Financial Data and Key Metrics Changes - In Q2 2025, comparable store sales decreased by 3% compared to the prior year period, with a noted decline of 2.2% in the first five weeks of the quarter [11][12] - Revenue for the quarter was $557 million, with a net income of $11 million or $0.32 per diluted share, and adjusted EBITDA of $130 million, resulting in an adjusted EBITDA margin of 23% [13][14] - The company generated $34 million in operating cash flow during the quarter, ending with $12 million in cash and $443 million in total liquidity [13][14] Business Line Data and Key Metrics Changes - The special events business saw a revenue increase of nearly 10% year-over-year, contributing positively to overall performance [25] - The company opened three new stores in Q2 and has a total of eight new store openings year to date, with expectations for 11 new store openings in fiscal 2025 [17][18] Market Data and Key Metrics Changes - The company is focusing on international franchising as a growth driver, with agreements for over 35 additional stores in the coming years [18] - The company has seen a significant improvement in its special events business, which is driving brand engagement and awareness [25] Company Strategy and Development Direction - The management is committed to reinforcing a guest-first culture, delivering memorable experiences, and driving growth in sales and shareholder value [9][10] - The strategic focus includes improving marketing effectiveness, enhancing food and beverage offerings, and introducing new games to attract customers [26][28] - The company aims to simplify its marketing message and improve value perception among customers [38][79] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic headwinds but believes that delivering value will help the brand prosper [78] - The company is optimistic about improving performance through focused execution and believes the stock is undervalued with significant upside potential [20][32] Other Important Information - The company has implemented a new prototype for remodels that is expected to drive better results at a lower cost [23] - A sale-leaseback transaction for real estate assets has provided approximately $77 million in funds, enhancing liquidity for future investments [16] Q&A Session Summary Question: What are the comparable store sales trends for Q3? - Management did not quantify the numbers but indicated trends are consistent with Q2 [35] Question: Can you elaborate on value perception challenges? - Management believes the confusion in marketing has affected value perception and is working on simplifying messaging [36][38] Question: What are the near-term margin expectations? - Management anticipates moderated EBITDA margins in the second half of the year due to improved top-line performance and fewer one-off costs [44] Question: How is the eat and play combo performing? - The eat and play combo is seeing an 8% to 10% opt-in rate, with food upgrades contributing positively to sales [45] Question: How does the brand's transformation compare to past experiences? - Management sees similarities in brand distinctiveness and value perception challenges but acknowledges the complexity of the entertainment aspect [49][51] Question: What is the outlook on new store growth and CapEx discipline? - Management remains bullish on new store growth, expecting to maintain a 6% to 7% growth rate through new unit additions [53][55] Question: What changes have been made to game pricing? - The company has simplified game pricing to enhance value perception and increase customer dwell time [58][60] Question: Will marketing investments need to increase? - Management believes the current marketing spend is sufficient and will focus on refining the media mix for effectiveness [66] Question: What is the new adjusted EBITDA target? - The new target is set at $675 million, which management believes is achievable within the committed timeline [75]

Core Viewpoint - Venu plans to invest approximately $3 billion in building venues over the next 3 to 4 years, with a focus on innovative financing models and public-private partnerships [1][3]. Company Developments - The company is set to break ground on a $350 million amphitheater in McKinney, Texas, which will be the largest fully seated, multi-seasonal amphitheater ever constructed [2]. - Currently, Venu is constructing about $1.2 billion worth of amphitheaters and aims to scale this to $3 billion in the coming years [3]. Financing Strategy - Venu's financing model includes 35% to 45% of funding coming from municipal partnerships, which may involve real estate, cash, and tax incentives [3]. - The company employs a fractional ownership model similar to condominium sales, which contributes to 35% to 45% of its overall financing [4]. Recent Financial Activity - Venu closed a $10.25 million equity investment with an institutional investor, issuing a new series of preferred stock with a stated value of $15,000 per share, convertible into common stock at an effective rate of $15 per share [6].