second quarter of fiscal 2026
Filed Sep 14, 2026Revenue of $544.1 million decreased 2.4%, while net loss totaled $12.5 million and Adjusted EBITDA was $98.9 million.
Revenue and comparable store sales declined, while profitability moved from income to a net loss and Adjusted EBITDA declined from the prior-year quarter. Food and beverage sales, remodel performance, cash generation, and improving same-store sales trends cited by management provide offsets.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $544.1 million | – | decreased 2.4% |
| Comparable store salesother | decreased 2.9% | – | decreased 2.9% |
| Total cost of productsGAAP | $83.2 million | – | – |
| Operating payroll and benefitsGAAP | $140.2 million | – | – |
| Other store operating expensesGAAP | $192.9 million | – | – |
| General and administrative expensesGAAP | $27.1 million | – | – |
| Depreciation and amortization expensesGAAP | $73.7 million | – | – |
| Pre-opening costsGAAP | $6.7 million | – | – |
| Other charges and gainsGAAP | $0.9 million | – | – |
| Total operating costsGAAP | $524.7 million | – | – |
| Operating incomeGAAP | $19.4 million | – | – |
| Operating income marginGAAP | 3.6% | – | – |
| Interest expense, netGAAP | $38.0 million | – | – |
| Income (loss) before income taxesGAAP | $(18.6) million | – | – |
| Provision for (benefit from) income taxesGAAP | $(6.1) million | – | – |
| Net income (loss)GAAP | $(12.5) million | – | – |
| Net income (loss) marginGAAP | (2.3)% | – | – |
| Net income (loss) per diluted shareGAAP | $(0.36) per diluted share | – | – |
| Net income (loss) per basic shareGAAP | $(0.36) per basic share | – | – |
| Adjusted EBITDAnon-GAAP | $98.9 million | – | – |
| Adjusted EBITDA marginnon-GAAP | 18.2% | – | – |
| Store operating income before depreciation and amortizationnon-GAAP | $127.8 million | – | – |
| Store operating income before depreciation and amortization marginnon-GAAP | 23.5% | – | – |
| Adjusted net income (loss)non-GAAP | $(9.5) million | – | – |
| Adjusted net income (loss) per share - dilutednon-GAAP | $(0.27) per diluted share | – | – |
| Company-owned stores at end of periodother | 250 | – | – |
| Store operating weeks in the periodother | 3,204 | – | – |
| Total revenue per store operating weeks in the periodother | $170 thousand | – | – |
| Total revenue per square foot per store operating weeks in the periodother | $4.15 | – | – |
| Six months total revenuesGAAP | $1,103.3 million | – | – |
| Six months operating incomeGAAP | $66.3 million | – | – |
| Six months net income (loss)GAAP | $(6.8) million | – | – |
| Six months net income (loss) per diluted shareGAAP | $(0.20) per diluted share | – | – |
| Six months Adjusted EBITDAnon-GAAP | $222.0 million | – | – |
| Six months Adjusted free cash flownon-GAAP | $19.5 million | – | – |
| Credit Adjusted EBITDA, trailing four quarters ended August 4, 2026non-GAAP | $435.8 million | – | – |
| Net Total Leverage Ratio, trailing four quarters ended August 4, 2026non-GAAP | 3.5 x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Entertainment revenuesEntertainment revenues represented 61.1% of total revenues. | $332.6 million | – | – |
| Food and beverage revenuesFood and beverage revenues represented 38.9% of total revenues. Management cited ongoing growth in food and beverage sales. | $211.5 million | – | – |
remainder of fiscal 2026 outlook
- NoteThe Company expects to complete two additional Dave & Buster’s store remodels during the remainder of fiscal 2026, bringing the total number of remodels completed in fiscal 2026 to eight.
- NoteThe Company expects to open at least one additional international franchise store during the remainder of fiscal 2026.
What drove it
- Management cited ongoing growth in food and beverage sales and in Special Events sales.
- Management said same store sales of remodels continue to outperform the system.
- The Company opened six new domestic stores in the second quarter.
- Management said overall same store sales improved in July and saw continued improvement during the third quarter to date.
- The Company cited Back-to-Basics executional urgency, cost saving initiatives, margin management, and free-cash-flow generation as priorities.
Concerns
- Comparable store sales decreased 2.9% compared to the same calendar period in fiscal 2025.
- Revenue of $544.1 million decreased 2.4% from the second quarter of fiscal 2025.
- Operating income was $19.4 million, compared with $53.0 million in the second quarter of fiscal 2025.
- Adjusted EBITDA was $98.9 million, compared with $129.8 million in the second quarter of fiscal 2025.
- Operating payroll and benefits, other store operating expenses, depreciation and amortization expenses, and pre-opening costs were higher than in the second quarter of fiscal 2025.
- Net Total Leverage Ratio was 3.5 x as of, and for the trailing four quarters ended August 4, 2026.
What to watch
- Overall same store sales trends during the third quarter.
- The performance of remodels relative to the system and completion of two additional Dave & Buster’s store remodels during the remainder of fiscal 2026.
- Progress in food and beverage sales and Special Events sales.
- Completion of at least one additional international franchise store during the remainder of fiscal 2026.
- The effect of cost saving initiatives on margin management and Adjusted EBITDA.
- Adjusted free cash flow and capital investment requirements.
Balance sheet and cash flow
- Cash and cash equivalents were $16.0 million as of August 4, 2026, compared with $16.6 million as of February 3, 2026.
- Available liquidity was $492.1 million at the end of the quarter.
- Long-term debt, net was $1,500.5 million as of August 4, 2026, compared with $1,515.0 million as of February 3, 2026.
- Total debt was $1,540.4 million as of August 4, 2026.
- Net debt was $1,543.3 million as of August 4, 2026.
- Net cash provided by operating activities was $46.8 million for the three months ended August 4, 2026, compared with $34.0 million for the three months ended August 5, 2025.
- Net cash used in investing activities was $(84.7) million for the three months ended August 4, 2026 and $(84.7) million for the three months ended August 5, 2025.
- Net cash provided by financing activities was $34.3 million for the three months ended August 4, 2026, compared with $50.8 million for the three months ended August 5, 2025.
- Net cash provided by operating activities was $160.6 million for the six months ended August 4, 2026, compared with $129.8 million for the six months ended August 5, 2025.
- Capital expenditures were $(190.0) million for the six months ended August 4, 2026, compared with $(243.8) million for the six months ended August 5, 2025.
- Proceeds from sale-leaseback transactions were $48.9 million for the six months ended August 4, 2026, compared with $73.0 million for the six months ended August 5, 2025.
Analysis
The second quarter showed a weaker top-line and earnings result. Revenue of $544.1 million decreased 2.4% from the second quarter of fiscal 2025, while comparable store sales decreased 2.9%. Entertainment revenues were $332.6 million and represented 61.1% of total revenues, while food and beverage revenues were $211.5 million and represented 38.9% of total revenues. Management nevertheless cited ongoing growth in food and beverage sales and Special Events sales, improved overall same store sales in July, and continued improvement during the third quarter to date.
Management, verbatim
We are energized by the obvious, actionable, and enormous opportunities ahead for Dave & Buster’s and Main Event. Our Back-to-Basics strategy is gaining momentum with enhanced executional urgency.
Darin Harper, Chief Executive Officer
We are laser focused on returning to same-store sales and EBITDA growth, sharpening our margin management with cost saving initiatives, generating significant free cash flow, and delivering meaningful shareholder value.
Darin Harper, Chief Executive Officer
Not in the filing
stated, not guessed- Gross profit and gross margin
- Revenue and comparable-store-sales results by Dave & Buster’s and Main Event brand
- Prior-quarter comparisons for reported metrics
- Formal revenue, gross-margin, operating-expense, tax-rate, EPS, or Adjusted EBITDA guidance
- Previous-period outlook for comparison with actual results
- Share repurchases, dividends, or other shareholder capital-return activity
- Debt maturities, interest rates, and revolving-credit-facility borrowings
- GAAP free cash flow
- Income tax rate
AlphAI 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.