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May 06

Dave & Buster's Q1 2025 Earnings Report

Dave & Buster's reported a decrease in revenue and earnings in Q1 2025 compared to the prior year.

Key Takeaways

Dave & Buster's saw lower revenue and earnings in Q1 2025, impacted by an 8.3% decline in comparable store sales, though sequential improvements through the quarter suggest early benefits from operational changes.

Revenue declined 3.5% year-over-year to $567.7 million.

Comparable store sales dropped 8.3% versus Q1 2024.

Net income was $21.7 million, down from $41.4 million last year.

Sequential improvement in sales trend observed from February to April 2025.

Total Revenue
$568M
Previous year: $588M
-3.5%
EPS
$0.76
Previous year: $1.12
-32.1%
Comparable Store Sales
-8.3%
0
Store Operating Weeks
3.02K
Previous year: 2.89K
+4.4%
Revenue per Store Week
$188K
Previous year: $203K
-7.4%
Cash and Equivalents
$11.9M
Previous year: $91.5M
-87.0%
Total Assets
$4.06B
Previous year: $3.69B
+10.0%

Dave & Buster's

Dave & Buster's

Dave & Buster's Revenue by Segment

Dave & Buster's Revenue by Geographic Location

Forward Guidance

The company reiterated its FY25 financial outlook with plans to keep capital expenditures under $220 million and emphasized ongoing operational improvements.

Positive Outlook

  • Sequential recovery in comparable sales through Q1.
  • Opened two new stores and relocated one during the quarter.
  • Completed 13 store remodels in Q1.
  • Strong operating cash generation of $95.8 million.
  • Continued share repurchases showing confidence in performance.

Challenges Ahead

  • Overall revenue declined from the prior year.
  • Net income and EPS dropped significantly compared to Q1 2024.
  • Comparable store sales down 8.3% year-over-year.
  • Adjusted EBITDA declined to $136.1 million from $159.1 million.
  • Revenue per square foot and per store week decreased.