Earnings call transcript: Dave & Buster’s Q2 2026 miss sends shares lower

Dave & Buster’s Entertainment missed Wall Street expectations for the second quarter of fiscal year 2026, posting an adjusted loss of $0.27 per share, in contrast to analysts' forecast of a $0.19 profit. Revenue for the quarter totaled $544.1 million, falling short of the estimated $556.83 million. Despite a modest revenue shortfall, same-store sales improved by 2.9% compared to a 5.4% decline in the first quarter.

Food and beverage sales grew by 7.6%, marking the fifth consecutive quarter of growth in that category. Adjusted free cash flow became positive for the year so far, thanks to tighter capital spending and better cash generation. The company's stock fell 12.53% in after-hours trading, closing at $7.41, which was below its 52-week low of $7.94.

Management attributed the earnings miss to cost pressure, lower traffic, and one-time items, stating that they remain on track to improve same-store sales, revenue, and EBITDA in the near term.