Revenue growth has turned negative at -1.40% YoY, while operating margins have compressed significantly from 15.2% in 2024Q2 to 9.7% in 2026Q1, signaling a failure to scale profitability.
| Metric | TTM | Feb'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 |
|---|
| Sales/Revenue | 2.09B | 2.1B | 2.13B | 2.21B | 1.96B | 1.3B | 436.51M | 1.35B | 1.27B | 1.14B | 1.01B | 866.98M | 746.75M | 635.58M | 608.07M | 541.54M | 521.54M | 520.78M |
| Revenue Growth % | 0.22% | -1.4% | -3.29% | 12.26% | 50.64% | 198.73% | -67.78% | 7.06% | 11.01% | 13.39% | 15.94% | 16.1% | 17.49% | 4.52% | 12.28% | 3.84% | 0.15% | - |
| Cost of Goods Sold | 695.6M | 300.3M | 314.4M | 1.48B | 323.2M | 204.9M | 74.91M | 233.31M | 220.26M | 196.67M | 180.3M | 162.81M | 146.47M | 125.01M | 119.12M | 107.17M | 103.98M | 104.14M |
| COGS % of Revenue | - | 14.28% | 14.74% | 67.17% | 16.45% | 15.71% | 17.16% | 17.22% | 17.41% | 17.26% | 17.94% | 18.78% | 19.61% | 19.67% | 19.59% | 19.79% | 19.94% | 20% |
| Gross Profit | 1.4B | 1.8B | 1.82B | 723.9M | 1.64B | 1.1B | 361.61M | 1.12B | 1.05B | 943.12M | 824.86M | 704.17M | 600.28M | 510.56M | 488.95M | 434.38M | 417.56M | 416.65M |
| Gross Margin % | 66.79% | 85.72% | 85.26% | 32.83% | 83.55% | 84.29% | 82.84% | 82.78% | 82.59% | 82.74% | 82.06% | 81.22% | 80.38% | 80.33% | 80.41% | 80.21% | 80.06% | 80% |
| Gross Profit Growth % | - | -0.87% | -1.84% | -56.27% | 49.32% | 203.95% | -67.75% | 7.31% | 10.81% | 14.34% | 17.14% | 17.31% | 17.57% | 4.42% | 12.56% | 4.03% | 0.22% | - |
| Operating Expenses | 1.31B | 1.7B | 1.6B | 417.3M | 1.36B | 903.8M | 614.22M | 973.3M | 884.04M | 777.35M | 674.34M | 594.14M | 526.41M | 459.53M | 445.24M | 400.23M | 395.54M | 394.77M |
| OpEx % of Revenue | - | 80.72% | 74.92% | 18.92% | 69.44% | 69.31% | 140.71% | 71.85% | 69.87% | 68.2% | 67.09% | 68.53% | 70.49% | 72.3% | 73.22% | 73.9% | 75.84% | 75.8% |
| Selling, General & Admin | 521M | 652.8M | 623M | 197.7M | 607.4M | 362.8M | 164.69M | 392.44M | 358.44M | 316.29M | 283.3M | 253.73M | 220.28M | 186.61M | 185.93M | 165.77M | 345.52M | 341.12M |
| SG&A % of Revenue | - | 31.04% | 29.21% | 8.96% | 30.92% | 27.82% | 37.73% | 28.97% | 28.33% | 27.75% | 28.18% | 29.27% | 29.5% | 29.36% | 30.58% | 30.61% | 66.25% | 65.5% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 1.04B | 974.9M | 219.6M | 756.7M | 541M | 449.53M | 580.86M | 525.59M | 461.06M | 391.04M | 340.41M | 306.13M | 272.91M | 259.31M | 234.46M | 50.02M | 53.66M |
| Operating Income | 90.1M | 105.1M | 220.4M | 306.6M | 277.1M | 195.3M | -252.61M | 148.08M | 161M | 165.77M | 150.52M | 110.04M | 73.86M | 51.04M | 43.71M | 34.15M | 22.02M | 21.87M |
| Operating Margin % | 4.3% | 5% | 10.33% | 13.9% | 14.11% | 14.98% | -57.87% | 10.93% | 12.72% | 14.54% | 14.97% | 12.69% | 9.89% | 8.03% | 7.19% | 6.31% | 4.22% | 4.2% |
| Operating Income Growth % | - | -56.04% | -32.18% | 16.8% | 48.04% | 177.31% | -270.59% | -8.03% | -2.88% | 10.14% | 36.79% | 48.98% | 44.71% | 16.76% | 28.01% | 55.09% | 0.68% | - |
| EBITDA | 377.2M | 384.5M | 458.6M | 515.1M | 446.4M | 333.6M | -113.82M | 280.54M | 279.27M | 268.54M | 238.82M | 188.7M | 144.73M | 117.38M | 107.17M | 88.43M | 72.04M | 75.53M |
| EBITDA Margin % | 18.01% | 18.29% | 21.5% | 23.36% | 22.72% | 25.58% | -26.08% | 20.71% | 22.07% | 23.56% | 23.76% | 21.76% | 19.38% | 18.47% | 17.62% | 16.33% | 13.81% | 14.5% |
| EBITDA Growth % | -10.23% | -19.44% | -14.04% | 19.29% | 37.14% | 393.09% | -140.57% | 0.45% | 4% | 12.44% | 26.56% | 30.38% | 23.3% | 9.52% | 21.2% | 22.75% | -4.62% | - |
| D&A (Non-Cash Add-back) | 287.1M | 279.4M | 238.2M | 208.5M | 169.3M | 138.3M | 138.79M | 132.46M | 118.28M | 102.77M | 88.31M | 78.66M | 70.87M | 66.34M | 63.46M | 54.28M | 50.02M | 53.66M |
| EBIT | 70.8M | 77.8M | 205.2M | 283.4M | 253.1M | 177.4M | -255.68M | 147.41M | 160.15M | 164.3M | 149.97M | 102.18M | 44.32M | 48.18M | 41.1M | 31.49M | 22.3M | 22.19M |
| Net Interest Income | -151.9M | -145.1M | -135.3M | -127.4M | -83.28M | -49.7M | -36.89M | -20.94M | -13.05M | -8.43M | -6.84M | -11.48M | -34.79M | -47.81M | -47.63M | -44.93M | -32.46M | -22.12M |
| Interest Income | 1M | 600K | 400K | 4.7M | 628K | 0 | 0 | 0 | 136K | 224K | 271K | 308K | 0 | 334K | 336K | 367K | 283K | 316K |
| Interest Expense | 152.8M | 145.7M | 135.7M | 132.1M | 83.9M | 49.7M | 36.89M | 20.94M | 13.11M | 8.65M | 7.11M | 11.79M | 34.79M | 48.14M | 47.97M | 45.3M | 32.74M | 22.44M |
| Other Income/Expense | -174.4M | -173M | -150.5M | -143.5M | -103.5M | -67.6M | -37.79M | -20.94M | -13.11M | -9.38M | -6.99M | -18.29M | -62.37M | -47.81M | -47.63M | -44.93M | -32.46M | -22.12M |
| Pretax Income | -84.3M | -67.9M | 69.9M | 163.1M | 173.6M | 127.7M | -290.41M | 127.14M | 147.89M | 156.39M | 143.53M | 91.75M | 11.49M | 3.23M | -3.92M | -10.78M | -10.44M | -251K |
| Pretax Margin % | -4.03% | -3.23% | 3.28% | 7.4% | 8.84% | 9.79% | -66.53% | 9.39% | 11.69% | 13.72% | 14.28% | 10.58% | 1.54% | 0.51% | -0.64% | -1.99% | -2% | -0.05% |
| Income Tax | -19.6M | -19.2M | 11.6M | 36.2M | 36.5M | 19M | -83.43M | 26.88M | 30.67M | 35.44M | 52.74M | 32.13M | 3.86M | 1.06M | -12.7M | -3.8M | -3.15M | 99K |
| Effective Tax Rate % | 23.25% | 28.28% | 16.6% | 22.19% | 21.03% | 14.88% | 28.73% | 21.14% | 20.74% | 22.66% | 36.74% | 35.02% | 33.57% | 32.85% | 324.03% | 35.21% | 30.14% | -39.44% |
| Net Income | -64.7M | -48.7M | 58.3M | 126.9M | 137.1M | 108.7M | -206.97M | 100.26M | 117.22M | 120.95M | 90.8M | 59.62M | 7.64M | 2.17M | 8.78M | -6.99M | -7.29M | -350K |
| Net Margin % | -3.09% | -2.32% | 2.73% | 5.75% | 6.98% | 8.34% | -47.42% | 7.4% | 9.26% | 10.61% | 9.03% | 6.88% | 1.02% | 0.34% | 1.44% | -1.29% | -1.4% | -0.07% |
| Net Income Growth % | -951.32% | -183.53% | -54.06% | -7.44% | 26.13% | 152.52% | -306.43% | -14.47% | -3.08% | 33.21% | 52.29% | 680.76% | 252.05% | -75.3% | 225.73% | 4.25% | -1984.29% | - |
| Net Income (Continuing) | -64.7M | -48.7M | 58.3M | 126.9M | 137.1M | 108.7M | -206.97M | 100.26M | 117.22M | 120.95M | 90.8M | 59.62M | 7.64M | 2.17M | 8.78M | -6.99M | -7.29M | -350K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.85 | -1.40 | 1.46 | 2.88 | 2.79 | 2.21 | -4.75 | 2.94 | 2.93 | 2.84 | 2.10 | 1.39 | 0.21 | 0.06 | 0.22 | -0.18 | -0.19 | -0.01 |
| EPS Growth % | -823.08% | -195.89% | -49.31% | 3.23% | 26.24% | 146.53% | -261.56% | 0.34% | 3.17% | 35.24% | 51.08% | 561.9% | 278.38% | -74.77% | 222.22% | 5.26% | - | - |
| EPS (Basic) | - | -1.40 | 1.49 | 2.94 | 2.83 | 2.26 | -4.75 | 3.00 | 3.00 | 2.93 | 2.16 | 1.46 | 0.22 | 0.06 | 0.22 | -0.18 | -0.19 | -0.01 |
| Diluted Shares Outstanding | 34.94M | 34.67M | 40.01M | 44.07M | 49.18M | 49.26M | 43.55M | 34.1M | 39.98M | 42.58M | 43.29M | 42.78M | 37.13M | 39.09M | 39.09M | 39.09M | 39.09M | 39.09M |
| Basic Shares Outstanding | 34.66M | 34.67M | 39.07M | 43.2M | 48.5M | 48.14M | 43.55M | 33.45M | 39.05M | 41.28M | 41.95M | 40.97M | 35.31M | 39.09M | 39.09M | 39.09M | 39.09M | 39.09M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 15.68% | 9.87% | - | - | - | - | - | - | - | - | - |
Fixed cost deleveraging risk
As reported in recent financial filings, PLAY has experienced a sustained period of top-line pressure, with revenue growth turning negative at -1.40% YoY, suggesting that the post-pandemic consumer demand for large-format entertainment venues may be reaching a saturation point in key regional markets.
The consistent negative growth trajectory indicates that the company is struggling to maintain traffic levels against a backdrop of cooling discretionary spending. Investors should monitor whether this trend reflects a structural shift in consumer behavior or merely a temporary lull in the effectiveness of promotional activity.
Based on the company's reported figures, operating margins have compressed significantly from historical highs of 15.2% in 2024Q2 to a recent 9.7% in 2026Q1, highlighting a failure to scale operating income effectively as the top-line revenue base continues to face persistent downward pressure.
The inability to maintain operating leverage suggests that the company's high fixed-cost structure is becoming a liability during periods of revenue decline. This trend warrants further investigation into whether management can successfully implement cost-saving initiatives without further eroding the customer experience.
According to the latest income statement data, net income has exhibited extreme volatility, swinging from a $41.4M profit in 2024Q1 to a $42.1M loss by 2025Q3, which suggests that reported EPS may be heavily influenced by non-operating items and integration-related expenses.
The erratic nature of bottom-line results makes it difficult to ascertain the underlying earnings power of the core business. Analysts should be wary of relying on GAAP net income as a proxy for operational health, given the potential for significant noise from acquisition-related accounting adjustments.
While the company maintains a high gross margin profile, recent data indicates that net margins have dipped into negative territory at -2.32%, suggesting that the business model may be more sensitive to inflationary labor and utility costs than the market currently anticipates.
Short-sellers may focus on the disconnect between the company's high-margin amusement narrative and the reality of its struggling bottom-line profitability. The reliance on high-volume traffic to cover massive real estate footprints creates a binary risk profile that could worsen if consumer discretionary budgets continue to tighten.
Quick answers to the most common questions about buying PLAY stock.
For fiscal year 2025, Dave & Buster's Entertainment, Inc. (PLAY) reported total revenue of $2.10B. This represents a 303.8% increase compared to $520.8M in 2009.
Dave & Buster's Entertainment, Inc. (PLAY) reported a net loss of $48.7M for the fiscal year ending 2025.
Dave & Buster's Entertainment, Inc. (PLAY) reported an operating income of $105.1M, resulting in an operating profit margin of 5.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Dave & Buster's Entertainment, Inc. (PLAY) generated $1.80B in gross profit for the year, representing a gross profit margin of 85.7%. This demonstrates the company's core pricing power and production efficiency.