Pinstripes (PNST) Q1 2025 earnings summary

Executive summary

• Revenue grew 18.9% year-over-year to $30.6 million in the first quarter, driven by four new venue openings, but was offset by a 2.4% decline in same-store sales and softer consumer demand.

• Net loss widened to $10.0 million from $3.0 million year-over-year, primarily due to higher operating and interest expenses.

• Significant cost reductions were achieved, including $10 million in annualized venue-level savings and $4 million in SG&A savings.

• The company completed a reverse recapitalization and public listing via a business combination with Banyan Acquisition Corporation in December 2023.

• $5 million in new financing was secured post-quarter, with an additional $10 million in potential future funding.

Financial highlights

• Total revenue for the first quarter increased 18.9% year-over-year to $30.6 million, driven by new unit openings despite a 2.4% decrease in same-store sales.

• Food and beverage revenue rose 16.1% to $23.8 million, and recreation revenue increased 29.7% to $6.8 million year-over-year.

• Venue-level EBITDA margin decreased to 7.2%, primarily due to negative contributions from new locations.

• General and administrative expenses rose to $5.5 million, or 18.0% of sales, up from $3.5 million or 13.7% year-over-year.

• Net loss for the quarter was $10.0 million, with operating loss at $7.6 million.

Outlook and guidance

• Fiscal 2025 guidance includes same-store sales growth ranging from negative to positive low single digits.

• Two new venues are expected to open in Walnut Creek, CA (October) and Coral Gables, FL (November), with 30 additional sites in development.

• Mature store venue-level EBITDA margin projected at 17%-20%; general and administrative expenses expected at $15 million.

• Adjusted EBITDA guidance for fiscal 2025 is $8 million-$12 million, with about 50% of cost savings realized in 2025 and full impact in 2026.

• Management is exploring additional financing and a capital raise by the end of the fiscal third quarter to address liquidity needs.