📊 PLAY Key Takeaways
Is Dave & Buster's Entertainment, Inc. (PLAY) a Good Investment?
Dave & Buster's faces severe financial distress with a collapsing capital structure: negative net income of -$48.7M, negative free cash flow of -$100.6M despite $290.8M operating cash flow, and an unsustainable debt-to-equity ratio of 17.02x with only $91.2M equity backing $4.1B in assets. Declining revenues (-1.4% YoY), deteriorating liquidity (0.29x current ratio), and weak interest coverage (2.6x) indicate the company cannot service its $1.6B debt burden while remaining unprofitable.
Dave & Buster's Entertainment, Inc. Key Strengths (PLAY)
- Maintains $2.1B revenue base with established brand recognition in experiential retail
- Generates positive operating cash flow of $290.8M from ongoing operations
- Operating income of $86.1M (4.1% margin) shows potential profitability at operational level
PLAY Stock Risks: Dave & Buster's Entertainment, Inc. Investment Risks
- Extreme overleveraging with 17.02x debt-to-equity ratio and equity base of only $91.2M—equity cushion inadequate for $4.1B asset base
- Negative free cash flow of -$100.6M combined with net loss of -$48.7M indicates unsustainable cash burn despite positive operations
- Critical liquidity crisis with current ratio of 0.29x and only $16.6M cash against $1.6B long-term debt—refinancing risk is acute
- Revenue decline of -1.4% YoY signals weakening demand in core business model
- Weak debt service capacity with interest coverage of only 2.6x leaves minimal margin for operational deterioration
Key Metrics to Watch
- Free cash flow trajectory and path to positive FCF generation
- Debt refinancing terms and access to capital markets
- Revenue stabilization and store-level unit economics
- Equity cushion and covenant compliance ratios
- Operating cash flow sustainability and capex requirements
Dave & Buster's Entertainment, Inc. (PLAY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
PLAY Profit Margin, ROE & Profitability Analysis
PLAY vs Consumer Sector: How Dave & Buster's Entertainment, Inc. Compares
How Dave & Buster's Entertainment, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Dave & Buster's Entertainment, Inc. Stock Overvalued? PLAY Valuation Analysis 2026
Based on fundamental analysis, Dave & Buster's Entertainment, Inc. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Dave & Buster's Entertainment, Inc. Balance Sheet: PLAY Debt, Cash & Liquidity
PLAY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Dave & Buster's Entertainment, Inc.'s revenue has grown significantly by 63% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.79 reflects profitable operations.
PLAY Revenue Growth, EPS Growth & YoY Performance
PLAY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $448.2M | -$9.0M | $-0.26 |
| Q2 2025 | $557.1M | $11.4M | $0.32 |
| Q1 2025 | $567.7M | N/A | $0.62 |
| Q3 2024 | $453.0M | N/A | $-0.12 |
| Q2 2024 | $542.1M | N/A | $0.60 |
| Q1 2024 | $588.1M | N/A | $0.99 |
| Q3 2023 | $466.9M | N/A | $0.04 |
| Q2 2023 | $468.4M | N/A | $0.59 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Dave & Buster's Entertainment, Inc. Dividends, Buybacks & Capital Allocation
PLAY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Dave & Buster's Entertainment, Inc. (CIK: 0001525769)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PLAY
What is the AI rating for PLAY?
Dave & Buster's Entertainment, Inc. (PLAY) has an AI grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PLAY's key strengths?
Claude: Maintains $2.1B revenue base with established brand recognition in experiential retail. Generates positive operating cash flow of $290.8M from ongoing operations.
What are the risks of investing in PLAY?
Claude: Extreme overleveraging with 17.02x debt-to-equity ratio and equity base of only $91.2M—equity cushion inadequate for $4.1B asset base. Negative free cash flow of -$100.6M combined with net loss of -$48.7M indicates unsustainable cash burn despite positive operations.
What is PLAY's revenue and growth?
Dave & Buster's Entertainment, Inc. reported revenue of $2.1B.
Does PLAY pay dividends?
Dave & Buster's Entertainment, Inc. does not currently pay dividends.
Where can I find PLAY SEC filings?
Official SEC filings for Dave & Buster's Entertainment, Inc. (CIK: 0001525769) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PLAY's EPS?
Dave & Buster's Entertainment, Inc. has a diluted EPS of $-1.40.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PLAY's fundamental grade?
Based on our AI fundamental analysis in May 2026, Dave & Buster's Entertainment, Inc. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PLAY stock overvalued or undervalued?
Valuation metrics for PLAY: ROE of -53.4% (sector avg: 18%), net margin of -2.3% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is PLAY's AI grade for 2026?
Our dual AI analysis gives Dave & Buster's Entertainment, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PLAY's free cash flow?
Dave & Buster's Entertainment, Inc.'s operating cash flow is $290.8M, with capital expenditures of $391.4M. FCF margin is -4.8%.
How does PLAY compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -2.3% (avg: 8%), ROE -53.4% (avg: 18%), current ratio 0.29 (avg: 1.5).
Is Dave & Buster's Entertainment, Inc. carrying too much debt?
PLAY has a debt-to-equity ratio of 17.02x, which is above the Consumer sector average of 0.8x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.