Revenue growth remains stagnant at 0.7% year-over-year, while gross margins have experienced significant volatility, contracting from 42.4% in 2025Q3 to 30.0% in 2026Q3.
| Sales/Revenue | 1.24B | 1.2B | 1.15B | 1.06B | 911.71M | 395.23M | 520.43M |
| Revenue Growth % | 4.94% | 4.05% | 9.05% | 16.13% | 130.67% | -24.06% | - |
| Cost of Goods Sold | 873.88M | 754.26M | 840.43M | 716.38M | 609.97M | 374.25M | 443.26M |
| COGS % of Revenue | - | 62.79% | 72.79% | 67.66% | 66.9% | 94.69% | 85.17% |
| Gross Profit | 368.68M | 447.08M | 314.18M | 342.41M | 301.73M | 20.98M | 77.17M |
| Gross Margin % | 29.67% | 37.21% | 27.21% | 32.34% | 33.1% | 5.31% | 14.83% |
| Gross Profit Growth % | - | 42.3% | -8.24% | 13.48% | 1338.27% | -72.81% | - |
| Operating Expenses | 222.21M | 309.89M | 222.59M | 141.61M | 185.11M | 59.62M | 79.15M |
| OpEx % of Revenue | - | 25.8% | 19.28% | 13.37% | 20.3% | 15.08% | 15.21% |
| Selling, General & Admin | 142.72M | 143.17M | 155.2M | 137.92M | 180.7M | 78.33M | 84.1M |
| SG&A % of Revenue | - | 11.92% | 13.44% | 13.03% | 19.82% | 19.82% | 16.16% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 166.72M | 67.39M | 3.69M | 4.41M | -18.72M | -4.95M |
| Operating Income | 146.53M | 137.19M | 91.59M | 200.8M | 116.63M | -38.64M | -1.99M |
| Operating Margin % | 11.79% | 11.42% | 7.93% | 18.96% | 12.79% | -9.78% | -0.38% |
| Operating Income Growth % | - | 49.78% | -54.39% | 72.18% | 401.83% | -1844.59% | - |
| EBITDA | 282.72M | 294.04M | 236.95M | 310.2M | 223.58M | 53.21M | 87.25M |
| EBITDA Margin % | 22.75% | 24.48% | 20.52% | 29.3% | 24.52% | 13.46% | 16.76% |
| EBITDA Growth % | 15.49% | 24.09% | -23.61% | 38.74% | 320.17% | -39.01% | - |
| D&A (Non-Cash Add-back) | 136.19M | 156.85M | 145.36M | 109.41M | 106.96M | 91.85M | 89.23M |
| EBIT | 176.4M | 237.85M | 66.06M | 108.66M | 63.84M | -38.64M | -1.99M |
| Net Interest Income | -203.75M | -196.37M | -177.61M | -110.85M | -94.46M | -88.86M | -80.64M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 203.75M | 196.37M | 177.61M | 110.85M | 94.46M | 88.86M | 80.64M |
| Other Income/Expense | -167.64M | -95.7M | -203.14M | -203M | -147.25M | -88.86M | -80.64M |
| Pretax Income | -21.11M | 41.48M | -111.55M | -2.19M | -30.62M | -127.5M | -82.63M |
| Pretax Margin % | -1.7% | 3.45% | -9.66% | -0.21% | -3.36% | -32.26% | -15.88% |
| Income Tax | 63.2M | 51.51M | -27.97M | -84.24M | -690K | -1.03M | 8.26M |
| Effective Tax Rate % | -299.33% | 124.16% | 25.08% | 3837.95% | 2.25% | 0.81% | -10% |
| Net Income | -84.32M | -10.02M | -83.58M | 82.05M | -29.93M | -126.46M | -90.89M |
| Net Margin % | -6.79% | -0.83% | -7.24% | 7.75% | -3.28% | -32% | -17.46% |
| Net Income Growth % | -3449.98% | 88.01% | -201.87% | 374.1% | 76.33% | -39.13% | - |
| Net Income (Continuing) | -84.32M | -10.02M | -83.58M | 82.05M | -29.93M | -126.46M | -90.89M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.61 | -0.13 | -0.61 | 0.30 | -0.26 | -0.81 | -0.60 |
| EPS Growth % | -1518.56% | 78.69% | -303.33% | 215.38% | 67.9% | -35% | - |
| EPS (Basic) | - | -0.13 | -0.61 | 0.32 | -0.26 | -0.81 | -0.60 |
| Diluted Shares Outstanding | 139.06M | 140.2M | 151.34M | 175.82M | 155.84M | 165.38M | 165.38M |
| Basic Shares Outstanding | 135.68M | 140.2M | 151.34M | 165.51M | 155.84M | 165.38M | 165.38M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
High Operating Leverage Sensitivity
As indicated by the most recent quarterly filings, LUCK's revenue growth has fluctuated significantly, with the latest period showing a modest 0.7% year-over-year increase, suggesting that the company's reliance on inorganic expansion may be hitting a ceiling in the current competitive leisure landscape.
The erratic nature of top-line growth, ranging from double-digit gains to near-stagnation, implies that the company struggles to maintain organic momentum across its diverse venue portfolio. Investors should monitor whether the recent rebranding to Lucky Strike can effectively drive higher transaction values to offset the slowing pace of new center acquisitions.
According to the provided income statement data, gross margins have experienced substantial swings, dropping from a peak of 42.4% in 2025Q3 to 30.0% in 2026Q3, which highlights the difficulty in managing input costs within a high-fixed-cost, labor-intensive eatertainment business model.
This margin compression suggests that the company may lack the pricing power necessary to fully pass through inflationary pressures in food and labor to its consumer base. The inconsistency in gross profitability warrants further investigation into whether these fluctuations are driven by seasonal event mix or underlying operational inefficiencies.
Based on reported financial figures, operating income has demonstrated extreme sensitivity to revenue shifts, with operating margins swinging from a negative 12.1% in 2024Q4 to a positive 19.6% in 2026Q3, indicating that the company's cost structure is not yet optimized for consistent profitability.
The inability to maintain stable operating margins suggests that corporate overhead and fixed venue costs are not scaling efficiently with revenue growth. This volatility may indicate that the company is still in a heavy integration phase, where the benefits of scale are being offset by the costs of managing a sprawling, multi-brand real estate footprint.
As reported in the quarterly statements, LUCK's net income has been highly erratic, oscillating between significant losses and modest profits, with the most recent 2026Q3 net margin of 4.9% appearing fragile given the historical trend of deep quarterly deficits observed throughout 2025.
The frequent swings into negative net income suggest that non-operating items, such as interest expenses or integration-related charges, are likely exerting significant pressure on the bottom line. Investors should be cautious of relying on quarterly earnings snapshots, as they appear heavily influenced by non-recurring costs and the timing of acquisition-related accounting adjustments.
Analysis of the income statement suggests that the recent return to profitability in 2026Q3 may be unsustainable, as the company has historically struggled to maintain positive net margins, with multiple quarters in 2025 showing deep losses despite significant revenue generation across its national venue network.
Short-sellers might focus on the company's inability to generate consistent bottom-line growth, arguing that the current business model is overly dependent on continuous capital deployment rather than organic operational excellence. The reliance on high-fixed-cost venues makes the company particularly vulnerable to any sustained downturn in discretionary consumer spending.
Quick answers to the most common questions about buying LUCK stock.
For fiscal year 2025, Lucky Strike Entertainment Corporation (LUCK) reported total revenue of $1.20B. This represents a 130.8% increase compared to $520.4M in 2020.
Lucky Strike Entertainment Corporation (LUCK) reported a net loss of $10.0M for the fiscal year ending 2025.
Lucky Strike Entertainment Corporation (LUCK) reported an operating income of $137.2M, resulting in an operating profit margin of 11.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Lucky Strike Entertainment Corporation (LUCK) generated $447.1M in gross profit for the year, representing a gross profit margin of 37.2%. This demonstrates the company's core pricing power and production efficiency.