment today.
What to watch
Capital spending is at a five-year low and dividend suspension frees cash for debt reduction, which could support longer-term upside.
Revenue up 3.5% to $302.6 million, same-store revenue down 2.6%, net loss widened to $25.7 million, quarterly dividend suspended
Reported revenue grew 3.5% and operating cash flow turned positive, but same-store revenue declined 2.6%, the GAAP net loss widened from $(13,798) thousand to $(25,674) thousand, Adjusted EBITDA was slightly lower, and the Board suspended the quarterly dividend.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue (Q1 FY2027, three months ended Sep 27, 2026)GAAP | $302.6M | – | 3.5% |
| Same-store revenue (Q1 FY2027)non-GAAP | $272.3M | – | (2.6)% |
| Total revenue excluding service fee revenue (Q1 FY2027)non-GAAP | $302.3M | – | 3.6% |
| Total location revenue (Q1 FY2027)non-GAAP | $299.9M | – | 4.8% |
| Total costs and expenses (Q1 FY2027)GAAP | $274.4M | – | – |
| Location operating costs, excluding depreciation and amortization (Q1 FY2027)GAAP | $99.25M | – | – |
| Location payroll and benefit costs (Q1 FY2027)GAAP | $78.26M | – | – |
| Location food and beverage costs (Q1 FY2027)GAAP | $22.59M | – | – |
| Selling, general and administrative expenses, excluding depreciation and amortization (Q1 FY2027)GAAP | $40.33M | – | – |
| Depreciation and amortization (Q1 FY2027, statement of operations)GAAP | $32.48M | – | – |
| Loss on impairment and disposal of fixed assets, net (Q1 FY2027)GAAP | $1.84M | – | – |
| Operating income (Q1 FY2027)GAAP | $28.24M | – | – |
| Interest expense, net (Q1 FY2027)GAAP | $52.04M | – | – |
| Total other expense (Q1 FY2027)GAAP | $49.88M | – | – |
| Loss before income tax expense (benefit) (Q1 FY2027)GAAP | −$21.64M | – | – |
| Income tax expense (benefit) (Q1 FY2027)GAAP | $4.03M | – | – |
| Net loss (Q1 FY2027)GAAP | −$25.67M | – | – |
| Net loss margin (Q1 FY2027)GAAP | (8.5)% | – | – |
| Adjusted EBITDA (Q1 FY2027)non-GAAP | $72.10M | – | – |
| Adjusted EBITDA margin (Q1 FY2027)non-GAAP | 23.8% | – | – |
| Net cash provided by (used in) operating activities (Q1 FY2027)GAAP | $17.10M | – | – |
| Net cash used in investing activities (Q1 FY2027)GAAP | −$21.52M | – | – |
| Net cash provided by financing activities (Q1 FY2027)GAAP | $3.00M | – | – |
| Capital expenditures (Q1 FY2027, as stated in highlights)other | $21.5M | – | – |
| Cash and cash equivalents at end of period (Sep 27, 2026)GAAP | $37.91M | – | – |
| Bank debt and loans (Sep 27, 2026)other | $1.82B | – | – |
| Net debt (Sep 27, 2026)other | $1.78B | – | – |
| Total cash on hand and revolving borrowing capacity (Sep 27, 2026)other | $323.3M | – | – |
| Total assets (Sep 27, 2026)GAAP | $3.20B | – | – |
| Total stockholders' deficit (Sep 27, 2026)GAAP | −$433.5M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| BowlingPrior-year revenue printed as $125,270 thousand. The CEO said the decline was in retail bowling, the walk-in business, and in alcohol, which is down across the restaurant industry. No percentage change is printed for this line. | $122.1M | – | – |
| Food & beveragePrior-year revenue printed as $96,129 thousand. The CEO said food and non-alcoholic beverage grew. No percentage change is printed for this line. | $98.53M | – | – |
| Amusement & otherPrior-year revenue printed as $70,879 thousand. The CEO said revenue growth was helped by the first full summer with two new water parks. The filing does not print a percentage change for this line. | $82.06M | – | – |
FY2027 (reaffirmed from the guidance provided on August 27, 2026) outlook
- Revenue$1,280M to $1,310M
- NoteTotal revenue growth: 3% to 5%
- NoteAdjusted EBITDA: $340M to $360M (non-GAAP; the filing states FY2027 guidance measures other than revenue are provided on a non-GAAP basis without reconciliation)
- NoteCapital expenditures: approximately $90M
Capital returns
- The Board of Directors suspended the quarterly cash dividend on common stock. The filing states the capital retained will be directed toward accelerating the deleveraging plan. No per-share dividend amount is printed in the release.
- The CEO said the company expects to direct meaningful free cash flow, plus proceeds from a few non-core asset sales, to debt reduction, and that there are no acquisitions planned.
- The CEO said the dividend suspension is a decision about where the next dollar goes and not a change in the company's view of the long-term earnings power of the business.
- No share repurchase amounts are printed in the release.
What drove it
- The company states that revenue grew in the first quarter, helped by its first full summer with two new water parks (CEO).
- Events has matched or beaten last year for six straight months, and the holiday book is ahead, led by corporate events (CEO).
- Leagues grew despite starting later this fall (CEO).
- Food and non-alcoholic beverage grew (CEO).
- The water parks were meaningfully more profitable than last year (CEO).
- California, the company's weakest market, narrowed the gap every month and comped slightly positive in September (CEO).
- Same-store revenue improved every month of the quarter and September comped positive (CEO).
- Lower capital spending, no acquisitions and lower litigation costs are cited by the CEO as factors behind the expected directing of free cash flow to debt reduction.
Concerns
- Same-store revenue decreased 2.6% year over year, and the CEO said a negative comp is a negative comp.
- The decline was in retail bowling, the walk-in business, and in alcohol (CEO).
- Smaller, price-sensitive parties remain under pressure, as the lower-end consumer has for several quarters (CEO).
- Net loss widened to $(25,674) thousand from $(13,798) thousand in the prior-year quarter.
- Adjusted EBITDA was $72,103 thousand versus $72,654 thousand, and the Adjusted EBITDA margin was 23.8% versus 24.9%.
- Selling, general and administrative expenses, excluding depreciation and amortization, rose to $40,334 thousand from $35,345 thousand. The filing does not give a reason for this change.
- Income tax expense was $4,034 thousand compared with a benefit of $(12,757) thousand in the prior-year quarter.
- Interest expense, net remained large at $52,039 thousand.
What to watch
- Same-store revenue trend after the positive September comp, and whether the monthly improvement continues.
- Holiday event bookings, which the CEO described as ahead, led by corporate events.
- Pass sales and pricing for next season, where the CEO said the lesson is to sell earlier.
- Progress on debt reduction from free cash flow and non-core asset sales.
- Whether the Board revisits the suspended quarterly dividend, which the release says it will continue to evaluate.
- Completion of the CRM system modernization initiative, which the filing expects in the fourth quarter of fiscal 2027.
- Delivery against the reaffirmed FY2027 revenue, Adjusted EBITDA and capital expenditure guidance.
Balance sheet and cash flow
- Net cash provided by operating activities was $17,104 thousand in Q1 FY2027 versus net cash used of $(6,408) thousand in the prior-year quarter.
- Capital expenditures were $21.5 million versus $25.9 million, as stated in the highlights. The CEO said capital spending in the quarter was the lowest in five years and expects the full year at roughly half its fiscal 2024 peak.
- Revolver amounts outstanding were $(112,000) thousand at Sep 27, 2026 versus $(100,000) thousand at Jun 28, 2026. Revolver capacity committed to letters of credit was $(27,622) thousand versus $(24,122) thousand.
- Total cash on hand and revolving borrowing capacity was $323,290 thousand at Sep 27, 2026 versus $340,238 thousand at Jun 28, 2026.
- Series A preferred stock within temporary equity was $138,121 thousand at Sep 27, 2026 versus $134,424 thousand at Jun 28, 2026.
- Total liabilities were $3,491,324 thousand at Sep 27, 2026 versus $3,491,222 thousand at Jun 28, 2026.
- Net decrease in cash and cash equivalents was $(1,448) thousand in Q1 FY2027 versus $(28,654) thousand in the prior-year quarter.
Analysis
Lucky Strike reported first-quarter fiscal 2027 total revenue of $302,644 thousand, up 3.5% from $292,278 thousand a year earlier. The release attributes the growth in part to the first full summer with two new water parks. Revenue detail by line shows Amusement & other at $82,058 thousand against $70,879 thousand, Food & beverage at $98,531 thousand against $96,129 thousand, and Bowling at $122,055 thousand against $125,270 thousand. The company does not print percentage changes for these lines. Same-store revenue, a non-GAAP measure, fell 2.6% to $272,272 thousand from $279,588 thousand. The CEO said the decline was concentrated in retail bowling and alcohol, while events, leagues and food and non-alcoholic beverages grew.
Profitability weakened on the reported lines. Operating income was $28,236 thousand against $28,246 thousand, essentially flat. Selling, general and administrative expenses rose to $40,334 thousand from $35,345 thousand, and the filing does not give a reason for that increase. Net loss widened to $(25,674) thousand from $(13,798) thousand. The swing in income tax from a benefit of $(12,757) thousand to an expense of $4,034 thousand is also printed in the statement of operations. Adjusted EBITDA was $72,103 thousand against $72,654 thousand, and its margin was 23.8% against 24.9%. The company's reconciliation lists transactional and other advisory costs of $3,115 thousand against $9,485 thousand and system modernization costs of $2,220 thousand against $512 thousand as adjustments, and the release notes the prior-year system modernization figure was reclassified.
Cash generation improved. Net cash provided by operating activities was $17,104 thousand against a use of $(6,408) thousand a year earlier. Capital expenditures were $21.5 million against $25.9 million, which the CEO described as the lowest quarterly capital spending in five years. Cash and cash equivalents ended the quarter at $37,912 thousand, against $39,360 thousand at June 28, 2026. Net debt rose to $1,779,388 thousand from $1,769,224 thousand at June 28, 2026, and bank debt and loans rose to $1,817,300 thousand from $1,808,584 thousand. Total cash on hand and revolving borrowing capacity declined to $323,290 thousand from $340,238 thousand, mainly as the revolver balance rose to $(112,000) thousand from $(100,000) thousand according to the release table.
Capital allocation shifted toward debt reduction. The Board suspended the quarterly dividend, and the release states that retained capital will go toward the deleveraging plan. The CEO said the company expects to direct free cash flow and non-core asset sale proceeds to debt reduction and that there are no acquisitions planned. The release does not print a per-share dividend amount or any repurchase figures.
Fiscal 2027 guidance was reaffirmed from the August 27, 2026 outlook, with total revenue of $1,280M to $1,310M, total revenue growth of 3% to 5%, Adjusted EBITDA of $340M to $360M on a non-GAAP basis, and capital expenditures of approximately $90M. The previous outlook figures are not included in the documents provided, so no comparison to prior guidance has been made. The reader should weigh the reported first quarter against the full-year revenue and Adjusted EBITDA ranges, which the release does not break down by quarter.
Management, verbatim
We are in a better place than a year ago, but a negative comp is a negative comp, and fixing it comes first.
Thomas Shannon, Founder and CEO
Capital spending in the quarter was the lowest in five years, and we expect the full year at roughly half its fiscal 2024 peak.
Thomas Shannon, Founder and CEO
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.
Thomas Shannon, Founder and CEO
Not in the filing
stated, not guessed- Prior-year and sequential percentage changes for the individual revenue lines (Bowling, Food & beverage, Amusement & other), not printed.
- Prior-year percentage change for net loss, operating income, Adjusted EBITDA, and most expense lines, not printed.
- Prior-quarter (June 28, 2026 quarter) income statement figures, not printed.
- Gross margin and cost of sales as a single line, not printed.
- Earnings per share, GAAP and non-GAAP, not printed in the release.
- Free cash flow, not printed.
- Dividend per share amount and total dividends paid in the quarter, not printed.
- Share repurchase amounts, not printed.
- Prior-year balance sheet figures for September 28, 2025 other than cash, not printed.
- Prior-year net debt and bank debt figures, not printed.
- Previous FY2027 guidance figures from the August 27, 2026 release, not included in the documents provided, so the vs_prior_guidance comparison is empty.
- Gross margin, operating expense, and tax rate guidance for FY2027, not printed.
- Reason for the change in SG&A expenses, not explained in the filing.
- Reason for the change in income tax expense, not explained in the filing.
- Market reaction and analyst consensus, not in the documents.
- Quantified amount of expected debt reduction, not printed.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Lucky Strike Entertainment operates bowling, amusement, and water park venues across North America and owns the Professional Bowlers Association.
Ticker impact
Lucky Strike Entertainment reported Q1 FY2027 results with a net loss of $25.7M and reaffirmed FY2027 guidance.
likely downside pressure as market prices in weaker same-store revenue and larger loss
The fresh quarterly numbers and reaffirmed guidance provide new material information that can move the stock immediately.
Market effects
Location-based entertainment sector may face pressure from weaker same-store performance trends.
U.S. consumer discretionary sentiment could be dampened by the loss report.
Limited to investors tracking entertainment and leisure stocks.
Counterpoint
If the company can successfully monetize new water parks and reduce capex, the stock may be undervalued despite the loss.
Key entities
- ExecutiveThomas Shannon
Founder and CEO who commented on the results.
