Lucky Strike 2026 Q1 Earnings 159.7% Net Loss Deterioration Despite 12.3% Revenue Growth

Lucky Strike (LUCK), ranked by market capitalization, reported fiscal 2026 Q1 earnings on Nov 5, 2025. The company exceeded revenue estimates by 3.44% but swung to a net loss, while maintaining guidance for 1% to 5% same-store sales growth.

Revenue

Lucky Strike’s total revenue rose 12.3% year-over-year to $292.28 million, driven by strong performance across segments. Bowling led with $125.27 million, while food & beverage contributed $96.13 million. Amusement and other segments rounded out the total with $70.88 million. The results reflect a 12% increase in top-line growth despite flat same-store sales.

Earnings/Net Income

The company swung to a loss of $0.12 per share in Q1 2026 from a profit of $0.13 per share in Q1 2025, a 192.3% negative change. Net income turned to a loss of $13.80 million, worsening from $23.09 million a year earlier—a 159.7% deterioration. The sharp decline in profitability highlights operational challenges despite revenue growth.

Post-Earnings Price Action Review

Lucky Strike’s stock price declined 5.34% during the latest trading day, edged down 0.25% for the week, and plummeted 22.97% month-to-date. The significant post-earnings drop, despite beating revenue estimates, underscores investor concerns over flat same-store sales and a struggling events segment.

CEO Commentary

CEO Thomas Shannon emphasized 12% revenue growth and 15% adjusted EBITDA expansion, though same-store sales were nearly flat at -0.4%. He highlighted October as the “strongest month of the year” for events and cited disciplined cost management, including a 40% reduction in CapEx to $26 million. Strategic acquisitions of water parks and family entertainment centers were framed as accretive, with rebranding 74 locations to the Lucky Strike brand expected to boost marketing ROI.

Guidance

Lucky Strike guided for 1% to 5% same-store sales growth in 2026, with EBITDA margins expanding 600–800 basis points in winter quarters. CapEx remains below $130 million, prioritizing organic growth. The company anticipates 70 basis points of EBITDA margin expansion in Q1, driven by revenue leverage, though marketing and insurance costs will offset some gains.

Additional News

Lucky Strike raised its quarterly dividend by ~9% to $0.06 per share, payable Dec. 8, reflecting confidence in cash flow. Separately, West Australian miner Lefroy Exploration secured final approvals for its Lucky Strike gold project, with production slated for February 2026. Meanwhile, the entertainment company announced rebranding 74 locations to the Lucky Strike brand by year-end, aiming to enhance F&B attachment and marketing efficiency.

Note: The dividend increase, mining project approval, and rebranding initiative are the top non-earnings-related news within three weeks of Nov 5, 2025.