Lucky Strike Entertainment Corp recently released its 10-K report for the fiscal year ended June 28, 2026. The company operates location-based entertainment venues in North America, including traditional bowling centers under the AMF and Bowl America brands and larger-format entertainment venues under the Lucky Strike and Bowlero brands. It also runs Octane Raceway, several water parks, and Boomers Parks locations, and it changed its name from Bowlero Corp. to Lucky Strike Entertainment Corporation in December 2024.
In Item 7, management said fiscal 2026 revenue rose 4% to $1.245 billion from $1.201 billion a year earlier, while same-store revenue was essentially flat at $1.115 billion versus $1.117 billion. The company attributed the flat same-store result to adverse weather in the third quarter and weaker consumer confidence in the second half, partly offset by about $8.8 million of incremental walk-in bowling entertainment revenue and $4.1 million of stronger league bowling revenue.
Revenue growth came mainly from portfolio expansion. Revenues from media, new and closed locations increased to $128.2 million from $81.6 million, while service fee revenue declined to $2.1 million from $2.5 million.
By segment, bowling revenue increased 2% to $561.6 million, food and beverage revenue rose 2% to $431.1 million, and amusement and other revenue climbed 11% to $252.7 million. Bowling still accounted for 45% of revenue, food and beverage 35%, and amusement and other 20%.
Operating costs moved up as the company added locations and invested more in operations. Location operating costs increased 7% to $401.2 million, location payroll and benefit costs rose 9% to $311.0 million, and selling, general and administrative expenses increased 5% to $150.9 million.
Depreciation and amortization fell 18% to $129.3 million, mainly because of a change in estimated useful lives for certain fixed assets that reduced depreciation by about $31.9 million. That decline was partly offset by depreciation tied to capital spending and acquired assets.
The company recorded a $22.1 million loss on impairment and disposal of fixed assets, up from $10.9 million a year earlier, including a $14.2 million non-cash impairment charge in the fourth quarter tied to four underperforming locations. Interest expense increased 5% to $205.3 million, with about $27.9 million of that tied to the new notes issued during fiscal 2026.
Operating income was essentially unchanged at $136.8 million, compared with $137.2 million in fiscal 2025. But total other expense jumped to $176.2 million from $95.7 million, driven by higher interest costs and a smaller benefit from the change in fair value of earnout liabilities.
That pushed the company to a pretax loss of $39.5 million, compared with pretax income of $41.5 million a year earlier. Net loss widened to $35.8 million from $10.0 million, even though the company reported an income tax benefit of $3.7 million versus tax expense of $51.5 million in the prior year.
Management also highlighted several balance-sheet and portfolio moves during the year. It acquired 58 properties from Carlyle for $306.0 million, completed acquisitions of Wet ‘n Wild Emerald Pointe, Raging Waters Los Angeles, Castle Park, and two Boomers Parks locations, and opened a newly built Lucky Strike venue in Southern California.
The company said it had converted 88 locations under the Lucky Strike rebrand initiative, bringing the total Lucky Strike count to 132 locations as of June 28, 2026. It also refinanced its debt with a new $1.2 billion term loan, issued $500.0 million of 7.25% senior secured notes, and increased its revolving credit facility commitment to $425.0 million. As a result of these announcements, the company's shares have moved -8.9% on the market, and are now trading at a price of $6.14. Check out the company's full 10-K submission here.
