Lucky Strike Entertainment Reports Strong Financial Results for Nine Months Ended March 30, 2025

Lucky Strike Entertainment, one of the world’s premier operators of location-based entertainment, has reported its financial results for the nine months ended March 30, 2025. The company exhibited total revenue growth of 3% and a shift of focus to internal initiatives while also increasing liquidity in anticipation of potential acquisitions in the coming fiscal year.

Revenue Growth and Trends

For the nine-month period, Lucky Strike reported total revenues of $900.2 million, representing a 3% increase over the same period last fiscal year. This growth was primarily driven by revenues from newly acquired or leased locations, which offset a 4% decline in same-store revenues.

The decrease in same-store revenues was mainly attributable to a reduction in the company’s corporate event business relative to the prior year period. Lucky Strike’s operating results typically fluctuate seasonally, with the third quarter historically generating the highest sales volumes due to the timing of leagues, holidays, and weather conditions.

Profitability and Cost Management

Despite the revenue growth, Lucky Strike’s operating income declined 3% to $122.0 million for the nine-month period. This was primarily due to increases in location operating costs, which grew 9% to $261.5 million. The rise in operating costs was mainly attributable to the company’s expansion through acquisitions and new lease agreements, which added costs in areas like rent, utilities, and property taxes.

However, the company was able to offset some of these cost increases through ongoing initiatives to optimize staffing and reduce expenses. Location payroll and benefit costs decreased 3% to $213.9 million, reflecting the impact of the staffing optimization program. Similarly, selling, general and administrative (SG&A) expenses excluding depreciation and amortization declined 1% to $110.4 million, driven by reductions in professional fees and labor costs.

Lucky Strike’s management remains focused on controlling costs and improving operating efficiencies to drive profitability, even as the company continues to expand its footprint through acquisitions and new location openings.

Acquisition Activity and Capital Expenditures

A key component of Lucky Strike’s growth strategy is the acquisition of complementary location-based entertainment businesses. During the nine-month period, the company completed the acquisitions of Boomers Parks, Spectrum Entertainment Complex, and Adventure Park to further enhance its entertainment offerings.

The company also signed a definitive agreement to acquire Shipwreck Island water park, which closed in April 2025. Additionally, Lucky Strike acquired 66 acres of land adjacent to its Raging Waves water park for future expansion.

These acquisitions, along with the company’s ongoing capital expenditure program, resulted in $166.4 million in net cash used for investing activities during the nine-month period. This represented a 42% decrease from the same period last year, as the company focused more on integrating recent acquisitions rather than pursuing new deals.

Balance Sheet and Liquidity

Lucky Strike ended the nine-month period with approximately $79.1 million in available cash and cash equivalents. The company’s liquidity position was bolstered by $154.8 million in cash provided by operating activities, a 5% increase over the prior year period.

To further strengthen its financial flexibility, Lucky Strike increased its term loan by $150 million during the second quarter of fiscal 2025. This additional financing, coupled with the company’s positive cash flow generation, provides ample resources to fund ongoing operations, capital expenditures, and potential future acquisitions.

Outlook and Strategic Initiatives

Looking ahead, Lucky Strike’s management remains focused on several key strategic initiatives to drive long-term shareholder value:

1. Organic Growth: The company will continue to invest in the conversion and upgrading of existing locations to more upscale entertainment concepts, offering a broader range of offerings and enhanced customer experiences.

2. New Location Openings: Lucky Strike plans to open additional new locations in prime markets to expand its geographic footprint and reach new customers.

3. Acquisitions: The company will actively pursue strategic acquisitions of complementary location-based entertainment businesses to further diversify its portfolio and capitalize on growth opportunities.

4. Cost Management: Lucky Strike will maintain its disciplined approach to cost control, leveraging its scale and operational expertise to improve profitability.

5. Liquidity and Financial Flexibility: The company will continue to manage its balance sheet and liquidity position to ensure it has the resources necessary to fund its growth initiatives and create value for shareholders.

Conclusion

Lucky Strike Entertainment’s financial results for the nine months ended March 30, 2025 demonstrate the company’s ability to navigate a challenging operating environment and execute on its strategic priorities. Despite a decline in same-store revenues, the company was able to drive overall top-line growth through acquisitions and new location openings, while also improving operational efficiency and maintaining a strong liquidity position.

As Lucky Strike looks to the future, its focus on organic growth, strategic acquisitions, and cost management initiatives position the company well to capitalize on the continued demand for location-based entertainment and create long-term value for its shareholders.