Lucky Strike Q2 Earnings Call: Analyst Questions and Key Takeaways

Lucky Strike's Q2 revenue rose 6.1% YoY to $301.2 million, beating estimates, but adjusted EPS missed estimates at -$0.36. Same-store sales fell 4.1% YoY, while EBITDA guidance for FY26 is below analyst estimates at $395 million. Management attributed revenue growth to seasonal passes, expanded food options, and new acquisitions, but acknowledged bottom-line challenges and higher marketing spend. Analysts questioned the impact of marketing spend, geographical pockets of weakness, and the effect of competitive campaigns from Topgolf.

Lucky Strike (LUCK) reported its second quarter (Q2) 2025 earnings, with mixed results that saw revenue grow by 6.1% year-on-year (YoY) to $301.2 million, beating analyst estimates of $293.4 million [1]. However, the company missed adjusted earnings per share (EPS) estimates at -$0.36, compared to analyst expectations of -$0.02. The adjusted EBITDA came in at $88.73 million, which was a 29.5% margin and a 2.9% beat over analyst estimates of $86.22 million. The company's EBITDA guidance for the upcoming financial year 2026 is $395 million at the midpoint, below analyst estimates of $404.1 million [1].

Same-store sales fell 4.1% YoY, a significant decline from the 9.1% growth seen in the same quarter last year. Management attributed revenue growth to seasonal pass offerings, expanded food and beverage options, and the integration of new water park and family entertainment center acquisitions. However, the company acknowledged that higher marketing spend and recent acquisitions were strategic responses to these pressures, which weighed on overall comparable store performance [1].

Analysts raised several questions during the earnings call. Jackson Gibb (Stifel) questioned the assumptions embedded in the 2026 EBITDA guidance and the drivers for reinstating guidance. CEO Thomas Shannon emphasized seasonality from new assets and increased marketing spend as primary factors. Randal Konik (Jefferies) inquired about when the events business and California would inflect positively, with CFO Robert Lavan noting that recovery is expected to be gradual through late summer. Jason Tilchen (Canaccord Genuity) asked about the impact of increased marketing investment on recent comp acceleration, with President Lev Ekster attributing success in the season pass program to a $1 million marketing increase. Ian Zaffino (Oppenheimer) sought details on geographical pockets of weakness and beverage mix trends, with Lavan identifying California as the main underperformer and Ekster pointing to growing demand for non-alcoholic options. Michael Kupinski (Noble Capital Markets) asked about the trajectory of operating costs and the effect of competitive campaigns from Topgolf, with Lavan clarifying that elevated costs were seasonal and non-cash related, and downplaying the competitive threat from Topgolf’s advertising [1].

Looking ahead, the StockStory team will focus on the pace of same-store sales recovery in key regions like California, early results from the expanded marketing and rebranding initiatives, and integration progress and profit contribution from newly acquired water parks and family entertainment centers. Execution in food and beverage innovation and measured capital allocation will also serve as important indicators of sustained momentum [1].

Lucky Strike currently trades at $10.48, down from $10.68 just before the earnings. The company's performance in the upcoming quarters will be closely watched by investors and analysts alike. The mixed results and analyst questions highlight the challenges Lucky Strike faces in achieving profitability and growth.

References:
[1] https://stockstory.org/us/stocks/nyse/luck/news/earnings-call/5-must-read-analyst-questions-from-lucky-strikes-q2-earnings-call
[2] https://finance.yahoo.com/news/5-must-read-analyst-questions-053138616.html
[3] https://www.ainvest.com/news/lucky-strike-q4-2025-earnings-call-contradictions-guidance-marketing-investments-economic-uncertainty-impact-2508/