Bowlero’s QQ1 2025 results reflect a transitions-period narrative: a diversified portfolio approach expanding beyond core bowling centers into water parks and related family entertainment concepts. Total location revenue rose 17.5% year-over-year, with same-store comps up 0.4%, underscoring improving mix and retention of customers even as weather events weighed on a portion of the quarter. Management highlighted a material margin expansion and a continued shift toward high-return capital deployment, anchored by a robust M&A pipeline and operational enhancements driven by data analytics and a revitalized food-and-beverage strategy.
The company closed Spectrum Entertainment Complex in Grand Rapids (Michigan) and Boomers acquisition, while also expanding Lucky Strike assets and advancing new builds in Denver and Beverly Hills, signaling a multi-year growth trajectory anchored in scale, higher attach rates, and cross-brand opportunities. Adjusted EBITDA for QQ1 2025 was $62.9 million with a margin around the mid-20s, reflecting a ~21% YoY improvement despite a near-term adverse EBITDA drag from acquisitions (Boomers and Raging Waves) and weather-related headwinds. Management raised the lower end of FY2025 revenue guidance by $10 million, signaling confidence in the multi-quarter cadence of New Year-driven demand, seasonal events, and the upside from pricing and F&B enhancements.
Investors should monitor leverage and liquidity given the increased debt load from recent acquisitions and substantial capex in growth projects, balanced against a high-velocity pipeline of redeployments and operational improvements. The combination of premium F&B initiatives, data-driven labor and procurement optimization, and a selective M&A program positions Bowlero to generate favorable returns if the current growth thesis sustains and near-term headwinds abate.