Lucky Strike Entertainment Corp SEC 10-K Report
Lucky Strike Entertainment Corp, a leading player in the out-of-home entertainment industry, has released its annual Form 10-K report for the fiscal year ended June 29, 2025. The report highlights significant financial improvements, strategic initiatives, and operational expansions, positioning the company for future growth in a competitive market.
Financial Highlights
Total Revenues: $1,201.3 million, representing an increase of 4% over the prior fiscal year, primarily due to revenue from newly acquired or leased locations.
Operating Income: $137.2 million, a 50% increase from the previous year, reflecting improved operational efficiency and cost management.
Net (Loss) Income: $(10.0) million, an improvement from a net loss of $(83.6) million in the prior year, driven by increased revenues and reduced impairment charges.
Net (Loss) Income Per Share - Basic: $(0.13), compared to $(0.61) in the previous year, indicating a reduction in net loss per share.
Net (Loss) Income Per Share - Diluted: $(0.13), compared to $(0.61) in the previous year, reflecting the same reduction in net loss per share as the basic measure.
Business Highlights
Revenue Segments: Lucky Strike Entertainment Corporation operates across several product lines, including traditional bowling, upscale entertainment concepts, family entertainment centers (FECs), and water parks. The company has diversified its offerings to include lounge seating, arcades, and enhanced food and beverage services.
Geographical Performance: The company operates 359 locations in the United States, 4 in Mexico, and 2 in Canada. The Mexican and Canadian locations contributed approximately $12,530 and $14,003 in revenues for fiscal years 2025 and 2024, respectively.
Sales Units: The company has expanded its location count significantly, acquiring 10 location-based entertainment venues in fiscal 2025 and 75 since the start of fiscal year 2022.
New Product Launches: During fiscal 2025, Lucky Strike completed and opened four newly-built locations in prime markets, enhancing its presence in the location-based entertainment sector.
New Production Launches: The company acquired 66 acres of land adjacent to Raging Waves water park for further expansion, indicating plans for future development and increased capacity.
Future Outlook: Lucky Strike plans to continue its growth strategy through organic growth, conversions, and upgrading of locations to more upscale concepts. The company also aims to expand its footprint through acquisitions and new builds, with a focus on enhancing shareholder value and customer experience.
Strategic Initiatives
Expansion and Acquisitions: Lucky Strike Entertainment Corporation has focused on expanding its location-based entertainment offerings through strategic acquisitions and new builds. During the fiscal year ended June 29, 2025, the company completed the acquisitions of Boomers Parks, Spectrum Entertainment Complex, Adventure Park, and Shipwreck Island water park. Additionally, the company opened four newly-built Lucky Strike locations in prime markets and acquired 66 acres of land adjacent to Raging Waves water park for further expansion. The company also rebranded from Bowlero to Lucky Strike Entertainment to emphasize its broader range of entertainment experiences.
Capital Management: The company has been actively managing its capital structure through various financing activities. It entered into several amendments to its First Lien Credit Agreement, including a $900 million term loan maturing in 2028 and a $250 million incremental term loan. The company also increased its Revolver commitment to $385 million. In terms of equity management, Lucky Strike repurchased a significant amount of its Class A common stock into treasury stock, amounting to $72.9 million in fiscal 2025. The company also paid cash dividends totaling $33.6 million during the fiscal year.
Future Outlook: Looking ahead, Lucky Strike plans to continue its growth strategy by leveraging its financial position, cash generation capabilities, and access to capital markets. The company aims to fund operational requirements, capital expenditures, and location acquisitions while executing its share repurchase program. Additionally, the company has signed a definitive agreement to acquire Raging Waters Los Angeles, expected to be completed in fiscal 2026, indicating ongoing expansion efforts.
Challenges and Risks
Economic Sensitivity: The business is highly susceptible to economic slowdowns and changes in consumer discretionary spending, which could negatively impact sales and profitability.
Technological Advances: Rapid changes in technology and consumer behavior could adversely affect the company's marketing efforts and customer engagement strategies.
Competitive Pressure: The company faces intense competition in both out-of-home and home-based entertainment markets, which could impact its market share and financial performance.
Reputation and Publicity: Unfavorable publicity, whether valid or not, could harm the company's brand and reputation, leading to a decline in customer trust and revenue.
Lease Obligations: The company is subject to risks associated with long-term, non-cancelable leases, which could impact financial flexibility and operational decisions.
Management and Workforce: The loss of key management personnel or failure to attract and retain qualified staff could adversely affect the company's strategic direction and operational efficiency.
Indebtedness: The company's substantial debt levels could limit its ability to respond to market changes, secure additional financing, and meet financial obligations.
Regulatory Compliance: Changes in laws and regulations, particularly those related to online commerce and data protection, could impose additional costs and operational challenges.
Cybersecurity: The company is vulnerable to cybersecurity breaches and data privacy incidents, which could result in financial losses and reputational damage.
SEC Filing: Lucky Strike Entertainment Corp [ LUCK ] - 10-K - Aug. 28, 2025