Lucky Strike Entertainment (LUCK) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: 2.51%
• Average Volume (3M): 249.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 3.88%
• EPS Growth: 34.36%
• Country: US
• Employees: 11,374
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.11
• Shares Outstanding: 79,185,110
• 10 Day Avg. Volume: 437,260
• 30 Day Avg. Volume: 249,232
• PEG Ratio: 1.62
• Price to Book (P/B): -7.47
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 35.40
• Enterprise Value/Market Cap: 4.20
• Enterprise Value/Revenue: 3.97
• Enterprise Value/Gross Profit: 12.01
• Enterprise Value/Ebitda: 14.71
• 1Y Price Target: $11.71
• Price Target Upside: 36.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $8.50 ▼(-1.28% Downside)

The score is held back primarily by elevated financial risk (high debt with negative equity) and inconsistent net profitability despite decent operating margins and improved free cash flow. Technicals are mixed with only modest momentum, while valuation is limited by losses (negative P/E) with partial support from the dividend. The earnings call adds moderate support via reiterated guidance and expected seasonal EBITDA upside, but execution and cost-control risks remain meaningful.

Positive Factors

Consistent cash generation

Sustained positive operating cash flow and a return to positive free cash flow provide durable funding for operations, capex, and debt service. This helps the company manage refinancing risk and fund targeted investments without relying solely on external capital, improving medium-term resilience.

Scaled revenue with healthy operating margins

Material top-line growth combined with robust gross and EBITDA margins indicates the core venue model is scalable and operationally efficient. Strong underlying unit economics create potential for profitable expansion and margin expansion as fixed costs are absorbed across a larger revenue base.

Portfolio diversification and seasonal EBITDA leverage

Acquisitions including Raging Waters and family-entertainment centers diversify revenue streams and add seasonal leverage. Water parks and Boomers offer sizeable summer EBITDA upside, smoothing reliance on bowling/events and providing higher-margin seasonal contributions over coming years.

Negative Factors

Elevated leverage and negative equity

Very high debt and consecutive periods of negative equity materially weaken the capital structure, increasing refinancing and covenant risk. This constrains strategic flexibility, raises financing costs, and makes the company more vulnerable to earnings volatility or macro shocks over the medium term.

Inconsistent net profitability

Despite solid operating margins, bottom-line volatility from non-operating and financing pressures has produced recurring net losses. Persistent inconsistency in net profitability reduces retained earnings, hampers equity rebuild, and lengthens the timeline to restore sustainable shareholder returns.

Execution and cost-efficiency risk from investments

Incremental payroll and elevated marketing have pressured margins and some initiatives failed to deliver ROI. Continued execution risk around optimizing labor, marketing efficiency, and realizing acquisition synergies could limit margin recovery and makes achievement of guidance sensitive to operational improvements.

Lucky Strike Entertainment Business Overview & Revenue Model

Company Description

Lucky Strike Entertainment Corporation provides location-based entertainment platforms under the AMF, Bowlero, Lucky X Strike, Boomers, and PBA brand names in North America. It also operates bowling, amusements, water parks, and family entertainment centers. The company was formerly known as Bowlero Corp. and changed its name to Lucky Strike Entertainment Corporation in December 2024. Lucky Strike Entertainment Corporation was founded in 1997 and is headquartered in Mechanicsville, Virginia.

How the Company Makes Money

Lucky Strike Entertainment generates revenue through multiple channels. The primary revenue stream comes from in-game purchases and microtransactions within its gaming platforms, allowing players to buy virtual goods and enhancements. Additionally, LUCK earns income from subscription services that offer premium content and exclusive access to new game releases. The company also partners with advertising networks to monetize its free-to-play games through ad placements, providing an additional revenue source. Strategic collaborations with other entertainment firms and technology companies further enhance its earnings through co-productions and licensing deals, expanding its market reach and audience engagement.

Lucky Strike Entertainment Financial Statement Overview

Summary

Operating trends are improving (TTM revenue up ~55%, gross margin ~37%, EBITDA margin ~29%) and cash flow is positive (TTM operating cash flow ~$151M; TTM free cash flow ~$43M). However, net results are unstable with TTM net margin ~-3.8%, and the balance sheet is a major risk factor with very high debt (~$1.49B) and negative equity (2024–TTM), limiting financial flexibility.

Income Statement

Revenue has scaled meaningfully (TTM (Trailing-Twelve-Months) revenue up ~55% vs. the prior annual period), and operating profitability looks solid with healthy gross margin (~37%) and EBITDA margin (~29%) in TTM. However, bottom-line results are unstable: the company swung from a profit in 2023 to losses in 2024 and again in 2025 (TTM net margin ~-3.8%). The mix of strong operating margins but negative net income suggests meaningful non-operating/financing or other below-the-line pressure that is weighing on shareholders.

Balance Sheet

Balance-sheet risk is elevated. Total debt is very high (~$1.49B TTM; higher in recent annual periods), while stockholders’ equity is negative in the last three periods (2024–TTM), which materially weakens the capital structure and reduces financial flexibility. With negative equity, leverage indicators are inherently unfavorable, and the company is more exposed to refinancing risk and earnings volatility despite a sizeable asset base (~$3.27B TTM).

Cash Flow

Cash generation is a relative bright spot. Operating cash flow is consistently positive (TTM ~$151M), and free cash flow is also positive in TTM (~$43M) after being negative in 2024—showing a notable improvement in cash discipline. That said, cash conversion is not fully reassuring: operating cash flow is below EBITDA in TTM, and with net losses in TTM the business still needs continued operating stability to keep funding debt obligations and reinvestment without increasing leverage.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.24B	1.20B	1.15B	1.06B	911.71M	395.23M
Gross Profit	410.00M	447.08M	314.18M	342.41M	301.73M	20.98M
EBITDA	334.69M	394.71M	211.42M	218.06M	170.79M	53.21M
Net Income	-87.88M	-10.02M	-83.58M	82.05M	-29.93M	-126.46M
Balance Sheet
Total Assets	3.27B	3.16B	3.11B	2.84B	1.85B	1.78B
Cash, Cash Equivalents and Short-Term Investments	95.91M	59.69M	66.97M	195.63M	132.24M	187.09M
Total Debt	3.82B	2.63B	2.41B	2.26B	1.27B	1.25B
Total Liabilities	3.50B	3.33B	3.16B	2.54B	1.66B	1.45B
Stockholders Equity	-233.02M	-171.35M	-49.85M	299.55M	192.32M	330.12M
Cash Flow
Free Cash Flow	42.87M	36.16M	-39.75M	68.25M	12.87M	15.04M
Operating Cash Flow	150.73M	177.22M	154.83M	217.79M	177.67M	58.23M
Investing Cash Flow	-441.24M	-220.31M	-385.66M	-253.22M	-220.34M	-46.68M
Financing Cash Flow	305.09M	35.86M	102.16M	98.96M	-12.14M	34.80M

Lucky Strike Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUCK, the sentiment is Positive. The current price of 8.61 is above the 20-day moving average (MA) of 7.82, above the 50-day MA of 8.45, and below the 200-day MA of 8.98, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 58.32 is Neutral, neither overbought nor oversold. The STOCH value of 91.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LUCK.

Lucky Strike Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSW	70 Outperform	$2.27B	32.22	13.53%	0.79%	7.27%	45.12%
YETI	67 Neutral	$3.85B	24.49	23.79%	―	1.56%	-17.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PTON	52 Neutral	$1.84B	-34.61	―	―	-8.74%	74.66%
XPOF	52 Neutral	$411.51M	-5.06	―	―	-3.55%	-111.90%
LUCK	51 Neutral	$1.17B	-12.67	―	2.51%	3.88%	34.36%

Lucky Strike Entertainment Corporate Events

Lucky Strike Consolidates Leadership as CEO Becomes President

On February 18, 2026, Lucky Strike Entertainment Corporation announced that President Lev Ekster resigned and will be succeeded by Chairman and Chief Executive Officer Thomas Shannon, who will now also serve as president. The leadership change consolidates the company’s top executive roles under Shannon, signaling a shift in governance structure that may streamline decision-making and strategic oversight.

In connection with his resignation, Ekster entered into a Resignation, Severance, and Release Agreement under which he will remain with the company through a transition period until March 4, 2026. He will receive a severance payment of $275,000, retain certain unvested equity awards scheduled to vest by December 31, 2026, and forfeit all other unvested equity awards, clarifying the financial and equity implications of his departure for both the executive and the company.

The most recent analyst rating on (LUCK) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.

Lucky Strike schedules Q2 fiscal results webcast

Lucky Strike Entertainment, an operator in the entertainment sector offering experiential venues that combine bowling, dining, and events, continues to target urban lifestyle consumers seeking premium social experiences. On February 4, 2026, the company announced it would host a webcast at 5:00 p.m. Eastern to review financial results for the fiscal second quarter ended December 28, 2025, signaling forthcoming disclosure that could refine stakeholders’ understanding of recent performance and guide expectations for near-term strategy.

The most recent analyst rating on (LUCK) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.

Lucky Strike’s 2025 Annual Stockholders Meeting Updates

On December 9, 2025, Lucky Strike Entertainment Corporation held its 2025 Annual Meeting of Stockholders. During the meeting, stockholders elected several nominees to the Board of Directors for a term lasting until the next annual meeting. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending June 28, 2026, was ratified.

The most recent analyst rating on (LUCK) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.