Fourth Quarter and Full Year Fiscal Year 2026
Filed Aug 27, 2026Total Revenue Growth of 0.9% in Fourth Quarter 2026
Fourth-quarter and full-year revenue increased, but same-store revenue declined, adjusted EBITDA and adjusted EBITDA margin fell, the company remained loss-making, and net debt increased. Fiscal 2027 guidance calls for revenue growth and adjusted EBITDA above fiscal 2026 reported results.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, fourth quarterGAAP | $303,948 (in thousands) | – | 0.9% |
| Total revenues, fiscal yearGAAP | $1,245,318 (in thousands) | – | 3.7% |
| Same Store Revenue, fourth quarternon-GAAP | $284,109 (in thousands) | – | (2.5)% |
| Same Store Revenue, fiscal yearnon-GAAP | $1,115,006 (in thousands) | – | (0.2)% |
| Total Location Revenue, fourth quarternon-GAAP | $297,216 (in thousands) | – | 2.1% |
| Total Location Revenue, fiscal yearnon-GAAP | $1,222,131 (in thousands) | – | 4.7% |
| Operating income, fourth quarterGAAP | $9,594 (in thousands) | – | – |
| Operating income, fiscal yearGAAP | $136,794 (in thousands) | – | – |
| Net loss, fourth quarterGAAP | $(26,174) (in thousands) | – | – |
| Net loss, fiscal yearGAAP | $(35,777) (in thousands) | – | – |
| Net loss margin, fourth quarterGAAP | (8.6)% | – | – |
| Net loss margin, fiscal yearGAAP | (2.9)% | – | – |
| Adjusted EBITDA, fourth quarternon-GAAP | $74,071 (in thousands) | – | – |
| Adjusted EBITDA, fiscal yearnon-GAAP | $333,208 (in thousands) | – | – |
| Adjusted EBITDA Margin, fourth quarternon-GAAP | 24.4% | – | – |
| Adjusted EBITDA Margin, fiscal yearnon-GAAP | 26.8% | – | – |
| Location operating costs, excluding depreciation and amortization, fourth quarterGAAP | $103,976 (in thousands) | – | – |
| Location operating costs, excluding depreciation and amortization, fiscal yearGAAP | $401,193 (in thousands) | – | – |
| Location payroll and benefit costs, fourth quarterGAAP | $77,029 (in thousands) | – | – |
| Location payroll and benefit costs, fiscal yearGAAP | $310,950 (in thousands) | – | – |
| Location food and beverage costs, fourth quarterGAAP | $23,841 (in thousands) | – | – |
| Location food and beverage costs, fiscal yearGAAP | $96,557 (in thousands) | – | – |
| Selling, general and administrative expenses, excluding depreciation and amortization, fourth quarterGAAP | $40,884 (in thousands) | – | – |
| Selling, general and administrative expenses, excluding depreciation and amortization, fiscal yearGAAP | $150,867 (in thousands) | – | – |
| Depreciation and amortization, fourth quarterGAAP | $33,508 (in thousands) | – | – |
| Depreciation and amortization, fiscal yearGAAP | $129,270 (in thousands) | – | – |
| Loss on impairment and disposal of fixed assets, net, fourth quarterGAAP | $16,908 (in thousands) | – | – |
| Loss on impairment and disposal of fixed assets, net, fiscal yearGAAP | $22,128 (in thousands) | – | – |
| Interest expense, net, fourth quarterGAAP | $51,089 (in thousands) | – | – |
| Interest expense, net, fiscal yearGAAP | $205,342 (in thousands) | – | – |
| Income tax (benefit) expense, fourth quarterGAAP | $(12,479) (in thousands) | – | – |
| Income tax (benefit) expense, fiscal yearGAAP | $(3,677) (in thousands) | – | – |
| Total locations in operation as of August 27, 2026other | 366 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Bowling, fourth quarterManagement said retail bowling continued to grow. | $128,854 (in thousands) | – | – |
| Food & beverage, fourth quarterManagement said food remained strongly positive. | $103,843 (in thousands) | – | – |
| Amusement & other, fourth quarterNo segment-specific driver was quantified. | $71,251 (in thousands) | – | – |
| Bowling, fiscal yearManagement said leagues grew and accelerated through the spring, while retail bowling continued to grow. | $561,581 (in thousands) | – | – |
| Food & beverage, fiscal yearManagement said food remained strongly positive. | $431,066 (in thousands) | – | – |
| Amusement & other, fiscal yearNo segment-specific driver was quantified. | $252,671 (in thousands) | – | – |
Fiscal Year 2027 outlook
- Revenue$1,280M to $1,310M
- NoteTotal Revenue Growth: 3% to 5%
- NoteAdjusted EBITDA: $340M to $360M
- NoteCapital Expenditures: Approximately $90M
Capital returns
- 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 will be payable on September 22, 2026, to stockholders of record on September 8, 2026.
What drove it
- Management attributed June's sharply negative comps to the World Cup drawing consumers to their screens on nights they would typically be out.
- Management said trends improved immediately following the World Cup Final and that the headwind will not repeat next summer.
- Management reported that leagues grew and accelerated through the spring, food remained strongly positive, retail bowling continued to grow, and Events turned positive in late spring and remained positive throughout the summer.
- Management said waterpark per-capita spending increased meaningfully, labor costs declined as staffing was aligned more closely with demand, and waterpark revenue and profitability grew substantially year over year.
- The company added six locations during fiscal 2026, five through acquisitions and one new build, and closed five underperforming locations.
Concerns
- Same Store Revenue decreased 2.5% in the fourth quarter and 0.2% in fiscal year 2026.
- Adjusted EBITDA declined to $74,071 (in thousands) in the fourth quarter from $88,727 (in thousands), and to $333,208 (in thousands) in fiscal year 2026 from $367,687 (in thousands).
- Adjusted EBITDA Margin declined to 24.4% in the fourth quarter from 29.5% and to 26.8% in fiscal year 2026 from 30.6%.
- Fiscal-year net loss widened to $(35,777) (in thousands) from $(10,022) (in thousands).
- Net debt was $1,769,224 (in thousands) as of June 28, 2026, compared with $1,262,104 (in thousands) as of June 29, 2025.
- Management said a cool and wet start to the summer pressured waterpark attendance.
What to watch
- Fiscal 2027 Total Revenue Growth guidance of 3% to 5%.
- Fiscal 2027 Adjusted EBITDA guidance of $340M to $360M.
- Fiscal 2027 Capital Expenditures guidance of Approximately $90M.
- Management said the majority of the summer waterpark earnings contribution will be recognized in the September quarter.
- Same-store revenue following the June World Cup disruption and the reported improvement after the World Cup Final.
- Progress toward management's stated objective of higher free cash flow and accelerated deleveraging.
Balance sheet and cash flow
- Cash and cash equivalents were $39,360 (in thousands) as of June 28, 2026, versus $59,686 (in thousands) as of June 29, 2025.
- Bank debt and loans were $1,808,584 (in thousands) as of June 28, 2026, versus $1,321,790 (in thousands) as of June 29, 2025.
- Net debt was $1,769,224 (in thousands) as of June 28, 2026, versus $1,262,104 (in thousands) as of June 29, 2025.
- Total cash on hand and revolving borrowing capacity was $340,238 (in thousands) as of June 28, 2026, versus $342,264 (in thousands) as of June 29, 2025.
- Net cash used in operating activities was $(11,957) (in thousands) for the fourth quarter, versus $22,454 (in thousands) provided by operating activities in the prior-year quarter.
- Net cash provided by operating activities was $103,896 (in thousands) for fiscal year 2026, versus $177,221 (in thousands) for fiscal year 2025.
- Net cash used in investing activities was $(453,265) (in thousands) for fiscal year 2026, versus $(220,311) (in thousands) for fiscal year 2025.
- Net cash provided by financing activities was $328,452 (in thousands) for fiscal year 2026, versus $35,860 (in thousands) for fiscal year 2025.
Analysis
Lucky Strike reported fourth-quarter total revenues of $303,948 (in thousands), up 0.9%, and fiscal-year total revenues of $1,245,318 (in thousands), up 3.7%. Comparable performance was weaker than reported revenue growth: Same Store Revenue declined 2.5% in the fourth quarter and 0.2% for the year. Management attributed the June disruption to World Cup viewing and said operating trends improved immediately after the World Cup Final.
Reported revenue growth was supported by acquired revenue and location expansion. The company added six locations during fiscal 2026, including five acquisitions and one new build, while closing five underperforming locations. Bowling generated $128,854 (in thousands) in fourth-quarter revenue and $561,581 (in thousands) for the year. Food & beverage generated $103,843 (in thousands) in the quarter and $431,066 (in thousands) for the year. Management described positive trends in leagues, food, retail bowling and Events, and said waterpark revenue and profitability grew substantially year over year.
Profitability weakened despite the revenue increase. Fourth-quarter operating income declined to $9,594 (in thousands) from $15,183 (in thousands), while fiscal-year operating income was $136,794 (in thousands) versus $137,187 (in thousands). Adjusted EBITDA declined to $74,071 (in thousands) in the quarter and $333,208 (in thousands) for the year, with adjusted EBITDA margins falling to 24.4% and 26.8%, respectively. Fiscal-year location payroll and benefit costs, selling, general and administrative expenses, interest expense, and loss on impairment and disposal of fixed assets were each higher than the prior year on their reported lines.
The company recorded a fourth-quarter net loss of $(26,174) (in thousands), improving from $(74,716) (in thousands), while fiscal-year net loss widened to $(35,777) (in thousands) from $(10,022) (in thousands). Cash and cash equivalents declined to $39,360 (in thousands), and net debt increased to $1,769,224 (in thousands). Fiscal-year operating cash flow was $103,896 (in thousands), while investing cash outflow was $(453,265) (in thousands) and financing cash inflow was $328,452 (in thousands).
Fiscal 2027 guidance calls for Total Revenue Growth of 3% to 5%, Total Revenue of $1,280M to $1,310M, Adjusted EBITDA of $340M to $360M, and Capital Expenditures of Approximately $90M. Management said the majority of the summer waterpark earnings contribution will be recognized in the September quarter and framed lower capital intensity, portfolio rationalization and completion of investment programs as the path to higher free cash flow and deleveraging. The board also declared a quarterly cash dividend of $0.06 per share for the first quarter of fiscal year 2027.
Management, verbatim
Fiscal 2026 marked a meaningful step forward for our business, with our strongest same-store sales performance in years and clear momentum across many of our key revenue streams.
Thomas Shannon, Founder and CEO
June temporarily interrupted that progress. The first World Cup on American soil in a generation drew millions of consumers to their screens on nights they would typically be out, resulting in sharply negative comps for the month and pulling an otherwise positive quarter and year slightly below zero.
Thomas Shannon, Founder and CEO
That creates a clear path to meaningfully higher free cash flow and accelerated deleveraging as earnings improve.
Thomas Shannon, Founder and CEO
Not in the filing
stated, not guessed- GAAP and non-GAAP diluted EPS were not reported.
- Gross profit and gross margin were not reported.
- Free cash flow was not reported.
- Actual fiscal-year capital expenditures were not reported as a line item.
- Prior-quarter comparisons were not reported for the disclosed metrics.
- Segment-specific year-over-year and quarter-over-quarter percentage changes were not reported on the segment revenue rows.
- Prior fiscal-year guidance was not provided, so no comparison with prior guidance is available.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.