Guidance cut signals ongoing operational headwinds — same-store sales barely positive, margins compressing (Adjusted EBITDA margin 31.9% vs 34.5% last year). Net debt ballooned to $1.72B from $1.26B, with cash halved to $58.7M. Watch Q4 for labor optimization benefits management promises; if same-store trends don't improve, further downside risk to FY2027 estimates.
Price Chart
Executive Summary
Lucky Strike Entertainment reported Q3 FY2026 results with revenue of $342.2M (+0.7% YoY), slightly below consensus of $353.3M. GAAP net income improved to $16.9M vs $13.3M last year, but Adjusted EBITDA declined to $109.0M from $117.3M. Guidance was lowered: FY2026 revenue now $1,250M-$1,260M (from $1,260M-$1,310M) and Adjusted EBITDA $345M-$350M (from $375M-$415M), reflecting weather disruptions, consumer pullback, and elevated payroll costs.
Key Financial Metrics
Key Facts
- Q3 FY2026 revenue $342.2M, +0.7% YoY, below $353.3M consensus
- GAAP net income $16.9M vs $13.3M prior year; Adjusted EBITDA $109.0M vs $117.3M, down 7.1%
- Same-store revenue growth of just 0.2% YoY
- FY2026 guidance lowered: revenue $1,250M-$1,260M (prior $1,260M-$1,310M), Adjusted EBITDA $345M-$350M (prior $375M-$415M)
- Net debt increased to $1.72B from $1.26B at June 2025; cash down to $58.7M from $95.9M at Q2 end
- Company repurchased 1.1M shares for $8.3M at avg $7.29; $59M remaining on buyback program
- Quarterly dividend maintained at $0.06/share
Financial Impact
Guidance cut implies ~$55M reduction in midpoint Adjusted EBITDA vs prior outlook; revenue guidance lowered by ~$80M at midpoint
Risk Factors
- Consumer discretionary spending weakness and macro uncertainty
- Elevated leverage (net debt $1.72B vs $1.1B market cap)
- Weather disruptions and payroll cost overruns
- Integration risk from water park acquisitions (12-18 month margin ramp)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-030912 |
| Document: bowl-20260506.htm | 0001628280-26-030912 |
| Document: 0001628280-26-030912-index-headers.html | 0001628280-26-030912 |
| Document: 0001628280-26-030912-index.html | 0001628280-26-030912 |
| Document: 0001628280-26-030912.txt | 0001628280-26-030912 |
| 8-K Data (Synthetic) | 0001628280-26-030912 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | DEFA14A | $4.18 | awaiting T+60 | — | $4.07 (−2.63%) |
Oct 23, 2026 3d ago | DEF 14A | $4.18 | awaiting T+60 | — | $4.07 (+2.63%) |
Sep 11, 2026 6w ago | Insider Cluster | $5.64 | awaiting T+60 | — | $4.07 (−27.84%) |
Sep 1, 2026 7w ago | Insider Cluster | $6.24 | awaiting T+60 | — | $4.07 (−34.78%) |
Aug 27, 2026 8w ago | 8-K | $6.26 | awaiting T+60 | — | $4.07 (−34.98%) |
Jun 9, 2026 20w ago | Insider Cluster | $7.92 $6.24 | ▼ −21.21% | ▼ −25.03% | $4.07 (−48.61%) |
Jun 8, 2026 20w ago | 8-K | $7.92 $6.24 | ▼ −21.21% | ▼ −25.03% | $4.07 (−48.61%) |
May 6, 2026 24w ago | 8-K | $7.66 $6.70 | ▲ +12.53% | ▲ +14.59% | $4.07 (+46.87%) |
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