Dave & Buster's Q2 2027: A Loss Where Wall Street Expected a Profit
As seen on the 24/7 Wall St. homepage on September 14, 2026.
A loss where analysts modeled a profit, with adjusted EBITDA margin compressed to 18.2% from 23.3%. Management says same-store sales have improved into the third quarter.
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Dave & Buster's reported an adjusted loss of $0.27 per share for its second fiscal quarter, missing expectations of a $0.19 profit. Revenue of $544.1 million also fell short of consensus.
Store economics took the hit: adjusted EBITDA margin fell to 18.2% from 23.3% a year ago as entertainment revenue dropped. Higher food and beverage sales offered only a partial cushion.
Operating costs added to the pressure, with other store operating expenses climbing to 35.5% of revenue from 33.5%. Depreciation, amortization and pre-opening costs also rose alongside six new domestic stores opened during the quarter.
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CEO Darin Harper pointed to early signs of a turn, noting that same-store sales improved in July and continued to improve into the third quarter. The Back-to-Basics strategy adds eight store remodels in fiscal 2026, with remodeled locations already outperforming the broader system on comparable sales.
This is the second consecutive quarter of missing on EPS and the fourth miss in the past eight quarters. With shareholders' equity down 47% year over year, the margin for further operational missteps is narrowing.
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