1. PLAY's Q3 2025 revenue decreased by 1.1% year-over-year. 2. Comparable store sales fell by 4.0% compared to Q3 2024. 3. Net loss for Q3 2025 was $42.1 million, larger than prior year. 4. The company opened new stores and remodeled existing ones, aiming for growth. 5. Management emphasized a back-to-basics strategy to improve performance.
FAQ
Why Bearish?
The decline in revenue and increasing losses signal potential operational challenges. Historical examples include similar performance drops, leading to downgrades in stock price.
How important is it?
The financial results and strategic direction directly affect investor confidence and stock performance.
Why Short Term?
Immediate effects on investor sentiment observed due to poor quarterly results. Historically, markets react swiftly to significant earnings misses.
Dave & Buster's Reports Third Quarter 2025 Financial Results
DALLAS, Dec. 09, 2025 - Dave & Buster's Entertainment, Inc. (NASDAQ: PLAY), a leading operator of entertainment and dining venues, announced its financial results for the third quarter of fiscal 2025, which ended on November 4, 2025. Despite facing a decline in revenue and increased net loss, the company remains focused on executing its strategic initiatives.
Third Quarter Financial Highlights
During the third quarter of fiscal 2025, Dave & Buster's generated revenues of $448.2 million, reflecting a 1.1% decrease compared to the same period in the previous fiscal year. The company's comparable store sales also saw a decline of 4.0% year-over-year.
The net loss for the quarter amounted to $42.1 million, or $1.22 per diluted share, an increase from the net loss of $32.7 million, or $0.84 per diluted share, reported in Q3 of fiscal 2024. The adjusted net loss was $39.4 million, equating to $1.14 per diluted share, compared to an adjusted net loss of $17.5 million or $0.45 per diluted share the previous year. The adjusted EBITDA for Q3 stood at $59.4 million, down from $68.3 million in Q3 2024.
Operational Developments
In addition to its financial performance, Dave & Buster's opened one new domestic store during the quarter while three new Main Event stores were launched. The company remains on track to open a total of 11 new stores and one relocation by the end of fiscal 2025, in accordance with prior guidance. This includes plans for two more domestic Dave & Buster's stores in the fourth quarter.
Furthermore, the company today marked the opening of its third international franchise store in the Philippines, with aspirations to launch at least four additional international franchises within the next six months.
CEO's Statement on Company Direction
During the quarterly update, CEO Tarun Lal expressed satisfaction with the progress made under the company's "back-to-basics" strategy. He stated, “We’ve been hard at work relaunching our marketing engine, reinvigorating our food & beverage offering, and revamping our store remodel program.” Lal emphasized that these initiatives have contributed to improved same-store sales trends, particularly noting a minimal decline of about one percent in the last month of Q3.
He reinforced the company's commitment to enhancing guest experiences, stating, “We are laser-focused on executing our back-to-basics plan and fully realizing the significant potential of our unique brand.”
Cash Flow and Liquidity Status
In terms of liquidity, Dave & Buster's reported generating $58.0 million in operating cash during the third quarter, concluding the period with $441.9 million in available liquidity through cash and its $650 million revolving credit facility.
Future Outlook and Conference Call Information
Dave & Buster's will provide further insights into these results during a conference call scheduled for Tuesday, December 9, 2025, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). Investors can access the call at ir.daveandbusters.com or by dialing (877) 883-0383 (toll-free for U.S. participants) or (412) 902-6506 (international). A replay of the call will be available after the event.
About Dave & Buster’s Entertainment, Inc.
Founded in 1982 and headquartered in Coppell, Texas, Dave & Buster's operates 241 stores across North America, offering premier entertainment and dining experiences. The company operates 177 Dave & Buster’s branded locations in 43 states, as well as 64 Main Event stores in 22 states, making it a leading brand in the entertainment sector. For more information, visit daveandbusters.com and mainevent.com.
Forward-Looking Statements
The company cautions that this release includes forward-looking statements that involve risks and uncertainties affecting actual results. Factors include economic conditions, market competition, and the company's operational capacity. Results may differ materially, and the company undertakes no obligation to update any forward-looking statements.