Lucky Strike Entertainment (LUCK) Q3 2026 earnings summary

Executive summary

• Achieved second consecutive quarter of positive same-store sales comp at +0.2% year-over-year, with total revenue rising to $342.2 million from $339.9 million, and net income increasing to $16.9 million from $13.3 million.

• Q3 performance was impacted by two major winter storms and weaker consumer sentiment due to Middle East conflict, disrupting comps by approximately 250 basis points.

• 118 locations have been rebranded under the Lucky Strike initiative, with 368 total locations in operation as of May 2026.

• Significant cost actions and AI-driven labor optimization led to 97,000 fewer labor hours and $6 million in annualized savings, with further benefits expected in Q4.

• Major acquisitions included 58 properties from Carlyle and several water park and FEC locations, enhancing portfolio diversification and financial flexibility.

Financial highlights

• Total revenue for Q3 2026 was $342.2 million, up from $339.9 million year-over-year; nine-month revenue was $941.4 million (+5% YoY).

• Net income for Q3 was $16.9 million (+27% YoY); nine-month net loss was $9.6 million due to higher interest and lower fair value adjustments.

• Adjusted EBITDA for Q3 was $109.0 million, down from $117.3 million year-over-year; margin declined to 31.9% from 34.5%.

• Free Cash Flow per Share stands at $1.53, with a target of at least $2 over the next 12 months.

• Year-to-date capital expenditures were $90.1 million, down from $117.5 million year-over-year.

Outlook and guidance

• FY2026 total revenue guidance is $1,250M to $1,260M, with adjusted EBITDA expected between $345M and $350M.

• Revenue growth projected at 4% to 5% for the full year, with CapEx of ~$120 million.

• Labor and cost optimization initiatives are expected to yield benefits starting Q4 and into FY2027.

• Water parks expected to drive significant EBITDA growth in the September quarter and FY2027.

• Guidance revision reflects macroeconomic headwinds, not internal execution.