The sustained deterioration in comps and margins, combined with rising leverage (3.5x), suggests the 'Back-to-Basics' strategy is not yet reversing the trend. Watch for potential covenant pressure or a refinancing event given the $1.5B debt load against a shrinking EBITDA base. The stock is likely to gap down on this miss; avoid catching a falling knife until comps inflect positively.
Price Chart
Executive Summary
Dave & Buster's Q2 2026 revenue fell 2.4% YoY to $544.1M, missing consensus of $556.8M, and the company swung to a GAAP net loss of $12.5M (-$0.36/share) from a $11.4M profit a year ago. Adjusted net loss was -$0.27/share, a massive miss vs the $0.19 consensus estimate, driven by a 2.9% comparable-store-sales decline and margin compression. The prior quarter also showed deteriorating trends (revenue -1.5%, comps -5.4%), confirming the business is in a sustained downturn with no near-term catalyst visible in the filing.
Key Financial Metrics
Key Facts
- Revenue of $544.1M decreased 2.4% YoY, missing $556.8M consensus.
- GAAP net loss of $12.5M (-$0.36/share) vs net income of $11.4M ($0.32/share) in Q2 2025.
- Adjusted net loss of -$0.27/share missed consensus of $0.19 by 244% (a strong miss).
- Comparable store sales declined 2.9% YoY, following a 5.4% decline in Q1 2026.
- Adjusted EBITDA fell 23.8% to $98.9M from $129.8M, with margin contracting to 18.2% from 23.3%.
- Net Total Leverage Ratio increased to 3.5x from 3.3x in Q1, indicating rising financial risk.
- Operating income nearly halved to $19.4M (3.6% margin) from $53.0M (9.5% margin) a year ago.
- The company opened 6 new stores but revenue per store operating week fell to $170K from $182K.
Financial Impact
Revenue miss of ~$12.7M vs consensus; EPS miss of $0.46 vs consensus; Adjusted EBITDA decline of $30.9M YoY.
Risk Factors
- Further comparable-store-sales declines as consumer spending weakens
- Covenant breach or refinancing risk with net leverage at 3.5x and EBITDA declining
- Inability to reverse margin compression from rising labor and occupancy costs
- Execution risk on remodel program failing to drive sufficient sales lift
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001525769-26-000039 |
| Document: play-20260914.htm | 0001525769-26-000039 |
| Document: 0001525769-26-000039-index-headers.html | 0001525769-26-000039 |
| Document: 0001525769-26-000039-index.html | 0001525769-26-000039 |
| Document: 0001525769-26-000039.txt | 0001525769-26-000039 |
| 8-K Data (Synthetic) | 0001525769-26-000039 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | SC 13G | $7.14 | awaiting T+60 | — | $7.58 (+6.16%) |
Sep 21, 2026 5w ago | 8-K | $6.79 | awaiting T+60 | — | $7.58 (+11.63%) |
Sep 17, 2026 5w ago | Insider Buy | $6.73 | awaiting T+60 | — | $7.58 (−12.63%) |
Sep 17, 2026 5w ago | Insider Buy | $6.73 | awaiting T+60 | — | $7.58 (+12.63%) |
Sep 14, 2026 6w ago | 8-K | $6.86 | awaiting T+60 | — | $7.58 (−10.50%) |
Sep 14, 2026 6w ago | Press Release | $6.86 | awaiting T+60 | — | $7.58 (−10.50%) |
Jun 15, 2026 19w ago | 8-K | $11.55 $8.17 | ▲ +29.26% | ▲ +30.26% | $7.58 (+34.37%) |
Jun 15, 2026 19w ago | Press Release | $11.55 $8.17 | ▲ +29.26% | ▲ +30.26% | $7.58 (+34.37%) |
Jun 11, 2026 19w ago | Institutional Cluster | $13.18 $8.72 | ▲ +33.84% | ▲ +38.23% | $7.58 (+42.49%) |
Mar 31, 2026 30w ago | 8-K | $12.57 $11.33 | ▲ +9.86% | ▲ +23.24% | $7.58 (+39.70%) |
US Market Status
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