Bowlero Corp. Class A ((LUCK)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Bowlero Corp. Class A recently held its earnings call, revealing a generally positive sentiment with notable achievements in revenue and EBITDA growth. The company has successfully navigated strategic acquisitions and cost management, although it faces challenges in its offline events business and regional difficulties in California and Washington. Overall, the call painted a picture of robust growth with certain areas requiring attention.
Revenue and EBITDA Growth
The first quarter of 2026 saw Bowlero Corp. achieving a 12% increase in total revenue and a 15% rise in adjusted EBITDA. This strong financial performance underscores the company’s effective strategies and operational efficiency.
Strategic Acquisitions
Bowlero Corp. expanded its footprint in the entertainment sector by acquiring two profitable water parks and three family entertainment centers. These acquisitions are expected to generate above-average returns, further solidifying the company’s leadership in the industry.
Online Booking Success
The company reported double-digit growth in its online booking funnel, indicating increased customer engagement and the effectiveness of its digital sales strategies.
Cost Management and Capital Efficiency
Bowlero Corp. demonstrated improved capital allocation and procurement efficiency by reducing its capital expenditure from $42 million to $26 million year-over-year.
Real Estate Investment
A significant investment of $306 million was made to acquire land and buildings for 58 locations. This move is aimed at enhancing operational flexibility and reducing future rent exposure.
Strong Performance in Retail and Leagues
Retail revenue increased by 1.4%, and league revenue grew by 2.1%, with October marking the strongest month of the year for events.
Adjusted EBITDA Margin Expansion
The company achieved a 70 basis point expansion in its adjusted EBITDA margin, with further improvements anticipated in the upcoming quarters.
Decline in Offline Events Business
The offline events business, primarily corporate event bookings, experienced an 11% decline, negatively impacting total comps.
Challenges in California and Washington
Bowlero Corp. faced significant challenges in California and Washington due to layoffs in Silicon Valley, affecting its corporate events business.
Flat Same-Store Sales
Same-store sales were nearly flat at negative 0.4%, highlighting challenges in maintaining growth across existing venues.
Forward-Looking Guidance
Looking ahead, Bowlero Corp. anticipates continued growth with strategic investments and leadership changes. The company completed a $1.7 billion refinancing, extending debt maturities to 2032, and introduced new leadership roles to enhance service and culture. The acquisitions are expected to yield favorable returns by next summer.
In conclusion, Bowlero Corp.’s earnings call reflected a strong growth trajectory, driven by strategic acquisitions and effective cost management. While challenges remain in certain areas, the company’s forward-looking strategies and investments position it well for future success.