Pinstripes Holdings, Inc. (PNST)·Q2 2025 Earnings Summary

Executive Summary

• Revenue grew 7.5% YoY to $26.482M as new venues offset softness; same‑store sales fell 9.4%, compressing venue-level EBITDA margin to 5.0% (mature venues improved to 8.3%). Adjusted EBITDA loss narrowed to $(3.111)M; net loss widened to $(9.310)M with higher interest and public company costs .
• Management executed on cost reductions (~$15M annualized) and course‑corrected marketing; quarter‑to‑date Q3 comps were down 8.1% with the last two weeks up 10.1%. They expect overall venue‑level EBITDA to be “meaningfully higher” YoY and Adjusted EBITDA to be positive in Q3 .
• Liquidity is tight: cash was $3.244M at 10/13; debt was ~$114M; the company is evaluating external capital and lender funding. Subsequent events: Oaktree provided an additional $6M in Jan and management disclosed going‑concern risk in Q3 filings, increasing financing overhang .
• Potential stock catalysts: Q3 holiday EBITDA inflection, stabilization in comps, and execution on financing milestones; risks include macro‑driven open‑play weakness, marketing execution, and covenant/going‑concern uncertainties .

What Went Well and What Went Wrong

• What Went Well

  • New venues drove 7.5% YoY revenue growth (F&B +8.6%, Recreation +3.6%), with mature venue margins expanding 51 bps to 8.3% .
  • Cost actions gaining traction: “successfully removed the annualized $10 million in cost savings we spoke to last quarter” and targeting ~$4M additional SG&A savings; recent weeks showed “substantial improvement” in comps .
  • Q3 setup constructive: quarter‑to‑date comps down 8.1% but last two weeks up 10.1%; management expects Q3 Adjusted EBITDA positive and venue‑level EBITDA meaningfully above prior year .

• What Went Wrong

  • Same‑store sales fell 9.4% on macro pressure (events) and self‑inflicted promotions (open play), yielding 160 bps lower venue‑level EBITDA margin despite revenues up .
  • Net loss widened to $(9.310)M on higher depreciation, interest, and public company costs; store labor ratio rose 100 bps to 38.9% due to new stores .
  • Liquidity strain: cash fell to $3.244M; management is seeking capital; subsequent Q3 disclosures flagged covenant breaches and going‑concern risk despite an additional $6M draw in January .

Financial Results

Segment breakdown

KPIs and cost metrics

Notes:

• Q1 FY2025 prior‑quarter financials not located in our document set; sequential comparisons to Q1 are therefore not shown. We include Q3 FY2025 subsequently reported trends in narrative sections where relevant (not in the Q2 tables) .

Guidance Changes

Management did not provide numeric full‑year ranges in Q2 materials; disclosures were directional and intra‑quarter for Q3 .

Earnings Call Themes & Trends

Management Commentary

• “We continue to make significant progress on rationalizing our cost structure by removing an annualized $15 million at the store and corporate level… and… local‑store marketing campaigns that are driving awareness and sales” — CEO Dale Schwartz .
• “Our mature store base… [saw] margin leverage… despite our current short‑term comp growth headwinds… we are on target in removing approximately $4 million of additional annualized savings in our SG&A” — CEO remarks .
• “Quarter‑to‑date through November 24, 2024, same‑store sales decreased 8.1%, with the last 2 weeks up 10.1%… we expect overall venue‑level EBITDA to be meaningfully higher than prior year, and adjusted EBITDA to be positive in Q3” — CFO Anthony Querciagrossa .
• “We are… evaluating and seeking to raise additional external capital… as well as additional funds from our existing lenders” — CEO and CFO on liquidity .

Q&A Highlights

• Comp pressure drivers: approximately half macro (events as proxy), half controllable (promotional activity/marketing changes); marketing pullback hurt, later reversed .
• Margin outlook: improved margins in Q2 despite negative sales leverage; if sales are better in H2, expect flow‑through at a “pretty high rate,” no specific target provided .
• Liquidity runway: with holiday cash build and cost‑outs, management believes current liquidity can carry “most of calendar ’25,” while still seeking additional capital .
• Volatility: recent comp improvement driven primarily by events; business is lumpier in events; macro backdrop amplifying volatility as they lap strong comps .

Estimates Context

• We attempted to retrieve S&P Global Wall Street consensus for revenue/EPS/EBITDA for Q2 FY2025, but the request hit a daily limit; consensus figures were unavailable at the time of analysis. As a result, we cannot assess beats/misses versus consensus for this quarter [Values intended from S&P Global; unavailable at query time].

Key Takeaways for Investors

• New‑unit growth lifted revenue but diluted venue‑level margins near‑term; mature‑venue margin expanded YoY, indicating underlying cost‑discipline progress .
• Same‑store sales decline (–9.4%) was driven by macro softness and self‑inflicted promotional pressure; course corrections and event momentum improved late‑November trends .
• Liquidity is the primary overhang: low cash, high leverage, and subsequent going‑concern disclosure despite a $6M Oaktree funding add in January; financing milestones are now central to the equity story .
• Near‑term setup: holiday seasonality and management’s guide for positive Q3 Adjusted EBITDA could be a trading catalyst if comps continue to improve and cost savings flow‑through .
• Watch the mix: open‑play remains the weak spot; events are more resilient but lumpy, influencing week‑to‑week volatility and visibility .
• Execution priorities: sustain cost savings, optimize marketing ROI (after early‑Q2 pullback), and accelerate new‑unit maturation to lift venue‑level EBITDA margins .
• Risk‑reward hinges on balance sheet actions: successful capital raise/refi and adherence to lender milestones could de‑risk the going‑concern narrative and re‑rate the multiple; failure would pressure equity value .

Supporting documents and data:

• Q2 FY2025 8‑K/press release with detailed financials and non‑GAAP reconciliations .
• Q2 FY2025 earnings call transcript (prepared remarks and Q&A) .
• Subsequent Q3 FY2025 results and liquidity/go‑forward risk disclosure .
• Delisting notice for warrants (informational) .