Dave & Buster's Entertainment (PLAY) Q3 2025 earnings summary

Executive summary

• Q3 2024 revenue was $453 million, down 3% year-over-year, with comparable store sales falling 7.7% on a calendar basis.

• Net loss widened to $32.7 million ($0.84 per diluted share), compared to $5.2 million last year; Adjusted net loss was $17 million ($0.45 per share).

• CEO Chris Morris resigned; Kevin Sheehan appointed interim CEO, with a search for a permanent replacement underway.

• Three new stores opened in Q3, with nine new stores opened year-to-date, bringing the total to 227 locations.

• Special events and remodels outperformed, with positive trends despite macro and operational headwinds.

Financial highlights

• Adjusted EBITDA was $68.3 million (15.1% margin), down 16.3% year-over-year.

• Total revenues for the quarter decreased by $13.9 million to $453 million; entertainment, food, and beverage revenues all declined year-over-year.

• Operating loss was $6.3 million, compared to operating income of $18.6 million last year.

• Operating cash outflow was $7.2 million in Q3; quarter-end cash balance was $8.6 million.

• Year-to-date share repurchases totaled $88 million (2 million shares, 5.1% of outstanding shares at FY2023 end).

Outlook and guidance

• Fiscal 2024 Adjusted EBITDA expected in the range of $505–$515 million.

• Q4 guidance assumes performance similar to Q3, with modest improvements based on walk-in trends and event bookings.

• Guidance is considered conservative due to calendar shifts and comparability challenges.

• Management expects continued pressure on consumer demand and cost inflation, with selective price increases and operational efficiencies to partially offset impacts.

• Cash and available borrowings are expected to be sufficient for operating and capital needs over the next twelve months.