Dave & Buster's Entertainment (PLAY) Q1 2026 earnings summary

Executive summary

• First quarter revenue was $567.7 million, a 3.5% decrease year-over-year, with comparable store sales down 8.3%.

• Net income for the quarter was $21.7 million ($0.62 per diluted share), down from $41.4 million ($0.99 per share) in the prior year.

• Adjusted EBITDA was $136.1 million (24% margin), a 14.5% decrease from the prior year.

• Sequential improvement in comparable store sales trend observed through Q1 and into Q2, with positive same-store sales in 11 of the last 30 days.

• New initiatives include rebalanced media spend, Eat-and-Play Combo, Summer Pass, and a store manager incentive plan tied to same-store sales growth.

Financial highlights

• Entertainment revenues were $366.6 million (64.6% of total), food and beverage revenues were $201.1 million (35.4%).

• Operating income was $63.2 million (11.1% of revenue), down from $85.5 million (14.5%) year-over-year.

• Adjusted net income was $26.7 million ($0.76 per diluted share), compared to $46.4 million ($1.12) last year.

• Operating cash flow was $95.8 million; ended Q1 with $11.9 million in cash and $411 million available under a $650 million revolver.

• Q1 capital additions totaled $115 million gross ($110 million net), with $53 million for new stores, $20 million for remodels, $30 million for games, and $12.5 million for maintenance.

Outlook and guidance

• Sequential comp sales improvement expected to continue; Q2 comps down 2.2% through first five weeks.

• Full-year capital expenditures expected not to exceed $220 million; pre-opening expense ~$20 million; interest expense $130–$140 million.

• 10–12 new store openings expected in fiscal 2025.

• Liquidity is expected to be sufficient for operating requirements and capital allocation strategy over the next twelve months.

• Long-term goal: 3% same-store sales growth plus 1–2% from new stores and incremental opportunities.