Dave & Buster's Entertainment (PLAY) Q2 2027 earnings summary

Executive summary

• Q2 2026 revenue was $544.1 million, down 2.4% year-over-year, with comparable store sales declining 2.9% due to reduced walk-in business.

• Net loss was $12.5 million ($0.36 per diluted share) versus net income of $11.4 million prior year; adjusted net loss was $9.5 million.

• Adjusted EBITDA was $98.9 million (18.2% margin), down from $129.8 million (23.3% margin) in the prior year.

• Food and beverage comparable sales grew 7.6% in Q2, marking five consecutive quarters of growth; special events sales have grown for seven straight quarters.

• Leadership team strengthened with new appointments in operations, marketing, technology, strategy, and CEO transition.

Financial highlights

• Entertainment revenues were $332.6 million (61.1% of total), food and beverage revenues $211.5 million (38.9%).

• Operating income was $19.4 million (3.6% margin), down from $53.0 million (9.5%) year-over-year.

• Adjusted free cash flow for the six months ended August 4, 2026, was $19.5 million, up from negative $36.5 million prior year; cash from operations $160.6 million YTD vs. $129.8 million.

• Net total leverage ratio was 3.5x as of August 4, 2026; weighted average effective interest rate on debt was 7.8%.

• Ended Q2 with $492.1 million in available liquidity and $16.0 million in cash and cash equivalents.

Outlook and guidance

• Expectation for continued improvement in same-store sales, revenue, and EBITDA in the near term, with management focused on margin management and cost-saving initiatives.

• Net CapEx expected to be under $200 million for FY26, with potential to reduce to $150 million or less in FY27.

• Cash and cash equivalents, operating cash flow, and available borrowings are expected to be sufficient for operating requirements and capital allocation strategy for at least the next twelve months.

• Two more store remodels and at least one additional international franchise opening expected in fiscal 2026.