Pinstripes (PNST) Q2 2025 earnings summary

Executive summary

• Revenue increased 7.5% year-over-year to $26.5 million, driven by new venue openings, despite a 9.4% decline in same store sales and higher costs from new locations and public company expenses.

• Net loss widened to $9.3 million from $7.3 million year-over-year, reflecting higher operating and interest expenses.

• Eighteen venues open as of November 15, 2024, with Walnut Creek opening post-quarter and strong initial performance.

• Significant progress made on $15 million in annualized cost reductions at store and corporate levels, with $10 million at venue level and $4 million in SG&A.

• Liquidity at $3.2 million in cash as of October 13, 2024, with positive cash flow anticipated in Q3 and plans to raise additional capital.

Financial highlights

• Food and beverage revenue increased 8.6% to $21.1 million; recreation revenue up 3.6% to $5.4 million year-over-year.

• Operating loss was $7.9 million (29.7% of revenue), up from $7.2 million (29.3%) year-over-year; interest expense rose to $4.9 million.

• Adjusted EBITDA improved to $(3.1) million from $(4.2) million year-over-year; margin improved to (11.7)% from (16.9)%.

• Venue-Level EBITDA was $1.3 million (5.0% margin), down from $1.6 million (6.6%) year-over-year.

• Cash and cash equivalents declined to $3.2 million from $13.2 million at prior fiscal year-end.

Outlook and guidance

• Anticipates significant positive cash flow in fiscal Q3 due to seasonal holiday sales; ongoing cost-saving and marketing initiatives expected to improve profitability.

• No additional venue openings expected in Q3; Coral Gables location expected to open in Q4 of fiscal 2025.

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

• Current liquidity expected to last through most of calendar 2025, with additional capital raising under evaluation.

• The company plans to submit a plan to the NYSE to cure market capitalization and share price deficiencies.