Lucky Strike Entertainment (LUCK) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $300.1 million, down 1.8% year-over-year, with adjusted EBITDA at $98.8 million, and net income reached $28.3 million, reversing a prior year loss of $63.5 million.

• Four new Lucky Strike centers opened, with Beverly Hills and Ladera Ranch each generating over $1 million in their first month; eight locations acquired, bringing total to 364 as of February 2025.

• Macroeconomic uncertainty, calendar shifts, and wildfires impacted corporate events and overall revenue.

• Retail and league businesses remained steady or grew slightly, while events business declined mid-single digits.

• Rebranding from Bowlero to Lucky Strike Entertainment, expanding beyond bowling to broader entertainment offerings.

Financial highlights

• Same-store comp sales declined 6.2% year-over-year, with a $19 million drag on results.

• Bowling revenue for the quarter was $138.97 million; food & beverage $110.90 million; amusement & other $50.21 million.

• Adjusted EBITDA margin was 32.9%, slightly below last year’s 33.7%.

• CapEx for the quarter was $53 million, with gross CapEx at $19 million, new build at $8 million, and maintenance at $12 million.

• Liquidity at quarter-end was $397 million, with $81 million in cash and net debt of $1.2 billion; net leverage ratio at 2.9x.

Outlook and guidance

• Fiscal 2025 revenue expected to grow mid-single digits to over 10% year-over-year, or $1.23–$1.28 billion.

• Adjusted EBITDA margin guidance is 32–34%, or $390–$430 million.

• Management anticipates increased acquisition activity in FY2025 and continued focus on internal initiatives and liquidity.

• Full-year guidance range reaffirmed, with EBITDA targets expected to be met through continued cost management.

• Plans to leverage cash, credit facilities, and sale-leaseback transactions to fund growth and capital expenditures.