Dave & Buster's Q1 Revenue $559.2M Falls Short by $12M; Free Cash Flow $25.3M
PLAY•Dave & Buster's reported Q1 revenue of $559.2 million, down 1.5% year-over-year, missing the $571.1 million consensus, with comparable store sales falling 5.4%. Net income plunged to $5.7 million ($0.16 per share) from $21.7 million ($0.62), while adjusted EBITDA declined to $123.2 million and free cash flow turned positive $25.3 million.
1. Financial Performance Overview
Dave & Buster's posted Q1 revenue of $559.2 million, a 1.5% decline year-over-year, falling short of the $571.1 million analysts forecast. Comparable store sales slipped 5.4%, driving net income down to $5.7 million ($0.16 per share) from $21.7 million ($0.62), while adjusted EBITDA decreased to $123.2 million.
2. Cash Flow Turnaround and Liquidity
The company generated positive adjusted free cash flow of $25.3 million, reversing a loss of $58.8 million a year earlier, and ended the quarter with $499.1 million in available liquidity. This financial flexibility supports debt obligations and potential growth investments.
3. Growth Initiatives and Outlook
In Q1 the company opened one new domestic venue and completed six remodels, with three additional openings in Q2. Internationally, franchise expansion reached six stores with another expected this year, underpinning management’s confidence in driving positive comps and over $100 million in free cash flow for fiscal 2026.
