Executive Summary

Strong finish to FY24: Q4 revenue ex-service fee rose 20.2% YoY to $282.9M with same‑store comps +6.9% and Adjusted EBITDA +29% to $83.4M as traffic initiatives and operating leverage kicked in .
Mixed GAAP optics: Q4 GAAP net loss was $62.2M vs. $146.2M income LY driven by higher D&A, impairment and interest; GAAP net margin −21.9% despite underlying Adj. EBITDA margin of 29.4% .
FY25 outlook constructive: management guided revenue to $1.22–$1.28B (+mid‑single digits to 10%+), Adj. EBITDA margin 32–34% ($390–$430M), and low‑to‑mid single‑digit same‑store comps; no pricing embedded, with leverage to mix and attachment .
Capital return and liquidity: $35M buybacks in Q4 (FY24 total ~22.8M shares), a $0.055 quarterly dividend, and revolver capacity raised to $335M; liquidity ~$336M at 6/30 (pro forma ~$386M) .
Key catalysts: FY25 guidance initiation, margin structure normalization/operating leverage, Lucky Strike brand expansion/rebranding, and successful season pass/F&B strategy supporting traffic and mix .

What Went Well and What Went Wrong

What Went Well
- Traffic and comps inflected: Q4 same‑store comps +6.9% with April–June all positive; amusements outperformed and F&B revenue grew faster than bowling in summer .
- Season passes worked: Portfolio season pass sales hit a record $11M, driving visits, arcade play, and F&B attachment; Bowlero launched a Fall pass to extend momentum .
- Operating leverage returning: Adj. EBITDA +29% YoY to $83.4M on 20.2% revenue ex‑service fee growth; management targets ~50% flow‑through in FY25 as wage comps normalize .
- Quote: “We expect low to mid single‑digit positive same‑store-sales comp in the upcoming year.” — Thomas Shannon, CEO .
- Quote: “We’re not assuming any pricing this year.” — Robert Lavan, CFO .
- Quote: “F&B revenue was up greater than bowling revenue this summer.” — Robert Lavan, CFO .
What Went Wrong
- GAAP loss optics: Q4 GAAP net loss of $62.2M; factors included higher D&A, impairments, interest expense, and PBA losses during investment phase .
- Cost headwinds: Food costs flagged as a headwind into FY25; PBA operated at a worse‑than‑expected loss in Q4 while being scaled for future monetization .
- Reporting complexity: Legacy gross margin depressed by D&A (e.g., Lucky Strike); company will cease reporting gross margin and pivot to 4‑wall presentation from Q1 FY25 to improve clarity .

Financial Results

Quarterly Trend (oldest → newest)

Metric	Q2 FY24	Q3 FY24	Q4 FY24
Revenue excluding Service Fee ($M)	$304.0	$336.4	$282.9
Adjusted EBITDA ($M)	$103.1	$122.8	$83.4
Same-Store Sales Comp (%)	+0.2%	−2.1%	+6.9%
Consensus Revenue ($M)	NA – S&P Global mapping unavailable	NA – S&P Global mapping unavailable	NA – S&P Global mapping unavailable

Note: S&P Global consensus data was unavailable via the tool for BOWL (mapping error). Estimates context detailed below.

Q4 FY24 vs Prior Year (YoY)

Metric	Q4 FY23	Q4 FY24
Total Revenue ($M)	$239.4	$283.9
Revenue ex Service Fee ($M)	$235.3	$282.9
Same Store Revenue ($M)	$226.7	$242.5
Same-Store Sales Comp (%)	—	+6.9%
Adjusted EBITDA ($M)	$64.5	$83.4
GAAP Net Income (Loss) ($M)	$146.2	$(62.2)
Net Income (Loss) Margin (%)	61.1%	(21.9)%

Revenue Build (Q4 FY24 and YoY context)

Revenue Build Component ($M)	Q4 FY23	Q4 FY24
Total Revenue (reported)	$239.4	$283.9
less: Service Fee Revenue	$(4.1)	$(0.9)
Revenue ex Service Fee	$235.3	$282.9
less: Non-Location/Closed	$(7.5)	$(4.9)
Total Location Revenue	$227.8	$278.1
less: Acquired Revenue	$(1.1)	$(35.6)
Same Store Revenue	$226.7	$242.5

KPIs and Balance Sheet Highlights

KPI / Metric	Q4 FY24
Season Pass Sales (Quarter)	$11M; drove arcade and F&B attachment
Locations Added (Quarter)	2 acquisitions; total locations 352 + Raging Waves at FY-end
Non-Comp Center EBITDA/Revenue	~$9M EBITDA on ~$32M revenue
Raging Waves (June)	$3.5M revenue; $2.0M EBITDA
Liquidity (6/30/24)	~$336.1M cash + revolver capacity net of LOCs
Pro Forma Liquidity	~$386M (cash $67M; revolver expanded to $335M)
Net Debt (6/30/24)	~$1.085B
Bank Net Leverage	2.6x
Q4 Buybacks	3.0M shares for ~$35M; FY24 total 22.8M shares
Dividend	$0.055 per share payable 9/6/24

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY25	None	$1.22B–$1.28B (+mid‑single digits to 10%+)	New
Adjusted EBITDA Margin	FY25	Directional: target high end of 32–34% range (commentary)	32%–34% (=$390M–$430M)	Quantified range; broadly consistent
Same-Store Sales Comp	FY25	Low‑to‑mid single digits expected in near term	Low‑to‑mid single digits	Maintained
Pricing Assumptions	FY25	Not specified	No pricing assumed	New disclosure
CapEx	FY25	Not specified	~$154M: Growth $50M; New Build $45M; Maintenance $44M; Rebrand $15M	New; down vs FY24 actual $193M
Revolver Capacity	Current	$285M at 6/30/24	$335M post 8/23/24	Raised
Dividend	Ongoing	Initiated at $0.055 in FY24	$0.055 declared 8/5, payable 9/6	Maintained

Earnings Call Themes & Trends

Topic	Q2 FY24 (Dec qtr)	Q3 FY24 (Mar qtr)	Q4 FY24 (Jun qtr)	Trend
Food & Beverage uplift	Planning menu upgrades; dynamic pricing enablement; inventory system rollout	Lucky Strike Miami shows >$3.40 F&B per $1 bowling; menu revamps underway	New retail F&B menus rolling across all locations; catering revamp for top 75	Accelerating
Amusements	Material whitespace; arcades $100M+ revenue base	Investment depressed Q3 profit by ~$5M to improve experience	Amusements contribution outperformed business in Q4	Improving post-investment
Season Pass	Reintroducing Summer Season Pass	$1.5M presales early; target $10–$15M; traffic flywheel	Record $11M pass sales; Fall pass launched; strong attachment	Strong traction
PBA & Media	Expanded broadcast hours; brand halo	Higher stops/TV; PBA loss ~$2M in Q3 as investment	Continued investment; lever for awareness; EBITDA headwind moderating	Strategic investment continues
Pricing/Dynamic Website	2% retail price lift tested; dynamic pricing planned	CAC falling; website to cut CAC; targeted marketing by center	No FY25 pricing assumed; mix/attachment to drive ARPU	Mix over price
Lucky Strike & Rebranding	Acquisition outperformed; brand awareness > Bowlero	LS annualized EBITDA >$20M potential; convert Bowlero to Lucky Strike over time	New LS openings (Beverly Hills, Denver, etc.); $15M FY25 rebrand capex	Broadening
New Builds Pipeline	2 new builds opened; >12 in pipeline	4 under construction; larger AUV vs acquisitions	4 new centers opening Sep–Nov; pipeline remains strong	Consistent
M&A/Adjacencies	Dry powder; TAM beyond bowling	Acquired Raging Waves; Mavrix/Octane performance	Raging Waves: June $3.5M rev/$2M EBITDA; double-digit revenue growth; strong returns	Broader LBE optionality
Cost/Leverage	Payroll comps roll off post Mar-23 raises	Q3 costs elevated (PBA, amusements); leverage to positive comps	Target ~50% flow-through in FY25; procurement focus; food cost headwinds	Leverage returning
Reporting shift	—	—	Will stop reporting gross margin; move to 4‑wall starting Q1 FY25	Clarity improving

Management Commentary

“We expect to achieve operating leverage around 50% in FY ’25, as we have comped the March 2023 manager wage increases and onetime COVID costs.” — Robert Lavan, CFO .
“Season Pass sales across our portfolio hit a record $11 million and helped drive consumer traffic.” — Thomas Shannon, CEO .
“We’re not assuming any pricing this year.” — Robert Lavan, CFO (re: FY25 SSS mix/attachment) .
“F&B revenue was up greater than bowling revenue this summer… the upside is significant.” — Robert Lavan, CFO .
“We are currently under construction on 4 new centers… These powerhouse locations will open between September and November of this year.” — Thomas Shannon, CEO .

Q&A Highlights

FY25 comps cadence: Expect positive comps throughout FY25; 3Q (Jan–Mar) likely strongest given calendar/weather compares; no pricing assumed, leverage via events/F&B/online .
Mix drivers over price: Events carry 20–50% higher per‑capita than retail; online growth +30–40% boosts ticket and wallet share; procurement and systems to offset inflation .
Capital deployment: Guidance excludes M&A; revolver expanded to $335M; active pipeline across bowling and broader LBE; M&A could push to high end of guide .
Reporting clarity: Gross margin obfuscated by D&A; switching to 4‑wall view starting Q1 FY25 for transparency .
Lucky Strike brand strategy: Flagship Beverly Hills opening; rebrand capex ($15M) to lean into higher‑AUV LS brand .

Estimates Context

Wall Street consensus (S&P Global) could not be retrieved because the system lacked a CIQ mapping for BOWL, so consensus revenue/EPS/EBITDA for Q4 FY24 and FY25 are unavailable via our tool. As a result, “vs. estimates” cells are marked NA. We will update if/when S&P Global mapping is available (tool error noted).
Management’s FY25 guidance: Revenue $1.22–$1.28B; Adj. EBITDA margin 32–34% (=$390–$430M); low‑to‑mid single‑digit SSS comps; no pricing assumed .

Key Takeaways for Investors

Positive inflection: Traffic recovered with Q4 same‑store +6.9% and strong total growth ex‑service fees; early FY25 periods are positive with expanding operating margins, supporting the FY25 guide .
Margin leverage ahead: Wage comps roll off and revenue mix (events/F&B/online) should support the 32–34% Adj. EBITDA margin guide; food costs a watch item but procurement/systems are offsets .
Brand upgrade optionality: Expanding Lucky Strike and rebranding high‑profile Bowlero centers can lift AUV and F&B attach; $15M FY25 rebrand capex targeted .
Capital deployment: Healthy liquidity and increased revolver capacity enable continued buybacks/dividends and opportunistic M&A/new builds with higher unit economics .
LBE adjacency proof points: Raging Waves posted double‑digit revenue growth and attractive June EBITDA; seasonal hedge and scalable playbook support LBE optionality beyond bowling .
Reporting transparency: Transition to 4‑wall view from Q1 FY25 should simplify analysis and highlight unit economics versus legacy GAAP gross margin distortions .
Near‑term trading setup: Results/guidance should refocus narrative on traffic momentum, operating leverage, and cash returns; a lack of consensus datapoints (temporarily) limits beat/miss framing, but internal guide appears achievable with no pricing embedded .

Additional Relevant Disclosures (Q4 window)

Dividend: $0.055 per share declared 8/5/24, payable 9/6/24 to holders of record 8/23/24 .
Capital returns: Q4 buybacks of 3.0M shares for ~$35M; FY24 repurchases ~22.8M shares; $164M remaining authorization at 6/30/24 .
Liquidity and leverage: Pro forma liquidity ~$386M with revolver increased to $335M; bank net leverage 2.6x .

Citations:
Quarter and fiscal press release, GAAP/non‑GAAP reconciliations, guidance, capital return, liquidity .
Q4 call prepared remarks and Q&A: comps, leverage, mix, capex, pricing assumption, non-comp center contribution, Raging Waves, PBA/amusements, reporting change .
Dividend 8‑K and press release .
Prior quarters (for trend): Q3 metrics/initiatives ; Q2 metrics/initiatives .

Bowlero Corp. (BOWL)·Q4 2024 Earnings Summary