10-Q · June 15, 2026
In its Q1 2026 report, Dave & Buster's reported revenue of $559.2 million, falling short of the $578.3 million consensus estimate, and a diluted EPS of $0.22, below expectations of $0.60. The company's gross margin…
Earnings analysis · 10-Q
PLAY earnings analysis
Filed September 14, 2026 · Our reading of the company's report
The latest report
The quarter showed mixed performance: revenue was $557 million and declined modestly sequentially, but gross margin, operating margin, and diluted EPS improved to 86.3%, 9.7%, and $0.32, respectively. Free cash flow…
Read full summary
The quarter showed mixed performance: revenue was $557 million and declined modestly sequentially, but gross margin, operating margin, and diluted EPS improved to 86.3%, 9.7%, and $0.32, respectively. Free cash flow deteriorated to negative $55 million, while Credit Facility borrowings totaled $1,533.8 million and remain exposed to variable interest rates. No quantitative guidance or material changes to the existing 10-K risk factors were disclosed; the recent CEO/CFO transition remains an execution consideration.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.32
What stood out
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Margins improved despite softer revenue
Revenue was $557 million, down approximately 0.4% from $559 million in the prior quarter. Gross margin improved to 86.3% from 85.7%, while operating margin increased to 9.7% from 8.4%.
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EPS exceeded consensus
Diluted EPS increased to $0.32 from $0.16 in the prior quarter, a $0.16 improvement. EPS also exceeded the supplied consensus estimate of $0.30.
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Free cash flow turned sharply negative
Operating cash generation remained pressured: free cash flow was negative $55 million versus positive $9 million in the prior quarter, a $64 million sequential deterioration.
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Debt remains substantial
The company had $155.0 million outstanding on its revolving facility and $1,378.8 million on its term loan facility as of August 4, 2026, for total reported Credit Facility borrowings of $1,533.8 million.
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Repurchases remained paused
No share repurchases were made in any of the six periods from February 4 through August 4, 2026, and $104.0 million remained available under the repurchase authorization at each period-end.
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Controls assessed effective
Disclosure controls and procedures were concluded to be effective, and the filing reported no changes in internal control that materially affected or were reasonably likely to materially affect reporting during the quarter ended August 4, 2026.
What to watch
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Variable-rate debt exposure
Variable-rate Credit Facility borrowings totaled $1,533.8 million as of August 4, 2026, comprising $155.0 million of revolver borrowings and $1,378.8 million of term debt. Management estimates that a hypothetical 1 percentage point interest-rate change would affect annual results by approximately $15.3 million.
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Commodity and inflation pressure
The filing identifies exposure to commodity-price volatility, tariffs, and labor and other inflationary pressures, noting that the company may be unable to offset cost increases without weakening demand. The filing specifically states that there were no material changes to the risk factors from the Annual Report for the year ended February 3, 2026.
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Recent senior-management transition
The company’s CEO and interim CFO signed the filing on September 14, 2026, following the August 3, 2026 leadership transition. The filing also includes employment and separation agreements effective August 3, 2026, indicating ongoing execution and transition risk.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance; outlook was not specified in the extracted filing text.
Earlier filings 4
10-K · March 31, 2026
Dave & Buster’s (D&B Entertainment) positions itself as a multi-format out-of-home entertainment operator with 243 venues (179 Dave & Buster’s; 64 Main Event) and a strategy to grow comps, refresh sites, invest in…
10-Q · December 9, 2025
Dave & Buster’s reported Q3 revenue of $448.2 million, down $4.8 million vs. the prior-year quarter ($453.0 million). Operating loss widened to $(16.2) million from operating income of $6.3 million a year ago, and…
10-K · April 7, 2025
Dave & Buster's Entertainment, Inc. reported mixed results in its 2025 10-K filing, indicating continued growth in store count while facing challenges in revenue and earnings per share. The company emphasizes its…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.