Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $530 million, with a net loss of $40 million or $1.15 per diluted share, and an adjusted net loss of $12 million or $0.35 per diluted share [24] - Adjusted EBITDA for the quarter was $111 million, resulting in an adjusted EBITDA margin of 21% [24] - Comparable store sales decreased by 3.3% year-over-year in Q4 2025, but would have decreased only 1.5% excluding the impact of extreme winter weather [21][24] - The company expects to generate more than $100 million in free cash flow during FY 2026 [19][30] Business Line Data and Key Metrics Changes - Food and beverage (F&B) same-store sales increased approximately 7% during Q4 2025, with positive trends continuing into 2026 [10][21] - Special events revenue grew nearly 7% in Q4 2025 [21] - The percentage of guests opting for the eat and play combo improved significantly, growing from roughly 10% in Q1 2025 to approximately 16% in Q4 2025 [11] Market Data and Key Metrics Changes - The company has opened two new domestic stores in Q4 2025, bringing the total for the year to 11 new stores [27] - Internationally, the company opened its fourth franchise location in the Dominican Republic and plans to open three more in Delhi, India, Perth, Australia, and Mexico City, Mexico [27][28] Company Strategy and Development Direction - The company is focused on a "back to basics" strategy, emphasizing improvements in marketing, food and beverage offerings, and new game introductions [4][5][18] - Plans for FY 2026 include launching at least 10 new games and attractions, with a focus on culturally relevant IPs to drive traffic [12][13] - The company aims to maintain strict capital expenditure discipline, planning to spend no more than $200 million in CapEx during 2026 [19][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow same-store sales, revenue, and adjusted EBITDA in FY 2026, despite external macroeconomic pressures [6][62] - The company is optimistic about leveraging upcoming events like the FIFA World Cup to drive traffic and sales [9][64] - Management acknowledged the challenges posed by consumer sentiment and macroeconomic factors but emphasized a focus on internal strategies to drive growth [33][62] Other Important Information - The company has made significant progress in strengthening its leadership team and improving operational execution to enhance guest experience [15][16] - The remodel program is expected to generate attractive returns, with remodel stores outperforming non-remodel stores by approximately 700 basis points [17][21] Q&A Session Summary Question: Insights on consumer behavior and impact of macro factors - Management noted the difficulty in parsing the impact of macroeconomic factors versus holiday shifts, indicating a need to wait for clearer data post-spring break [33] Question: Impact of value promotions on margins - Management confirmed that value promotions have not led to margin erosion, as increased guest engagement has resulted in higher food and beverage sales [35][36] Question: Amusement business performance and future initiatives - Management acknowledged past mistakes in not investing in amusements and expressed confidence that new game introductions will drive traffic and sales growth [43][45] Question: Marketing strategy changes for 2026 - The marketing strategy will focus on product quality, customer insights, and a balanced media mix to effectively reach target audiences [48][49] Question: Free cash flow guidance and margin expectations - Management did not provide specific EBITDA guidance but emphasized that growing same-store sales will drive margin growth [54][55] Question: Strategic rationale for continued store growth - Management highlighted the importance of maintaining competitive advantage and ensuring high returns on new store investments while being mindful of same-store sales growth [88][92]