Dave & Buster's Entertainment (PLAY) investor relations material

Executive summary

• Q2 2025 revenue was $557.4 million, nearly flat year-over-year, with comparable store sales down 3–3.5% due to reduced walk-in business and fewer operating weeks from a fiscal calendar change.

• Net income for the quarter was $11.4 million ($0.32 per diluted share), down from $40.3 million ($0.99 per diluted share) in the prior year.

• Adjusted net income was $14.1 million ($0.40 per diluted share), compared to $45.7 million ($1.12 per diluted share) last year.

• Adjusted EBITDA for the quarter was $129.8 million (23% margin), a 14.4% decrease year-over-year.

• Tarun Lal was appointed CEO and outlined a renewed focus on execution, guest-first culture, and operational excellence.

Financial highlights

• Total revenues for the quarter were $557.4 million, with entertainment revenues at $364.5 million and food and beverage revenues at $192.9 million.

• Operating income for the quarter was $53.0 million, down from $84.5 million in the prior year.

• Operating cash flow for the quarter was $34 million; year-to-date operating cash flow reached $130 million.

• Ended the quarter with $12 million in cash, $443 million in total liquidity, and a net total leverage ratio of 3.2x.

• Cost of products as a percentage of total revenues decreased to 13.7% from 14.7% year-over-year.

Outlook and guidance

• Expecting 11 new store openings in fiscal 2025, at the midpoint of prior guidance.

• At least five additional international franchise stores are expected to open in the next six months.

• Leadership targets $675 million in annual adjusted EBITDA as a near-term goal.

• Margin pressures from one-off costs in Q2 are expected to moderate in the second half of the year.

• Management expects continued variability in store-level results due to seasonality, new store openings, and macroeconomic factors.