Bowlero (BOWL) - 2025 Q4 - Annual Results

Company Overview & Performance Highlights Lucky Strike Entertainment concluded FY2025 with strong organic revenue growth, driven by strategic acquisitions and successful seasonal programs Company Introduction 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] - The company offers experiential services including bowling, attractions, water parks, and family entertainment centers[9] - The company also owns the Professional Bowlers Association (PBA), a growing media asset with millions of fans[9] CEO Commentary 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] - 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] - 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] Fiscal Year 2025 Highlights 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] - From March 31, 2025, to August 28, 2025, the company acquired three family entertainment centers and two water parks[5] 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 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] - For FY2025, the company's operating income significantly increased to $137.2 million, compared to $91.6 million in the prior year[19] Consolidated Balance Sheets 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] - Earnout liability significantly decreased from $137.6 million in 2024 to $36.2 million in 2025[16] Consolidated Statements of Cash Flows 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] - Net cash used in investing activities significantly decreased from $385.7 million in FY2024 to $220.3 million in FY2025[21] 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 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] - On July 16, 2025, the revolving credit commitment increased by $50 million, totaling $385 million[22] 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 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] - 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] - 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] Revenue Reconciliation 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] - For FY2025, same-store revenue was $990.7 million, compared to $1.0293 billion in the prior year[23] Adjusted EBITDA Reconciliation 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][27] - Share-based compensation expense increased to $21.6 million in FY2025, compared to $13.8 million in the prior year[24] 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 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] - Recently acquired venues typically take 12-18 months to reach the company's overall margin levels[6] 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 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] - For the full FY2025, the company repurchased 6.8 million shares of Class A common stock for approximately $72 million[7] - The company currently has $92 million remaining under its share repurchase program[7] Quarterly Cash Dividend 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] - The dividend is payable on September 12, 2025[8] - The record date for the dividend is August 29, 2025[8] Legal & Investor Information This section outlines forward-looking statements, associated risks, and provides details for investor engagement and communication Forward-Looking Statements 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] - 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] - The company undertakes no obligation to publicly update or review any forward-looking statements, except as required by applicable law[10] Investor Webcast & Contacts 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] - 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]