Dave & Buster's Entertainment reported its financial results for the second quarter of fiscal 2025, ended August 5, 2025, showing a significant drop in profitability despite a slight revenue increase. Total revenue was $557.4 million, a 0.05% increase compared to Q2 fiscal 2024. However, net income significantly decreased to $11.4 million, or $0.32 per diluted share, compared to $40.3 million, or $0.99 per diluted share, in the prior year.
Comparable store sales decreased by 3.0% compared to the same period. Adjusted EBITDA also saw a notable decline, falling to $129.8 million, resulting in an Adjusted EBITDA margin of 23%. New CEO Tarun Lal acknowledged "execution missteps" from prior leadership across marketing, food and beverage, operations, games, and remodels, stating that the company is now focusing on a "back-to-basics" approach.
Despite the overall profit decline, food and beverage revenues increased to $192.9 million (34.6% of total revenues) from $181.4 million (32.6%) in Q2 fiscal 2024, driven by promotions and a menu revamp. The company closed a sale-leaseback transaction for two stores, securing $77 million, and maintains $443 million in total liquidity. Management is targeting a near-term annual Adjusted EBITDA of $675 million, signaling substantial upside potential from consistent execution of its refocused strategy.
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