Lucky Strike Entertainment Corp
For the period ended Sep 28, 2025. Filed Nov 4, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 28, 2025 · Filed Nov 4, 2025
LUCK$3.80+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-30; filed 2025-05-08.
0001628280-25-023466
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-28; filed 2025-11-04.
0001628280-25-048817
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 83 previous paragraphs and 65 current paragraphs.
31 unchanged; 22 reworded; 11 added; 21 removed; 9 previous and 1 current paragraphs rearranged.
Tables are not compared: 6 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
•We acquired 58 existing properties that were previously under a master lease agreement with Carlyle for $306,000. Spanning 16 states, the 58 property portfolio includes prime locations in California, Illinois, Georgia, Arizona, and Colorado. This transaction represents a major step forward in the Company’s long-term growth strategy by reducing annual rent obligations as a result of removing the associated lease liabilities and unlocking powerful financial and operational flexibility.
Current report
•We completed the acquisition of Wet ‘n Wild Emerald Pointe water park, Castle Park, and two additional Boomers Parks locations.
Current report
•We signed a definitive agreement to acquire Raging Waters Los Angeles, a premier water park in California, which is expected to be completed in fiscal 2026.
Current report
•We refinanced our existing term loan for a $1,200,000 Term Loan, issued $500,000 of Senior Secured Notes, and increased our Revolver commitment to $425,000.
Current report
Location operating costs as a percent of revenues remained flat at 33%, driven by our ability to leverage fixed costs as our revenue scales. Compared to the first quarter of fiscal 2025, location operating costs increased $11,598, or 13%, which was mainly attributable to location count growth from acquisitions. For instance, the acquisitions of water parks and FEC’s contributed $8,300 to the increase. Additionally, advertising increased approximately $2,300 compared to the previous year, which we believe assisted in driving higher retail entertainment revenue.
Current report
On July 10, 2025, the Company acquired 58 existing properties that were previously under a master lease agreement with Carlyle for $306,000. As a result of this transaction, operating lease costs decreased approximately $645 compared to the previous year. Since the properties were predominantly classified as finance leases, the additional decreases in costs are discussed further below under the sections titled Depreciation and amortization, and Interest expense, net.
Current report
Location payroll and benefit costs: Location payroll and benefit costs consist of employee costs that directly support location operations. Location payroll and benefit costs as a percent of revenues remained flat at 26%. Location payroll and benefit costs increased $7,808, or 12%, mainly driven by the impact of the acquisitions of water parks and FEC’s which contributed $6,300. The balance of the change was further driven by additional new builds and higher wages offset by a reduction in hours as we continue to optimize our staffing levels and mix.
Current report
Selling, general and administrative expenses (“SG&A”): SG&A expenses increased $534 or 2%. SG&A expense as a percent of revenues decreased from 13% during fiscal 2025 to 12% during fiscal 2026, driven by continued cost management initiatives at the corporate level.
Current report
Depreciation and amortization: Depreciation and amortization decreased $3,788 or 10%. The decrease in depreciation and amortization reflects the change in estimated useful lives of fixed assets, which benefited from a decrease in expense of $7,444, as well as net decrease in depreciation and amortization of $450 from the purchase of the previously leased locations discussed above, offset by accelerated depreciation of $2,000 from a location closure, and additional depreciation from new locations and capital additions.
Current report
Operating activities used $6,408 as compared to providing $29,413 during the same period of the prior fiscal year. The increase in cash used in operating activities primarily reflects a decrease in tenant improvement allowances of $8,287, as well as a decrease due to timing of vendor payments in accounts payable and accrued expenses as compared to the prior year.
Current report
Financing activities provided $292,671 as compared to using $17,806 during the same period of the prior fiscal year. The increase in cash provided by financing activities primarily reflects the proceeds from the Fifteenth Amendment to the First Lien Credit Agreement and the issuance of Senior Secured Notes. This was partially offset by the repayment of outstanding debt and payment of deferred financing costs.
Removed paragraphs (21)
Previous report
•We rebranded the Company from Bowlero to Lucky Strike Entertainment.
Previous report
•We completed and opened four newly-built Lucky Strike locations in prime markets.
Previous report
•We completed the acquisitions of Boomers Parks, Spectrum Entertainment Complex, and Adventure Park to further enhance our location-based entertainment offerings. We also signed a definitive agreement to acquire Shipwreck Island water park, which closed in April.
Previous report
•We acquired 66 acres of land adjacent to Raging Waves water park for further expansion.
Previous report
•We increased our term loan by $150,000.
Previous report
Location operating costs increased $5,802, or 7%. Increases in costs were in various areas including advertising, property taxes, insurance, and utilities. The increase in costs was mainly attributable to location count growth from acquisitions and lease agreements. For instance, Raging Waves water park and Boomers Parks location operating costs contributed $4,300 to the increase. The increase in costs were partially offset by cost management initiatives, which resulted in a $1,900 decrease in repairs and maintenance expense. Location operating costs as a percent of revenues increased from 26% during the third quarter of fiscal 2024 to 27% during the third quarter of fiscal 2025, mainly due to the aforementioned location count growth and fixed costs.
Previous report
Location payroll and benefit costs: Location payroll and benefit costs consist of employee costs that directly support location operations. Location payroll and benefit costs decreased $3,028, or 4%. The decrease in location payroll and benefit costs reflects the impact of the ongoing staffing optimization initiative. This is further illustrated by the decrease as a percent of revenues from 23% during the third quarter of fiscal 2024 to 22% during the third quarter of fiscal 2025. The decrease driven by staffing optimization was partially offset by location count growth. For instance, Raging Waves water park and Boomers Parks added $2,400 of location payroll and benefit costs.
Previous report
Selling, general and administrative expenses (“SG&A”): SG&A expenses increased $4,121 or 11%. The increase is attributable to share-based compensation expense, which contributed approximately $4,600 to the increase in SG&A expenses. The increase in share-based compensation expense is primarily due to the non-recurring settlement of equity awards related to the retirement of a long-time executive of the Company, which resulted in an additional $4,809 of share-based compensation expense. Excluding the impact of the non-recurring settlement of equity awards, SG&A expenses would have decreased as a result of ongoing cost management initiatives at corporate. For instance, professional fees and SG&A labor decreased approximately $1,100 and $400, respectively.
Previous report
Depreciation and amortization: Depreciation and amortization increased $3,998 or 11%. The increase in depreciation and amortization reflects the added depreciable assets, finite-lived intangible assets, and finance leases through acquisitions and capital expenditures.
Previous report
Nine Months Ended March 30, 2025 Compared to the Nine Months Ended March 31, 2024
Previous report
Revenues: For the nine months ended March 30, 2025, revenues totaled $900,151 and represented an increase of $29,405, or 3%, over the same period of last fiscal year. The increase in revenues is primarily attributable to revenue from newly acquired or leased locations, which was partially offset by a decline in revenues on a same-store basis.
Previous report
The decrease in same-store revenues during the nine months ended March 30, 2025 was primarily attributable to a reduction in our corporate event business relative to the same period of last fiscal year.
Previous report
Location operating costs: Location operating costs increased $22,514, or 9%. Increases in costs were in most areas and include amusement costs, advertising, rent, property taxes, and utilities. The increase in costs was mainly attributable to location count growth from acquisitions and lease agreements. For instance, Raging Waves water park and Boomers Parks location operating costs contributed $10,600 to the increase. The increase in costs were partially offset by cost management initiatives with reductions noted in supplies and repairs and maintenance of $2,200 and $3,500, respectively. Location operating costs as a percent of revenues increased from 27% during the third quarter of fiscal 2024 to 29% during the third quarter of fiscal 2025, mainly due to the aforementioned location count growth and fixed costs.
Previous report
Location payroll and benefit costs: Location payroll and benefit costs decreased $5,512, or 3%. The decrease in location payroll and benefit costs reflects the impact of the ongoing staffing optimization initiative. This is further illustrated by the decrease as a percent of revenues from 25% during the third quarter of fiscal 2024 to 24% during the third quarter of fiscal 2025. The decrease driven by staffing optimization was partially offset by location count growth. For instance, Raging Waves water park and Boomers Parks added $6,300 of location payroll and benefit costs.
Previous report
Selling, general and administrative expenses (“SG&A”): SG&A expenses decreased $643 or 1%. The decrease is mainly attributable to a decrease in professional fees, which contributed approximately $10,000 to the decrease in SG&A expenses. This was partially offset by an increase in share-based compensation expense, which increased approximately $8,200. The decrease in professional fees is mainly attributable to less acquisition activity as compared to the same period of the prior year and cost management initiatives at corporate. The cost management initiatives at corporate also resulted in a decrease in SG&A labor of approximately $900. The increase in share-based compensation expense is primarily due to the non-recurring settlement of equity awards related to the retirement of a long-time executive of the Company, which resulted in an additional $4,809 of share-based compensation expense. This was coupled with less forfeiture activity as compared to the same period of fiscal 2024 and an increase in share-based awards granted thus far in fiscal 2025.
Previous report
Depreciation and amortization: Depreciation and amortization increased $11,676 or 11%. The increase in depreciation and amortization reflects the added depreciable assets, finite-lived intangible assets, and finance leases through acquisitions and capital expenditures.
Previous report
Interest expense, net: Interest expense increased $16,304, or 12%. The higher interest expense is primarily the result of an added financing obligation within the second quarter of fiscal 2024, the $150,000 incremental term loan obtained in the second quarter of fiscal 2025, and lower interest income as compared to the third quarter of fiscal 2024.
Previous report
(1)Includes the non-recurring settlement of equity awards related to the retirement of a long-time executive of the Company during the period ended March 30, 2025, which resulted in an additional $4,809 of share-based compensation expense.
Previous report
Nine Months Ended March 30, 2025 Compared to the Nine Months Ended March 31, 2024
Previous report
Operating activities provided $154,767 as compared to $148,098 during the same period of the prior fiscal year. The increase in cash provided by operating activities primarily reflects an increase in revenues and lease incentive receipts partially offset by higher interest expense.
Previous report
Financing activities provided $23,925 as compared to $154,287 during the same period of the prior fiscal year. The decrease in cash provided by financing activities primarily reflects the proceeds from the transaction with VICI during the same period of the prior year, increased cash dividends, and the settlement of equity awards during the nine months ended March 30, 2025. This was partially offset by less share buyback activity as compared to the same period of the prior year and the impact of the $150,000 incremental term loan.
Reworded paragraphs (22)
Previous wording
This discussion should be read in conjunction with Lucky Strikes Entertainment’s unaudited condensed consolidated financial statements and the related notes in Item 1 and with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 as filed with the Securities and Exchange Commission (“SEC”) on September 5, 2024. This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024. Actual results may differ materially from those contained in any forward-looking statements. All period references are to our fiscal periods unless otherwise indicated. Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “we,” “us,” “our,” the “Company,” and “Lucky Strike” are intended to mean the business and operations of Lucky Strike Entertainment and its consolidated subsidiaries. All financial information in this section is presented in thousands, unless otherwise noted, except share and per share amounts.
Current wording
This discussion should be read in conjunction with Lucky Strikes Entertainment’s unaudited condensed consolidated financial statements and the related notes in Item 1 and with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended June 29, 2025 as filed with the Securities and Exchange Commission (“SEC”) on August 28, 2025. This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 29, 2025. Actual results may differ materially from those contained in any forward-looking statements. All period references are to our fiscal periods unless otherwise indicated. Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “we,” “us,” “our,” the “Company,” “Lucky Strike Entertainment,” and “Lucky Strike” are intended to mean the business and operations of Lucky Strike Entertainment Corporation and its consolidated subsidiaries. All financial information in this section is presented in thousands, unless otherwise noted, except share and per share amounts.
Previous wording
This Quarterly Report on Form 10-Q contains forward-looking statements regarding, among other things, the plans, strategies and prospects, both business and financial of Lucky Strike. These statements are based on the beliefs and assumptions of our management. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that it will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. The words “anticipates,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predicts,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this Quarterly Report on Form 10-Q include, but are not limited to, statements about our business strategy, financial projections, anticipated growth and market opportunities.
Current wording
This Quarterly Report on Form 10-Q contains forward-looking statements regarding, among other things, the plans, strategies and prospects, both business and financial of Lucky Strike. These statements are based on the beliefs and assumptions of our management. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that it will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. Forward-looking statements in this Quarterly Report on Form 10-Q include, but are not limited to, statements about our business strategy, financial projections, anticipated growth and market opportunities.
Previous wording
Lucky Strike Entertainment is one of the world’s premier operators of location-based entertainment. The Company operates traditional bowling locations and more upscale entertainment concepts with lounge seating, arcades, enhanced food and beverage offerings, and more robust customer service for individuals and group events, as well as hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The Company also operates other forms of location-based entertainment, such as Octane Raceway, Raging Waves water park, and Boomers Parks (inclusive of Big Kahuna’s water park).
Current wording
Lucky Strike Entertainment is one of the world’s premier operators of location-based entertainment. The Company operates traditional bowling locations and more upscale entertainment concepts with lounge seating, arcades, enhanced food and beverage offerings, and more robust customer service for individuals and group events, as well as hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The Company also operates other forms of location-based entertainment, such as family entertainment centers (FEC’s) and water parks. Our other entertainment brands include Octane Raceway, Raging Waves water park, Shipwreck Island water park, Big Kahuna’s water park, Wet ‘n Wild Emerald Pointe water park, Castle Park and Boomers Parks.
Previous wording
Lucky Strike’s results for the nine months ended March 30, 2025 exhibited the expected total revenue growth and shift of focus to internal initiatives while also increasing liquidity in anticipation of what we believe will be an increased acquisition environment during the 2025 fiscal year. To highlight the Company’s recent activity during the nine months ended March 30, 2025:
Current wording
Lucky Strike’s results for the three months ended September 28, 2025 exhibited the expected total revenue growth and further expansion of our three verticals: bowling, water parks, and high-quality FEC’s. To highlight the Company’s recent activity during the three months ended September 28, 2025:
Previous wording
•We reported total revenue growth of 3%.
Current wording
•We reported total revenue growth of 12%.
Previous wording
Our operating results fluctuate seasonally and may also be affected by calendar shifts of holiday or seasonal periods. We typically generate our highest sales volumes during the third quarter of each fiscal year due to the timing of leagues, holidays and changing weather conditions. School operating schedules, holidays and weather conditions may also affect our sales volumes in some operating regions differently than others. Because of the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for our full fiscal year.
Current wording
Our operating results fluctuate seasonally. For bowling locations, we typically generate our highest sales volumes during the third quarter of each fiscal year due to the timing of leagues, holidays and changing weather conditions. For FEC and water park locations, we typically generate our highest sales volumes during the fourth and first quarters of our fiscal years due to more favorable weather conditions and the timing of operating seasons. School operating schedules, holidays and weather conditions may also affect our sales volumes in some operating regions differently than others. Because of the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for our full fiscal year.
Previous wording
Revenues: For the quarter ended March 30, 2025, revenues totaled $339,882 and represented a slight increase of $2,212, or 1%, over the same period of last fiscal year. The slight increase is primarily attributable to an increase in revenue from newly acquired or leased locations, which was partially offset by a decline in revenues on a same-store basis.
Current wording
Revenues: For the quarter ended September 28, 2025, revenues totaled $292,278 and represented an increase of $32,083, or 12%, over the same period of last fiscal year. The increase is primarily attributable to newly acquired or opened locations.
Previous wording
(1) Revenues from 348 locations are included in the same-store comparable location base for the comparison in the above table. In our previously filed Form 10-Q for the three months ended March 31, 2024, revenues from 322 locations were included in the same-store revenue.
Current wording
(1) Revenues from 351 locations are included in the same-store comparable location base for the comparison in the above table. In our previously filed Form 10-Q for the three months ended September 29, 2024, revenues from 327 locations were included in the same-store revenue.
Previous wording
Same-store revenues includes revenue from locations that are open in periods presented (open in both the current period and the prior period being reported) and excludes revenues from locations that are not open in periods presented such as acquired new locations or locations closed for upgrades, renovations or other such reasons, as well as media revenues and service fee revenues. The decrease in same-store revenues during the quarter ended March 30, 2025 was primarily attributable to a reduction in our corporate event business relative to the same period of last fiscal year.
Current wording
Same-store revenues includes revenue from locations that are open in periods presented (open in both the current period and the prior period being reported) and excludes revenues from locations that are not open in periods presented such as acquired new locations or locations closed for upgrades, renovations or other such reasons, as well as media revenues and service fee revenues. Same-store revenues remained relatively flat during the quarter ended September 28, 2025 relative to the same period of last fiscal year. The walk-in business for same-store bowling entertainment locations remained strong during the quarter, contributing approximately $3,200 of comparable store revenue, which was offset by decreases in our offline events business.
Previous wording
Location food & beverage costs: Location food & beverage costs increased $449, or 2%. The increase in location food & beverage costs is mainly attributable to increased food & beverage revenue as compared to the third quarter of fiscal 2024.
Current wording
Location food & beverage costs: Location food & beverage costs as a percentage of food & beverage revenue remained flat at 23%. Overall, location food & beverage costs increased $1,405, or 7%. The increase in location food & beverage costs is mainly attributable to a higher share of customer spending being directed toward food & beverage products and the impact of the acquisitions of water parks and FEC’s, which contributed $1,200.
Previous wording
Interest expense, net: Interest expense primarily relates to interest on debt, finance leases, and financing obligations. Interest expense increased $2,524, or 5%. The higher interest expense is primarily attributable to the $150,000 incremental term loan obtained in the second quarter of fiscal 2025 coupled with lower interest income as compared to the third quarter of fiscal 2024.
Current wording
Interest expense, net: Interest expense primarily relates to interest on debt, finance leases, and financing obligations. Interest expense increased $4,727, or 10%. The higher interest expense is primarily attributable to the amortization of $3,300 of deferred financing costs associated with the Bridge Term Loan and increases in debt since the first quarter of fiscal 2025, offset by a $4,500 decrease in interest expense for finance leases due to the purchase of a previously leased assets.
Previous wording
Change in fair value of earnouts: The impact on the statement of operations during the quarter ended March 30, 2025 is due to the decrease in the fair value of the earnouts, which mainly reflects the decrease in the Company’s stock price in the current quarter.
Current wording
Change in fair value of earnouts: The impact on the statement of operations during the quarter ended September 28, 2025 is due to the decrease in the fair value of the earnouts, which mainly reflects the decrease in the Company’s stock volatility in the current quarter.
Previous wording
Income Taxes: Income tax expense and deferred tax assets and liabilities reflect management’s assessment of the Company’s tax position. The effective tax rate of 58% for the quarter ended March 30, 2025 was primarily attributed to the change in fair value of the earnout liability, and permanent differences.
Current wording
Income tax benefit: The income tax benefit and deferred tax assets and liabilities reflect management’s assessment of the Company’s tax position. The effective tax rate of 48% for the quarter ended September 28, 2025 was primarily attributed to the change in fair value of the earnout liability, unrealizable Section 163(j) interest limitation, and permanent differences.
Previous wording
The following table provides a reconciliation from net income to Adjusted EBITDA for each reporting period:
Current wording
The following table provides a reconciliation from net (loss) income to Adjusted EBITDA for each reporting period:
Previous wording
(2)The closed location adjustment is to remove EBITDA for closed locations. Closed locations are those locations that are closed for a variety of reasons, including permanent closure, newly acquired or built locations prior to opening, locations closed for renovation or rebranding and conversion. If a location is not open on the last day of the reporting period, it will be considered closed for that reporting period. If the location is closed on the first day of the reporting period for permanent closure, the location will be considered closed for that reporting period.
Current wording
(1)The closed location adjustment is to remove EBITDA for closed locations. Closed locations are those locations that are closed for a variety of reasons, including permanent closure, newly acquired or built locations prior to opening, locations closed for renovation or rebranding and conversion. If a location is not open on the last day of the reporting period, it will be considered closed for that reporting period. If the location is closed on the first day of the reporting period for permanent closure, the location will be considered closed for that reporting period.
Previous wording
(3)The adjustment for transaction costs and other advisory costs is to remove charges incurred in connection with any transaction, including mergers, acquisitions, refinancing, amendment or modification to indebtedness, dispositions and costs in connection with an initial public offering, in each case, regardless of whether consummated.
Current wording
(2)The adjustment for transaction costs and other advisory costs is to remove charges incurred in connection with any transaction, including mergers, acquisitions, refinancing, amendment or modification to indebtedness, and dispositions, in each case, regardless of whether consummated.
Previous wording
(4)The adjustment for changes in the value of earnouts is to remove of the impact of the revaluation of the earnouts. Changes in the fair value of the earnout liability is recognized in the statement of operations. Decreases in the liability will have a favorable impact on the statement of operations and increases in the liability will have an unfavorable impact.
Current wording
(3)The adjustment for changes in the value of earnouts is to remove of the impact of the revaluation of the earnouts. Changes in the fair value of the earnout liability is recognized in the statement of operations. Decreases in the liability will have a favorable impact on the statement of operations and increases in the liability will have an unfavorable impact.
Previous wording
(5)Other includes the following related to transactions that do not represent ongoing or frequently recurring activities as part of the Company’s operations: (i) non-routine expenses, net of recoveries for matters outside the normal course of business, (ii) costs incurred that have been expensed associated with obtaining an equity method investment in a subsidiary of VICI, (iii) severance expense, and (iv) other individually de minimis expenses. Certain prior year amounts have been reclassified to conform to current year presentation.
Current wording
(4)Other includes the following related to transactions that do not represent ongoing or frequently recurring activities as part of the Company’s operations: (i) non-routine expenses, net of recoveries for matters outside the normal course of business, (ii) severance expense, and (iii) other individually de minimis expenses.
Previous wording
At March 30, 2025, we had approximately $79,088 of available cash and cash equivalents.
Current wording
At September 28, 2025, we had approximately $31,032 of available cash and cash equivalents.
Previous wording
Investing activities used $166,412 as compared to $285,960 during the same period of the prior fiscal year. The decrease in cash used in investing activities mainly reflects a reduction in capital expenditures and less acquisition activity as compared to the same period of the prior year. This was partially offset by the purchase of 66 acres of land adjacent to Raging Waves water park for $9,400.
Current wording
Investing activities used $315,147 as compared to $39,924 during the same period of the prior fiscal year. The increase in cash used in investing activities mainly reflects the purchase of a previously leased asset as well as an increase in acquisition activity as compared to the same period of the prior year.
Previous wording
Our contractual obligations primarily include, but are not limited to, debt service, self-insurance liabilities, and leasing arrangements. We believe our sources of liquidity, namely available cash on hand, positive operating cash flows, and access to capital markets will continue to be adequate to meet our contractual obligations, as well as fund working capital, planned capital expenditures, location acquisitions, and execute purchases under our share repurchase program.
Current wording
Our contractual obligations primarily include, but are not limited to, debt service, self-insurance liabilities, and leasing arrangements. We believe our sources of liquidity, namely available cash on hand, history of generating positive operating cash flows, and access to capital markets will continue to be adequate to meet our contractual obligations, as well as fund working capital, planned capital expenditures, location acquisitions, and execute purchases under our share repurchase program.
Previous wording
Our critical accounting estimates are discussed in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our fiscal year 2024 Form 10-K under “Critical Accounting Estimates.” There have been no significant changes in our critical accounting estimates during the quarter ended March 30, 2025.
Current wording
Our critical accounting estimates are discussed in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended June 29, 2025 under “Critical Accounting Estimates.” There have been no significant changes in our critical accounting estimates during the quarter ended September 28, 2025.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Three Months Ended September 28, 2025 Compared to the Three Months Ended September 29, 2024
Rearranged previous paragraphs (9)
Previous report — wording carried elsewhere
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Previous report — wording carried elsewhere
Analysis of Consolidated Statement of Operations. The following table displays certain items from our condensed consolidated statements of operations for the periods presented below:
Previous report — wording carried elsewhere
(1) Percent calculated as a percentage of revenues and may not total due to rounding.
Previous report — wording carried elsewhere
The following table summarizes our revenues on a same-store-basis for nine months ended March 30, 2025 as compared to the corresponding period last fiscal year:
Previous report — wording carried elsewhere
(1) Revenues from 327 locations are included in the same-store comparable location base for the comparison in the above table. In our previously filed 10-Q for the nine months ended March 31, 2024, revenues from 311 locations were included in the same-store revenue.
Previous report — wording carried elsewhere
(2) Service fee revenue is a mandatory gratuity passed through to the employee, which is a non-contributor to earnings and is being phased out across our locations.
Previous report — wording carried elsewhere
Location food & beverage costs: Location food & beverage costs increased $3,599, or 5%. The increase in location food & beverage costs is mainly attributable to increased food & beverage revenue as compared to the third quarter of fiscal 2024.
Previous report — wording carried elsewhere
Change in fair value of earnouts: The impact on the statement of operations during nine months ended March 30, 2025 is due to the decrease in the fair value of the earnouts, which mainly reflects the decrease in the Company’s stock price in the current quarter.
Previous report — wording carried elsewhere
Income Taxes: Income tax expense and deferred tax assets and liabilities reflect management’s assessment of the Company’s tax position. The effective tax rate of (5)% for nine months ended March 30, 2025 was primarily attributed to the change in fair value of the earnout liability, permanent differences, and other discrete tax items.