Report card grade for the quarter. D - Revenue: D. $544 million against a $557 million bar, with entertainment sliding to $332.6 million from $364.5 million. - Margins: F. Adjusted EBITDA margin at 18.2% versus 23.3%, and an adjusted loss of $0.27 where the Street wanted $0.19. - Cash: B. Six-month adjusted free cash flow swung to positive $19.5 million from negative $36.5 million, with $492.1 million of liquidity. Food and beverage at $211.5 million is the only growth line. Comps down 2.9% hold the overall grade at a D until the 5:00 p.m. ET call proves the July inflection is real.
Coverage ended
18 updates · Last at 4:52pm ET
Live: Will Dave & Buster’s Smash Q2 Earnings Tonight After Falling 48% This Year?
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Live Updates
Newest firstDave & Buster's Q2 Earnings Coverage Wrap-Up
That wraps up our initial coverage of Dave & Buster’s Q2 results. Thank you for stopping by!
THE FLOOR
Dave & Buster's (PLAY) Q3 2026 Earnings Call Preview
Call preview · Q3 2026
Mon, Sep 14
Earnings call · after close
Same-store sales have been analysts' biggest source of questions on every recent call, and with comps down 2.9% this quarter, the 5:00 PM ET earnings call turns on whether the CEO's claim of improving July trends holds into Q3. Analysts will also want the free cash flow and EBITDA targets restated after the margin slip, since the Back-to-Basics story leans on that swing.
Q1 26Q2 26Q4 26Q2 27
- Same-store sales inflection & trends
- Value proposition & game pricing
- New store growth & CapEx discipline
- Free cash flow & EBITDA targets
- Marketing strategy & messaging
- Amusement business & game newness
Dave & Buster's (PLAY) Q2 2027 Earnings
Q2 2027
EPS
-$0.27
est $0.19
-244.2%
Revenue
$544M
est $557M
-2.3%
Adjusted EBITDA margin compressed to 18.2% from 23.3%. Management says same-store sales have improved into the third quarter. Management noted, “We are laser-focused on returning to same-store sales and EBITDA growth, sharpening our margin management with cost-saving initiatives, generating significant free cash flow, and delivering meaningful shareholder value.”
THE FLOOR
One line in this release moved the right way. Adjusted free cash flow for the six months ended August 4 was positive $19.5 million, against negative $36.5 million in the same stretch last year, and Dave & Buster's closed the quarter with $492.1 million of available liquidity. That swing is the strongest item in the print and it buys the turnaround time. Management's full-year target was more than $100 million in free cash flow, leaving the bulk of it still to be earned in the back half.
Dave & Buster's (PLAY) Valuation Check
Valuation · as of Sep 14
$8.47+4.1%Target $17.00 · +100.7%
52-wk low $7.9452-wk high $24.99
- Forward P/E
- 6.1×
- PEG
- 1.5×
- Price/Sales
- 0.1×
- EV/EBITDA
- 9.8×
- Price/Book
- 2.8×
At $8.47, just above the 52-week low of $7.94, the stock trades at 6x forward earnings and 0.14 times sales with revenue down 1.5% year over year. The $17 consensus target sits at double the current price, and 8 of 11 analysts still rate it a hold.
Dave & Buster’s Q2 Earnings Are Out - Stock Tanks 13% on 242% EPS Miss
Dave & Buster’s just reported earnings, with shares initially dropping 13% following the report. Here are the key numbers:
- Revenue: $544.10 million vs. $556.83 million expected
- Adjusted EPS: -$0.27 vs. $0.19 expected
Both the top and bottom lines missed expectations, with revenue declining 2.4% year over year. Expectations were already low heading into the print, with consensus calling for roughly $0.19 per share.
Quick Read:
A double miss is hitting PLAY hard: Revenue fell about $13 million short of estimates, while the company swung to an adjusted loss versus expectations for a profit.
With shares already deeply depressed entering earnings, tonight’s 13% drop suggests investors wanted clearer evidence that Dave & Buster’s operating trends are stabilizing.
THE SETUP
Dave & Buster's has cleared consensus once in its last four earnings reports, and the misses have widened each time, from 25% short in Q1 2026 to 177% short last quarter. That pattern is the real reason tonight's report is being treated as a referendum on management rather than a quarter.
Dave & Buster's (PLAY) Thesis Check
Thesis check
weakening$8.37 +2.8% today
“New management's turnaround plan restores comps and free cash flow at Dave & Buster's”
Bull case
- Buyers stepping in ahead of the report, shares up 2.8% to $8.37
- Management guided to positive comparable sales for the rest of fiscal 2026 and over $100 million in full-year free cash flow
- Call-heavy options positioning at a 0.43 put/call ratio
Bear case
- Q4 2026 EPS of -$0.35 against a $0.46 estimate, with revenue of $530 million missing a $555 million bar
- Shares down 23.2% since that last report and 48% year to date
- Polymarket traders at just 51% odds of a beat, drifting lower this week
- Market cap shrunk to roughly $293 million
The load-bearing piece is comparable sales turning positive, and after last quarter's revenue shortfall that is the one promise tonight has to validate. As we noted at 1:48 p.m. ET, traders extended management credit on the last report and then pulled it back over the following months. Positive comps plus a reaffirmed free cash flow target would flip this back to intact.
Dave & Buster's (PLAY): The Margin Story
Margin story · Q3 2024 – Q2 2026
- Gross
- 14.6%-70.9pp YoY
- Operating
- 9.7%-2.5pp YoY
- Net
- 1.0%-2.8pp YoY
Gross margin has averaged around 35% over the past several quarters, but the damage the company is seeing is coming below that line. Operating margin swung from 12.2% in Q2 2025 to negative territory in Q4 2025 and Q1 2026 before clawing back to 9.7% last quarter on $559 million of revenue. Whether the operating margin recovery holds will likely determine how the market digests this quarter's results, since cost control is where the turnaround has been leaking.
Operating margin by quarter
Dave & Buster's (PLAY): How the Big Money Is Positioned
Tracked 13F positioning
$32Macross 8 tracked filers
3 added · 1 trimmed · 1 new · 1 exited
- Two Sigma Investments LLC$12MNew
- Point72 Asset Management LP$8M+0.4%
- Saba Capital Management LP$4M0.0%
- D. E. Shaw & Co Inc$4M+0.6%
- Tudor Investment Corp$3M—
- Brevan Howard$270K—
- Marshall Wace LLP$196K—
- Millennium Management LLC$180K-1.0%
+ 1 more tracked holder
As of Jun 30, 2026 quarter end · 13F disclosures lag ~45 days — long positions only, tracked filers only.
Two Sigma opened the largest position in the tracked group during the June quarter, and Point72 and D. E. Shaw both added, per filings disclosed as of June 30 among the eight filers we track. This shows hedge fund conviction building into tonight's report, though the 45-day lag means these funds might not be positioned this way right now.
Dave & Buster's (PLAY) Technical Setup
Technical setup
- R2$13.93+68.0%
- R1$13.51+63.0%
- Now$8.29
- S1$7.94-4.2%
- 50-day avg
- $9.90-16.3% below
- 200-day avg
- $13.36-37.9% below
- 52-week range
- $7.94 – $24.99
At $8.29, Dave & Buster's sits just 35 cents above its 52-week low of $7.94, which doubles as the only support on the board. A miss tonight puts that floor in play immediately, while the 50-day average at $9.90 is the first real hurdle for any relief move, with the 200-day still up at $13.36.
Prediction Markets: Will Dave and Buster's (PLAY) beat quarterly earnings?
Prediction markets
Will Dave and Buster's (PLAY) beat quarterly earnings?
51%Yes-0.5pp this week
Traders on Polymarket are effectively flipping a coin on whether Dave & Buster's clears the bar tonight, with the yes side drifting slightly lower ahead of the 4:05 p.m. ET release. A 50/50 reading on a stock down sharply this year shows that the market still believes the turnaround is genuinely unresolved.
Yes probability
Dave & Buster's (PLAY) Options Positioning: Put/Call 0.43
Options positioning
Put/call 0.43Calls dominant
CallsPuts
- ATM implied vol
- 163.4%
- Expiry
- Fri, Sep 18chain as of Fri, Sep 11
At-the-money implied vol of 163% into Friday's expiration says the options market expects tonight's earnings report to reset the stock. The 0.43 put/call ratio shows investors are heavily bullish on a turnaround, though this one-sided call buying could leave little room for disappointment. Open interest shows tension: calls stack up at $9 and $10 while the fattest put walls sit at $10 and $8.
- $59 / 22
- $6270 / 45
- $71.1k / 23
- $82.4k / 462
- $91.6k / 1.3k
- $102.8k / 849
Dave & Buster's (PLAY): What Happened Last Quarter
Last quarter — Q4 2026
- EPS
- -$0.35vs $0.46 est -176.9%
- Revenue
- $530Mvs $555M est -4.6%
Earnings-day move +16.1%Since report -23.2%
Traders bid the stock up on the last report even as both lines came in short, betting the turnaround plan mattered more than the quarter itself. That patience has since drained away, and tonight's report is the first real test of management's promise of positive comparable sales and full-year free cash flow above $100 million.
Price since the report
Reported Tue, Mar 31 · next print Mon, Sep 14
Dave & Buster's (PLAY) Stock Jumps 3.1% Today
Regular session
$8.39
+3.13%
open $8.14
Buyers are stepping in at $8.40 hours before Dave & Buster's reports earnings today, a bold bet on a company whose market cap has shrunk to roughly $291 million. The results land with the stock priced for almost nothing to go right.
Stay On This Page to Receive Live Dave & Buster's Q2 Earnings Updates
This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. Simply stay on this page, and new updates will appear below automatically.
We expect Dave & Buster’s to release Q2 earnings shortly after 4:05 p.m. ET.
Dave & Buster’s Down 48% This Year Ahead of Q2 Earnings and New CEO
Dave & Buster’s reports second-quarter fiscal 2026 results at 4:05 PM ET tonight, with investors focused on whether the company’s turnaround is finally gaining traction.
Management entered the quarter expecting positive comparable-store sales for the remainder of fiscal 2026 and more than $100 million in full-year free cash flow.
But expectations have fallen sharply. Consensus EPS has dropped from $0.8363 just 30 days ago to $0.1872 today as softer traffic has weighed on the outlook. That follows a first quarter in which comparable-store sales fell 5.4% and adjusted EPS of $0.22 missed expectations.
With PLAY shares down more than 60% over the past 12 months, investors have already priced in considerable trouble. The key question tonight is whether management can show a credible inflection in comparable sales while maintaining its free cash flow outlook. Another guidance cut or continued comp weakness would suggest Dave & Buster’s problems run deeper than a temporary traffic slowdown.
Live coverage has ended. The full story is below.
Full Coverage
The story so farDave & Buster’s (NASDAQ:PLAY) is expected to report Q2 2026 earnings today after the market closes at 4:05 PM ET. With shares trading near their 52-week lows and CEO Tarun Lal roughly 14 months into a back-to-basics reset, this report tests whether the business can finally see an inflection. Additionally, the company announced on August 3 that CFO Davin Harper would be succeeding Tarun Lal as CEO in order to spend more time with family.
Turnaround Traction Meets a Weak Consumer
Q1 fiscal 2026 undershot plans, with comparable store sales falling 5.4% as management cited elevated gas prices, geopolitical uncertainty, and meaningful softness in consumer sentiment. Revenue landed at $559 million, adjusted EPS at $0.22, and adjusted EBITDA at $123 million.
Encouragingly, food and beverage delivered nine straight months of positive same-store sales, up around 5%. Free cash flow flipped to positive $25 million from negative $59 million a year earlier. Management flagged Q2-to-date comps down approximately 4%, framing a shallower decline.
Consensus Estimates
| Metric | Q2 FY26 Est. | YoY Change | FY26 Est. | FY27 Est. |
|---|---|---|---|---|
| Revenue | $556.8M | -0.1% | $2.12B | $2.21B |
| EPS (Adj.) | $0.1872 | -53.2% | -$0.8864 | -$0.5488 |
Revenue is modeled essentially flat, but the EPS line reflects sharp margin compression versus the prior-year $0.40 result. Analysts cut Q2 numbers hard: 4 downward revisions in the last 30 days pulled consensus from $0.8363 to $0.1872. The bar is meaningfully lower than 90 days ago.
What I’m Watching Tonight: Games, Value, and Free Cash Flow
Tonight, I’ll be watching how management frames the second-half of the year comp inflection. Management already committed to positive comparable store sales growth in the remainder of the year, so any softening of that language matters.
Second, the new-games rollout. Management pushed out 10 new games, its largest cabinet refresh since 2017, with at least five additional planned. Dwell time and game plays are reportedly up 20% year over year.
Third, the remodel prototype. New builds cost roughly half the FY24-25 versions and delivered a 7% comp uplift, outrunning the system by nearly 700 basis points.
Fourth, free cash flow. Management reiterated the $100M FY26 target with FY26 net capex capped at no more than $200 million. Investors will focus on whether that number holds despite the weak first half.
Fifth, marketing. It will be interesting to see whether the pivot from dollar-per-day messaging to eat-and-play combos and half-price games is paying off.
Earnings History
| Quarter | EPS Surprise | Day-of Move | 1-Week Move | 30-Day Move |
|---|---|---|---|---|
| Q1 FY26 | n/a | -4.72% | -8.52% | -17.29% |
| Q4 FY25 | -176.91% | +16.07% | +7.24% | -14.08% |
| Q3 FY25 | miss | +13.02% | -8.71% | -11.57% |
| Q2 FY25 | -56.56% | -16.74% | -3.77% | -7.94% |
On average, shares moved 0.69% in the week after earnings across the past six reported periods.
Contact [email protected] for any questions or corrections.
Thomas Richmond
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 500 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
Outside of work, Thomas enjoys weight lifting and soccer.
