Lucky Strike Entertainment Corp
For the period ended Dec 28, 2025. Filed Feb 4, 2026.
View on SEC.govAbout this filing
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.
Dec 28, 2025 · Filed Feb 4, 2026
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 2025-09-28; filed 2025-11-04.
0001628280-25-048817
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-28; filed 2026-02-04.
0001628280-26-005456
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 65 previous paragraphs and 86 current paragraphs.
41 unchanged; 19 reworded; 16 added; 4 removed; 1 previous and 10 current paragraphs rearranged.
Tables are not compared: 4 previous and 6 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 (16)
Current report
•We completed and opened a newly built Lucky Strike location in Southern California.
Current report
•We continued to make meaningful progress on the Lucky Strike rebrand initiative with an additional 48 locations converted. As of December 28, 2025, we had 93 Lucky Strike locations.
Current report
Location operating costs increased $16,973, or 21%. Increases in costs were in most areas and include amusement costs, marketing, rent, property taxes, insurance and utilities. The increases in costs are mainly attributable to location count growth and other initiatives. For instance, water parks and FEC’s contributed approximately $2,200 and new bowling locations contributed approximately $2,300 to the increase over the comparable. Additionally, marketing increased approximately $4,300 compared to the previous year, which is driven by our initiative to move our marketing budget closer to industry benchmarks. We believe the increased marketing spend has assisted in driving higher retail entertainment revenue.
Current report
Location operating costs as a percent of revenues increased from 28% to 32%. The increase as a percent of revenues is attributed to location operating costs related to our FEC and water park locations, which typically generate their 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. Therefore, location operating costs for these locations will typically increase at a higher rate than revenues during the second and third quarters of our fiscal years.
Current report
Selling, general and administrative expenses (“SG&A”): SG&A expenses increased $4,688 or 14%. The increase is mainly attributable to SG&A labor, which increased approximately $3,600. The SG&A labor increase is driven by investments in our marketing, water park and FEC teams. In conjunction with our initiative to increase our marketing budget, we are also investing in our marketing team in order to deploy the increased budget. The water park and FEC teams are primarily year round-staff that support the peak Summer periods.
Current report
Interest expense, net: Interest expense primarily relates to interest on debt, finance leases, and financing obligations. Interest expense increased $1,321, or 3%. The higher interest expense is primarily attributable to increases in debt since the second quarter of fiscal 2025. Specifically, the 7.25% Senior Secured Notes (the “Notes”), which were issued late in the first quarter of fiscal 2026. Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 of each year and we have approximately $9,900 of interest accrued related to the Notes as of December 28, 2025. The increases in interest expense were partially offset by a $4,996 decrease in interest expense for finance leases due to the purchase of previously leased assets.
Current report
Six Months Ended December 28, 2025 Compared to the Six Months Ended December 29, 2024
Current report
Revenues: For the six months ended December 28, 2025, revenues totaled $599,139 and represented an increase of $38,870, or 7%, over the same period of last fiscal year. The increase in revenues is primarily attributable to revenue from newly acquired or leased locations.
Current report
Location operating costs: Location operating costs increased $28,571, or 17%. Increases in costs were in most areas and include amusement costs, marketing, rent, property taxes, insurance, and utilities. The increase in costs was mainly attributable to location count growth and other initiatives. For instance, water parks and FEC’s contributed approximately $10,400 and new bowling locations contributed approximately $4,800 to the increase over the comparable period. Additionally, marketing increased approximately $6,600 compared to the previous year, which is driven by our initiative to move our marketing budget closer to industry benchmarks. We believe the increased marketing spend has assisted in driving higher retail entertainment revenue.
Current report
Location operating costs as a percent of revenues increased from 30% to 33%. The increase as a percent of revenues is attributed to our FEC and water park locations, which typically generate their 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. Therefore, location operating costs for these locations will typically increase at a higher rate than revenues during the second and third quarters of our fiscal years.
Current report
Location payroll and benefit costs: Location payroll and benefit costs increased $14,814, or 11%, mainly driven by the impact of location count growth, additional bonus incentives, and an overall increase in labor hours per location. For instance, water parks and FEC’s contributed approximately $7,700 to the increase over the comparable period.
Current report
Selling, general and administrative expenses (“SG&A”): SG&A expenses increased $5,222 or 8%. The increase is mainly attributable to SG&A labor, which increased approximately $5,200. The SG&A labor increase is driven by investments in our marketing, water park and FEC teams. In conjunction with our initiative to increase our marketing budget, we are also investing in our marketing team in order to deploy the increased budget. The water park and FEC teams are primarily year round-staff that support the peak Summer periods.
Current report
Change in fair value of earnouts: The impact on the statement of operations during six months ended December 28, 2025 is due to the decrease in the fair value of the earnouts. The decrease in the fair value of the earnouts is primarily driven by the decrease in the Company’s stock price and the limited remaining vesting period associated with the earnouts, which reduce the estimated probability of vesting.
Current report
Income tax expense (benefit): Income tax expense (benefit) and deferred tax assets and liabilities reflect management’s assessment of the Company’s tax position. During the six months ended December 28, 2025, the Company determined that its estimated AETR was not possible to reliably estimate due to the timing of results and the existence of a valuation allowance against interest limitation due to IRC Section 163(j). As a result, the Company utilized the discrete method. The effective tax rate of (13)% for six months ended December 28, 2025 was primarily attributed to state taxes incurred relating to the repurchase of the 58 properties under the Carlyle master lease agreement, the change in fair value of the earnout liability, permanent differences, and other discrete tax items.
Current report
Six Months Ended December 28, 2025 Compared to the Six Months Ended December 29, 2024
Current report
Operating activities provided $41,656 as compared to providing $68,147 during the same period of the prior fiscal year. The decrease in cash provided by operating activities is due primarily to unfavorable changes in working capital coupled with lower net income.
Removed paragraphs (4)
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Reworded paragraphs (19)
Previous 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:
Current wording
Lucky Strike’s results for the six months ended December 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 six months ended December 28, 2025:
Previous wording
•We reported total revenue growth of 12%.
Current wording
•We reported total revenue growth of 7%.
Previous wording
•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 wording
•We signed a definitive agreement to acquire Raging Waters Los Angeles, which is California’s largest water park. We completed the acquisition in January 2026.
Previous wording
There are a number of factors that could materially affect our future profitability, including changing economic conditions with the resulting impact on our sales, profitability, and capital spending, changes in our debt levels and applicable interest rates, and increasing prices of labor and inventory, which includes food and beverage costs. Additionally, sales and results of operations could be impacted by acquisitions and restructuring projects. Restructuring can include various projects, including closure of locations not performing well, cost reductions through staffing reductions, and optimizing and allocating resources to improve profitability.
Current wording
There are a number of factors that could materially affect our future profitability, including changing economic conditions with the resulting impact on our sales, profitability, and capital spending, changes in our debt levels and applicable interest rates, and increasing prices of labor and inventory, which includes food and beverage costs. For example, the Company continues to monitor the impacts of various macroeconomic trends, such as inflationary pressure, changes in monetary policy, decreasing consumer confidence and spending, and the introduction of or changes in tariffs. Such changes in macroeconomic conditions may lead to increased costs for the business. Furthermore, these macroeconomic trends could adversely affect the Company’s customers, which could impact their willingness to visit the Company’s locations, which could harm the financial results. Additionally, sales and results of operations could be impacted by acquisitions and restructuring projects. Restructuring can include various projects, including closure of locations not performing well, cost reductions through staffing reductions, and optimizing and allocating resources to improve profitability.
Previous 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.
Current wording
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 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.
Current wording
Revenues: For the quarter ended December 28, 2025, revenues totaled $306,861 and represented an increase of $6,787, or 2%, over the same period of last fiscal year. The increase is primarily attributable to newly acquired or opened locations.
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. 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.
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 was up slightly during the quarter ended December 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 $2,800 of comparable store revenue, which was offset by decreases in our offline events business.
Previous wording
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 wording
Location payroll and benefit costs: Location payroll and benefit costs consist of employee costs that directly support location operations. Location payroll and benefit costs increased $7,006, or 10%, mainly driven by the impact of location count growth, additional bonus incentives, and an overall increase in labor hours per location. For instance, water parks and FEC’s contributed approximately $1,500 to the increase over the comparable period.
Previous 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.
Current wording
Location food & beverage costs: Location food & beverage costs as a percentage of food & beverage revenue remained flat at 21%. Location food & beverage costs increased $730, or 3%. The increase in location food & beverage costs is mainly attributable to increased food & beverage revenue as compared to the second quarter of fiscal 2025.
Previous wording
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 wording
Depreciation and amortization: Depreciation and amortization decreased $8,696 or 22%. The decrease in depreciation and amortization primarily reflects the change in estimated useful lives of fixed assets, which benefited from a decrease in expense of $8,341.
Previous 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.
Current wording
Change in fair value of earnouts: The impact on the statement of operations during the quarter ended December 28, 2025 is due to the decrease in the fair value of the earnouts. The decrease in the fair value of the earnouts is primarily driven by the decrease in the Company’s stock price and the limited remaining vesting period associated with the earnouts, which reduce the estimated probability of vesting.
Previous 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.
Current wording
Income tax expense (benefit): The income tax expense (benefit) and deferred tax assets and liabilities reflect management’s assessment of the Company’s tax position. During the quarter ended December 28, 2025, the Company determined that its estimated AETR was not possible to reliably estimate due to the timing of results and the existence of a valuation allowance against interest limitation due to IRC Section 163(j). As a result, the Company utilized the discrete method. The effective tax rate of 504% for the quarter ended December 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
(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.
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 10-Q for the six months ended December 29, 2024, revenues from 327 locations were included in the same-store revenue.
Previous 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.
Current wording
Interest expense, net: Interest expense increased $6,048, or 6%. The higher interest expense is primarily attributable to increases in debt since the second quarter of fiscal 2025. Specifically, the Notes, which were issued late in the first quarter of fiscal 2026. We have approximately $9,900 of interest accrued related to the Notes as of December 28, 2025. In addition to the impact of the Notes, the increase is attributable to the amortization of approximately $3,300 of deferred financing costs associated with the Bridge Term Loan during the first quarter of fiscal 2026. The increases in interest expense were partially offset by a $9,439 decrease in interest expense for finance leases due to the purchase of previously leased assets.
Previous wording
At September 28, 2025, we had approximately $31,032 of available cash and cash equivalents.
Current wording
At December 28, 2025, we had approximately $95,912 of available cash and cash equivalents.
Previous wording
The following compares the primary categories of the condensed consolidated statements of cash flows for the period ended September 28, 2025 and September 29, 2024:
Current wording
The following compares the primary categories of the condensed consolidated statements of cash flows for the periods ended December 28, 2025 and December 29, 2024:
Previous 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.
Current wording
Investing activities used $354,141 as compared to $133,214 during the same period of the prior fiscal year. The increase in cash used in investing activities mainly reflects the purchase of previously leased assets offset by a decrease in purchases of property and equipment.
Previous wording
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.
Current wording
Financing activities provided $348,326 as compared to using $79,099 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.
Previous wording
We are currently an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.
Current wording
We are currently an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. We will lose our emerging growth company status on June 28, 2026, which is the last day of the fiscal year following the fifth anniversary of Isos’ IPO (March 5, 2026).
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Current report — wording carried from elsewhere
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
Current report — wording carried from elsewhere
(1) Revenues from 356 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 December 29, 2024, revenues from 347 locations were included in the same-store revenue.
Current report — wording carried from 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:
Current report — wording carried from elsewhere
(1) Percent calculated as a percentage of revenues and may not total due to rounding.
Current report — wording carried from elsewhere
The following table summarizes our revenues on a same-store-basis for six months ended December 28, 2025 as compared to the corresponding period last fiscal year:
Current report — wording carried from 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.
Current report — wording carried from elsewhere
Same-store revenues remained relatively flat during six months ended December 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 $5,200 of comparable store revenue, which was offset by decreases in our offline events business.
Current report — wording carried from elsewhere
Location food & beverage costs: Location food & beverage costs as a percentage of food & beverage revenue remained flat at 22%. Location food & beverage costs increased $2,135, or 5%. The increase in location food & beverage costs is mainly attributable to increased food & beverage revenue as compared to the comparable period of fiscal 2025.
Current report — wording carried from elsewhere
Depreciation and amortization: Depreciation and amortization decreased $12,484 or 16%. The decrease in depreciation and amortization primarily reflects the change in estimated useful lives of fixed assets, which benefited from a decrease in expense of $15,785.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Three Months Ended September 28, 2025 Compared to the Three Months Ended September 29, 2024