Lucky Strike Entertainment Corporation (BOWL) Q4 2025 Earnings Call August 28, 2025 10:00 AM ET Company ParticipantsBobby Lavan - CFOThomas Shannon - Founder, Chairman, CEO & DirectorLev Ekster - PresidentJackson Gibb - Equity Research AssociateRandal Konik - Managing DirectorIan Zaffino - Managing DirectorMichael Kupinski - Director - Research & MD - Media And EntertainmentConference Call ParticipantsJason Tilchen - Director & Senior Equity Research AnalystEric Handler - MD & Senior Research AnalystJeremy ...

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]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $339.9 million, a modest increase of 0.7% compared to $337.7 million in the previous year [16] - Adjusted EBITDA decreased to $117.3 million from $122.8 million, with same store sales declining by 5.6% [16][19] - Same store sales acted as a $19 million headwind to the bottom line, despite improvements in payroll and cost reductions [16][17] Business Line Data and Key Metrics Changes - Retail business remained steady, league operations experienced low single-digit growth, while the events business faced high single-digit decline [16] - Comparable food sales rose by 1%, with total food sales up 8% year over year, indicating a positive consumer response to food initiatives [13][60] - The league business is described as sticky, high frequency, and loyal, continuing a multi-year growth trajectory [8][12] Market Data and Key Metrics Changes - California, accounting for 21% of total sales, contributed nearly 50% of the same store sales decline, primarily due to softness in the Los Angeles market and declines in corporate events [17][18] - Early sales of summer season passes were up over 200% year over year, indicating a shift in consumer preference towards local entertainment [10][48] Company Strategy and Development Direction - The company is focused on adjusting its cost structure to increase operating leverage while investing in growth through acquisitions and new builds [12][18] - A recent acquisition of Shipwreck Island for $30 million is expected to enhance the company's portfolio and long-term potential [18] - The company is committed to a disciplined approach to capital investments, prioritizing high-return remodels and rebranding initiatives [56][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a rebound in corporate events and overall business performance as macroeconomic conditions improve [9][24] - The sentiment among management is positive, with expectations for improved performance starting in the summer as they cycle past tougher comparisons [18][49] - Management highlighted the importance of proactive sales strategies and returning sales personnel to the office to enhance corporate engagement [45][75] Other Important Information - The company has maintained a strong liquidity position with $391 million in total liquidity and no borrowings on its revolver [19] - Capital expenditures year to date are down $40 million compared to last year, reflecting a focus on cost efficiency [19][90] Q&A Session Summary Question: Could you elaborate on walk-in versus corporate trends? - Management noted that corporate events have been significantly impacted by macroeconomic conditions, while other business segments have shown surprising strength [22][26] Question: What caused the negative same store sales? - The corporate business deteriorated in February and March, primarily due to external factors such as the California fires and broader economic uncertainty [39][40] Question: Why was guidance removed? - Management indicated that it was challenging to provide meaningful guidance due to the short-cycle nature of the business and external uncertainties [44][49] Question: How is the rebranding initiative performing? - The rebranding has led to increased foot traffic and consumer excitement, with plans to continue rebranding efforts [56][58] Question: What are the expectations for SG&A costs? - SG&A costs are expected to decrease, with a focus on maintaining flat or reduced costs while growing revenue [96][97]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $339.9 million, a modest increase of 0.7% compared to $337.7 million in the previous year [15] - Adjusted EBITDA decreased to $117.3 million from $122.8 million, reflecting a decline in same store sales by 5.6% [15][19] - Same store sales acted as a $19 million headwind to the bottom line, despite improvements in payroll and cost reductions [15][16] Business Line Data and Key Metrics Changes - Retail business remained steady, while league operations experienced low single-digit growth [15] - Events business faced high single-digit decline, primarily due to corporate event cancellations [15] - Comparable food sales rose by 1%, with total food sales up 8% year over year, indicating a positive response to revamped food initiatives [13][15] Market Data and Key Metrics Changes - California, accounting for 21% of total sales, contributed nearly 50% of the same store sales decline, primarily due to softness in the Los Angeles market [16] - Early sales of summer season passes were up over 200% year over year, indicating a shift in consumer preferences towards local entertainment [9][49] Company Strategy and Development Direction - The company is focused on adjusting its cost structure to increase operating leverage while investing in growth through acquisitions and new builds [10][18] - A recent acquisition of Shipwreck Island for $30 million is expected to enhance the company's portfolio and long-term potential [18] - The company plans to continue its rebranding initiatives, with 15 rebrands completed and a goal of 75 by the end of the year, which are expected to drive foot traffic and revenue [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a rebound in corporate events as macroeconomic conditions improve, expecting a turnaround by the third calendar quarter [25][50] - The company is proactively addressing challenges in the corporate events segment by returning salespeople to the office and enhancing customer engagement [76] - Management remains confident in the growth potential of water parks and family entertainment centers, anticipating significant revenue contributions during peak summer months [84][85] Other Important Information - The company has maintained a strong liquidity position with $391 million in total liquidity and no borrowings on its revolver [19] - Capital expenditures year to date are down $40 million compared to last year, reflecting a disciplined approach to spending [18][19] Q&A Session Summary Question: Could you elaborate on walk-in versus corporate trends? - Management noted that corporate events have been significantly impacted by macroeconomic conditions, with a notable decline in California, but they expect a rebound as conditions improve [24][25] Question: What are the areas of expense flexibility near term? - The company has reduced payroll and maintenance costs, with expectations for further benefits in upcoming quarters [32] Question: What caused the negative same store sales in Q3? - The corporate business deteriorated significantly in February and March, primarily due to external factors such as the California fires and broader economic uncertainty [40][41] Question: How is the company addressing SG&A costs? - Management indicated that SG&A costs were impacted by a non-cash charge but expect overall costs to decrease as they focus on efficiency [97][98] Question: What is the outlook for corporate events and tariffs? - Management believes the current downturn in corporate events is temporary and linked to broader economic concerns, including tariffs, but expects a return to normalcy in the near future [75][80]

May 2025 1 Forward-looking statements Some of the statements contained in this presentation are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risk, assumptions and uncertainties, such as statements of our plans, objectives, expectations, intentions and forecasts. These forward-looking statements are generally identified by the use of forward-looking terminology, includin ...

[Form 10-Q Filing Information](index=1&type=section&id=Form%2010-Q%20Filing%20Information) This section provides key administrative details regarding the Form 10-Q filing, including registrant information, filing period, and stock outstanding data - **Registrant**: **Lucky Strike Entertainment Corporation** (formerly **Bowlero Corporation**), Delaware incorporation[3](index=3&type=chunk)[29](index=29&type=chunk) | Detail | Value | | :--- | :--- | | Filing Period Ended | March 30, 2025 | | Commission File Number | 001-40142 | | Trading Symbol | LUCK | | Exchange | The New York Stock Exchange | | Filer Status | Accelerated filer, Emerging growth company | | Class A Common Stock Outstanding (as of April 30, 2025) | **81,685,637 shares** | | Class B Common Stock Outstanding (as of April 30, 2025) | **58,519,437 shares** | | Series A Preferred Stock Outstanding (as of April 30, 2025) | **117,087 shares** | [Table of Contents](index=2&type=section&id=Table%20of%20Contents) The report is structured into two main parts: Financial Information and Other Information, concluding with Signatures - The report is divided into two main parts: Part I - Financial Information and Part II - Other Information, followed by Signatures[8](index=8&type=chunk) [Part I - Financial Information](index=2&type=section&id=Part%20I%20-%20Financial%20Information) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations - The financial statements are **unaudited** and prepared in accordance with **U.S. GAAP** for interim financial information[31](index=31&type=chunk) - The company changed its name from **Bowlero Corporation** to **Lucky Strike Entertainment Corporation** and its stock ticker symbol from **NYSE: BOWL** to **NYSE: LUCK**, effective **December 12, 2024**, to reflect its broader entertainment focus and commitment to offering a broader range of entertainment experiences[29](index=29&type=chunk) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section provides the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income (loss), changes in equity, cash flows, and detailed notes to the financial statements [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets show the company's financial position as of March 30, 2025, compared to June 30, 2024, indicating an increase in total assets and liabilities, and a larger stockholders' deficit | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------- | :------------- | :------------ | :----- | :------- | | Total Assets | **$3,195,717** | **$3,114,035** | **$81,682** | **2.62%** | | Total Liabilities | **$3,282,121** | **$3,163,887** | **$118,234** | **3.74%** | | Total Stockholders' Deficit | **$(213,729)** | **$(177,262)** | **$(36,467)** | **20.57%** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the nine months ended March 30, 2025, the company reported a significant turnaround from a net loss to a net income, driven by revenue growth and a favorable change in the fair value of earnout liability, despite increased interest and depreciation expenses | Metric (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Total Revenues | **$900,151** | **$870,746** | **$29,405** | **3.38%** | | Operating Income | **$122,004** | **$125,845** | **$(3,841)** | **(3.05)%** | | Net Income (Loss) | **$64,694** | **$(21,404)** | **$86,098** | * | | Basic EPS | **$0.38** | **$(0.18)** | **$0.56** | * | | Diluted EPS | **$0.36** | **$(0.18)** | **$0.54** | * | | Interest Expense, net | **$146,879** | **$130,575** | **$16,304** | **12.49%** | | Change in fair value of earnout liability | **$(87,489)** | **$14,541** | **$(102,030)** | * | - The company reclassified depreciation and amortization as a separate line item and disaggregated revenues and costs of revenues to enhance comparability with industry peers[32](index=32&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) For the nine months ended March 30, 2025, total comprehensive income was positive, a significant improvement from a loss in the prior year, primarily due to the net income turnaround, despite other comprehensive losses from derivatives and foreign currency translation | Metric (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | | Net income (loss) | **$64,694** | **$(21,404)** | **$86,098** | | Other comprehensive income (loss) | **$(2,037)** | **$(2,020)** | **$(17)** | | Total comprehensive income (loss) | **$62,657** | **$(23,424)** | **$86,081** | [Condensed Consolidated Statements of Changes in Temporary Equity and Stockholders' (Deficit) Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Temporary%20Equity%20and%20Stockholders'%20(Deficit)%20Equity) The company's stockholders' deficit increased from June 30, 2024, to March 30, 2025, primarily due to share repurchases, cash dividends, and settlement of equity awards, partially offset by net income | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | | :-------------------- | :------------- | :------------ | :----- | | Total Stockholders' Deficit | **$(213,729)** | **$(177,262)** | **$(36,467)** | | Treasury stock, at cost | **$(450,856)** | **$(385,015)** | **$(65,841)** | | Accumulated deficit | **$(238,465)** | **$(303,159)** | **$64,694** | - Repurchased **5,980,510 shares of Class A common stock** for **$65,147 thousand** during the nine months ended **March 30, 2025**, at an average purchase price per share of **$10.89**[87](index=87&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended March 30, 2025, operating activities provided cash, while investing activities used cash, and financing activities provided a reduced amount of cash compared to the prior year, resulting in a net increase in cash and cash equivalents | Metric (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Net cash provided by operating activities | **$154,767** | **$148,098** | **$6,669** | **4.50%** | | Net cash used in investing activities | **$(166,412)** | **$(285,960)** | **$119,548** | **41.81%** | | Net cash provided by financing activities | **$23,925** | **$154,287** | **$(130,362)** | **(84.49)%** | | Net increase in cash and cash equivalents | **$12,116** | **$16,796** | **$(4,680)** | **(27.86)%** | | Cash and cash equivalents at end of period | **$79,088** | **$212,429** | **$(133,341)** | **(62.77)%** | [Index for Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Index%20for%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides an index to the detailed notes accompanying the condensed consolidated financial statements, covering various accounting policies, assets, liabilities, equity, and other financial disclosures [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures for the condensed consolidated financial statements, covering significant accounting policies, business acquisitions, goodwill, property and equipment, leases, debt, income taxes, commitments, earnouts, fair value measurements, equity, share-based compensation, and net income per share [Note 1 Description of Business and Significant Accounting Policies](index=12&type=section&id=Note%201%20Description%20of%20Business%20and%20Significant%20Accounting%20Policies) This note describes **Lucky Strike Entertainment Corporation's** business as a premier operator of location-based entertainment, its recent rebranding, and outlines the significant accounting policies used in preparing the financial statements, including basis of presentation, principles of consolidation, use of estimates, fair-value estimates, derivatives, net income per share calculation, and emerging growth company status, also detailing recently issued accounting standards - The company changed its name from **Bowlero Corporation** to **Lucky Strike Entertainment Corporation** and its stock ticker symbol from **NYSE: BOWL** to **NYSE: LUCK**, effective **December 12, 2024**, to reflect its broader entertainment focus beyond traditional bowling[29](index=29&type=chunk) - The company operates various location-based entertainment venues, including traditional bowling centers (**AMF**, **Bowl America**) and upscale concepts (**Bowlero**, **Lucky Strike**), as well as other entertainment forms like **Octane Raceway**, **Raging Waves water park**, and **Boomers Parks**[30](index=30&type=chunk) - The company is an "**emerging growth company**" and has elected to use the **extended transition period** for complying with new or revised financial accounting standards, which may affect comparability with other public companies[41](index=41&type=chunk)[43](index=43&type=chunk) - New accounting standards issued include **ASU 2023-07 (Segment Reporting)**, **ASU 2023-09 (Income Taxes)**, and **ASU 2024-03 (Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures)**, with adoption planned for **fiscal years 2025, 2025, and 2027** respectively[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) [Note 2 Business Acquisitions](index=14&type=section&id=Note%202%20Business%20Acquisitions) During the nine months ended March 30, 2025, **Lucky Strike** completed three acquisitions, adding nine locations for a total consideration of **$50,565 thousand**, expanding its market share and leveraging fixed costs, with valuation analyses still being finalized - The company continually evaluates potential acquisitions that strategically fit its growth strategy to expand market share and leverage fixed costs[47](index=47&type=chunk) | Acquisition Details (Nine Months Ended March 30, 2025) | Value (in thousands) | | :----------------------------------------------------- | :------------------- | | Number of Acquisitions | **3** | | Number of Locations Acquired | **9** | | Total Consideration | **$50,565** | | Total Assets Acquired | **$120,023** | | Total Liabilities Assumed | **$(69,458)** | | Goodwill from Acquisitions | **$7,589** | [Note 3 Goodwill and Other Intangible Assets](index=15&type=section&id=Note%203%20Goodwill%20and%20Other%20Intangible%20Assets) Goodwill increased to **$841,550 thousand** as of March 30, 2025, primarily due to fiscal year 2025 acquisitions, while total intangible assets decreased to **$44,653 thousand**, with a notable shift in the composition of finite-lived assets due to amortization and changes in trade names | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | | :-------------------- | :------------- | :------------ | :----- | | Goodwill | **$841,550** | **$833,888** | **$7,662** | | Total Intangible Assets, net | **$44,653** | **$47,051** | **$(2,398)** | | Amortization expense (Nine Months Ended) | **$5,528** | **$5,315** | **$213** | [Note 4 Property and Equipment](index=16&type=section&id=Note%204%20Property%20and%20Equipment) Net property and equipment increased to **$933,532 thousand** as of March 30, 2025, driven by additions to buildings, equipment, and land, including a significant land purchase adjacent to **Raging Waves water park** | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------- | :------------- | :------------ | :----- | :------- | | Property and equipment, net | **$933,532** | **$887,738** | **$45,794** | **5.16%** | | Land | **$120,239** | **$108,442** | **$11,797** | **10.88%** | | Depreciation expense (Nine Months Ended) | **$97,817** | **$86,554** | **$11,263** | **13.01%** | - Purchased **66 acres of land** adjacent to **Raging Waves water park** for **$9,400 thousand** on **December 16, 2024**[52](index=52&type=chunk) [Note 5 Leases](index=17&type=section&id=Note%205%20Leases) The company leases various assets under operating and finance leases, with total lease costs increasing for the nine months ended March 30, 2025, and operating lease ROU assets and liabilities increasing, while finance lease ROU assets decreased slightly | Metric (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Total Operating Lease Costs | **$67,676** | **$62,557** | **$5,119** | **8.18%** | | Total Finance Lease Costs | **$50,295** | **$49,831** | **$464** | **0.93%** | | Total Financing Obligation Costs | **$30,488** | **$18,266** | **$12,222** | **66.80%** | | Total Lease Costs, Net | **$196,686** | **$175,666** | **$21,020** | **11.97%** | | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------- | :------------- | :------------ | :----- | :------- | | Operating lease ROU assets, net | **$583,094** | **$559,168** | **$23,926** | **4.28%** | | Operating lease liabilities, ST | **$32,228** | **$28,460** | **$3,768** | **13.24%** | | Operating lease liabilities, LT | **$596,851** | **$561,916** | **$34,935** | **6.22%** | | Finance lease ROU assets, net | **$512,106** | **$524,392** | **$(12,286)** | **(2.34)%** | | Finance lease liabilities, LT | **$682,169** | **$680,213** | **$1,956** | **0.29%** | | Long-term financing obligations | **$447,099** | **$440,875** | **$6,224** | **1.41%** | [Note 6 Accounts Payable and Accrued Expenses](index=19&type=section&id=Note%206%20Accounts%20Payable%20and%20Accrued%20Expenses) Total accounts payable and accrued expenses increased to **$154,740 thousand** as of March 30, 2025, primarily driven by significant increases in customer deposits and interest payable, partially offset by a decrease in accounts payable | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------- | :------------- | :------------ | :----- | :------- | | Total accounts payable and accrued expenses | **$154,740** | **$135,784** | **$18,956** | **13.96%** | | Accounts payable | **$34,379** | **$50,457** | **$(16,078)** | **(31.87)%** | | Customer deposits | **$30,717** | **$14,006** | **$16,711** | **119.31%** | | Interest | **$9,000** | **$1,113** | **$7,887** | **708.63%** | | Other | **$15,670** | **$5,658** | **$10,012** | **176.95%** | [Note 7 Debt](index=20&type=section&id=Note%207.%20Debt) The company's total long-term debt increased to **$1,273,231 thousand** as of March 30, 2025, primarily due to a **$150,000 incremental term loan** obtained in December 2024, with the company remaining in compliance with all debt covenants and using interest rate collars to manage interest rate risk | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------- | :------------- | :------------ | :----- | :------- | | First Lien Credit Facility Term Loan | **$1,282,370** | **$1,138,500** | **$143,870** | **12.64%** | | Total long-term debt | **$1,273,231** | **$1,129,523** | **$143,708** | **12.72%** | - On **December 17, 2024**, the company entered into a **Twelfth Amendment** to the **First Lien Credit Agreement**, providing for an **incremental term loan of $150,000 thousand**, used to repay outstanding Revolver amounts and for general corporate purposes[62](index=62&type=chunk) - The company was **in compliance with all debt covenants** as of **March 30, 2025**[66](index=66&type=chunk) - The company uses **interest rate collars** with a **notional amount of $800,000 thousand** to stabilize interest rate fluctuations, establishing a **SOFR floor of approximately 0.94%** and a **cap of 5.50%**, expiring **March 31, 2026**[67](index=67&type=chunk)[68](index=68&type=chunk) [Note 8 Income Taxes](index=21&type=section&id=Note%208.%20Income%20Taxes) The company's **effective tax rate** for the nine months ended March 30, 2025, was **(5)%**, differing from the **US federal statutory rate of 21%** primarily due to the change in fair value of the earnout liability, permanent differences, and other discrete tax items - The **effective tax rate** for the nine months ended March 30, 2025, was **(5)%**, compared to **(11)%** for the same period in 2024[70](index=70&type=chunk) - The difference from the **US federal statutory rate of 21%** is mainly attributed to the change in fair value of the earnout liability, permanent differences, and other discrete tax items[70](index=70&type=chunk) [Note 9 Commitments and Contingencies](index=21&type=section&id=Note%209.%20Commitments%20and%20Contingencies) The company is involved in various legal proceedings incidental to its business, but management believes their ultimate disposition will **not have a material adverse effect** on its financial position, results of operations, or cash flows - The company faces various inquiries, investigations, claims, lawsuits, and other legal proceedings common to the retail, restaurant, and entertainment industries[71](index=71&type=chunk) - Management believes the ultimate disposition of these matters should **not have a material adverse effect** on the company's consolidated financial position, results of operations, or cash flows[71](index=71&type=chunk) [Note 10 Earnouts](index=21&type=section&id=Note%2010.%20Earnouts) As of March 30, 2025, there were **11,418,357 unvested earnout shares** outstanding, which vest if the **Class A common stock** price reaches **$17.50** for **10 trading days** within a consecutive **20-trading-day period** by **December 15, 2026**, with most earnout shares classified as a liability and changes in fair value recognized in the statement of operations | Metric | Value | | :----- | :---- | | Unvested Earnout Shares Outstanding (as of March 30, 2025) | **11,418,357** | | Vesting Condition | **Class A common stock** price ≥ **$17.50** for **10 trading days** within any consecutive **20 trading day period** | | Vesting Deadline | **December 15, 2026** | [Note 11 Fair Value of Financial Instruments](index=21&type=section&id=Note%2011.%20Fair%20Value%20of%20Financial%20Instruments) The fair value of the company's debt was **$1,290,499 thousand** as of March 30, 2025, and the earnout liability significantly decreased to **$50,172 thousand**, primarily due to a decrease in the company's stock price, as estimated using a **Monte Carlo simulation model** | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | | :-------------------- | :------------- | :------------ | :----- | | Carrying value of debt | **$1,295,308** | **$1,152,200** | **$143,108** | | Fair value of debt | **$1,290,499** | **$1,152,200** | **$138,299** | | Earnout shares liability | **$50,172** | **$137,636** | **$(87,464)** | - The fair value of earnout shares is estimated using a **Monte Carlo simulation model (Level 3 inputs)**, with key inputs including an **expected term of 1.71 years**, **expected volatility of 50%**, and a **stock price of $9.91** as of **March 30, 2025**[77](index=77&type=chunk) [Note 12 Common Stock, Preferred Stock and Stockholders' Equity](index=22&type=section&id=Note%2012.%20Common%20Stock,%20Preferred%20Stock%20and%20Stockholders'%20Equity) The company has **Class A common stock**, **Class B common stock**, and **Series A preferred stock**, with **3,300 Series A Preferred Stock shares** converted to **Class A Common Stock** during the nine months ended March 30, 2025, and the Board declared quarterly cash dividends and authorized a **share repurchase program** with **$99,215 thousand** remaining as of March 30, 2025 - The company is authorized to issue **2,000,000,000 shares of Class A common stock**, **200,000,000 shares of Class B common stock**, and **200,000,000 shares of Series A preferred stock**[85](index=85&type=chunk) - **Series A preferred stock** has a **fixed dividend rate of 5.5% per annum** on a **liquidation preference of $1,000 per share**, with **accumulated dividends of $3,407 thousand** added to liquidation preference for the nine months ended March 30, 2025[80](index=80&type=chunk) | Common Stock Dividends Paid (Nine Months Ended March 30, 2025) | Amount (in thousands) | | :------------------------------------------------------------- | :-------------------- | | Total | **$25,283** | - The **share repurchase program**, **extended indefinitely on February 2, 2024**, had a **remaining balance of $99,215 thousand** as of **March 30, 2025**[84](index=84&type=chunk)[87](index=87&type=chunk) [Note 13 Share-Based Compensation](index=24&type=section&id=Note%2013.%20Share-Based%20Compensation) Total unrecognized share-based compensation cost was **$27,426 thousand** as of March 30, 2025, with share-based compensation expense for the nine months ended March 30, 2025, significantly increasing to **$17,955 thousand**, primarily due to a **non-recurring $4,809 thousand expense** from the cash settlement of equity awards related to an executive's retirement | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | | :-------------------- | :------------- | :------------ | :----- | | Total unrecognized compensation cost | **$27,426** | **$25,800** | **$1,626** | | Share-Based Compensation Expense (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | % Change | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Total share-based compensation expense | **$17,955** | **$9,743** | **$8,212** | **84.29%** | - The increase in share-based compensation expense includes a **non-recurring $4,809 thousand expense** from the **cash settlement of equity awards** for a retiring executive[89](index=89&type=chunk) [Note 14 Net Income (Loss) Per Share](index=25&type=section&id=Note%2014.%20Net%20Income%20(Loss)%20Per%20Share) For the nine months ended March 30, 2025, basic and diluted net income per share attributable to common stockholders were **$0.38** and **$0.36**, respectively, a significant improvement from a **loss per share** in the prior year | Metric | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | | :----- | :------------------------------- | :------------------------------- | :----- | | Basic EPS | **$0.38** | **$(0.18)** | **$0.56** | | Diluted EPS | **$0.36** | **$(0.18)** | **$0.54** | | Weighted-average shares outstanding (Basic) | **143,630,881** | **152,945,921** | **(9,315,040)** | | Weighted-average shares outstanding (Diluted) | **150,982,706** | **152,945,921** | **(1,963,215)** | - In periods of **net loss**, potentially dilutive securities are excluded from diluted EPS calculation as their effect is **antidilutive**, making basic and diluted EPS the same[40](index=40&type=chunk) [Note 15 Supplemental Cash Flow Information](index=27&type=section&id=Note%2015.%20Supplemental%20Cash%20Flow%20Information) Supplemental cash flow information for the nine months ended March 30, 2025, shows cash paid for interest of **$129,066 thousand** and income taxes of **$1,848 thousand**, along with noncash investing and financing transactions | Metric (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | | Cash paid for interest | **$129,066** | **$127,067** | **$1,999** | | Cash paid for income taxes, net of refunds | **$1,848** | **$3,118** | **$(1,270)** | | Capital expenditures in accounts payable | **$14,476** | **$25,640** | **$(11,164)** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and future outlook, highlighting revenue growth, strategic initiatives, and key financial trends for the three and nine months ended March 30, 2025 [Overview](index=28&type=section&id=Overview) **Lucky Strike Entertainment** is a premier operator of location-based entertainment, focused on organic growth, upgrading locations, opening new venues, and acquisitions to create long-term shareholder value - **Lucky Strike Entertainment** operates traditional bowling locations, upscale entertainment concepts with lounge seating, arcades, enhanced food and beverage, and other location-based entertainment like **Octane Raceway**, **Raging Waves water park**, and **Boomers Parks**[99](index=99&type=chunk) - The company's long-term strategy focuses on organic growth, converting and upgrading locations, opening new venues, and acquisitions to improve operating profit margins and leverage fixed costs[100](index=100&type=chunk) [Recent Developments](index=28&type=section&id=Recent%20Developments) Recent developments for the nine months ended March 30, 2025, include **3% total revenue growth**, rebranding to **Lucky Strike Entertainment**, opening **four new locations**, completing three acquisitions (**Boomers Parks, Spectrum Entertainment Complex, Adventure Park**), acquiring land for expansion, and increasing the **term loan by $150,000 thousand** - **Total revenue growth of 3%** for the nine months ended March 30, 2025[103](index=103&type=chunk) - **Rebranded** the company from **Bowlero** to **Lucky Strike Entertainment**[103](index=103&type=chunk) - **Opened four newly-built Lucky Strike locations** and completed acquisitions of **Boomers Parks, Spectrum Entertainment Complex, and Adventure Park**. Also **acquired 66 acres of land** adjacent to **Raging Waves water park**[103](index=103&type=chunk) - **Increased term loan by $150,000 thousand**[103](index=103&type=chunk) [Trends](index=28&type=section&id=Trends) Future profitability is influenced by changing economic conditions, debt levels, interest rates, and increasing labor and inventory costs, with the business being seasonal and highest sales volumes typically in the **third fiscal quarter** due to holidays and weather - Factors affecting future profitability include economic conditions, debt levels, interest rates, and increasing labor and inventory costs (food and beverage)[101](index=101&type=chunk) - Operating results fluctuate seasonally, with the highest sales volumes typically generated during the **third fiscal quarter** due to leagues, holidays, and changing weather conditions[102](index=102&type=chunk) [Presentation of Results of Operations](index=29&type=section&id=Presentation%20of%20Results%20of%20Operations) The company reports on a fiscal year with quarters generally comprising **one 5-week and two 4-week periods** - The company's fiscal year is divided into quarters, each typically consisting of **one 5-week period and two 4-week periods**[104](index=104&type=chunk) [Results of Operations (Three Months Ended March 30, 2025 Compared to March 31, 2024)](index=29&type=section&id=Results%20of%20Operations%20(Three%20Months%20Ended%20March%2030,%202025%20Compared%20to%20March%2031,%202024)) For the three months ended March 30, 2025, total revenues increased slightly by **1%**, driven by new locations, but net income decreased by **44%** due to higher operating costs, increased depreciation, and a significant increase in income tax expense, despite a favorable change in earnout liability | Metric (in thousands) | March 30, 2025 | March 31, 2024 | Change | % Change | | :-------------------- | :------------- | :------------- | :----- | :------- | | Total Revenues | **$339,882** | **$337,670** | **$2,212** | **1%** | | Operating Income | **$62,185** | **$71,012** | **$(8,827)** | **(12)%** | | Net Income | **$13,292** | **$23,846** | **$(10,554)** | **(44)%** | | Income Tax Expense | **$18,348** | **$9,141** | **$9,207** | * | | Change in fair value of earnout liability | **$(18,886)** | **$(8,868)** | **$(10,018)** | * | - **Same-store revenues decreased by 6%** due to a reduction in corporate event business[108](index=108&type=chunk)[109](index=109&type=chunk) - **Location operating costs increased by 7%** due to location count growth from acquisitions and lease agreements, with **Raging Waves water park** and **Boomers Parks** contributing **$4,300 thousand** to the increase[111](index=111&type=chunk) - **Selling, general and administrative (SG&A) expenses increased by 11%**, primarily due to a **non-recurring $4,809 thousand share-based compensation expense** from an executive's retirement settlement[114](index=114&type=chunk) [Results of Operations (Nine Months Ended March 30, 2025 Compared to March 31, 2024)](index=32&type=section&id=Results%20of%20Operations%20(Nine%20Months%20Ended%20March%2030,%202025%20Compared%20to%20March%2031,%202024)) For the nine months ended March 30, 2025, total revenues increased by **3%**, leading to a significant turnaround from a **net loss of $21,404 thousand** to a **net income of $64,694 thousand**, largely driven by a favorable change in the fair value of earnout liability and increased revenue from new locations | Metric (in thousands) | March 30, 2025 | March 31, 2024 | Change | % Change | | :-------------------- | :------------- | :------------- | :----- | :------- | | Total Revenues | **$900,151** | **$870,746** | **$29,405** | **3%** | | Operating Income | **$122,004** | **$125,845** | **$(3,841)** | **(3)%** | | Net Income (Loss) | **$64,694** | **$(21,404)** | **$86,098** | * | | Change in fair value of earnout liability | **$(87,489)** | **$14,541** | **$(102,030)** | * | - **Same-store revenues decreased by 4%** due to a reduction in corporate event business[123](index=123&type=chunk)[124](index=124&type=chunk) - **Location operating costs increased by 9%** due to location count growth from acquisitions and lease agreements, with **Raging Waves water park** and **Boomers Parks** contributing **$10,600 thousand** to the increase[125](index=125&type=chunk) - **Selling, general and administrative (SG&A) expenses decreased by 1%**, primarily due to a **$10,000 thousand decrease** in professional fees, partially offset by an **$8,200 thousand increase** in **share-based compensation expense** (including a **$4,809 thousand non-recurring executive retirement settlement**)[128](index=128&type=chunk) [Non-GAAP measure (Adjusted EBITDA)](index=34&type=section&id=Non-GAAP%20measure%20(Adjusted%20EBITDA)) **Adjusted EBITDA** for the nine months ended March 30, 2025, was **$278,960 thousand**, a slight increase of **0.32%** from the prior year, reflecting adjustments for non-cash and non-recurring items to provide a clearer view of core operating performance - **Adjusted EBITDA** is a **non-GAAP financial measure** used by management to analyze operating performance by excluding items not indicative of core operations, such as interest expense, income taxes, depreciation, amortization, impairment charges, share-based compensation, and changes in earnout value[133](index=133&type=chunk) | Metric (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Net income (loss) | **$64,694** | **$(21,404)** | **$86,098** | * | | Adjusted EBITDA | **$278,960** | **$278,066** | **$894** | **0.32%** | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company manages liquidity through available cash, cash generation, and access to capital, believing its financial position, operating cash flows, existing credit facility, and potential additional financing will be sufficient to meet future operational requirements, capital expenditures, and commitments - As of **March 30, 2025**, the company had approximately **$79,088 thousand of available cash and cash equivalents**[137](index=137&type=chunk) - The company's long-term strategy includes capital expenditures for new locations and upgrading existing ones, funded by available cash, operating cash flows, existing credit facilities, and potential sale-lease-back transactions[136](index=136&type=chunk) - **Operating activities provided $154,767 thousand**, **investing activities used $166,412 thousand**, and **financing activities provided $23,925 thousand** for the nine months ended March 30, 2025[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) [Critical Accounting Estimates](index=35&type=section&id=Critical%20Accounting%20Estimates) There have been **no significant changes** to the company's critical accounting estimates during the quarter ended March 30, 2025, as previously discussed in its fiscal year 2024 Form 10-K - **No significant changes** in critical accounting estimates occurred during the quarter ended March 30, 2025[143](index=143&type=chunk) [Recently Issued Accounting Standards](index=36&type=section&id=Recently%20Issued%20Accounting%20Standards) Information regarding new accounting pronouncements is detailed in **Note 1** of the Condensed Consolidated Financial Statements - Refer to **Note 1** for details on recently issued accounting standards[145](index=145&type=chunk) [Emerging Growth Company Accounting Election](index=36&type=section&id=Emerging%20Growth%20Company%20Accounting%20Election) As an **emerging growth company**, **Lucky Strike** has elected to use the **extended transition period** for new accounting standards, which may result in financial statements not being comparable to companies that comply with public company effective dates - The company, as an **emerging growth company**, has elected to use the **extended transition period** for complying with new or revised accounting standards[146](index=146&type=chunk) - This election may lead to **non-comparability** of financial statements with other public companies that do not use the **extended transition period**[146](index=146&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the company's exposure to market risks, including interest rate risk, credit risk, commodity price risk, and inflation, and how it attempts to manage these risks through operating and financing activities [Interest Rate Risk](index=36&type=section&id=Interest%20Rate%20Risk) The company is exposed to interest rate risk on its variable-rate debt, where a **1.0% increase or decrease** in the effective interest rate would impact **annual interest expense** by approximately **$12,824 thousand**, and **interest rate collars** are used to hedge **$800,000 thousand** of the Term Loan, setting a **SOFR floor of approximately 0.94%** and a **cap of 5.50%** until **March 31, 2026** - A **1.0% increase or decrease** in the effective interest rate would cause an approximate **$12,824 thousand change in annual interest expense** on outstanding debt[148](index=148&type=chunk) - The company uses **interest rate collars** for an aggregate **notional amount of $800,000 thousand** of its Term Loan, with a **SOFR floor of approximately 0.94%** and a **cap of 5.50%**, maturing **March 31, 2026**[148](index=148&type=chunk) [Credit Risk](index=36&type=section&id=Credit%20Risk) The company's **Credit risk** primarily relates to cash and temporary investments held with high-quality financial institutions, which it monitors while prioritizing safety and liquidity of principal - **Credit risk** is concentrated in cash and temporary investments, which are placed with high-quality financial institutions[149](index=149&type=chunk) - The company monitors third-party depository institutions and prioritizes safety and liquidity of principal over maximizing yield[149](index=149&type=chunk) [Commodity Price Risk](index=36&type=section&id=Commodity%20Price%20Risk) The company is exposed to **market price fluctuations** in food, beverage, supplies, and energy costs, where volatility in commodity prices can **materially impact food costs**, and the ability to pass these increases to customers may be **limited by the competitive environment** - The company is exposed to **market price fluctuations** in food, beverage, supplies, and energy[150](index=150&type=chunk) - Price volatility in commodities like proteins, produce, dairy, and cooking oil can **materially impact food costs**, and the ability to pass these costs to customers is **limited by the competitive environment**[150](index=150&type=chunk) [Inflation](index=36&type=section&id=Inflation) The company experiences **inflation** in product purchases, which can **materially impact its financial condition**, and while it monitors prices and may adjust its own pricing, competitive pressures can **limit its ability to fully recover higher costs** - The company experiences **inflation** in the purchase of products necessary for its business operations[151](index=151&type=chunk) - Price volatility from **inflation** could **materially impact financial condition and results of operations**, and the ability to recover higher costs through increased pricing may be **limited by the competitive environment**[151](index=151&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the **effectiveness** of the company's **Disclosure controls and procedures** as of March 30, 2025, and reports **no material changes** in **internal control over financial reporting** during the quarter [Evaluation of Disclosure Controls and Procedures](index=37&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) The Chief Executive Officer and Chief Financial Officer concluded that the company's **Disclosure controls and procedures** were **effective** as of **March 30, 2025** - **Disclosure controls and procedures** are designed to ensure timely and proper reporting of information to management[152](index=152&type=chunk) - The CEO and CFO concluded that these controls and procedures were **effective** as of **March 30, 2025**[152](index=152&type=chunk) [Changes in Internal Control Over Financial Reporting](index=37&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) There were **no material changes to internal control over financial reporting** that materially affected, or are reasonably likely to materially affect, **internal control over financial reporting** during the **third quarter** ended **March 30, 2025** - **No material changes to internal control over financial reporting** occurred during the **third quarter** ended **March 30, 2025**[153](index=153&type=chunk) [Part II - Other Information](index=37&type=section&id=Part%20II%20-%20Other%20Information) This part includes disclosures on legal proceedings, risk factors, unregistered sales of equity securities, and exhibits [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) For a description of all **Material pending legal proceedings**, refer to **Note 9 - Commitments and Contingencies** in the notes to the Condensed Consolidated Financial Statements - **Material pending legal proceedings** are described in **Note 9 - Commitments and Contingencies**[155](index=155&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) There have been **no material changes to risk factors** previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2024 - **No material changes to risk factors** since the Annual Report on Form 10-K for the fiscal year ended June 30, 2024[156](index=156&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's purchases of its own equity securities, specifically **Class A common stock**, during the quarter ended March 30, 2025, including both publicly announced repurchase program activities and an **employment separation agreement** repurchase [Issuer Purchases of Equity Securities](index=37&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) During the quarter ended March 30, 2025, the company repurchased a total of **3,690,774 Class A shares** at an average price of **$10.81**, including **1,943,340 shares** under its publicly announced program and **1,747,434 shares** as part of an **employment separation agreement** | Period | Total Number of Class A Shares Purchased | Average Price Paid per Class A Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Dollar Value of Shares That May Yet Be Purchased Under The Publicly Announced Repurchase Program (in thousands) | | :----- | :--------------------------------------- | :----------------------------------- | :-------------------------------------------------------------------- | :------------------------------------------------------------------------------------------------------------ | | Dec 30, 2024 to Feb 2, 2025 | **1,733,144** | **$10.26** | **1,733,144** | **$101,154** | | Feb 3, 2025 to Mar 2, 2025 | **500** | **$10.44** | **500** | **$101,149** | | Mar 3, 2025 to Mar 30, 2025 | **1,957,130** | **$11.29** | **209,696** | **$99,215** | | **Total** | **3,690,774** | **$10.81** | **1,943,340** | | - The company repurchased **1,747,434 shares of Class A common stock** at **$11.54 per share** as part of an **employment separation agreement**, which was not part of the publicly announced repurchase program[159](index=159&type=chunk) [Item 6. Exhibits and Financial Statement Schedules](index=38&type=section&id=Item%206.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-Q, including employment agreements, certifications of principal officers, and **XBRL interactive data files** - Exhibits include an amendment to an employment agreement, certifications of the **Principal Executive Officer** and **Principal Financial Officer**, and **XBRL interactive data files**[160](index=160&type=chunk) [Signatures](index=39&type=section&id=Signatures) This section contains the required signatures for the Form 10-Q filing - The report was signed by **Robert M. Lavan**, **Chief Financial Officer (Principal Financial Officer)**, on **May 8, 2025**[165](index=165&type=chunk)