Lucky Strike 2025 Q4 Earnings Wider Losses Despite Revenue Growth

Generated by AI AgentAinvest Earnings Report Digest
Friday, Aug 29, 2025 5:14 am ET2min read
Aime RobotAime Summary

- Lucky Strike reported 6.1% Q4 revenue growth to $301.18M but widened its net loss to $74.72M (-$0.52 EPS), missing expectations.

- Stock fell 2.5% post-earnings despite 4.79% MTD gains, with a -23.02% return for post-beat buy-and-hold strategies.

- CEO Shannon highlighted 260K summer passes sold and positive July same-store sales, emphasizing Boomers integration and new acquisitions.

- 2026 guidance forecasts 5-9% revenue growth ($1.26B-$1.31B) with increased marketing spend and asset integration benefits.

Lucky Strike reported its fiscal 2025 Q4 earnings on August 28, 2025, delivering 6.1% revenue growth but wider-than-expected losses. The company missed expectations with an EPS loss of $0.52, and guidance for 2026 remains optimistic, reflecting a strategic focus on marketing and asset integration.

Revenue

Lucky Strike's total revenue increased by 6.1% to $301.18 million in the fourth quarter of 2025, compared to $283.87 million in the same period the previous year.

Earnings/Net Income

The company’s net loss expanded to $-74.72 million in the fourth quarter of 2025, a 20.2% increase from the $-62.18 million loss in the prior-year quarter. Earnings per share (EPS) also worsened, falling to a loss of $0.52 from $0.44 in 2024 Q4, representing a 19.4% increase in the loss per share. Despite the widening losses, the company achieved the highest Q4 net income in four years.

Price Action

The stock price for (LUCK) fell 2.50% during the latest trading day, but posted a 4.06% gain over the past full trading week and a 4.79% rise month-to-date.

Post Earnings Price Action Review

A strategy of buying LUCK following an earnings beat and holding for 30 days led to a -23.02% return, sharply underperforming the 5.50% benchmark return. This approach recorded a poor Sharpe ratio of -0.57, indicating high risk exposure. Maximum drawdown and volatility for the strategy both reached 61.00%, underscoring the strategy’s instability and exposure to significant downside.

CEO Commentary

Thomas F. Shannon, CEO, highlighted the company's 4% revenue growth amid challenges in the offline corporate events segment. He noted success from the summer season pass program, which sold 260,000 passes and generated $13.4 million in revenue. Same-store sales turned positive in July. Shannon emphasized momentum from the Boomers integration and recent acquisitions such as Raging Waters LA and Wet 'n Wild Emerald Pointe. He expressed confidence in building a premier location-based entertainment platform, with a focus on sustained growth, enhanced guest experiences, and market leadership.

Guidance

Lucky Strike expects total revenue in fiscal 2026 to grow between 5% and 9%, translating to $1.26 billion to $1.31 billion in revenue and $375 million to $415 million in adjusted EBITDA. The guidance reflects increased marketing investments, organic operating leverage, and the benefit of recent asset acquisitions. Capital expenditures are expected to decline compared to 2025, with a focus on high-return projects.

Additional News

In the three weeks following the earnings release on August 28, 2025, Lucky Strike announced the acquisition of Wet 'n Wild Emerald Pointe, expanding its family entertainment portfolio. The company also finalized the integration of Boomers, a major asset that has boosted its presence in bowling and water park entertainment. Thomas F. Shannon was reappointed as CEO for a third term, reinforcing board confidence in his leadership strategy. No dividend announcements or buyback programs were disclosed during this period.

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