Lucky Strike Entertainment (LUCK) Q1 2025 earnings summary

Executive summary

• Total location revenue increased 17.5% year-over-year to $260.2 million, with strong growth in food and beverage sales and robust cash flow conversion.

• Adjusted EBITDA grew 21% to $62.9 million, with margin expansion to 24.2% in a seasonally slow quarter.

• Net income increased to $23.1 million from $18.2 million year-over-year.

• Recent acquisitions include Raging Waves water park, Boomers family entertainment centers, and Spectrum Entertainment Complex, expanding the portfolio beyond bowling.

• New builds, menu innovations, and mobile ordering are driving higher per-guest spending and operational efficiencies.

Financial highlights

• Q1 2025 revenue ex service fee: $260 million, up from $226 million year-over-year.

• Adjusted EBITDA: $62.9 million, up from $52.1 million year-over-year.

• Same-store comp growth was 0.4% for the quarter.

• Food and beverage sales rose 18% year-over-year to $88 million, with F&B to bowling spend at $0.80, up from $0.60.

• Operating income more than doubled to $12.9 million from $5.4 million year-over-year.

Outlook and guidance

• FY 2025 revenue guidance raised to $1.23–$1.28 billion, increasing the bottom end by $10 million.

• Adjusted EBITDA margin expected at 32%–34%, or $390–$430 million.

• Expect low comps in Q1 and Q2, with stronger comps in Q3 and Q4 due to seasonality and event timing.

• December event bookings pacing up 10% year-over-year, with higher average event revenue expected.

• Robust new build pipeline with multiple Lucky Strike locations opened and more planned.