Lucky Strike Entertainment (LUCK) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue grew 4% to $1.201B, with Q4 revenue up 6.1% to $301.2M, driven by organic momentum, successful summer pass sales, and major acquisitions including two water parks and three family entertainment centers.

• Adjusted EBITDA for FY25 was $367.7M (30.6% margin), with Q4 adjusted EBITDA at $88.7M; net loss for the year improved to $10M.

• Portfolio expanded to 370 locations as of August 2025, supported by $700M in acquisitions over three years and a robust pipeline.

• Real estate purchase of 58 locations for $306M and 75 owned properties valued at $600–700M increased asset flexibility and reduced future rent expense.

• Strategic focus on organic growth, guest experience, high-ROI investments, and accelerated rebranding to Lucky Strike, targeting 100 locations by year-end.

Financial highlights

• FY25 revenue was $1,201M, up 4% year-over-year; Q4 revenue was $301.2M, up 6.1%; adjusted EBITDA for FY25 was $367.7M, with a 30.6% margin.

• Same-store revenue declined 3.7% for FY25 and 4.1% in Q4, but improved sequentially each month.

• Cash flow from operations increased to $177M in FY25; CapEx was $117M for the year and $24M in Q4.

• Net debt at year-end was $1.26B, with $342M in liquidity and a net leverage ratio of 2.9.

• Boomers and new water parks contributed $7M in EBITDA; average revenue per location reached $3.3M in FY25.

Outlook and guidance

• FY26 revenue guidance is $1.26–$1.31B (5–9% growth), with adjusted EBITDA of $375–$415M.

• Guidance assumes increased marketing investment, seasonality from new water parks, and double-digit growth in the September quarter.

• Same-store sales expected to be positive, ranging from 1–5%; CapEx for FY26 projected at $130M, focused on high-ROI initiatives.

• Management emphasizes deleveraging through free cash flow and high-ROI capital expenditures.

• Recent acquisitions expected to reach company-wide margins in 12–18 months.