Pinstripes (PNST) investor relations material

Executive summary

• Revenue increased 10.4% year-over-year to $35.5 million for Q3 FY2025, driven by new store openings, but net loss widened to $8.1 million from net income of $12.2 million in the prior year.

• Achieved best corporate profitability quarter in two years with adjusted EBITDA of $2.7 million and venue-level EBITDA margin over 19%.

• Same store sales declined 7.7% year-over-year, but events business rebounded strongly and new stores contributed positively to EBITDA.

• Opened 18th location in Walnut Creek, CA, with further expansion planned pending additional financing.

• Substantial doubt exists about the company's ability to continue as a going concern due to liquidity constraints, debt covenant breaches, and ongoing losses.

Financial highlights

• Q3 revenue: $35.5 million, up 10.4% year-over-year; net loss: $8.1 million; adjusted EBITDA: $2.7 million; venue-level EBITDA: $6.8 million (19.2% margin).

• Food and beverage revenue was $8.1 million (+10.3% y/y); recreation revenue was $27.5 million (+10.5% y/y).

• Mature stores generated $27.5 million in revenue (+10.5% y/y) and $6.0 million in venue-level EBITDA (21.6% margin, down 30 bps y/y).

• General and administrative expenses decreased to $4.8 million from $5.3 million year-over-year.

• Cash and cash equivalents fell to $2.4 million as of January 5, 2025, from $13.2 million at prior fiscal year-end.

Outlook and guidance

• Management expects continued revenue growth from new store openings and increased same store sales, but acknowledges ongoing liquidity challenges and the need for additional capital.

• No material price increases planned for private events or open play; focus remains on creative promotions.

• Further unit growth contingent on securing additional financing; Coral Gables opening in Q4, Jacksonville later in the year.

• Exploring strategic and financing alternatives to address going concern risks.