DAVE & BUSTER'S ENTERTAINMENT, INC.

Red flags

• Total debt increased to $1.55 billion from $1.52 billion, including $1.38 billion of term loans and $170.0 million drawn on the revolver; the December 2025 amendment raised the maximum permitted net total leverage ratio from 3.50x to 4.00x and increased applicable revolving-loan margins.
• Adjusted EBITDA fell $69.6 million to $436.6 million, reducing the margin to 20.8% from 23.7%, while the company reported a $48.7 million net loss.
• Fiscal 2025 comparable-store sales fell 5.0%, indicating weakness in the existing-store base despite 11 openings and one relocation.
• Weighted-average diluted shares fell to 34.67 million from 40.01 million through repurchases, but the company still generated a net loss and paid no dividend; $104.1 million remained available under the repurchase authorization.
• A shareholder group consisting of directors, executive officers, and affiliates reportedly controls approximately 22% of outstanding common stock, creating meaningful influence over shareholder-approved matters.