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Bowlero Corp. (BOWL)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 FY2025 revenue increased 14.4% to $260.2M; Total Location Revenue grew 17.5% y/y; Same-Store Revenue rose 0.4% y/y .
  • Adjusted EBITDA increased 21% y/y to $62.9M, with margin expanding 130 bps to 24.2%; Net income was $23.1M (8.9% net margin) .
  • Guidance low end raised by $10M; FY2025 revenue now $1.23B–$1.28B and Adjusted EBITDA margin maintained at 32%–34% (implies $390M–$430M) .
  • Strategic catalysts: expanded F&B program (mobile ordering across all properties, tablets rolling out), new Lucky Strike openings, and accretive M&A (Boomers, Spectrum), plus dividend continuity ($0.055) and ongoing buybacks .

What Went Well and What Went Wrong

What Went Well

  • Food & beverage initiatives drove F&B sales up 18% y/y in Q1; retail F&B-to-bowling crossed $0.80 portfolio-wide, with top 50 Bowlero sites near $1.10 per bowl in October (“highest we have ever seen”) .
  • Margin execution: Adjusted EBITDA margin expanded 130 bps to 24.2% on operating efficiencies and cost management; management highlighted “record” operating cash flow for seasonally small Q1 .
  • Capital deployment and pipeline: Raging Waves delivered double-digit growth with ~$8M year-1 EBITDA under ownership; acquired Boomers (six FECs/two parks) and Spectrum Entertainment; opened two Lucky Strike Denver locations with near-term Beverly Hills and Ladera Ranch openings .

Quote: “Total location revenue grew 17.5% year-over-year in the quarter… we expect to open the flagship Lucky Strike Beverly Hills… [and] Ladera Ranch… shortly.” — Thomas Shannon, CEO

What Went Wrong

  • Weather disruption: Two hurricanes in late September cost ~$2M of comp in Q1, with similar October impact; management flagged weather variance as a near-term headwind .
  • Input costs: Food costs were a headwind early in Q1 (recently turning), requiring procurement actions to stabilize inflation pressures .
  • Seasonal EBITDA drag expected from Boomers and Raging Waves in Q2 and Q3 (“a few million” each quarter) until peak season begins in June .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Total Revenues ($USD Millions)$337.670 $283.868 $260.195
Net Income ($USD Millions)$23.846 $(62.177) $23.095
Adjusted EBITDA ($USD Millions)$122.8 $83.4 $62.943
Same-Store Revenue (% YoY)-2.1% +6.9% +0.4%
Net Income Margin (%)——8.9%
EPS ($USD)Not disclosedNot disclosedNot disclosed

Segment revenue breakdown:

Segment Revenue ($USD Millions)Q3 2024Q4 2024Q1 2025
Bowling$165.528 $130.709 $122.203
Food & Beverage$118.032 $97.246 $88.039
Amusement & Other$54.110 $55.913 $49.953

Key KPIs and balance sheet:

KPI / Balance SheetQ1 2025
Total Location Revenue growth (% YoY)+17.5%
Same-Store Revenue (% YoY)+0.4%
F&B Sales growth (% YoY)+18%
F&B-to-Bowling Ratio ($ per $ bowling)$0.80 portfolio-wide; ~$1.10 top 50 Bowlero
Adjusted EBITDA Margin (%)24.2%
Net Cash from Operating Activities ($MM)$29.4
CapEx ($MM)$41 (growth $16, new build $17, maintenance $8)
Liquidity (Cash + undrawn revolver, net of LCs) ($MM)$354.9
Cash ($MM)$38.4
Net Debt ($MM)$1,113.5
Bank facility net leverage ratio (x)2.6x

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Billions)FY 2025“Mid-single digits to 10% y/y” (no dollar range) $1.23–$1.28 Low end raised by $0.01B
Adjusted EBITDA Margin (%)FY 202532%–34% 32%–34% Maintained
Adjusted EBITDA ($USD Millions)FY 2025—$390–$430 New explicit range
Dividend per share ($USD)Q2 FY 2025—$0.055 declared Maintained program
Share RepurchasesFYTD through 10/30/24—0.8M shares for ~$8M; $156M remaining authorization Ongoing capital return

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Data & technologyWebsite/dynamic pricing and inventory systems; league/F&B optimization Mobile ordering enabled across all properties; server tablets rolling out; 350 Power BI subscriptions to push accountability Execution scaling across network
Food & beverageNew premium menus; Miami Lucky Strike F&B attachment >$2; rollout plan by July F&B sales +18% y/y; F&B-to-bowl $0.80 portfolio-wide; top 50 Bowlero near $1.10 Strong attachment, pricing & mix gains
Events cadenceEvent revenue up strongly; simplified SKUs; Q4 expected positive comps December events pacing +10%; New Year’s shifting to Q3 to benefit margins Healthy pipeline; calendar tailwind Q3
Macro/weatherJanuary blizzards/floods hurt Q3; Q4 comps positive Two hurricanes hit end-September; weather impacted comps Weather variability a recurring factor
PBA/mediaRecord viewership growth; more televised stops Production savings and new sponsors; tour leveraging Thunderbowl arena Cost control; monetization improving
M&A/expansionRaging Waves acquisition; active new-build pipeline Boomers and Spectrum acquisitions; two Denver Lucky Strikes opened; Beverly Hills & Ladera Ranch imminent Opportunistic, accretive deployment

Management Commentary

  • Strategic focus: “We underwrite all decisions for relative financial returns… deploy capital and utilize data-driven processes… accelerating” — Thomas Shannon .
  • F&B transformation: “F&B sales up 18% y/y… mobile ordering across all properties… top 50 Bowlero near $1.10 F&B per bowl this month” — Lev Ekster .
  • Financial discipline: “Adjusted EBITDA… margin of 24.2%, expanding 130 bps… liquidity $355M; net debt $1.1B; bank facility net leverage 2.6x” — Bobby Lavan .

Q&A Highlights

  • Same-store cadence: Weather-driven Q1 comps, but December events pacing +10%; New Year’s shifts to Q3 supports margin expansion .
  • Procurement and data: Chief Procurement Officer hired; scaling Power BI to 350 users; focus on inflation management via centralized purchasing .
  • Pass programs: Summer pass and first-ever fall pass; exploring integrated multi-brand pass across water parks/FECs to drive visitation and attachment .
  • Operations tech: Mobile ordering live network-wide; server tablets to lift upsell (+7% per check); comprehensive menu upgrades and training .
  • Seasonality/drag: Boomers + Raging Waves expected to be “a few million” EBITDA drag in Q2 and Q3 each, reversing in peak season .

Estimates Context

  • Wall Street consensus (S&P Global) for Q1 FY2025 was unavailable due to CIQ mapping for BOWL in the SPGI system; we could not retrieve EPS, revenue, or EBITDA consensus and estimate counts via GetEstimates. As a result, estimate comparisons are not provided. Values would normally be retrieved from S&P Global.

Key Takeaways for Investors

  • F&B-led attachment and tech-enabled operations (mobile ordering/tablets) are expanding margins and lifting per-visit monetization, with immediate traction in top cohorts .
  • Guidance raised at the low end with explicit EBITDA range, signaling confidence despite weather variability and near-term seasonal drag from newly acquired assets .
  • Active capital deployment pipeline (Boomers, Spectrum; Lucky Strike new builds) should compound revenue mix toward higher AUV concepts and accelerate 4-wall profitability .
  • Liquidity remains robust with no revolver draw, giving flexibility to pursue opportunistic M&A, rebrands, and shareholder returns (dividend, buybacks) .
  • Near-term trading: Expect narrative around December events strength and Q3 New Year’s shift; watch for continued F&B attachment momentum and tablet rollouts as catalysts .
  • Medium-term thesis: Portfolio tilt toward higher-margin experiential assets (Lucky Strike, water parks/FECs) and centralized procurement/data discipline should sustain EBITDA margin targets (32%–34%) .
  • Risk monitor: Weather volatility and input cost inflation; management is mitigating via diversified attractions/pass programs and procurement scale .