Financial Data and Key Metrics Changes - Total revenue for Q1 2026 grew by 12% compared to the previous year, while adjusted EBITDA increased by 15% [4] - Same-store sales were nearly flat at -0.4%, with retail revenue up 1.4% and league revenue up 2.1% [4] - Capital expenditures (CapEx) for the quarter were $26 million, down from $42 million a year ago, reflecting tighter capital allocation [5] Business Line Data and Key Metrics Changes - Retail foot traffic showed strength, finishing nearly 1.5% up, while league participation increased over 2% [10] - The offline events business, primarily corporate bookings, was down 11%, impacting total comps by approximately 160 basis points [4] - Food and beverage revenue increased by 10%, significantly outpacing overall retail growth of 1.4% [41] Market Data and Key Metrics Changes - The company experienced strong performance in markets outside California and Washington, where layoffs impacted corporate events [27] - The events business in New York, Texas, and Florida showed strong results, contrasting with the challenges faced in California [27] Company Strategy and Development Direction - The company is focused on improving free cash flow through disciplined cost management and capital efficiency [5] - A strategic real estate investment was made, acquiring land and buildings for 58 locations for $306 million, enhancing flexibility and reducing future rent exposure [5] - The company aims to expand its brand presence, with plans to reach 100 rebranded locations by the end of 2026 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the events business, noting October was the strongest month of the year for both offline and total events [4] - The company anticipates same-store sales growth of 1-5% for the year, with expectations for stronger performance in the fourth quarter [16] - Management highlighted the importance of enhancing food and beverage offerings to drive customer engagement and revenue [41] Other Important Information - The company completed a $1.7 billion refinancing, extending debt maturities to 2032 at an average weighted cost of capital of 7% [5] - The acquisition of two water parks and three family entertainment centers is expected to generate returns above historical averages [6] Q&A Session Summary Question: What are the drivers of Q1's flat comp? - Management noted strength in retail and league categories, with league participation up over 2% and food and beverage revenue from league bowlers reaching all-time highs [10][11] Question: How should we think about same-store sales for the rest of the year? - Management guided for same-store sales to remain in the range of 1-5%, with stronger performance expected in the fourth quarter [16] Question: What is the status of the Lucky Strike rebrand? - The company is on track to reach 100 rebranded locations by the end of the year, with positive results from rebranded properties [24][25] Question: How is the events business performing geographically? - The events business is strong in New York, Texas, and Florida, but facing challenges in California due to layoffs [27] Question: What is the outlook for food and beverage revenue? - Food and beverage revenue increased by 10% without price increases, driven by improved attachments and product quality [41][47] Question: What is the focus for the remainder of the year regarding acquisitions? - The company is prioritizing organic growth and free cash flow, with a focus on internal improvements rather than new acquisitions unless they are exceptional opportunities [51]

Business Overview - Lucky Strike operates 369 locations as of November 2025, well-positioned in attractive North American markets and expanding into Family Entertainment Centers (FECs) through the acquisition of Boomers[24] - The company's diversified portfolio includes bowling (46%), food & beverage (35%), and amusement & other (19%) revenue streams in FY25, mitigating seasonality and consumer discretionary spending risks[26] Financial Performance - Total Revenue increased by 4% from $1,154,614 thousand in FY24 to $1,201,333 thousand in FY25[55] - Same Store Revenue decreased by 3.7% from $1,029,251 thousand in FY24 to $990,678 thousand in FY25[55] - Adjusted EBITDA increased from $361,497 thousand in FY24 to $367,687 thousand in FY25, with margins of 31.3% and 30.6% respectively[59] - Adjusted Location EBITDA margin was 36% in Q1 FY25, 42% in Q2 FY25, 44% in Q3 FY25, and 40% in Q4 FY25[57] Strategic Initiatives - The company sold 260,000 summer passes in 2025, with members visiting 9 times per pass, driving loyalty and year-round revenue[18] - Lucky Strike plans to rebrand nearly 100 locations by the end of the year and complete the rebrand by the end of 2026[33] Acquisitions and Value Creation - Lucky Strike acquired AMF for $310 million in 2013, with Lucky Strike contributing $20 million of equity, resulting in an estimated value creation of $1.3-$1.5 billion[20] - The company acquired Brunswick locations in 2014 for $260 million and immediately entered into a Sale-Leaseback Transaction reducing purchase price to $60 million[20, 21] - The company deployed $700 million of capital into acquisitions in the past three years[21]

Revenue and Income - Total revenue for the three months ended September 28, 2025, was $292,278, representing an increase of $32,083, or 12%, compared to the same period last fiscal year[110] - Operating income increased to $28,246, a significant rise of $15,300 compared to the previous year[110] - Adjusted EBITDA for the three months ended September 28, 2025, was $72,654, compared to $62,943 for the same period in 2024, reflecting an increase of approximately 15%[126] Expenses and Costs - Location operating costs increased by $11,598, or 13%, primarily due to acquisitions of water parks and family entertainment centers[115] - Location payroll and benefit costs rose by $7,808, or 12%, driven by acquisitions and higher wages[117] - SG&A expenses increased by $534, or 2%, while as a percentage of revenues decreased from 13% to 12%[119] - Depreciation and amortization decreased by $3,788, or 10%, due to changes in estimated useful lives of fixed assets[120] - Interest expense increased by $4,727, or 10%, primarily due to the amortization of $3,300 of deferred financing costs and increased debt since Q1 fiscal 2025[121] Cash Flow and Financing - Net cash used in operating activities was $(6,408) for the three months ended September 28, 2025, a decrease of $35,821 compared to $29,413 provided in the same period of the prior year[131] - Investing activities used $315,147 in cash, significantly higher than $39,924 in the same period of the prior year, primarily due to increased acquisition activity[133] - Financing activities provided $292,671, a substantial increase from $(17,806) used in the same period of the prior year, mainly due to proceeds from the Fifteenth Amendment to the First Lien Credit Agreement[134] Acquisitions and Agreements - The Company acquired 58 existing properties for $306,000, reducing annual rent obligations and enhancing financial flexibility[108] - The Company signed a definitive agreement to acquire Raging Waters Los Angeles, expected to be completed in fiscal 2026[108] Tax and Cash Position - The effective tax rate for the quarter ended September 28, 2025, was 48%, influenced by changes in the fair value of the earnout liability and unrealizable interest limitations[123] - At September 28, 2025, the company had approximately $31,032 in available cash and cash equivalents[129] - The company plans to use available cash-on-hand to fund its share repurchase program, aimed at returning value to shareholders[128] Market Risks - An increase or decrease of 1.0% in the effective interest rate would result in a change of approximately $12,000 in interest expense over a twelve-month period[141] - The company is exposed to market risks including interest rates, credit risk, and commodity price fluctuations, which could impact its financial condition[140] Same-Store Performance - Same-store revenues remained relatively flat, with walk-in business for bowling locations contributing approximately $3,200[113]

Lucky Strike Entertainment Reports First Quarter Results for Fiscal Year 2026 and Increases Common Stock Dividend RICHMOND, VA. November 4, 2025 – Lucky Strike Entertainment (NYSE: LUCK), one of the world's premier owner/operators of location-based entertainment, today provided financial results for the first quarter of the 2026 fiscal year, which ended on September 28, 2025. Quarter Highlights: "The Company delivered another strong quarter marked by solid execution, disciplined cost management, and meaning ...

Financial Data and Key Metrics Changes - The company reported total revenue of $301.2 million for fiscal year 2025, a 6.1% increase from $283.9 million in the previous year [18] - Adjusted EBITDA for the year was $88.7 million, up from $83.4 million, reflecting a positive trend in profitability [18] - Same store sales declined by 4.1%, but showed sequential improvement each month in the fourth quarter [18] Business Line Data and Key Metrics Changes - The retail business remained steady, while league operations experienced low single-digit growth, and the events business faced a high single-digit decline [18] - The acquisition of Boomers and two new water parks contributed an additional $7 million in EBITDA [19] - Food and beverage revenue showed positive same store comps, with food revenue up 2.5% and alcohol comps down 2.7%, indicating a shift in consumer preferences [12][19] Market Data and Key Metrics Changes - California, which accounts for approximately 20% of total sales, contributed $6 million to the same store sales decline [19] - New York is showing positive trends, with marketing efforts yielding favorable results [56] Company Strategy and Development Direction - The company is focused on building a premier location-based entertainment platform in North America, with significant investments in water parks and family entertainment centers [9] - The strategy includes enhancing guest experiences, expanding operating cash flow, and increasing free cash flow [21] - The company aims to reach 100 Lucky Strike locations by year-end, up from 55 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the business, particularly in July, which saw double-digit growth year-over-year [6][21] - The company anticipates total revenue growth of 5% to 9% for fiscal year 2026, translating to $1.26 billion to $1.31 billion in revenue [21] - Management highlighted the importance of marketing investments to capture additional market share and improve brand awareness [47] Other Important Information - The company acquired 58 properties for $36 million, which will enhance its operational flexibility and is expected to be accretive to earnings [9][20] - The liquidity position remains strong at $342 million, with $60 million in cash [22] Q&A Session Summary Question: Can you walk us through the assumptions embedded in the new targets for 2026? - Management indicated that July's positive performance and increased marketing investments are key components of the guidance [25] Question: How do you see the cadence playing out between the quarters in 2026? - Management expects good double-digit growth in September, with the fourth quarter projected to be $10 million to $20 million higher than the second quarter [29] Question: What is the outlook for the events side of the business? - Management noted that the comp gets easier starting in September, and they are focusing on increasing marketing spend to capture market share [33] Question: How are you approaching the water parks and family entertainment centers compared to bowling? - The same operational playbook is applied, focusing on improving asset quality and enhancing food and beverage offerings [36] Question: What is the expected trajectory for location operating costs? - Management indicated that location operating costs are expected to return to historical trends after accounting for non-cash charges [65] Question: Can you provide insights on the impact of marketing investments on recent performance? - Management noted that increased marketing spend has driven significant results, particularly in the successful summer season pass program [46] Question: What is the expected annualized cost to operate Boomers? - Boomers is currently running close to a 25% EBITDA margin, with revenue expectations to increase over the next twelve months [80] Question: What is the non-acquisition CapEx guidance for FY 2026? - Non-acquisition CapEx is expected to be around $130 million, down from previous levels as the company focuses on high ROI initiatives [82]

Financial Data and Key Metrics Changes - The company reported total revenue of $301.2 million for fiscal year 2025, a 6.1% increase from $283.9 million in the previous year [19] - Adjusted EBITDA for the year was $88.7 million, up from $83.4 million, reflecting a positive trend in profitability [19] - Same store sales declined by 4.1%, but showed sequential improvement each month in the fourth quarter [19] Business Line Data and Key Metrics Changes - The retail business remained steady, while league operations experienced low single-digit growth and the events business faced a high single-digit decline [19] - The acquisition of Boomers and two new water parks contributed an additional $7 million in EBITDA [19] - Food revenue showed positive same store comps of 2.5%, while alcohol comps were down 2.7% but improving [12][19] Market Data and Key Metrics Changes - California, which accounts for approximately 20% of total sales, contributed $6 million to the same store sales decline [20] - New York is performing well, with positive comps attributed to increased marketing efforts [56] Company Strategy and Development Direction - The company is focused on building a premier location-based entertainment platform in North America, with significant investments in water parks and family entertainment centers [8][10] - The strategy includes enhancing guest experiences and expanding market leadership through acquisitions and organic growth [10] - The company aims to reach 100 Lucky Strike locations by year-end, up from 55 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive momentum heading into fiscal year 2026, driven by strong July performance and the successful season pass program [6][22] - The company anticipates total revenue growth of 5% to 9% for fiscal year 2026, translating to $1.26 billion to $1.31 billion in revenue [22] - Management highlighted the importance of marketing investments to capture additional market share and improve brand awareness [47] Other Important Information - The company acquired 58 properties for $36 million, which will lower GAAP rent expense and capitalized lease expense in fiscal year 2026 [21][22] - The liquidity position remains strong at $342 million, with $60 million in cash [23] Q&A Session Summary Question: Can you walk us through the assumptions embedded in the new targets for 2026 EBITDA guidance? - Management noted that July showed positive growth, and the guidance reflects increased marketing investments and the expected positive impact from newly acquired assets [26][27] Question: How do you see the cadence playing out between the quarters in fiscal 2026? - Management expects double-digit growth in September, with the fourth quarter projected to be $10 million to $20 million higher than the second quarter [30] Question: What is the outlook for the events side of the business? - Management indicated that the comp gets easier starting in September, and they are focusing on increasing marketing spend to capture market share [34] Question: How are you approaching the business of water parks and family entertainment centers compared to bowling? - The same playbook is applied, focusing on improving asset quality and enhancing food and beverage offerings [36] Question: What is the expected trajectory for location operating costs? - Management indicated that location operating costs are expected to return to historical trends after accounting for non-cash charges [66] Question: Can you provide insights on the impact of marketing investments on recent performance? - Management highlighted that increased marketing spend has driven significant results, particularly in the successful season pass program [46] Question: What is the expected annualized cost to operate Boomers? - Boomers is currently running close to a 25% EBITDA margin, with expectations for revenue growth in the next twelve months [84] Question: What is the non-acquisition CapEx guidance for FY 2026? - Non-acquisition CapEx is expected to be around $130 million, down from the previous year as the company focuses on high ROI initiatives [85]

Financial Performance - Total Revenue increased by 40% from $1154614 thousand in FY24 to $1201333 thousand in FY25[38] - Same Store Revenue decreased by 37% from $1029251 thousand in FY24 to $990678 thousand in FY25[38] - Adjusted EBITDA increased from $361497 thousand in FY24 to $367687 thousand in FY25, with margins of 313% and 306% respectively[43] - Net loss was reduced from $83581 thousand in FY24 to $10022 thousand in FY25[43] Acquisitions and Capital Deployment - The company deployed $700 million of capital into acquisitions over the past three years[23] - Acquired AMF for $310 million in 2013, leading to an estimated value creation of $13-$15 billion[22] - Acquired Brunswick for $260 million in 2014, reducing the purchase price to $60 million after a Sale Leaseback transaction[22, 23, 26] Operational Metrics - The company has 370 operating locations as of August 2025[25] - The company owns 75 properties with an estimated value between $600 million and $700 million[35] - The company sold 260000 Summer Season Passes in FY25[20]

Part I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Lucky Strike Entertainment, formerly Bowlero, is a leading North American location-based entertainment operator with over 360 venues, focusing on growth and diverse offerings - **360+ locations** across North America, offering diverse entertainment[16](index=16&type=chunk)[236](index=236&type=chunk)[237](index=237&type=chunk) - Rebranded from Bowlero to Lucky Strike Entertainment on **December 12, 2024**, to reflect broader offerings[236](index=236&type=chunk) - Strengths include **loyal customers**, diverse brands (Lucky Strike, Bowlero, AMF, Boomers Parks), and a proven business model[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - Business model emphasizes organic growth, new locations, and strategic acquisitions, with **10 venues acquired in FY2025** and **75 since FY2022**[21](index=21&type=chunk)[22](index=22&type=chunk) Foreign Operations Revenue and Net Assets (Fiscal Years 2025 & 2024) | Metric | Fiscal Year 2025 (in thousands) | Fiscal Year 2024 (in thousands) | | :----- | :------------------------------ | :------------------------------ | | Revenues | $12,530 | $14,003 | | Net Assets | $27,407 | $29,772 | [Item 1A. Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks including strategy execution, consumer spending, competition, substantial debt, operational failures, regulatory compliance, and concentrated voting power - Risks include challenges in **comparable location sales growth**, adapting to consumer preferences, and retaining key management[37](index=37&type=chunk)[38](index=38&type=chunk)[40](index=40&type=chunk)[48](index=48&type=chunk) - **Substantial indebtedness** and restrictive debt covenants could limit liquidity and business plan execution, risking default[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[53](index=53&type=chunk) - **IT and cybersecurity risks** (system failures, data breaches) could cause operational disruptions, reputational damage, and significant costs[55](index=55&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - Industry risks include **staff recruitment/retention**, rising labor/insurance costs, and revenue fluctuations from seasonality or external events[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) - **Dual-class stock structure** (Class B shares with **10 votes per share**) concentrates voting power with Mr. Shannon and Atairos[112](index=112&type=chunk)[114](index=114&type=chunk) [Item 1B. Unresolved Staff Comments](index=20&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments from the SEC - The company has **no unresolved staff comments**[120](index=120&type=chunk) [Item 1C. Cybersecurity](index=20&type=section&id=Item%201C.%20Cybersecurity) The company's cybersecurity program, based on NIST CSF and PCI DSS, is overseen by the Audit Committee, with no material incidents reported - Cybersecurity program leverages **NIST CSF and PCI DSS** frameworks for risk management[121](index=121&type=chunk) - Safeguards include **third-party managed detection and response**, layered controls, and regular employee training with phishing tests[121](index=121&type=chunk)[123](index=123&type=chunk)[130](index=130&type=chunk) - The **Audit Committee** provides primary oversight of the cybersecurity program, receiving regular IT department updates[127](index=127&type=chunk) - **No material impact** from cybersecurity incidents on financial results or operations was reported[126](index=126&type=chunk) [Item 2. Properties](index=21&type=section&id=Item%202.%20Properties) The company operates **365 venues** across North America, primarily leased, with recent acquisitions converting 58 properties to owned assets Operating Locations by Country and Ownership (as of June 29, 2025) | Country | Leased | Owned | Total | | :------ | :----- | :---- | :---- | | United States | 345 | 14 | 359 | | Mexico | 1 | 3 | 4 | | Canada | 2 | — | 2 | | **Total** | **348** | **17** | **365** | - Acquired **58 leased properties** for **$306 million** on July 10, 2025, reducing rent and enhancing flexibility[131](index=131&type=chunk)[388](index=388&type=chunk) - As of June 29, 2025, **one location is in development** and two are closed[131](index=131&type=chunk) [Item 3. Legal Proceedings](index=22&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal proceedings, with management expecting no material adverse effect on financial position or operations - Involved in various legal proceedings typical for the retail, restaurant, and entertainment industries[132](index=132&type=chunk)[351](index=351&type=chunk) - Management believes legal matters will **not materially adversely affect** financial position, results, or cash flows[351](index=351&type=chunk) [Item 4. Mine Safety Disclosures](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine Safety Disclosures are not applicable to the company - Mine Safety Disclosures are **not applicable** to Lucky Strike Entertainment Corporation[134](index=134&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=23&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Class A common stock trades on NYSE as 'LUCK'; the company has an active share repurchase program and pays quarterly cash dividends - Class A common stock is listed on the NYSE under the symbol **'LUCK'**[136](index=136&type=chunk) - As of August 21, 2025, there were **78 holders of Class A common stock** and **1 holder of Class B common stock**[137](index=137&type=chunk) Share Repurchase Program Activity (Fiscal Year Ended June 29, 2025) | Metric | Value (in thousands) | | :------------------------------------------------ | :---- | | Shares repurchased in FY2025 | 6,796,938 | | Total value of repurchases in FY2025 | $72,138 | | Average purchase price per share in FY2025 | $10.61 | | Cumulative total shares repurchased | 40,868,233 | | Cumulative total value of repurchases | $453,913 | | Cumulative average purchase price per share | $11.11 | | Remaining balance in repurchase program (as of June 29, 2025) | $92,223 | - Quarterly cash dividends of **$0.055 per share** were initiated in Q3 FY2024, with **$33.458 million paid in FY2025**, and are expected to continue[144](index=144&type=chunk)[368](index=368&type=chunk) [Item 6. Reserved](index=25&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information - Item 6 is **reserved** and contains no information[147](index=147&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Total revenue increased by **4%** to **$1.2 billion** in FY2025, with operating income up **50%**, driven by acquisitions and strategic growth, while liquidity remains strong [Overview](index=25&type=section&id=Overview) Lucky Strike Entertainment, a premier location-based entertainment operator, drives shareholder value through organic growth, upgrades, new venues, and acquisitions - Premier operator of location-based entertainment, including bowling, arcades, F&B, FECs, and water parks[149](index=149&type=chunk) - Strategy focuses on long-term shareholder value via organic growth, location upgrades, new openings, and acquisitions[150](index=150&type=chunk) [Recent Developments](index=25&type=section&id=Recent%20Developments) FY2025 saw **4% revenue growth**, rebranding, four new Lucky Strike locations, and key acquisitions, with further post-year-end expansion - Total revenue growth of **4%** reported for fiscal year 2025[153](index=153&type=chunk) - The company rebranded from Bowlero to **Lucky Strike Entertainment**[153](index=153&type=chunk) - **Four new Lucky Strike locations** were completed and opened[153](index=153&type=chunk) - Acquisitions included **Boomers Parks**, Spectrum Entertainment Complex, Adventure Park, and **Shipwreck Island water park**[153](index=153&type=chunk) - Post-FY2025, acquired **58 leased properties**, Wet 'n Wild Emerald Pointe, Castle Park, two Boomers Parks, and agreed to acquire Raging Waters Los Angeles[153](index=153&type=chunk) [Results of Operations: Fiscal Year Ended June 29, 2025 Compared To the Fiscal Year Ended June 30, 2024](index=26&type=section&id=Results%20of%20Operations%3A%20Fiscal%20Year%20Ended%20June%2029%2C%202025%20Compared%20To%20the%20Fiscal%20Year%20Ended%20June%2030%2C%202024) FY2025 total revenues grew **4%** to **$1.2 billion**, operating income surged **50%**, and net loss significantly improved due to acquisitions and favorable earnout valuation Consolidated Statements of Operations Summary (Fiscal Years 2025 vs. 2024) | Metric (in thousands) | FY2025 | FY2024 | Change ($) | Change (%) | | :------------------------------------------------- | :----- | :----- | :--------- | :--------- | | **Revenues** | | | | | | Bowling | $549,895 | $557,962 | $(8,067) | (1)% | | Food & beverage | $424,214 | $401,383 | $22,831 | 6% | | Amusement & other | $227,224 | $195,269 | $31,955 | 16% | | **Total revenues** | **$1,201,333** | **$1,154,614** | **$46,719** | **4%** | | **Costs and expenses** | | | | | | Location operating costs (excl. D&A) | $375,573 | $328,551 | $47,022 | 14% | | Location payroll and benefit costs | $284,131 | $287,206 | $(3,075) | (1)% | | Location food and beverage costs | $94,553 | $90,752 | $3,801 | 4% | | SG&A (excl. D&A) | $143,173 | $148,007 | $(4,834) | (3)% | | Depreciation and amortization | $156,852 | $145,364 | $11,488 | 8% | | Loss on impairment and disposal of fixed assets, net | $10,905 | $61,433 | $(50,528) | (82)% | | Other operating (income) expense, net | $(1,041) | $1,711 | $(2,752) | * | | **Total costs and expenses** | **$1,064,146** | **$1,063,024** | **$1,122** | **—%** | | **Operating income** | **$137,187** | **$91,590** | **$45,597** | **50%** | | **Other (income) expenses** | | | | | | Interest expense, net | $196,371 | $177,611 | $18,760 | 11% | | Change in fair value of earnout liability | $(101,484) | $25,456 | $(126,940) | * | | Other expense | $817 | $76 | $741 | * | | **Total other expense** | **$95,704** | **$203,143** | **$(107,439)** | **(53)%** | | **Income (loss) before income tax expense (benefit)** | **$41,483** | **$(111,553)** | **$153,036** | ***** | | Income tax expense (benefit) | $51,505 | $(27,972) | $79,477 | * | | **Net loss** | **$(10,022)** | **$(83,581)** | **$73,559** | ***** | Same-Store vs. Other Revenues (Fiscal Years 2025 vs. 2024) | Revenue Category (in thousands) | FY2025 | FY2024 | Change ($) | Change (%) | | :------------------------------ | :----- | :----- | :--------- | :--------- | | Revenues on a same-store basis | $990,678 | $1,029,251 | $(38,573) | (3.7)% | | Revenues for media, new and closed locations | $208,191 | $119,901 | $88,290 | 73.6% | | Service fee revenue | $2,464 | $5,462 | $(2,998) | (54.9)% | | **Total revenues** | **$1,201,333** | **$1,154,614** | **$46,719** | **4.0%** | - Total revenues increased due to acquisitions, partially offset by a **3.7% decline in same-store revenues**[156](index=156&type=chunk)[157](index=157&type=chunk) - Location operating costs increased by **14%**, driven by acquisitions and a **$20.7 million** non-cash increase in self-insurance reserves[159](index=159&type=chunk) - Location payroll and benefit costs decreased by **1%** due to staffing optimization, despite location growth[160](index=160&type=chunk) - SG&A expenses decreased by **3%**, mainly from a **$14.3 million** drop in professional fees, partially offset by a **$7.8 million** rise in share-based compensation[162](index=162&type=chunk) - Loss on impairment decreased by **82%**, largely due to a non-recurring **$52.03 million** impairment charge in FY2024 for the Bowlero trade name[163](index=163&type=chunk)[165](index=165&type=chunk) - Net interest expense increased by **11%** due to a new financing obligation and a **$150 million** incremental term loan in FY2025[166](index=166&type=chunk) - Favorable **$(101.484) million** impact from change in fair value of earnout liability in FY2025, driven by stock price decrease[167](index=167&type=chunk) [Non-GAAP measure: Adjusted EBITDA](index=28&type=section&id=Non-GAAP%20measure%3A%20Adjusted%20EBITDA) Adjusted EBITDA, a non-GAAP measure, increased by **1.7%** to **$367.7 million** in FY2025, used to assess core operating performance - Adjusted EBITDA is a **non-GAAP measure** used by management to analyze core operating performance by excluding non-core items[170](index=170&type=chunk) Adjusted EBITDA Reconciliation (Fiscal Years 2025 vs. 2024) | (in thousands) | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Net loss | $(10,022) | $(83,581) | | Interest expense | $196,371 | $185,181 | | Income tax expense (benefit) | $51,505 | $(27,972) | | Depreciation and amortization | $158,527 | $147,362 | | Loss on impairment, disposals, and other charges, net | $28,615 | $62,562 | | Share-based compensation | $21,632 | $13,775 | | Closed location EBITDA | $3,054 | $9,006 | | Transactional and other advisory costs | $17,117 | $21,303 | | Changes in the value of earnouts | $(101,484) | $25,456 | | Other, net | $2,372 | $8,405 | | **Adjusted EBITDA** | **$367,687** | **$361,497** | - Adjusted EBITDA increased by **$6.19 million**, or **1.7%**, to **$367.687 million** in FY2025[173](index=173&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is managed through cash, operating cash flows, and expanded credit facilities, with **$59.7 million** cash and **$150 million** incremental term loan in FY2025 - Long-term strategy focuses on growth to improve operating profit margins, with capital expenditures for new locations and upgrades as key cash requirements[175](index=175&type=chunk) - As of June 29, 2025, available cash and cash equivalents totaled approximately **$59.686 million**[184](index=184&type=chunk) - In FY2025, a **$150 million** incremental term loan was obtained, increasing quarterly principal payments[179](index=179&type=chunk)[334](index=334&type=chunk) - Post-FY2025, a **$230 million** bridge term loan was secured, and the Revolver commitment increased by **$50 million** to **$385 million**[180](index=180&type=chunk)[184](index=184&type=chunk)[387](index=387&type=chunk)[389](index=389&type=chunk) - As of June 29, 2025, **$30 million** was drawn on the Revolver, with a **$335 million** commitment[183](index=183&type=chunk)[336](index=336&type=chunk) [Cash Flow Analysis: Fiscal Year Ended June 29, 2025 Compared To the Fiscal Year Ended June 30, 2024](index=31&type=section&id=Cash%20Flow%20Analysis%3A%20Fiscal%20Year%20Ended%20June%2029%2C%202025%20Compared%20To%20the%20Fiscal%20Year%20Ended%20June%2030%2C%202024) Operating cash flow increased **14%** to **$177.2 million**, investing cash flow decreased **43%**, and financing cash flow decreased **65%** in FY2025 Consolidated Statements of Cash Flows Summary (Fiscal Years 2025 vs. 2024) | (in thousands) | June 29, 2025 | June 30, 2024 | Change ($) | Change (%) | | :------------------------------------ | :------------ | :------------ | :--------- | :--------- | | Net cash provided by operating activities | $177,221 | $154,830 | $22,391 | 14% | | Net cash used in investing activities | $(220,311) | $(385,656) | $165,345 | 43% | | Net cash provided by financing activities | $35,860 | $102,157 | $(66,297) | (65)% | | Effect of exchange rate changes on cash | $(56) | $8 | $(64) | * | | **Net change in cash and cash equivalents** | **$(7,286)** | **$(128,661)** | **$121,375** | **(94)%** | - Operating activities provided **$177.221 million**, a **14% increase**, driven by higher revenues and lease incentives[186](index=186&type=chunk) - Investing activities used **$220.311 million**, a **43% decrease**, due to reduced capital expenditures and acquisition activity[187](index=187&type=chunk) - Financing activities provided **$35.86 million**, a **65% decrease**, due to higher dividends and equity settlements, offset by lower buybacks and the incremental term loan[188](index=188&type=chunk) [Critical Accounting Estimates](index=31&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates include asset impairment, earnout valuation, self-insurance reserves, and income taxes, all requiring significant judgment - Critical estimates include impairment of **long-lived assets** (property, ROU assets) and **indefinite-lived intangibles** (goodwill, trade names)[192](index=192&type=chunk)[196](index=196&type=chunk) - Earnout liability fair value is determined using a **Monte-Carlo simulation**, with key inputs like volatility, stock price, and risk-free rate[198](index=198&type=chunk) - **Self-insurance reserves** are based on historical experience and third-party estimates for identified and IBNR claims[199](index=199&type=chunk) - Income tax accounting involves estimating **deferred tax assets/liabilities**, assessing realization with valuation allowances, and recognizing uncertain tax positions[200](index=200&type=chunk)[201](index=201&type=chunk) [Recently Issued Accounting Standards](index=32&type=section&id=Recently%20Issued%20Accounting%20Standards) Adopted **ASU 2023-07** (Segment Reporting) in FY2025 and evaluating **ASU 2023-09** (Income Tax) and **ASU 2024-03** (Expense Disaggregation) - Adopted **ASU 2023-07** (Segment Reporting) in FY2025, requiring enhanced disclosures[299](index=299&type=chunk) - Evaluating **ASU 2023-09** (Income Taxes), effective for fiscal years beginning after December 15, 2024[300](index=300&type=chunk) - Evaluating **ASU 2024-03** (Expense Disaggregation Disclosures), effective for annual periods beginning after December 15, 2026[301](index=301&type=chunk)[302](index=302&type=chunk) [Emerging Growth Company Accounting Election](index=32&type=section&id=Emerging%20Growth%20Company%20Accounting%20Election) As an 'emerging growth company', the company uses an extended transition period for new accounting standards, potentially impacting comparability - As an **'emerging growth company'**, the company uses an extended transition period for new accounting standards, aligning with private companies[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk)[297](index=297&type=chunk)[298](index=298&type=chunk) - This election may hinder comparability of financial statements with other public companies due to differing accounting standards[205](index=205&type=chunk)[298](index=298&type=chunk) - Emerging growth company status continues until **March 5, 2026**, or reaching **$1.235 billion** in revenue or **$700 million** market capitalization[206](index=206&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates, credit, labor, and foreign currency, mitigated by interest rate collars and careful cash management - Exposed to market risks from **interest rates, credit, labor costs, and foreign currency exchange rates**[207](index=207&type=chunk) - Interest rate risk is mitigated by **two interest rate collars** with a **$800 million notional amount**, capping SOFR at **5.50%** until March 31, 2026[208](index=208&type=chunk)[340](index=340&type=chunk) - **Credit risk** is managed by placing cash with high-quality financial institutions[209](index=209&type=chunk) - **Commodity price risk** for F&B and supplies is monitored, with purchasing commitments and price adjustments used for mitigation[210](index=210&type=chunk)[211](index=211&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=34&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Presents audited consolidated financial statements for FY2025, FY2024, and FY2023, including balance sheets, income statements, cash flows, and detailed explanatory notes [Report of Independent Registered Public Accounting Firm](index=35&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Deloitte & Touche LLP issued an **unqualified opinion** on the consolidated financial statements for FY2025, FY2024, and FY2023, affirming GAAP compliance - Deloitte & Touche LLP provided an **unqualified opinion** on consolidated financial statements for FY2025, FY2024, and FY2023[214](index=214&type=chunk) - Financial statements are presented fairly, in all material respects, in conformity with **US GAAP**[214](index=214&type=chunk) - The company is **not required** to have an audit of its internal control over financial reporting[216](index=216&type=chunk) [Consolidated Balance Sheets](index=36&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$3.16 billion** as of June 29, 2025, with liabilities rising to **$3.33 billion**, and stockholders' deficit reaching **$(298.7) million** Consolidated Balance Sheets Summary (as of June 29, 2025 and June 30, 2024) | (Amounts in thousands) | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | **Assets** | | | | Cash and cash equivalents | $59,686 | $66,972 | | Total current assets | $112,550 | $113,962 | | Property and equipment, net | $944,917 | $887,738 | | Operating lease right of use assets | $588,594 | $559,168 | | Finance lease right of use assets, net | $507,701 | $524,392 | | Intangible assets, net | $45,562 | $47,051 | | Goodwill | $844,351 | $833,888 | | Deferred income tax asset | $67,919 | $112,106 | | Other assets | $48,145 | $35,730 | | **Total assets** | **$3,159,739** | **$3,114,035** | | **Liabilities** | | | | Total current liabilities | $194,385 | $182,806 | | Long-term debt, net | $1,300,708 | $1,129,523 | | Long-term obligations of operating lease liabilities | $606,692 | $561,916 | | Long-term obligations of finance lease liabilities | $683,161 | $680,213 | | Long-term financing obligations | $449,215 | $440,875 | | Earnout liability | $36,183 | $137,636 | | Other long-term liabilities | $56,307 | $26,471 | | Deferred income tax liabilities | $4,434 | $4,447 | | **Total liabilities** | **$3,331,085** | **$3,163,887** | | **Temporary Equity** | | | | Series A preferred stock | $127,325 | $127,410 | | **Stockholders' Deficit** | | | | Total stockholders' deficit | $(298,671) | $(177,262) | - Total assets increased by **$45.704 million (1.5%)** from FY2024 to FY2025[220](index=220&type=chunk) - Net long-term debt increased by **$171.185 million (15.2%)** to **$1.301 billion**[220](index=220&type=chunk) - Earnout liability significantly decreased by **$101.453 million (73.7%)** to **$36.183 million**[220](index=220&type=chunk) - Total stockholders' deficit increased by **$121.409 million (68.5%)** to **$(298.671) million**[222](index=222&type=chunk) [Consolidated Statements of Operations](index=38&type=section&id=Consolidated%20Statements%20of%20Operations) FY2025 total revenues grew **4%** to **$1.2 billion**, operating income rose **50%**, and net loss improved to **$(10.022) million** Consolidated Statements of Operations (Fiscal Years 2025, 2024, 2023) | (Amounts in thousands, except share and per share amounts) | June 29, 2025 | June 30, 2024 | July 2, 2023 | | :-------------------------------------------------------- | :------------ | :------------ | :----------- | | **Revenues** | | | | | Bowling | $549,895 | $557,962 | $518,428 | | Food & beverage | $424,214 | $401,383 | $372,607 | | Amusement & other | $227,224 | $195,269 | $167,755 | | **Total revenues** | **$1,201,333** | **$1,154,614** | **$1,058,790** | | **Operating income** | **$137,187** | **$91,590** | **$200,800** | | **Net (loss) income** | **$(10,022)** | **$(83,581)** | **$82,048** | | Net (loss) income attributable to common stockholders | $(19,070) | $(92,255) | $53,336 | | Net (loss) income per share attributable to Class A and B common stockholders - Basic | $(0.13) | $(0.61) | $0.32 | | Net (loss) income per share attributable to Class A and B common stockholders - Diluted | $(0.13) | $(0.61) | $0.30 | | Weighted-average shares used in computing net (loss) income per share attributable to common stockholders - Basic | 142,401,407 | 151,339,634 | 165,508,879 | | Weighted-average shares used in computing net (loss) income per share attributable to common stockholders - Diluted | 142,401,407 | 151,339,634 | 175,821,396 | - Total revenues increased by **$46.719 million (4%)** from FY2024 to FY2025[225](index=225&type=chunk) - Operating income increased by **$45.597 million (50%)** from FY2024 to FY2025[225](index=225&type=chunk) - Net loss improved by **$73.559 million** from **$(83.581) million** in FY2024 to **$(10.022) million** in FY2025[225](index=225&type=chunk) - Basic and diluted net loss per share was **$(0.13)** in FY2025, an improvement from **$(0.61)** in FY2024[225](index=225&type=chunk) [Consolidated Statements of Comprehensive (Loss) Income](index=39&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income) Total comprehensive loss improved to **$(10.722) million** in FY2025, driven by better net loss, despite derivative and currency adjustments Consolidated Statements of Comprehensive (Loss) Income (Fiscal Years 2025, 2024, 2023) | (Amounts in thousands) | June 29, 2025 | June 30, 2024 | July 2, 2023 | | :------------------------------------------ | :------------ | :------------ | :----------- | | Net (loss) income | $(10,022) | $(83,581) | $82,048 | | Other comprehensive (loss) income, net of income tax: | | | | | Unrealized (loss) gain on derivatives | $(525) | $(2,878) | $3,385 | | Foreign currency translation adjustment | $(175) | $(1,054) | $2,073 | | Other comprehensive (loss) income | $(700) | $(3,932) | $5,458 | | **Total comprehensive (loss) income** | **$(10,722)** | **$(87,513)** | **$87,506** | - Total comprehensive loss improved by **$76.791 million** from **$(87.513) million** in FY2024 to **$(10.722) million** in FY2025[227](index=227&type=chunk) - Other comprehensive loss was **$(0.7) million** in FY2025, mainly from unrealized derivative losses and foreign currency adjustments[227](index=227&type=chunk) [Consolidated Statements of Changes in Temporary Equity and Stockholders' (Deficit) Equity](index=39&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Temporary%20Equity%20and%20Stockholders%27%20(Deficit)%20Equity) Stockholders' deficit increased to **$(298.671) million** by June 29, 2025, driven by net loss, cash dividends, and share repurchases Changes in Stockholders' (Deficit) Equity (Fiscal Years 2025 vs. 2024) | (Amounts in thousands) | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Balance, beginning of period | $(177,262) | $155,221 | | Net loss | $(10,022) | $(83,581) | | Unrealized loss on derivatives | $(525) | $(2,878) | | Foreign currency translation adjustment | $(175) | $(1,054) | | Share-based compensation | $11,925 | $13,436 | | Settlement of equity awards | $(16,244) | — | | Settlement of Series A preferred stock | $3,492 | $16,168 | | Accrual of paid-in-kind dividends on Series A preferred stock | $(3,407) | — | | Cash dividends | $(33,551) | $(24,960) | | Repurchase of Class A common stock into Treasury stock | $(72,902) | $(249,614) | | **Balance, end of period** | **$(298,671)** | **$(177,262)** | - Total stockholders' deficit increased by **$121.409 million** from **$(177.262) million** at June 30, 2024, to **$(298.671) million** at June 29, 2025[229](index=229&type=chunk) - Key drivers include a **$(10.022) million net loss**, **$(33.551) million cash dividends**, and **$(72.902) million Class A share repurchases**[229](index=229&type=chunk) [Consolidated Statements of Cash Flows](index=41&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased **14%** to **$177.2 million**, investing cash flow decreased **43%**, and financing cash flow decreased **65%** in FY2025 Consolidated Statements of Cash Flows (Fiscal Years 2025, 2024, 2023) | (Amounts in thousands) | June 29, 2025 | June 30, 2024 | July 2, 2023 | | :------------------------------------------ | :------------ | :------------ | :----------- | | Net cash provided by operating activities | $177,221 | $154,830 | $217,787 | | Net cash used in investing activities | $(220,311) | $(385,656) | $(253,218) | | Net cash provided by financing activities | $35,860 | $102,157 | $98,957 | | Effect of exchange rates on cash | $(56) | $8 | $(129) | | **Net change in cash and cash equivalents** | **$(7,286)** | **$(128,661)** | **$63,397** | | Cash and cash equivalents at end of period | $59,686 | $66,972 | $195,633 | - Net cash provided by operating activities increased by **$22.391 million (14%)** in FY2025 compared to FY2024[232](index=232&type=chunk)[186](index=186&type=chunk) - Net cash used in investing activities decreased by **$165.345 million (43%)** in FY2025 compared to FY2024[232](index=232&type=chunk)[187](index=187&type=chunk) - Net cash provided by financing activities decreased by **$66.297 million (65%)** in FY2025 compared to FY2024[234](index=234&type=chunk)[188](index=188&type=chunk) [Notes to Consolidated Financial Statements](index=43&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes support financial statements, covering business, accounting policies, acquisitions, assets, leases, debt, taxes, earnouts, equity, and subsequent events [Note 1. Description of Business](index=43&type=section&id=Note%201.%20Description%20of%20Business) Lucky Strike Entertainment, formerly Bowlero, rebranded on **December 12, 2024**, operating **365 integrated entertainment venues** across North America - Lucky Strike Entertainment (formerly Bowlero) is a premier location-based entertainment operator, rebranded on **December 12, 2024**[236](index=236&type=chunk) - Operates **365 locations** across the US, Mexico, and Canada under diverse brands including Bowlero, Lucky Strike, and Boomers Parks[237](index=237&type=chunk)[238](index=238&type=chunk) - All locations are managed as a **single, integrated business segment** of location-based entertainment[237](index=237&type=chunk) [Note 2. Significant Accounting Policies](index=43&type=section&id=Note%202.%20Significant%20Accounting%20Policies) Financial statements adhere to GAAP, utilizing estimates for fair value, impairment, and reserves, with specific policies for leases, intangibles, revenue, and self-insurance - Financial statements are prepared in accordance with **GAAP**, with a fiscal year ending on the Sunday closest to June 30th[239](index=239&type=chunk)[242](index=242&type=chunk)[243](index=243&type=chunk) - Significant estimates are made for **cash flow projections**, fair value in acquisitions, derivatives, share-based compensation, and asset impairment[244](index=244&type=chunk) - Lease accounting recognizes **ROU assets and lease liabilities** for fixed payments, using the incremental borrowing rate for present value calculations[258](index=258&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) - **Goodwill and indefinite-lived intangibles** are tested annually for impairment; finite-lived intangibles are amortized over **1 to 5 years**[268](index=268&type=chunk)[271](index=271&type=chunk) - Revenue for bowling, F&B, and most amusement activities is recognized **at a point-in-time**[284](index=284&type=chunk)[285](index=285&type=chunk) - The company is **self-insured** for property, general liability, workers' compensation, and health care, establishing reserves for claims[277](index=277&type=chunk) - Income taxes use the **asset and liability approach**, recognizing deferred tax assets/liabilities and assessing their realization with valuation allowances[280](index=280&type=chunk) [Note 3. Business Combinations and Acquisitions](index=51&type=section&id=Note%203.%20Business%20Combinations%20and%20Acquisitions) The company actively acquires to expand market share, completing **four acquisitions (10 locations)** for **$80.9 million** in FY2025 - Continually evaluates acquisitions to expand market share and leverage fixed costs[303](index=303&type=chunk) - In FY2025, **four acquisitions (ten locations)** were completed for **$80.9 million**, with three valuations still preliminary[308](index=308&type=chunk) - In FY2024, acquired Lucky Strike Entertainment (14 locations) for **$89.936 million** and seven other locations for **$101.207 million**[311](index=311&type=chunk) - Goodwill represents assembled workforce, future earnings, and synergies; **$4.878 million** (FY2025) and **$74.53 million** (FY2024) were tax deductible[305](index=305&type=chunk)[309](index=309&type=chunk) - Key valuation approaches for acquired assets include **cost approach** (buildings/equipment), **market approach** (land), and **relief-from-royalty method** (trade names)[314](index=314&type=chunk)[315](index=315&type=chunk)[317](index=317&type=chunk) [Note 4. Goodwill and Other Intangible Assets](index=54&type=section&id=Note%204.%20Goodwill%20and%20Other%20Intangible%20Assets) Goodwill increased to **$844.351 million** by June 29, 2025, with finite-lived intangibles at **$13.342 million** and indefinite-lived at **$32.22 million** Goodwill Carrying Amount (Fiscal Years 2025 vs. 2024) | Metric (in thousands) | Amount | | :------------------------------------------ | :----- | | Balance as of July 2, 2023 | $753,538 | | Goodwill from FY2024 acquisitions | $80,350 | | Balance as of June 30, 2024 | $833,888 | | Goodwill from FY2025 acquisitions | $10,390 | | Adjustments to preliminary fair values for prior year acquisitions | $73 | | **Balance as of June 29, 2025** | **$844,351** | Intangible Assets, Net (as of June 29, 2025 and June 30, 2024) | (in thousands) | June 29, 2025 Net Carrying Amount | June 30, 2024 Net Carrying Amount | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | **Finite-lived intangible assets:** | | | | Bowlero trade name | $9,504 | $14,256 | | Other acquisition trade names | $899 | $1,184 | | Customer relationships | $744 | $1,377 | | Management contracts | — | $37 | | Non-compete agreements | $1,411 | $1,969 | | PBA member, sponsor & media relationships | $549 | $661 | | Other intangible assets | $235 | $379 | | **Total finite-lived intangible assets** | **$13,342** | **$19,863** | | **Indefinite-lived intangible assets:** | | | | Liquor licenses | $12,830 | $12,418 | | Lucky Strike trade name | $8,360 | $8,360 | | Other trade names | $11,030 | $6,410 | | **Total indefinite-lived intangible assets** | **$32,220** | **$27,188** | | **Total Intangible Assets, Net** | **$45,562** | **$47,051** | - Amortization expense for finite-lived intangible assets was **$7.284 million** in fiscal year 2025[319](index=319&type=chunk) - The Bowlero trade name was reclassified to finite-lived in FY2024, leading to a **$52.03 million impairment charge**[271](index=271&type=chunk) [Note 5. Property and Equipment](index=55&type=section&id=Note%205.%20Property%20and%20Equipment) Net property and equipment increased to **$944.917 million** by June 29, 2025, with depreciation expense at **$132.122 million** in FY2025 Property and Equipment, Net (as of June 29, 2025 and June 30, 2024) | (in thousands) | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Land | $139,389 | $108,442 | | Buildings and leasehold improvements | $754,647 | $663,537 | | Equipment, software, furniture, and fixtures | $645,200 | $630,280 | | Construction in progress | $27,021 | $55,343 | | Total gross property and equipment | $1,566,257 | $1,457,602 | | Accumulated depreciation | $(621,340) | $(569,864) | | **Property and equipment, net** | **$944,917** | **$887,738** | - Net property and equipment increased by **$57.179 million (6.4%)** from FY2024 to FY2025[320](index=320&type=chunk) - Depreciation expense for property and equipment was **$132.122 million** in fiscal year 2025[321](index=321&type=chunk) - Land includes **66 acres** adjacent to Raging Waves water park, purchased for **$9.4 million** on December 16, 2024[320](index=320&type=chunk) [Note 6. Leases](index=56&type=section&id=Note%206.%20Leases) Total net lease costs increased to **$262.491 million** in FY2025, with operating lease ROU assets at **$588.594 million** and finance lease ROU assets at **$507.701 million** Components of Net Lease Cost (Fiscal Years 2025, 2024, 2023) | Lease Costs (in thousands) | June 29, 2025 | June 30, 2024 | July 2, 2023 | | :------------------------------------------ | :------------ | :------------ | :----------- | | Total Operating Lease Costs | $91,047 | $84,090 | $70,577 | | Total Finance Lease Costs | $67,099 | $66,358 | $55,121 | | Total Financing Obligation Costs | $40,742 | $28,333 | $223 | | Total Other Costs, Net | $63,603 | $61,485 | $41,179 | | **Total Lease Costs, Net** | **$262,491** | **$240,266** | **$167,100** | Cash Paid for Lease Liabilities (Fiscal Years 2025 vs. 2024) | Cash Paid (in thousands) | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Operating cash flows paid for operating leases | $65,781 | $65,694 | | Operating cash flows paid for interest portion of finance leases | $47,234 | $45,141 | | Financing cash flows paid for principal portion of finance leases | $1,615 | $6,298 | | Operating cash flows paid for interest portion of financing obligations | $32,402 | $22,644 | | Financing cash flows paid for principal portion of finance obligations | — | $24 | | **Total cash amounts paid for lease liabilities** | **$147,032** | **$139,801** | Lease-Related Balance Sheet Information (as of June 29, 2025 and June 30, 2024) | Balance Sheet Item (in thousands) | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Operating lease right of use assets | $588,594 | $559,168 | | Current obligations of operating lease liabilities | $33,103 | $28,460 | | Long-term obligations of operating lease liabilities | $606,692 | $561,916 | | Finance lease right of use assets, net | $507,701 | $524,392 | | Other current liabilities (finance lease) | $780 | $1,954 | | Long-term obligations of finance lease liabilities | $683,161 | $680,213 | | Long-term financing obligations | $449,215 | $440,875 | Weighted Average Lease Terms and Discount Rates (as of June 29, 2025 and June 30, 2024) | Metric | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Weighted average remaining lease terms (years): | | | | Operating leases | 18.26 | 19.12 | | Finance leases | 29.91 | 30.90 | | Financing obligations | 52.91 | 53.90 | | Weighted average discount rate: | | | | Operating leases | 7.50% | 7.62% | | Finance leases | 7.56% | 7.57% | | Financing obligations | 9.53% | 9.53% | [Note 7. Supplemental Cash Flow Information](index=59&type=section&id=Note%207.%20Supplemental%20Cash%20Flow%20Information) FY2025 supplemental cash flow includes **$175.106 million** interest paid and **$2.255 million** income taxes paid Supplemental Cash Flow Information (Fiscal Years 2025, 2024, 2023) | (in thousands) | June 29, 2025 | June 30, 2024 | July 2, 2023 | | :------------------------------------------ | :------------ | :------------ | :----------- | | Cash paid during the period for: | | | | | Interest | $175,106 | $172,403 | $104,167 | | Income taxes, net of refunds | $2,255 | $3,501 | $6,640 | | Noncash investing and financing transactions: | | | | | Capital expenditures in accounts payable and accrued expenses | $13,571 | $24,798 | $24,937 | | Change in fair value of interest rate swap, net of tax | $(525) | $(2,878) | $3,385 | | Accrual of paid-in-kind dividends on Series A preferred stock | $3,407 | — | $5,665 | | Excise tax liability accrued on stock repurchases | $763 | $2,423 | $1,578 | [Note 8. Accounts Payable and Accrued Expenses](index=60&type=section&id=Note%208.%20Accounts%20Payable%20and%20Accrued%20Expenses) Total accounts payable and accrued expenses increased to **$145.188 million** by June 29, 2025 Accounts Payable and Accrued Expenses (as of June 29, 2025 and June 30, 2024) | (in thousands) | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Accounts payable | $33,863 | $50,457 | | Deferred revenue | $17,804 | $15,976 | | Taxes and licenses | $16,622 | $17,840 | | Compensation | $13,677 | $13,768 | | Insurance | $13,288 | $7,401 | | Customer deposits | $12,811 | $14,006 | | Interest | $9,164 | $1,113 | | Utilities | $5,070 | $5,475 | | Professional fees | $4,221 | $4,090 | | Other | $18,668 | $5,658 | | **Total accounts payable and accrued expenses** | **$145,188** | **$135,784** | - Total accounts payable and accrued expenses increased by **$9.404 million (6.9%)** from FY2024 to FY2025[332](index=332&type=chunk) [Note 9. Debt](index=60&type=section&id=Note%209.%20Debt) Total debt was **$1.322 billion** as of June 29, 2025, primarily a First Lien Term Loan, with the company in compliance with covenants Debt Structure Summary (as of June 29, 2025 and June 30, 2024) | (in thousands) | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | First Lien Credit Facility Term Loan | $1,279,116 | $1,138,500 | | Revolver | $30,000 | — | | Other Equipment Loans | $12,674 | $13,700 | | **Total gross debt** | **$1,321,790** | **$1,152,200** | | Less: Unamortized financing costs | $(10,920) | $(13,514) | | Current portion of unamortized financing costs | $3,947 | $3,361 | | Current maturities of long-term debt | $(14,109) | $(12,524) | | **Total long-term debt** | **$1,300,708** | **$1,129,523** | - First Lien Credit Facility Term Loan had an outstanding balance of **$1.279 billion** at **7.83% variable interest** as of June 29, 2025[333](index=333&type=chunk) - Revolver commitment was **$335 million** with **$30 million drawn** as of June 29, 2025[336](index=336&type=chunk) - The company was in **compliance with all debt covenants** as of June 29, 2025[339](index=339&type=chunk) - Interest rate collars for **$800 million notional amount** are in place until March 31, 2026, with a SOFR cap of **5.50%**[340](index=340&type=chunk) [Note 10. Income Taxes](index=61&type=section&id=Note%2010.%20Income%20Taxes) FY2025 income tax expense was **$51.505 million**, impacted by a **$65.104 million** valuation allowance increase, with **$63.485 million** net deferred tax assets Income Tax Expense (Benefit) (Fiscal Years 2025, 2024, 2023) | (in thousands) | June 29, 2025 | June 30, 2024 | July 2, 2023 | | :------------------------------------------ | :------------ | :------------ | :----------- | | Total current provision | $5,756 | $6,367 | $2,235 | | Total deferred provision | $45,749 | $(34,339) | $(86,478) | | **Total income tax benefit** | **$51,505** | **$(27,972)** | **$(84,243)** | - FY2025 effective tax rate impacted by a **$65.104 million** increase in valuation allowance for Section 163(j) interest limitation carryforwards[343](index=343&type=chunk)[348](index=348&type=chunk) Net Deferred Income Tax Assets (Liabilities) (as of June 29, 2025 and June 30, 2024) | (in thousands) | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Total net deferred income tax assets | $458,902 | $482,165 | | Total deferred income tax liabilities | $395,417 | $374,506 | | **Net deferred income tax asset (liabilities)** | **$63,485** | **$107,659** | - As of June 29, 2025, the company had **$137.445 million** in federal NOLs and **$12.233 million** in tax credit carryforwards[345](index=345&type=chunk) - Realization of deferred tax assets depends on future taxable income and is subject to **Sections 382 and 383 limitations** due to ownership changes[346](index=346&type=chunk) [Note 11. Commitments and Contingencies](index=64&type=section&id=Note%2011.%20Commitments%20and%20Contingencies) The company faces routine legal proceedings, with management expecting no material adverse effect on its financial position or operations - The company is involved in various legal proceedings common to the retail, restaurant, and entertainment industries[351](index=351&type=chunk) - Management believes these matters will **not materially adversely affect** the company's financial position, results, or cash flows[351](index=351&type=chunk) [Note 12. Earnouts](index=64&type=section&id=Note%2012.%20Earnouts) **11.4 million unvested earnout shares** are outstanding, vesting if Class A stock exceeds **$17.50** by December 15, 2026 - As of June 29, 2025, **11,418,291 unvested earnout shares** were outstanding[352](index=352&type=chunk) - Earnout shares vest if Class A common stock exceeds **$17.50 per share** for 10 trading days by **December 15, 2026**[352](index=352&type=chunk) - Most unvested earnout shares are classified as a **liability**, with fair value changes recognized in operations[353](index=353&type=chunk) [Note 13. Fair Value of Financial Instruments](index=64&type=section&id=Note%2013.%20Fair%20Value%20of%20Financial%20Instruments) Fair value of debt was **$1.317 billion** as of June 29, 2025; earnout liability decreased significantly to **$36.183 million** due to fair value changes Fair Value and Carrying Value of Debt (as of June 29, 2025 and June 30, 2024) | (in thousands) | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Carrying value | $1,321,790 | $1,152,200 | | Fair value | $1,316,993 | $1,152,200 | Items Measured at Fair Value on a Recurring Basis (as of June 29, 2025 and June 30, 2024) | (in thousands) | June 29, 2025 Total | June 30, 2024 Total | | :------------------------------------------ | :------------------ | :------------------ | | Interest rate collars | $16 | $696 | | Earnout shares | $36,183 | $137,636 | | **Total liabilities** | **$36,199** | **$137,636** | Key Inputs for Earnout Shares Valuation (as of June 29, 2025 and June 30, 2024) | Input | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Expected term in years | 1.46 | 2.46 | | Expected volatility | 50% | 50% | | Risk-free interest rate | 3.86% | 4.62% | | Stock price | $9.31 | $14.49 | | Dividend yield | 2.36% | 1.52% | - Earnout liability decreased by **$101.484 million** in fiscal year 2025, primarily due to fair value changes[357](index=357&type=chunk) [Note 14. Common Stock, Preferred Stock and Stockholders' Equity](index=66&type=section&id=Note%2014.%20Common%20Stock%2C%20Preferred%20Stock%20and%20Stockholders%27%20Equity) The company has Class A (one vote) and Class B (ten votes) common stock, with **81.7 million Class A** and **58.5 million Class B** shares outstanding - Authorized to issue **Class A common stock (1 vote/share)**, **Class B common stock (10 votes/share)**, and Preferred Stock[360](index=360&type=chunk) - As of June 29, 2025, **81,684,310 Class A** and **58,519,437 Class B common shares** were outstanding[360](index=360&type=chunk) - Series A preferred stock has a **5.5% cumulative dividend** and is classified as temporary equity due to redemption features[362](index=362&type=chunk)[367](index=367&type=chunk) - **$33.458 million** in cash dividends were paid on common stock in FY2025[368](index=368&type=chunk) - In FY2025, **6,796,938 Class A shares** were repurchased for **$72.138 million**, with **$92.223 million** remaining in the program[370](index=370&type=chunk) [Note 15. Share-Based Compensation](index=67&type=section&id=Note%2015.%20Share-Based%20Compensation) The company operates three stock plans, with **24.7 million stock options** and **1.29 million RSUs** outstanding, and **$21.632 million** share-based compensation expense in FY2025 - The company operates **three stock plans**: 2017 Stock Incentive, 2021 Omnibus Incentive, and ESPP[371](index=371&type=chunk) Stock Options Outstanding (2017 Plan) (as of June 29, 2025 and June 30, 2024) | Metric | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Number of Options Outstanding | 15,883,244 | 19,965,344 | | Weighted Average Exercise Price Per Share | $7.05 | $7.22 | | Weighted Average Remaining Contractual Term (years) | 6.51 | 7.51 | | Aggregate Intrinsic Value | $35,963 | — | Stock Options Outstanding (2021 Plan) (as of June 29, 2025 and June 30, 2024) | Metric | June 29, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Number of Options Outstanding | 8,835,672 | 9,153,103 | | Weighted Average Exercise Price Per Share | $13.99 | $13.91 | | Weighted Average Remaining Contractual Term (years) | 6.94 | 7.83 | | Aggregate Intrinsic Value | — | — | RSUs Outstanding (2021 Plan) (as of June 29, 2025 and June 30, 2024) | RSU Type | June 29, 2025 Units | June 30, 2024 Units | | :------------------------------------------ | :------------------ | :------------------ | | Service based RSUs | 697,364 | 676,064 | | Earnout RSUs | 39,920 | 43,465 | | Market and service based RSUs | 550,865 | 243,379 | Total Share-Based Compensation Expense (Fiscal Years 2025, 2024, 2023) | (in thousands) | June 29, 2025 | June 30, 2024 | July 2, 2023 | | :------------------------------------------ | :------------ | :------------ | :----------- | | Stock options | $9,486 | $8,702 | $9,708 | | Service based RSUs | $4,478 | $4,062 | $4,267 | | Market and service based RSUs | $1,967 | $482 | $630 | | Earnout RSUs | $48 | $40 | $538 | | Other stock-based awards & settlements | $5,249 | — | — | | ESPP | $404 | $489 | $599 | | **Total share-based compensation expense** | **$21,632** | **$13,775** | **$15,742** | - Total unrecognized share-based compensation cost was **$23.618 million** as of June 29, 2025, with a **2.16-year** weighted average recognition period[377](index=377&type=chunk) - **$5.249 million** in 'Other stock-based awards & settlements' for FY2025 includes **$4.809 million** for cash settlement of equity awards for a retiring executive[378](index=378&type=chunk) [Note 16. Net (Loss) Income Per Share](index=72&type=section&id=Note%2016.%20Net%20(Loss)%20Income%20Per%20Share) Basic and diluted net loss per share improved to **$(0.13)** in FY2025, with potentially dilutive securities excluded due to antidilutive effects Net (Loss) Income Per Share Attributable to Common Stockholders (Fiscal Years 2025, 2024, 2023) | (Amounts in thousands, except share and per share amounts) | June 29, 2025 | June 30, 2024 | July 2, 2023 | | :-------------------------------------------------------- | :------------ | :------------ | :----------- | | Net (loss) income allocated to common stockholders | $(19,070) | $(92,255) | $53,336 | | Weighted average common shares outstanding (Basic) | 142,401,407 | 151,339,634 | 165,508,879 | | Net (loss) income per share, basic | $(0.13) | $(0.61) | $0.32 | | Net (loss) income per share, diluted | $(0.13) | $(0.61) | $0.30 | - Basic and diluted net loss per share was **$(0.13)** in FY2025, an improvement from **$(0.61)** in FY2024[381](index=381&type=chunk)[383](index=383&type=chunk) - Potentially dilutive securities were excluded from diluted EPS calculations in net loss periods due to their **antidilutive effect**[383](index=383&type=chunk) [Note 17. Segment Reporting](index=74&type=section&id=Note%2017.%20Segment%20Reporting) The company operates as a **single segment** (Location-based entertainment), with the CEO as CODM, reviewing consolidated financial performance - The company operates as a **single operating segment**: Location-based entertainment[385](index=385&type=chunk) - The CEO, Thomas Shannon, is the **CODM** and reviews financial information on a consolidated basis[385](index=385&type=chunk) - The CODM assesses performance and allocates resources based on **net (loss) income**, with centrally managed operational components[386](index=386&type=chunk) [Note 18. Subsequent Events](index=74&type=section&id=Note%2018.%20Subsequent%20Events) Post-FY2025, the company secured a **$230 million bridge loan**, acquired **58 properties** for **$306 million**, and increased its Revolver commitment - On July 10, 2025, a **$230 million bridge term loan** was secured, maturing in 364 days[387](index=387&type=chunk) - On July 10, 2025, **58 leased properties** were acquired for **$306 million**, financed by the bridge loan, revolver, and cash[388](index=388&type=chunk) - On July 16, 2025, the Revolver commitment increased by **$50 million** to an aggregate of **$385 million**[389](index=389&type=chunk) - A regular quarterly cash dividend of **$0.055 per share** was declared on August 19, 2025, payable September 12, 2025[390](index=390&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures](index=75&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosures) No changes in or disagreements with accountants on accounting and financial disclosures - There are **no changes or disagreements with accountants** on accounting and financial disclosures[391](index=391&type=chunk) [Item 9A. Controls and Procedures](index=75&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of June 29, 2025 - As of June 29, 2025, the CEO and CFO concluded that **disclosure controls and procedures were effective**[392](index=392&type=chunk) - Management concluded that **internal control over financial reporting was effective** as of June 29, 2025, based on COSO 2013[394](index=394&type=chunk) - The independent auditor is **not required to attest** to internal control effectiveness due to the company's emerging growth company status[395](index=395&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended June 29, 2025[396](index=396&type=chunk) [Item 9B. Other Information](index=75&type=section&id=Item%209B.%20Other%20Information) CEO Thomas Shannon adopted a Rule 10b5-1(c) trading plan on May 20, 2024, for the potential sale of up to **2.3 million Class A shares** - On May 20, 2024, CEO Thomas Shannon adopted a **Rule 10b5-1(c) trading plan** for up to **2.3 million Class A shares**[397](index=397&type=chunk) - The trading plan expires by **May 20, 2026**, or when all shares are sold[397](index=397&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection](index=75&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspection) This item is not applicable to the company - Disclosure regarding foreign jurisdictions that prevent inspection is **not applicable** to the company[398](index=398&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=76&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2025 Proxy Statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the **2025 Proxy Statement**[400](index=400&type=chunk) - A **Code of Conduct and Ethics** applies to all directors, officers, and employees, available on the investor relations website[401](index=401&type=chunk) - An **Insider Trading Policy** prohibits trading on material non-public information by directors, officers, and employees[402](index=402&type=chunk) [Item 11. Executive Compensation](index=76&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the 2025 Proxy Statement - Executive compensation information is incorporated by reference from the **2025 Proxy Statement**[403](index=403&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters](index=76&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owner%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership and related stockholder matters are incorporated by reference from the 2025 Proxy Statement - Security ownership information is incorporated by reference from the **2025 Proxy Statement**[404](index=404&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=76&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Related transactions and director independence information is incorporated by reference from the 2025 Proxy Statement - Related transactions and director independence information is incorporated by reference from the **2025 Proxy Statement**[405](index=405&type=chunk) [Item 14. Principal Accounting Fees and Services](index=76&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Principal accounting fees and services information is incorporated by reference from the 2025 Proxy Statement - Principal accounting fees and services information is incorporated by reference from the **2025 Proxy Statement**[406](index=406&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=77&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) Lists financial statements and supplementary data, notes omitted schedules, and provides a comprehensive list of required exhibits - Financial statements and supplementary data are referenced to **page 31** of the report[408](index=408&type=chunk) - Financial statement schedules are **omitted** as inapplicable or included elsewhere in the consolidated financial statements or notes[409](index=409&type=chunk) - A comprehensive list of exhibits required by **Item 601 of SEC Regulation S-K** is provided, including key agreements and corporate documents[409](index=409&type=chunk) [Item 16. For 10-K Summary](index=80&type=section&id=Item%2016.%20For%2010-K%20Summary) No 10-K summary is provided under this item - **No 10-K summary** is provided under this item[414](index=414&type=chunk) [Signatures](index=81&type=section&id=Signatures) The report is signed by the Chairman/CEO and CFO/Treasurer, along with other directors, on August 28, 2025 - The report is signed by **Thomas F. Shannon (Chairman/CEO)** and **Robert M. Lavan (CFO/Treasurer)** on **August 28, 2025**[419](index=419&type=chunk)[420](index=420&type=chunk)

Company Overview & Performance Highlights Lucky Strike Entertainment concluded FY2025 with strong organic revenue growth, driven by strategic acquisitions and successful seasonal programs [Company Introduction](index=2&type=section&id=Company%20Introduction) Lucky Strike Entertainment is a leading global location-based entertainment platform operator with over 360 venues in North America, offering experiential services like bowling, attractions, water parks, and family entertainment centers, and owns the Professional Bowlers Association (PBA) - Lucky Strike Entertainment is a leading global location-based entertainment platform with over **360 venues in North America**[9](index=9&type=chunk) - The company offers experiential services including bowling, attractions, water parks, and family entertainment centers[9](index=9&type=chunk) - The company also owns the Professional Bowlers Association (PBA), a growing media asset with millions of fans[9](index=9&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Thomas Shannon noted strong Q4 FY2025 performance with accelerating organic revenue growth, driven by successful summer pass programs and recent acquisitions, highlighting resilience and commitment to profitable growth - FY2025 concluded with strong performance, with organic revenue accelerating month-over-month during the quarter, achieving **double-digit growth in June and July**[4](index=4&type=chunk) - Growth was primarily driven by the success of the summer pass program and the integration of recent acquisitions, with pass sales contributing **$13.4 million** at bowling venues and **$4.2 million** at water parks and family entertainment centers[4](index=4&type=chunk) - The company is committed to achieving profitable growth by driving revenue, expanding operating cash flow, and increasing free cash flow, planning to increase investments in high-ROI, revenue-generating projects[6](index=6&type=chunk) [Fiscal Year 2025 Highlights](index=1&type=section&id=Fiscal%20Year%202025%20Highlights) Lucky Strike Entertainment achieved total revenue growth in Q4 and full-year FY2025, despite a decline in same-store revenue, adding 14 venues through acquisitions and new builds Fiscal Year 2025 Q4 and Full-Year Performance Highlights | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--------------------------------- | :----------- | :----------- | :--------- | :--------- | | Total Revenue Growth | 6.1% | - | 4.0% | - | | Total Revenue (Millions USD) | $301.2 | $283.868 | $1,201.3 | $1,154.614 | | Same Store Revenue Change | -4.1% | - | -3.7% | - | | Net Loss (Millions USD) | $74.7 | $62.2 | $10.0 | $83.6 | | Adjusted EBITDA (Millions USD) | $88.7 | $83.4 | $367.7 | $361.5 | | New Venues (FY) | - | - | 14 (10 acquired, 4 new builds) | - | | Total Operating Venues as of Aug 28 | - | - | 370 | - | | Lucky Strike Brand Venues | 55 | - | 55 | - | - The company plans to expand the number of Lucky Strike brand venues from the current 55 to **100 by calendar year-end**[5](index=5&type=chunk) - From March 31, 2025, to August 28, 2025, the company acquired **three family entertainment centers and two water parks**[5](index=5&type=chunk) Financial Results (GAAP) The company reported mixed GAAP results for FY2025, with total revenue growth but increased net loss in Q4, while full-year net loss significantly narrowed [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) In Q4 FY2025, total revenue grew 6.1% to $301.2 million, but net loss widened to $74.7 million; full-year total revenue grew 4.0% to $1.2013 billion, with net loss significantly narrowing to $10.0 million Consolidated Statements of Operations Key Data (Thousands USD) | Metric | Three Months Ended Jun 29, 2025 | Three Months Ended Jun 30, 2024 | Fiscal Year Ended Jun 29, 2025 | Fiscal Year Ended Jun 30, 2024 | | :--------------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | **Revenue** | | | | | | Bowling | $128,969 | $130,709 | $549,895 | $557,962 | | Food and Beverage | $104,821 | $97,246 | $424,214 | $401,383 | | Entertainment and Other | $67,392 | $55,913 | $227,224 | $195,269 | | **Total Revenue** | **$301,182** | **$283,868** | **$1,201,333** | **$1,154,614** | | Operating (Loss) Income | $15,183 | ($34,255) | $137,187 | $91,590 | | **Net Loss** | **($74,716)** | **($62,177)** | **($10,022)** | **($83,581)** | - In Q4 FY2025, food and beverage and entertainment and other revenues both grew, offsetting a slight decrease in bowling revenue[19](index=19&type=chunk) - For FY2025, the company's operating income significantly increased to **$137.2 million**, compared to $91.6 million in the prior year[19](index=19&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 29, 2025, total assets increased to $3.1597 billion, total liabilities to $3.3311 billion, expanding the shareholder deficit to $298.7 million Consolidated Balance Sheets Key Data (Thousands USD) | Metric | Jun 29, 2025 | Jun 30, 2024 | | :--------------------------------- | :------------- | :------------- | | **Assets** | | | | Cash and Cash Equivalents | $59,686 | $66,972 | | Total Current Assets | $112,550 | $113,962 | | Property and Equipment, Net | $944,917 | $887,738 | | Goodwill | $844,351 | $833,888 | | **Total Assets** | **$3,159,739** | **$3,114,035** | | **Liabilities** | | | | Total Current Liabilities | $194,385 | $182,806 | | Long-Term Debt, Net | $1,300,708 | $1,129,523 | | Earnout Liability | $36,183 | $137,636 | | **Total Liabilities** | **$3,331,085** | **$3,163,887** | | **Shareholders' Deficit** | **($298,671)** | **($177,262)** | - Net long-term debt increased from **$1.1295 billion in 2024** to **$1.3007 billion in 2025**[16](index=16&type=chunk) - Earnout liability significantly decreased from **$137.6 million in 2024** to **$36.2 million in 2025**[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In FY2025, net cash from operating activities was $177.2 million, net cash used in investing activities was $220.3 million, and net cash from financing activities was $35.9 million, resulting in a net decrease of $7.3 million in cash Consolidated Statements of Cash Flows Key Data (Thousands USD) | Metric | Three Months Ended Jun 29, 2025 | Three Months Ended Jun 30, 2024 | Fiscal Year Ended Jun 29, 2025 | Fiscal Year Ended Jun 30, 2024 | | :--------------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Net Cash from Operating Activities | $22,454 | $6,732 | $177,221 | $154,830 | | Net Cash from Investing Activities | ($53,899) | ($99,696) | ($220,311) | ($385,656) | | Net Cash from Financing Activities | $11,935 | ($52,130) | $35,860 | $102,157 | | Net Decrease in Cash and Cash Equivalents | ($19,402) | ($145,457) | ($7,286) | ($128,661) | | Cash and Cash Equivalents, End of Period | $59,686 | $66,972 | $59,686 | $66,972 | - In FY2025, net cash from operating activities increased by **14.5% year-over-year to $177.2 million**[21](index=21&type=chunk) - Net cash used in investing activities significantly decreased from **$385.7 million in FY2024** to **$220.3 million in FY2025**[21](index=21&type=chunk) Liquidity and Capital Structure The company's net debt increased in FY2025, but total cash and revolver capacity saw a slight increase, enhancing financial flexibility [Net Debt and Revolver Capacity](index=9&type=section&id=Net%20Debt%20and%20Revolver%20Capacity) As of June 29, 2025, net debt increased to $1.2621 billion, while total cash and revolver capacity slightly increased to $342.3 million Net Debt and Revolver Capacity (Thousands USD) | Metric | Jun 29, 2025 | Jun 30, 2024 | | :--------------------------------- | :------------- | :------------- | | Cash and Cash Equivalents | $59,686 | $66,972 | | Bank Debt and Loans | $1,321,790 | $1,152,200 | | **Net Debt** | **$1,262,104** | **$1,085,228** | | Revolver Capacity | $335,000 | $285,000 | | Revolver Outstanding | ($30,000) | — | | Total Cash and Revolver Capacity | $342,264 | $336,138 | - As of June 29, 2025, net debt increased by **$176.9 million** compared to the prior year[22](index=22&type=chunk) - On July 16, 2025, the revolving credit commitment increased by **$50 million**, totaling **$385 million**[22](index=22&type=chunk) Non-GAAP Financial Measures & Reconciliations The company provided non-GAAP metrics like Same Store Revenue and Adjusted EBITDA to offer a clearer view of operational performance and profitability [Non-GAAP Measures Definitions](index=4&type=section&id=Non-GAAP%20Measures%20Definitions) The company uses Same Store Revenue and Adjusted EBITDA as non-GAAP measures to provide additional insights into business performance, with Same Store Revenue measuring comparable venue revenue and Adjusted EBITDA reflecting earnings quality - Same Store Revenue represents total revenue less non-venue related revenue, closed venue revenue, service fee revenue, and acquisition revenue[12](index=12&type=chunk) - Adjusted EBITDA represents net income (loss) plus interest expense, income taxes, depreciation and amortization, impairment and other charges, share-based compensation, closed venue EBITDA, foreign currency gains and losses, gains and losses on asset disposals, transaction and other advisory costs, and changes in earnout liability fair value[12](index=12&type=chunk) - These non-GAAP measures should not be considered substitutes for GAAP revenue or net income and may not be comparable to similarly titled measures reported by other companies[11](index=11&type=chunk) [Revenue Reconciliation](index=10&type=section&id=Revenue%20Reconciliation) The company provided a reconciliation from GAAP total revenue to same-store revenue, showing a 4.1% year-over-year decrease in Q4 FY2025 and a 3.7% decrease for the full fiscal year Revenue Reconciliation (Thousands USD) | Metric | Three Months Ended Jun 29, 2025 | Three Months Ended Jun 30, 2024 | Fiscal Year Ended Jun 29, 2025 | Fiscal Year Ended Jun 30, 2024 | | :--------------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Reported Total Revenue | $301,182 | $283,868 | $1,201,333 | $1,154,614 | | Less: Service Fee Revenue | ($634) | ($939) | ($2,464) | ($5,462) | | Less: Non-Venue Related Revenue (incl. closed venues) | ($6,666) | ($5,416) | ($20,613) | ($23,093) | | Less: Acquisition Revenue | ($27,861) | — | ($187,578) | ($96,808) | | **Same Store Revenue** | **$266,021** | **$277,513** | **$990,678** | **$1,029,251** | | **Year-over-Year Change** | | | | | | Reported Total Revenue | 6.1% | | 4.0% | | | Same Store Revenue | (4.1)% | | (3.7)% | | - In Q4 FY2025, same-store revenue was **$266.0 million**, compared to $277.5 million in the prior year period[23](index=23&type=chunk) - For FY2025, same-store revenue was **$990.7 million**, compared to $1.0293 billion in the prior year[23](index=23&type=chunk) [Adjusted EBITDA Reconciliation](index=11&type=section&id=Adjusted%20EBITDA%20Reconciliation) In Q4 FY2025, Adjusted EBITDA grew 6.3% year-over-year to $88.7 million with a 29.5% margin; full-year Adjusted EBITDA grew 1.7% to $367.7 million with a 30.6% margin Adjusted EBITDA Reconciliation (Thousands USD) | Metric | Three Months Ended Jun 29, 2025 | Three Months Ended Jun 30, 2024 | Fiscal Year Ended Jun 29, 2025 | Fiscal Year Ended Jun 30, 2024 | | :--------------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | GAAP Net Loss | ($74,716) | ($62,177) | ($10,022) | ($83,581) | | Net Loss Margin | (24.8)% | (21.9)% | (0.8)% | (7.2)% | | **Adjusted EBITDA** | **$88,727** | **$83,431** | **$367,687** | **$361,497** | | Adjusted EBITDA Margin | 29.5% | 29.4% | 30.6% | 31.3% | | Key Adjustments: | | | | | | Interest Expense | $49,492 | $48,860 | $196,371 | $185,181 | | Income Tax Expense (Benefit) | $54,402 | ($30,039) | $51,505 | ($27,972) | | Depreciation and Amortization | $40,776 | $41,064 | $158,527 | $147,362 | | Change in Earnout Liability Fair Value | ($13,995) | $10,915 | ($101,484) | $25,456 | - In FY2025, the change in earnout liability fair value had a favorable impact of **$101.5 million** on Adjusted EBITDA, compared to an unfavorable impact of $25.5 million in the prior year[24](index=24&type=chunk)[27](index=27&type=chunk) - Share-based compensation expense increased to **$21.6 million in FY2025**, compared to $13.8 million in the prior year[24](index=24&type=chunk) Fiscal Year 2026 Outlook The company provided FY2026 guidance projecting total revenue growth and Adjusted EBITDA within a specified range, reflecting continued expansion [FY2026 Guidance](index=2&type=section&id=FY2026%20Guidance) The company projects FY2026 total revenue growth of 5% to 9%, ranging from $1.26 billion to $1.31 billion, with Adjusted EBITDA expected between $375 million and $415 million FY2026 Performance Guidance | Metric | FY2026 Guidance | | :----------------- | :------------- | | Total Revenue Growth | 5% to 9% | | Total Revenue (Millions USD) | $1,260 to $1,310 | | Adjusted EBITDA (Millions USD) | $375 to $415 | - The company expects to support attractive growth through organic operating leverage and investments in high-ROI, revenue-generating projects[6](index=6&type=chunk) - Recently acquired venues typically take **12-18 months** to reach the company's overall margin levels[6](index=6&type=chunk) Capital Allocation & Shareholder Returns The company continued its share repurchase program and declared a quarterly cash dividend, demonstrating commitment to shareholder returns [Share Repurchase Program Update](index=2&type=section&id=Share%20Repurchase%20Program%20Update) From March 31 to June 29, 2025, the company repurchased 800,000 shares for $7 million, with full-year repurchases totaling 6.8 million shares for $72 million, leaving $92 million available under the program - From March 31 to June 29, 2025, the company repurchased **800,000 shares of Class A common stock** for approximately **$7 million**[7](index=7&type=chunk) - For the full FY2025, the company repurchased **6.8 million shares of Class A common stock** for approximately **$72 million**[7](index=7&type=chunk) - The company currently has **$92 million remaining** under its share repurchase program[7](index=7&type=chunk) [Quarterly Cash Dividend](index=2&type=section&id=Quarterly%20Cash%20Dividend) The Board declared a quarterly cash dividend of $0.055 per share for Q1 FY2026, payable on September 12, 2025, to shareholders of record as of August 29, 2025 - The Board of Directors declared a quarterly cash dividend of **$0.055 per share** of common stock for Q1 FY2026[8](index=8&type=chunk) - The dividend is payable on **September 12, 2025**[8](index=8&type=chunk) - The record date for the dividend is **August 29, 2025**[8](index=8&type=chunk) Legal & Investor Information This section outlines forward-looking statements, associated risks, and provides details for investor engagement and communication [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to risks, assumptions, and uncertainties that could cause future events or results to differ materially from expectations - Forward-looking statements involve risks, assumptions, and uncertainties that could cause future events or results to differ materially from expectations[10](index=10&type=chunk) - Risk factors include, but are not limited to, the ability to execute business strategies, changes in consumer preferences, market competition, adverse publicity, long-term irrevocable leases, retention of key management personnel, substantial indebtedness, expansion plans, litigation, employee recruitment and retention, cybersecurity breaches, catastrophic events, and economic conditions such as rising interest rates, inflation, and recession[10](index=10&type=chunk) - The company undertakes no obligation to publicly update or review any forward-looking statements, except as required by applicable law[10](index=10&type=chunk) [Investor Webcast & Contacts](index=2&type=section&id=Investor%20Webcast%20%26%20Contacts) The company will host an investor webcast on August 28, 2025, at 10:00 AM ET, with information available on its investor relations website, which also provides contact details - An investor webcast and earnings presentation will be available on the company's investor relations website on **August 28, 2025, at 10:00 AM ET**[9](index=9&type=chunk) - The investor relations website address is: **https://ir.luckystrikeent.com/**[9](index=9&type=chunk) - The investor relations contact email is: **IR@LSEnt.com**[29](index=29&type=chunk)

Core Points - Bowlero Hazlet has officially closed its location, which was a popular venue for bowling and events in the Hazlet community [3][4] - The closure announcement was made via Facebook, expressing gratitude to patrons for their support over the years [4][6] - The reason for the closure was attributed to the end of the lease for the Hazlet location, as confirmed by a spokesperson [4] Company Transition - Bowlero is directing former patrons to their newly renovated AMF Strathmore Lanes, located approximately 15 minutes away in the Aberdeen Town Square Center [5] - The Strathmore Lanes location is designed for both league play and special events, maintaining features familiar to Bowlero Hazlet customers [5] Community Response - Many patrons expressed their sadness and shared memories in the comments of the closure announcement, highlighting the emotional impact of the bowling alley's closure [6]