Lucky Strike Entertainment (LUCK) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: 2.49%
• Average Volume (3M): 249.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: 3.88%
• EPS Growth: 34.36%
• Country: US
• Employees: 11,374
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.12
• Shares Outstanding: 81,117,160
• 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: 3.93
• Enterprise Value/Revenue: 3.78
• Enterprise Value/Gross Profit: 10.18
• Enterprise Value/Ebitda: 13.11
• 1Y Price Target: $11.93
• Price Target Upside: 32.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $7.50 ▼(-16.67% Downside)

Lucky Strike Entertainment's overall stock score is primarily impacted by its financial instability, characterized by high leverage and negative profitability. While the earnings call provided some positive insights into revenue growth and strategic initiatives, the technical indicators and valuation metrics remain weak. The company's ability to address its financial challenges will be crucial for future performance.

Positive Factors

Revenue and EBITDA Growth

Strong revenue and EBITDA growth indicate robust financial performance and operational efficiency, enhancing long-term business prospects.

Strategic Acquisitions

Strategic acquisitions expand market presence and diversify revenue streams, positioning the company for sustained growth and competitive advantage.

Online Booking Success

Growth in online booking reflects increasing digital engagement, enhancing revenue potential and aligning with industry trends towards digital transformation.

Negative Factors

High Financial Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term financial stability.

Decline in Offline Events Business

Decline in offline events indicates challenges in a key revenue segment, potentially affecting overall growth and profitability if not addressed.

Negative Profitability

Negative profitability highlights operational challenges and the need for improved cost management to achieve sustainable financial health.

Lucky Strike Entertainment Business Overview & Revenue Model

Company Description

Lucky Strike Entertainment (LUCK) is a diversified entertainment company specializing in the development, production, and distribution of gaming and entertainment content. The company operates in various sectors, including online gaming, mobile applications, and traditional entertainment platforms, focusing on delivering innovative experiences to a wide audience. LUCK's core products encompass a range of interactive games, virtual reality experiences, and multimedia entertainment solutions designed to engage users and enhance their entertainment options.

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

Lucky Strike Entertainment faces significant financial challenges, with high leverage and negative profitability impacting its financial stability. While there is some revenue growth and operational efficiency, the negative equity and declining cash flows pose substantial risks. The company needs to address its leverage and improve profitability to enhance its financial health.

Income Statement

Lucky Strike Entertainment shows moderate revenue growth with a TTM growth rate of 2.67%. However, the company is struggling with profitability, as indicated by a negative net profit margin of -3.80% in the TTM. The gross profit margin is relatively healthy at 37.16%, but the negative net income suggests operational challenges. The EBIT and EBITDA margins are positive, indicating some operational efficiency, but the overall profitability remains a concern.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative debt-to-equity ratio due to negative stockholders' equity. This indicates high financial risk and potential solvency issues. The return on equity is positive at 36.87%, but this is skewed by the negative equity. The equity ratio is also negative, highlighting the company's reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -55.70% in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.73, suggesting that cash flow generation is not fully supporting net income. The free cash flow to net income ratio is low at 0.11, further emphasizing cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.23B	1.20B	1.15B	1.06B	911.71M	395.23M
Gross Profit	458.35M	447.08M	314.18M	342.41M	301.73M	20.98M
EBITDA	355.89M	394.71M	211.42M	218.06M	170.79M	53.21M
Net Income	-46.91M	-10.02M	-83.58M	82.05M	-29.93M	-126.46M
Balance Sheet
Total Assets	3.20B	3.16B	3.11B	2.84B	1.85B	1.78B
Cash, Cash Equivalents and Short-Term Investments	79.09M	59.69M	66.97M	195.63M	132.24M	187.09M
Total Debt	2.59B	2.63B	2.41B	2.26B	1.27B	1.25B
Total Liabilities	3.28B	3.33B	3.16B	2.54B	1.66B	1.45B
Stockholders Equity	-86.40M	-171.35M	-49.85M	299.55M	192.32M	330.12M
Cash Flow
Free Cash Flow	16.02M	36.16M	-39.75M	68.25M	12.87M	15.04M
Operating Cash Flow	141.40M	177.22M	154.83M	217.79M	177.67M	58.23M
Investing Cash Flow	-495.53M	-220.31M	-385.66M	-253.22M	-220.34M	-46.68M
Financing Cash Flow	346.34M	35.86M	102.16M	98.96M	-12.14M	34.80M

Lucky Strike Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.00
• 50DMA: Positive
• 100DMA: Negative
• 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 9 is above the 20-day moving average (MA) of 8.01, above the 50-day MA of 8.47, and below the 200-day MA of 9.23, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 66.60 is Neutral, neither overbought nor oversold. The STOCH value of 82.10 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
YETI	78 Outperform	$3.52B	23.66	21.77%	―	1.56%	-17.21%
OSW	70 Outperform	$2.05B	28.40	13.53%	0.84%	7.27%	45.12%
MODG	64 Neutral	$2.11B	―	-46.95%	―	-3.58%	-12720.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
XPOF	54 Neutral	$384.21M	―	―	―	-3.55%	-111.90%
LUCK	46 Neutral	$1.19B	-20.74	―	2.49%	3.88%	34.36%
PTON	45 Neutral	$2.83B	―	―	―	-8.74%	74.66%

Lucky Strike Entertainment Corporate Events

Lucky Strike Reports Q1 2026 Financial Results

On November 4, 2025, Lucky Strike Entertainment reported its financial results for the first quarter of fiscal year 2026, which ended on September 28, 2025. The company saw a 12.3% increase in total revenue to $292.3 million, despite a net loss of $13.8 million compared to a net income of $23.1 million the previous year. The company expanded its footprint by acquiring three family entertainment centers and one water park, bringing its total locations to 369. Lucky Strike also announced a 9% increase in its quarterly cash dividend. The company refinanced its credit facility on September 22, 2025, extending the maturity of its debt and reducing interest rates, which strengthens its financial flexibility and supports long-term growth.

Lucky Strike Entertainment Announces New Financial Obligation

The news release from Lucky Strike Entertainment lacks sufficient information to provide a comprehensive summary. It only mentions that information from Item 1.01 is incorporated by reference into Item 2.03, without further context or details about the company’s operations or implications for stakeholders.

Lucky Strike Announces $500M Notes Offering Pricing

On September 16, 2025, Lucky Strike Entertainment announced the pricing of a $500 million senior secured notes offering and a $1,200 million tranche of term loans, both maturing in 2032. The proceeds will be used to refinance existing facilities and for general corporate purposes, potentially impacting the company’s financial structure and market positioning.

Lucky Strike Entertainment Announces Refinancing Initiative

On September 10, 2025, Lucky Strike Entertainment Corporation reported positive same-store sales growth for July and August 2025 compared to the same months in 2024, with total revenue showing double-digit growth. However, these results are preliminary, unaudited, and subject to change, as they are based on internal reporting and not yet reviewed by an independent accounting firm. The company also announced a refinancing initiative involving a $700 million offering of new senior secured notes and a $1,000 million new term loan facility, aiming to repay existing debts and fund general corporate purposes. These financial maneuvers are contingent on market conditions and may not be completed as planned.