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Dave & Buster's Entertainment, Inc. (PLAY) Q1 2026 Earnings Call June 15, 2026 5:00 PM EDT

Company Participants

Cory Hatton - Head of Entertainment Finance, Investor Relations & Treasurer
Tarun Lal - CEO & Director
Darin Harper - Chief Financial Officer

Conference Call Participants

Andrew Barish - Jefferies LLC, Research Division
Sharon Zackfia - William Blair & Company L.L.C., Research Division
Andrew Strelzik - BMO Capital Markets Equity Research
Eric Wold - Texas Capital Securities, Research Division
Brian Vaccaro - Raymond James & Associates, Inc., Research Division
Michael Hickey - The Benchmark Company, LLC, Research Division
Dennis Geiger - UBS Investment Bank, Research Division

Presentation

Operator

Hello, and welcome to the Dave & Buster's Entertainment Inc. First Quarter 2026 Earnings Call. [Operator Instructions]

I'll now turn the conference over to Cory Hatton, VP of Entertainment, Finance, Investor Relations and Treasurer. Please go ahead.

Cory Hatton
Head of Entertainment Finance, Investor Relations & Treasurer

Thank you, operator, and welcome to everyone on the line. Joining me in the room on today's call are Tarun Lal, our Chief Executive Officer; and Darin Harper, our Chief Financial Officer. After our prepared remarks, we will be happy to answer any questions. This call is being recorded on behalf of Dave & Buster's Entertainment, Inc. and is copyrighted.

Before we begin the discussion on our company's first quarter 2026 results, I'd like to call your attention to the fact that in our prepared remarks and responses to questions, certain items may be discussed, which are not entirely based on historical fact. Any of these items should be considered forward-looking statements relating to future events within the meaning of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Information on these risks and uncertainties have been published in our filings

Live 4 updates · Last at 4:52pm ET Updates appear automatically.

By Thomas Richmond · Updated Sep 14, 4:52pm ET · Published Sep 14, 12:55pm ET

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Live UpdatesNewest first

That wraps up our initial coverage of Dave & Buster’s Q2 results. Thank you for stopping by!

Dave & Buster’s just reported earnings, with shares initially dropping 13% following the report. Here are the key numbers:

Revenue: $544.10 million vs. $556.83 million expected Adjusted EPS: -$0.27 vs. $0.19 expected Both the top and bottom lines missed expectations, with revenue declining 2.4% year over year. Expectations were already low heading into the print, with consensus calling for roughly $0.19 per share.

Quick Read:

A double miss is hitting PLAY hard: Revenue fell about $13 million short of estimates, while the company swung to an adjusted loss versus expectations for a profit.

With shares already deeply depressed entering earnings, tonight’s 13% drop suggests investors wanted clearer evidence that Dave & Buster’s operating trends are stabilizing.

This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. Simply stay on this page, and new updates will appear below automatically.

We expect Dave & Buster’s to release Q2 earnings shortly after 4:05 p.m. ET.

Dave & Buster’s reports second-quarter fiscal 2026 results at 4:05 PM ET tonight, with investors focused on whether the company’s turnaround is finally gaining traction.

Management entered the quarter expecting positive comparable-store sales for the remainder of fiscal 2026 and more than $100 million in full-year free cash flow.

But expectations have fallen sharply. Consensus EPS has dropped from $0.8363 just 30 days ago to $0.1872 today as softer traffic has weighed on the outlook. That follows a first quarter in which comparable-store sales fell 5.4% and adjusted EPS of $0.22 missed expectations.

With PLAY shares down more than 60% over the past 12 months, investors have already priced in considerable trouble. The key question tonight is whether management can show a credible inflection in comparable sales while maintaining its free cash flow outlook. Another guidance cut or continued comp weakness would suggest Dave & Buster’s problems run deeper than a temporary traffic slowdown.

This article is updated throughout the trading day. Check back for more.

Full CoverageThe story so far

Dave & Buster’s (NASDAQ:PLAY) is expected to report Q2 2026 earnings today after the market closes at 4:05 PM ET. With shares trading near their 52-week lows and CEO Tarun Lal roughly 14 months into a back-to-basics reset, this report tests whether the business can finally see an inflection. Additionally, the company announced on August 3 that CFO Davin Harper would be succeeding Tarun Lal as CEO in order to spend more time with family.

Turnaround Traction Meets a Weak Consumer Q1 fiscal 2026 undershot plans, with comparable store sales falling 5.4% as management cited elevated gas prices, geopolitical uncertainty, and meaningful softness in consumer sentiment. Revenue landed at $559 million, adjusted EPS at $0.22, and adjusted EBITDA at $123 million.

Encouragingly, food and beverage delivered nine straight months of positive same-store sales, up around 5%. Free cash flow flipped to positive $25 million from negative $59 million a year earlier. Management flagged Q2-to-date comps down approximately 4%, framing a shallower decline.

Consensus Estimates Metric Q2 FY26 Est. YoY Change FY26 Est. FY27 Est. Revenue $556.8M -0.1% $2.12B $2.21B EPS (Adj.) $0.1872 -53.2% -$0.8864 -$0.5488 Revenue is modeled essentially flat, but the EPS line reflects sharp margin compression versus the prior-year $0.40 result. Analysts cut Q2 numbers hard: 4 downward revisions in the last 30 days pulled consensus from $0.8363 to $0.1872. The bar is meaningfully lower than 90 days ago.

What I’m Watching Tonight: Games, Value, and Free Cash Flow Tonight, I’ll be watching how management frames the second-half of the year comp inflection. Management already committed to positive comparable store sales growth in the remainder of the year, so any softening of that language matters.

Second, the new-games rollout. Management pushed out 10 new games, its largest cabinet refresh since 2017, with at least five additional planned. Dwell time and game plays are reportedly up 20% year over year.

Third, the remodel prototype. New builds cost roughly half the FY24-25 versions and delivered a 7% comp uplift, outrunning the system by nearly 700 basis points.

Fourth, free cash flow. Management reiterated the $100M FY26 target with FY26 net capex capped at no more than $200 million. Investors will focus on whether that number holds despite the weak first half.

Fifth, marketing. It will be interesting to see whether the pivot from dollar-per-day messaging to eat-and-play combos and half-price games is paying off.

Earnings History Quarter EPS Surprise Day-of Move 1-Week Move 30-Day Move Q1 FY26 n/a -4.72% -8.52% -17.29% Q4 FY25 -176.91% +16.07% +7.24% -14.08% Q3 FY25 miss +13.02% -8.71% -11.57% Q2 FY25 -56.56% -16.74% -3.77% -7.94% On average, shares moved 0.69% in the week after earnings across the past six reported periods.

Contact [email protected] for any questions or corrections.

Thomas Richmond

Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 500 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.

Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.

Outside of work, Thomas enjoys weight lifting and soccer.

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A month has gone by since the last earnings report for Dave & Buster's (PLAY - Free Report) . Shares have lost about 17.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Dave & Buster's due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Dave & Buster's Entertainment, Inc. before we dive into how investors and analysts have reacted as of late.

Dave & Buster's Q1 Earnings & Revenues Miss EstimatesDave & Buster's reported weak first-quarter fiscal 2026 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate. Both metrics also declined on a year-over-year basis.

The quarter was primarily weighed down by weaker customer demand at existing locations, as reflected in lower comparable-store sales. This softness, particularly in the company's core entertainment segment, contributed to an overall decline in revenues. At the same time, profitability came under pressure due to higher labor, administrative and depreciation-related expenses, which compressed operating margins.

Despite a challenging quarter, Dave & Buster's highlighted several encouraging developments. Management noted that its back-to-basics strategy is gaining traction, with improvements across food and beverage offerings, marketing initiatives and the refreshed remodel program contributing to a stronger guest experience. The company continued to execute on its growth strategy through new store openings, remodel activities and international franchise expansion.

Dave & Buster’s Q1 Earnings & RevenuesFor the fiscal first quarter, the company reported adjusted earnings per share (EPS) of 22 cents, which missed the consensus mark of 37 cents by 40.5%. In the year-ago quarter, it had reported an adjusted EPS of 76 cents.

Quarterly revenues of $559.2 million missed the consensus estimate of $571 million by 2.1% and declined 1.5% year over year. The top line was pressured by a $29.2 million decline in comparable store revenues, partly offset by an $18.1 million increase in noncomparable store revenues.

Dave & Buster’s Sales Mix Shows DivergenceFood and Beverage revenues (38.3% of total revenues in the reported quarter) increased 6.5% year over year to $214.1 million. The company cited eat-and-play combo enhancements and menu changes made in the second half of fiscal 2025 as factors supporting higher food attach rates and check growth. Our estimate was $202.5 million.

Entertainment revenues (61.7%) fell 5.9% year over year to $345.1 million. Our estimate was $373.1 million.

Comparable store sales (including Main Event-branded locations) declined 5.4% year over year. Management attributed the decline in comparable store revenues to a reduction in walk-in business relative to the prior-year period.

Dave & Buster’s Q1 Operating HighlightsOperating income totaled $46.9 million compared with $63.2 million in the year-ago quarter. Operating margin declined to 8.4% from 11.1% reported in the first quarter of fiscal 2025. Our estimate for operating income was $43 million.

Adjusted EBITDA came in at $123.2 million compared with $136.1 million in the prior-year quarter. Adjusted EBITDA margin contracted to 22% from 24%, reflecting softer sales leverage and higher operating cost pressure.

Dave & Buster’s Balance Sheet and Cash FlowCash and cash equivalents were $19.6 million as of May 5, 2026, compared with $16.6 million as of Feb. 3, 2026. Long-term debt, net, was $1.50 billion compared with $1.52 billion at fiscal 2025-end. The company ended the quarter with $499.1 million of available liquidity, consisting of cash and availability under its $650 million revolving credit facility.

Net cash provided by operating activities improved to $113.8 million from $95.8 million in the prior-year period, mainly due to working-capital timing, partly offset by lower net income. Capital expenditures were $105.3 million, down from $154.6 million. Adjusted free cash flow was positive $25.3 million against negative $58.8 million in the year-ago quarter.

PLAY’s Store Growth and OutlookThe company opened one new domestic store in the first quarter and has opened three additional domestic stores in the second quarter. It has completed remodels of six Dave & Buster’s stores so far in fiscal 2026 and expects to complete two more during the remainder of the year.

International franchise growth also continued. Dave & Buster’s opened its fifth international franchise store in May and sixth in June, and expects at least one more opening during the remainder of fiscal 2026. Management said its back-to-basics strategy is gaining traction across food and beverage, marketing and remodels, and reiterated confidence in generating more than $100 million in free cash flow in fiscal 2026.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -22.22% due to these changes.

VGM ScoresCurrently, Dave & Buster's has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Dave & Buster's has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry PlayerDave & Buster's is part of the Zacks Retail - Restaurants industry. Over the past month, Cracker Barrel Old Country Store (CBRL - Free Report) , a stock from the same industry, has gained 22%. The company reported its results for the quarter ended April 2026 more than a month ago.

Cracker Barrel reported revenues of $797.37 million in the last reported quarter, representing a year-over-year change of -2.9%. EPS of $0.29 for the same period compares with $0.58 a year ago.

For the current quarter, Cracker Barrel is expected to post a loss of $0.33 per share, indicating a change of -144.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -7.7% over the last 30 days.

Cracker Barrel has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.