Lucky Strike Entertainment (LUCK) investor relations material

Executive summary

• Achieved second consecutive quarter of positive same-store sales comp at +0.2% year-over-year, with total revenue rising to $342.2 million from $339.9 million.

• Net income for the quarter was $16.9 million, up 27% from $13.3 million in the prior year quarter, primarily due to lower depreciation and amortization expenses.

• Q3 performance was impacted by two major winter storms and Middle East conflict, disrupting performance and costing about 250 basis points of comp.

• 118 locations have been rebranded under the Lucky Strike initiative, with 368 total locations in operation as of May 2026.

• Significant cost actions and AI-driven labor optimization led to 97,000 fewer labor hours and $6 million in annualized savings.

Financial highlights

• Quarterly revenue: $342.2 million (+1% YoY); nine-month revenue: $941.4 million (+5% YoY).

• Quarterly net income: $16.9 million (+27% YoY); nine-month net loss: $9.6 million (vs. $64.7 million net income prior year).

• Adjusted EBITDA for the quarter: $109.0 million; for nine months: $259.1 million.

• Free Cash Flow per Share stands at $1.53, with a target of $2 over the next 12 months.

• Year-to-date capital expenditures were $90.1 million, down from $117.5 million year-over-year.

Outlook and guidance

• FY2026 total revenue guidance is $1,250M to $1,260M, with adjusted EBITDA expected between $345M and $350M.

• Revenue growth projected at 4% to 5% for the full year.

• Labor and cost optimization initiatives are expected to yield benefits starting Q4 and into FY2027.

• Water parks expected to drive significant EBITDA growth in fiscal 2027.

• Management expects continued de-leveraging through operating cash flow and capital expenditure optimization.