Executive Summary

Q1 FY2026 delivered top-line and EPS beats versus Wall Street: revenue $292.28M vs $282.72M consensus (+3.4%), and EPS -$0.06 vs -$0.15 consensus; Adjusted EBITDA modestly ahead at $72.65M vs $70.68M consensus * *.
Headline growth of 12.3% YoY largely driven by acquisitions ($34.09M acquired revenue), while Same Store Revenue declined 0.4% YoY; non-GAAP Adjusted EBITDA rose 15.4% YoY with margin +70 bps to 24.9% .
FY2026 guidance reaffirmed: revenue $1.26B–$1.31B (+5–9%) and Adjusted EBITDA $375M–$415M; dividend raised ~9% to $0.06 for Q2 FY2026, payable Dec 8, 2025 .
Balance sheet actions: completed $1.2B term loan and $500M 7.25% notes due 2032; revolver upsized to $425M; net debt increased to $1.68B as of Sep 28, 2025, extending maturities and enhancing liquidity capacity .

What Went Well and What Went Wrong

What Went Well

Broad-based revenue growth with acquisitions: total revenue +12.3% YoY to $292.28M; Adjusted EBITDA +15.4% YoY to $72.65M and margin up to 24.9% .
Segment momentum: Food & Beverage +9.2% YoY to $96.13M; Amusement & Other +42.0% YoY to $70.88M, reflecting expanded attractions and acquired assets .
Management confidence and execution: “another strong quarter marked by solid execution, disciplined cost management, and meaningful platform expansion” — CEO Thomas Shannon .

What Went Wrong

Core trend softness: Same Store Revenue down 0.4% YoY despite acquisitions lifting headline revenue .
Profitability pressured by interest expense: net loss of $13.80M; interest expense rose to $53.40M vs $48.67M YoY, reflecting higher debt balances before refinancing benefits fully accrue .
Operating cash flow negative: CFO -$6.41M in Q1, with significant investing cash outflows ($315.15M) tied to footprint expansion and asset purchases .

Financial Results

Quarterly Performance vs Prior Periods and Consensus

Metric	Q3 2025	Q4 2025	Q1 2026	Q1 2026 Consensus
Revenue ($USD Millions)	$339.88*	$301.18	$292.28	$282.72*
Primary EPS ($USD)	$0.0514*	-$0.363*	-$0.0554*	-$0.1475*
Adjusted EBITDA ($USD Millions)	$103.01*	$88.73	$72.65	$70.68*
Adjusted EBITDA Margin (%)	30.3%*	29.5%	24.9%	—
Net (Loss) Income ($USD Millions)	—	-$74.72	-$13.80	—
Net (Loss) Income Margin (%)	—	-24.8%	-4.7%	—

Notes: Q3 2025 and consensus cells marked with an asterisk (*) are values retrieved from S&P Global.

Q1 2026 Actual vs Consensus Detail

Metric	Actual	Consensus	Surprise
Revenue ($USD Millions)	$292.28	$282.72*	+$9.56M / +3.4%
Primary EPS ($USD)	-$0.0554*	-$0.1475*	+$0.092 (less negative)
Adjusted EBITDA ($USD Millions)	$72.65	$70.68*	+$1.97M / +2.8%

Notes: Consensus marked with an asterisk (*) are values retrieved from S&P Global.
Significant beats are highlighted in Surprise column.

Segment Breakdown (Q1 2026)

Segment Revenue ($USD Millions)	Q1 2026
Bowling	$125.27
Food & Beverage	$96.13
Amusement & Other	$70.88
Total Revenues	$292.28

KPIs and Balance Sheet

KPI / Metric	Q4 2025	Q1 2026
Same Store Revenue YoY	-4.1%	-0.4%
Total Locations	370	369
Lucky Strike branded locations	55	74
Net Debt ($USD Millions)	$1,262.10	$1,681.38
Cash & Equivalents ($USD Millions)	$59.69	$31.03
Revolver Capacity ($USD Millions)	$385.00	$425.00

Guidance Changes

Metric	Period	Previous Guidance (Aug 28, 2025)	Current Guidance (Nov 4, 2025)	Change
Total Revenue Growth	FY 2026	5%–9%	5%–9%	Maintained
Total Revenue ($USD Millions)	FY 2026	$1,260–$1,310	$1,260–$1,310	Maintained
Adjusted EBITDA ($USD Millions)	FY 2026	$375–$415	$375–$415	Maintained
Dividend per Share	Q2 FY 2026	$0.055 (prior quarterly)	$0.060 (payable Dec 8, 2025)	Raised ~9%

Earnings Call Themes & Trends

Transcript was not available; themes below reflect management messaging from earnings and related press releases and investor updates.

Topic	Previous Mentions (Q3 & Q4 FY2025)	Current Period (Q1 FY2026)	Trend
Demand & Same-Store Trends	Season Pass drove double-digit growth in June/July; Q4 Same Store -4.1%	Same Store Revenue -0.4% YoY; signs of events recovery heading into holidays	Improving
Brand Rebranding	Targeting 100 Lucky Strike sites by YE; 55 sites at Q4	74 Lucky Strike locations; continued rebrand progress	Accelerating
Acquisitions & Footprint	Added water parks/FECs; total locations 370	Acquired 3 FECs + 1 water park; total 369; acquired revenue $34.09M	Ongoing expansion
Balance Sheet/Refinancing	Revolver +$50M to $385M ; bridge term loan $230M	New $1.2B term loan + $500M notes; revolver to $425M; term loan rate -25 bps; maturities to 2032	Extended/liquidity enhanced
Dividend/Capital Return	Declared $0.055 for Q1 FY2026	Increased dividend to $0.06 for Q2 FY2026	Shareholder return rising

Management Commentary

“The Company delivered another strong quarter marked by solid execution, disciplined cost management, and meaningful platform expansion… Strategic real estate investments and a major refinancing strengthened the balance sheet… acquisitions broadened the Company’s footprint and enhance long-term growth potential.” — Thomas Shannon, CEO .
FY2026 outlook reaffirmed with focus on “profitable growth… expanding operating cash flow… increasing free cash flow – including FCF/share,” and the note that recent acquisitions typically take 12–18 months to reach company-wide margins .

Q&A Highlights

Earnings call transcript for Q1 FY2026 was not available in the document set; Q&A highlights and any guidance clarifications from live remarks could not be verified. Management reaffirmed guidance and communicated event demand recovery and rebrand progress via the earnings press release and investor webcast notice .

Estimates Context

Revenue beat: Actual $292.28M vs consensus $282.72M (+3.4%)* .
EPS beat: Actual -$0.0554 vs consensus -$0.1475 (+$0.092)*.
Adjusted EBITDA beat: Actual $72.65M vs consensus $70.68M (+2.8%)* .
Estimate coverage: ~10 revenue estimates; ~7 EPS estimates for Q1 FY2026*.
Implication: Consensus likely to adjust for stronger-than-expected revenue/EBITDA, with attention to the mix (acquired revenue vs core), interest expense trajectory post-refinancing, and holiday/event demand into Q2.

Notes: Asterisk (*) denotes values retrieved from S&P Global.

Key Takeaways for Investors

Beat-driven print anchored by acquisitions and improving core: headline growth and margin expansion despite small Same Store decline; watch for core trajectory into holiday season .
Balance sheet terming out to 2032 reduces near-term refinancing risk; revolver upsized to $425M supports continued M&A and rebranding investments .
Dividend raised; capital return complements growth strategy — supportive for yield-oriented holders .
Non-GAAP adjustments matter: transactional/advisory costs ($10.0M) and earnout fair value changes (-$3.53M) impacted the GAAP-to-Adjusted EBITDA bridge; interest expense remains a key swing factor .
Monitor acquisition integration timeline (12–18 months to margin parity) and Same Store dynamics; acquired revenue ($34.09M) was a meaningful driver this quarter .
Near-term trading: positive skew from beats and dividend hike; medium-term thesis hinges on sustained core recovery, margin execution, and deleveraging path post-refinancing .

Additional Data and Disclosures

Condensed statements highlight operating income of $28.25M vs $12.95M YoY; net loss $13.80M vs net income $23.10M YoY; interest expense $53.40M vs $48.67M YoY .
Cash flow: CFO -$6.41M; investing -$315.15M; financing +$292.67M in Q1 FY2026 .
Liquidity: total cash + available revolver capacity $431.91M at quarter-end .
Investor webcast at 5:00 PM ET on Nov 4, 2025 (transcript not provided in documents reviewed) .

All consensus and non-reported period values marked with an asterisk (*) are retrieved from S&P Global.

Lucky Strike Entertainment Corp (LUCK)·Q1 2026 Earnings Summary