First Quarter 2026 Financial Summary
Revenue of $559.2 million decreased 1.5% from the first quarter of fiscal 2025.
Comparable store sales decreased 5.4% compared to the same calendar period in fiscal 2025.
Net income totaled $5.7 million, or $0.16 per diluted share, compared to net income of $21.7 million, or $0.62 per diluted share in the first quarter of fiscal 2025. Adjusted net income1 totaled $7.8 million, or $0.22 per diluted share, compared to Adjusted net income1 of $26.7 million, or $0.76 per diluted share in the first quarter of fiscal 2025.
Adjusted EBITDA1 was $123.2 million compared to $136.1 million in the first quarter of fiscal 2025.
Adjusted free cash flow2 was positive $25.3 million compared to negative $58.8 million in the first quarter of fiscal 2025.
Additional Events and Commentary
The Company opened one new domestic store in the first quarter and has opened three additional domestic stores in the second quarter.
The Company has completed remodels of six Dave & Buster's stores thus far in fiscal 2026 and expects to complete two additional Dave & Buster's store remodels during the remainder of fiscal 2026.
The Company opened its fifth international franchise store in May and sixth international franchise store in June, and expects to open at least one additional international franchise store during the remainder of fiscal 2026.
"While first quarter results fell short of expectations, our back-to-basics strategy is gaining clear traction," said Tarun Lal, Chief Executive Officer. "We are driving meaningful progress across food and beverage, marketing, and our refreshed remodel program, which are delivering a sharper value proposition and driving a stronger guest experience. We have the right strategy, the right team, and the right momentum, and we are highly confident in our ability to drive positive comps for the remainder of the year while generating over $100 million in free cash flow in fiscal 2026."
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1
Adjusted EBITDA and Adjusted net income are non-GAAP financial measures. Please see the discussion under Non-GAAP Measures and the reconciliations at the end of this release for additional information concerning these and other non-GAAP financial measures.
2
Adjusted free cash flow is a non-GAAP financial measure. Adjusted free cash flow equals Net Cash Provided by Operating Activities less Capital Expenditures plus Payments from landlords (sale leaseback transactions). Please see the Company's Quarterly Report on Form 10-Q for additional information regarding these values.
Cash Flow and Liquidity
The Company generated $25.3 million in Adjusted free cash flow during the first quarter, ending the quarter with $499.1 million of available liquidity.1
Quarterly Report on Form 10-Q Available
The Company's Quarterly Report on Form 10-Q, which will be available at www.sec.gov and on the Company's investor relations website, contains a thorough review of its financial results for the first quarter ended May 5, 2026.
Investor Conference Call and Webcast
Management will host a conference call to discuss these results on Monday, June 15, 2026 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). Both the live and archived webcasts of the conference call will be available at ir.daveandbusters.com. Participants in the U.S. can access the conference call by dialing toll-free (888) 596-4144, and international participants can access by dialing +1 (646) 968-2525. The conference ID is 2926680. A replay will be available after the call beginning at 6:00 p.m. Central Time (7:00 p.m. Eastern Time) and can be accessed by dialing toll-free (800) 770-2030 or by the toll number +1 (609) 800-9909. The replay conference ID is also 2926680.
About Dave & Buster's Entertainment, Inc.
Founded in 1982 and headquartered in Coppell, Texas, Dave & Buster's Entertainment, Inc. is the owner and operator of 247 stores in North America that offer premier entertainment and dining experiences to guests through two distinct brands: Dave & Buster's and Main Event. The Company has 182 Dave & Buster's branded stores in 43 states, Puerto Rico, and Canada and offers guests the opportunity to "Eat Drink Play and Watch" all in one location. Each store offers a full menu of entrées and appetizers, a complete selection of alcoholic and non-alcoholic beverages, and an extensive assortment of entertainment attractions centered around playing games and watching live sports and other televised events. The Company also operates 65 Main Event branded stores in 23 states across the country, and offers state-of-the-art bowling, laser tag, hundreds of arcade games and virtual reality, making it the perfect place for families to connect and make memories. Internationally, the Company is in early-stage growth as a franchisor of its brands with six Dave & Buster's franchise stores currently open. For more information about each brand, visit daveandbusters.com and mainevent.com.
Forward-Looking Statements
The Company cautions that this release contains forward-looking statements. These forward-looking statements involve risks and uncertainties, including: our ability to continue as a going concern; our ability to obtain waivers, and thereafter continue to satisfy covenant requirements under our revolving credit facility; our ability to access other funding sources; our overall level of indebtedness; general business and economic conditions; the impact of competition; the seasonality of the Company's business; adverse weather conditions; future commodity prices; guest and employee complaints and litigation; fuel and utility costs; labor costs and availability; changes in consumer and corporate spending; changes in demographic trends; changes in governmental regulations; unfavorable publicity; our ability to open new stores; and acts of God. Accordingly, actual results may differ materially from the forward-looking statements, and the Company therefore cautions you against relying on such forward-looking statements. The Company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more appropriate information becomes available, except as required by law.
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1
Available liquidity is defined as cash and cash equivalents plus availability under the Company's $650.0 million revolving credit facility.
Non-GAAP Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), the Company uses the following non-GAAP financial measures: Adjusted EBITDA, Credit Adjusted EBITDA (calculated in accordance with the Company's Credit Facility), Net Total Leverage Ratio (calculated in accordance with the Company's Credit Facility), Store operating income before depreciation and amortization, Adjusted net income (loss), Adjusted net income (loss) per share - diluted, and Adjusted free cash flow reconciliations or numerical inputs of which can be found on the following pages or in the Company's Quarterly Report on Form 10-Q (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures used by the Company in this press release may be different from the measures used by other companies or calculated differently than similar measures used by other companies.
For Investor Relations Inquiries:
Cory Hatton, Head of Entertainment Finance, Investor Relations & TreasurerDave & Buster's Entertainment, Inc.[email protected]
DAVE & BUSTER'S ENTERTAINMENT, INC.Consolidated Statements of Operations(unaudited, in millions, except per share amounts)
Three Months Ended
May 5, 2026 (1)
May 6, 2025 (1)
Entertainment revenues
$
345.1
61.7
%
$
366.6
64.6
%
Food and beverage revenues
214.1
38.3
%
201.1
35.4
%
Total revenues
559.2
100.0
%
567.7
100.0
%
Cost of entertainment
27.4
7.9
%
30.6
8.3
%
Cost of food and beverage
52.4
24.5
%
51.5
25.6
%
Total cost of products
79.8
14.3
%
82.1
14.5
%
Operating payroll and benefits
140.1
25.1
%
135.0
23.8
%
Other store operating expenses
186.7
33.4
%
188.4
33.2
%
General and administrative expenses
27.5
4.9
%
24.4
4.3
%
Depreciation and amortization expenses
70.9
12.7
%
63.2
11.1
%
Pre-opening costs
5.4
1.0
%
6.1
1.1
%
Other charges and gains
1.9
0.3
%
5.3
0.9
%
Total operating costs
512.3
91.6
%
504.5
88.9
%
Operating income
46.9
8.4
%
63.2
11.1
%
Interest expense, net
36.9
6.6
%
36.8
6.5
%
Income before income taxes
10.0
1.8
%
26.4
4.7
%
Provision for income taxes
