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The accompanying consolidated financial statements include the accounts of Dave & Buster’s Entertainment, Inc. (referred to herein as the “Company,” “we,” “us” and “our”), any predecessor companies and its wholly-owned subsidiaries, including Dave & Buster’s Holdings, Inc. (“D&B Holdings”), which owns 100% of the outstanding common stock of Dave & Buster’s, Inc. (“D&B Inc”), the operating company. The Company, headquartered in Coppell, Texas, is a leading operator of high-volume entertainment and dining venues (“stores”) in North America for adults and families.

The Company operates its business as one reportable operating segment, with two reporting units based on its major brands: Dave & Buster's and Main Event. The Company has one reportable operating segment as both brands provide similar products and services to a similar customer base, are managed together by a single management team and share similar economic characteristics. See further discussion of segment considerations at Note 8 to the unaudited consolidated financial statements.

During the six months ended August 4, 2026, the Company opened seven stores. As of August 4, 2026, the Company owned and operated 250 stores in 44 states, Puerto Rico and one Canadian province.

Fiscal Calendar — We operate on a 52-week or 53-week fiscal year that ends on the Tuesday after the Monday closest to January 31. Each quarterly period reported has 13 weeks, except for 53-week fiscal years when the fourth quarter has 14 weeks. Fiscal 2026, which will end February 2, 2027, and fiscal 2025, which ended on February 3, 2026, both follow a 52-week calendar.

Basis of Presentation — The Company’s financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States for interim financial information as prescribed by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Our quarterly financial data should be read in conjunction with the audited financial statements and notes thereto for the year ended February 3, 2026, included in our Annual Report on Form 10-K as filed with the SEC on March 31, 2026.

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities at the date of the consolidated financial statements and for the period then ended. Actual results could differ from those estimates. Operating results for the three and six months ended August 4, 2026 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending February 2, 2027.

Cash and Cash Equivalents — We consider transaction settlements in process from credit card companies and all highly-liquid investments with original maturities of three months or less to be cash equivalents. Our cash management system provides for the daily funding of all major bank disbursement accounts as checks are presented for payment. Under this system, outstanding checks in excess of the cash balances at certain banks can create book overdrafts. There were no book overdrafts as of August 4, 2026 or as of February 3, 2026.

Fair Value of Financial Instruments — Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. In determining fair value, the accounting standards establish a three-level hierarchy for inputs used in measuring fair value.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and other current assets and current liabilities approximate fair value because of their short-term nature. The fair value of the Company’s debt is determined based on traded price data as of the measurement date, which we classify as a level two input within the fair value hierarchy as defined under GAAP. The fair value of the Company's debt was as follows as of the dates indicated:

			August 4, 2026						February 3, 2026
Revolving credit facility			$	155.0					$	170.0
Term loans			1,163.5						1,264.3
Total debt			$	1,318.5					$	1,434.3

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Accounting for Impairment of Long-Lived Assets — As described in our Annual Report on Form 10-K for the year ended February 3, 2026, we assess the recoverability of long-lived assets at the individual store level, including property and equipment and operating lease right-of-use assets. Our recoverability analyses require significant judgment regarding projected store sales, operating margins and future cash flows.

As a result of continued operating underperformance at certain stores, these store assets have limited excess of estimated undiscounted future cash flows over their carrying amounts and are therefore particularly sensitive to changes in projected sales and margins. If operating performance remains at or near recent levels for an extended period, rather than improving in accordance with our current projections, certain store assets could become unrecoverable, and impairment charges could be required. Such charges could be material to our results of operations in the period recognized.

Revenues — Revenues on the Consolidated Statements of Comprehensive Income (Loss) consist of Entertainment revenues and Food and beverage revenues. Our Entertainment revenues primarily consist of attractions including redemption and simulation games, bowling, laser tag, billiards and gravity ropes. Our Food and beverage revenues consist of full meals, appetizers and both alcoholic and non-alcoholic beverages. The Company's revenue by category was as follows:

			Three Months Ended												Six Months Ended
			August 4, 2026						August 5, 2025						August 4, 2026						August 5, 2025
Entertainment			$	326.8					$	358.2					$	666.3					$	717.3
Other (1)			5.8						6.3						11.4						13.8
Entertainment revenues			$	332.6					$	364.5					$	677.7					$	731.1
Food and non-alcoholic beverages			$	151.4					$	136.0					$	300.0					$	273.5
Alcoholic beverages			60.1						56.9						125.6						120.4
Food and beverage revenues			$	211.5					$	192.9					$	425.6					$	393.9

(1)     Primarily consists of revenue earned from party and room rentals and gift card breakage (see Revenue Recognition for Gift Cards below) and franchise revenues.

Revenue Recognition for Entertainment — Customers purchase cards with game play credits to be used on a variety of redemption and simulation games. Entertainment revenues related to game play primarily consist of game play credits, which are used by customers to activate video and redemption games. Redemption games allow customers to earn tickets, which may be redeemed for prizes. We have deferred a portion of entertainment revenues for the estimated unfulfilled performance obligations related to unredeemed game play credits and unredeemed tickets. The deferred entertainment revenue is based on an estimated rate of future use by customers of unused game play credits and the material right provided to customers to redeem tickets in the future for prizes. The Company recognizes breakage as revenue in proportion to the pattern of redemption by the customers. This breakage is based on the Company’s specific historical redemption patterns and will change as those redemption patterns change over time. Recognized game play credits and tickets breakage revenue is included in Entertainment revenues in the Consolidated Statements of Comprehensive Income (Loss). Historically, select Company promotional programs have included multiple performance obligations that are discounted from their respective standalone selling prices. The Company allocates the discount to each performance obligation and recognizes revenue as the associated goods or services are transferred to the customer.

During the six months ended August 4, 2026, we recognized revenue of $58.6 related to the amount in deferred entertainment revenues as of the end of fiscal 2025.

Revenue Recognition for Gift Cards — During the six months ended August 4, 2026, we recognized revenue of $11.5 related to the amount in deferred gift card revenue as of the end of fiscal 2025. As gift cards are redeemed, revenue is recognized in Entertainment revenues or Food and beverage revenues. We recognize breakage revenue on unredeemed gift cards in proportion to the pattern of redemption by our customers, which is included in Entertainment revenues on the Consolidated Statements of Comprehensive Income (Loss).

Earnings Per Share — Basic net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the basic weighted average number of common shares outstanding for the reporting period. Diluted net income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted net income (loss) per share, the basic weighted average shares outstanding is increased by the dilutive effect of stock options and restricted share awards. Stock options and restricted share awards with an anti-dilutive effect are not included in the diluted net income (loss) per share calculation.

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Basic weighted average shares outstanding were reconciled to diluted weighted average shares outstanding as follows:

			Three Months Ended												Six Months Ended
			August 4, 2026						August 5, 2025						August 4, 2026						August 5, 2025
Basic weighted average shares outstanding			34.81						34.52						34.78						34.56
Weighted average dilutive impact of awards			—						0.62						—						0.52
Diluted weighted average shares outstanding			34.81						35.14						34.78						35.08
Weighted average awards excluded as anti-dilutive			4.10						0.68						3.33						0.67

Recent Accounting Pronouncements — We have reviewed the Accounting Standard Updates (“ASUs”) that were issued during our fiscal year 2026 and have concluded that no material impact to our financial statements or related disclosures is expected as a result of our adoption of the ASUs issued during the year-to-date period.

See the discussion at Note 1 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended February 3, 2026 for previously issued accounting pronouncements that may impact the Company in the future.

Accrued liabilities consisted of the following as of the dates presented:

			August 4, 2026						February 3, 2026
Deferred entertainment revenue			$	69.5					$	73.8
Current portion of operating lease liabilities, net (1)			90.4						80.5
Compensation and benefits			34.2						30.7
Deferred gift card revenue			14.4						19.3
Sales and use and other non-income taxes			9.6						8.2
Property taxes			19.3						15.4
Customer deposits			12.0						11.7
Accrued interest			19.4						20.4
Utilities			7.3						7.0
Current portion of self-insurance reserves			7.5						7.5
Current portion of deferred occupancy costs			3.3						2.5
Other			11.7						23.3
Total accrued liabilities			$	298.6					$	300.3

(1)Balances are net of leasehold incentive receivables from landlords and prepaid amounts.

Other long-term liabilities consisted of the following as of the dates presented:

			August 4, 2026						February 3, 2026
Long-term lease financing (1)			$	415.8					$	367.5
Long-term finance leases (1)			32.4						32.7
Long-term portion of self-insurance reserves			16.7						15.1
Deferred compensation liability			13.1						11.9
Other			17.8						17.4
Total other long-term liabilities			$	495.8					$	444.6

(1)See discussion of failed sale-leaseback transactions and finance leases at Note 3.

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We currently lease the vast majority of the buildings or sites for our stores, store support center, and warehouse space under facility operating leases. These leases typically have initial terms ranging from ten to twenty-five years and include one or more options to renew. When determining the lease term, we include option periods for which renewal is reasonably certain. Most of the leases require us to pay property taxes, insurance, and maintenance of the leased assets. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating leases also include certain equipment leases that have a term in excess of one year. Certain facility leases also have provisions for additional variable contingent rentals based on revenues.

Operating lease cost, variable lease cost and short-term lease cost related primarily to our facilities are included in “Other store operating expenses” for our operating stores, “Pre-opening costs” for our stores not yet operating, or “General and administrative expenses” for our store support center and warehouse, in the Consolidated Statements of Comprehensive Income (Loss).

The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and property taxes, were as follows for the periods presented:

			Three Months Ended									Six Months Ended
			August 4, 2026						August 5, 2025			August 4, 2026						August 5, 2025
Operating lease cost			$	52.0					$	50.9		$	105.6					$	103.6
Variable lease cost			10.8						7.2			20.4						19.2
Short-term lease cost			0.3						0.9			0.8						1.9
Total			$	63.1					$	59.0		$	126.8					$	124.7

Operating lease cost in the table above includes minimum lease payments for future sites for which the leases have commenced. As of August 4, 2026, the Company had signed lease agreements with total commitments of $78.4 related to five facility leases, which had not yet commenced. Fixed minimum lease payments related to these facilities were not included in the right-of-use assets and lease liabilities on the Consolidated Balance Sheets as of August 4, 2026.

Finance leases are included within “Property and equipment”, “Accrued liabilities” and “Other long-term liabilities” in the Consolidated Balance Sheets. Finance lease payments are classified as a reduction of cash flows from financing activities related to principal and operating activities related to interest with corresponding asset amortization included in operating activities in the Consolidated Statements of Cash Flows.

Sale-leaseback transactions

In fiscal 2025, the Company entered into sale and master lease agreements (“sale-leaseback transactions”) with an unrelated third party. Under this agreement:

•The Company sold two of its open store properties and certain store properties under development, including land, buildings and certain improvements, and then leased the assets back through these sale-leaseback transactions.

•Total proceeds related to these sale and master lease agreements as of August 4, 2026 were $142.2, net of certain closing costs, $35.8 of which was received during the six months ended August 4, 2026.

In fiscal 2026, the Company amended a separate, previously existing, master lease agreement with an unrelated third party. Under these agreements:

•The Company sold one of its open store properties including land, buildings and certain improvements, and then leased the assets back through a sale-leaseback transaction. Total proceeds received related to this amended sale and master lease agreement were $13.1 during the six months ended August 4, 2026.

These sale-leaseback transactions were accounted for as failed sale leasebacks based on GAAP under ASC 842, Leases. As a result, the store property assets remain on the Consolidated Balance Sheets at their historical cost and are depreciated over the remaining term of the applicable master lease.

As of August 4, 2026, the current outstanding financing liability of $3.0 was included in Accrued liabilities on the Consolidated Balance Sheets and the long-term outstanding financing liability of $415.8 was included in Other long-term liabilities on the Consolidated Balance Sheets for the transactions noted above, as well as failed sale lease-back transactions entered into prior to fiscal 2025.

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Finance Leases

As of August 4, 2026, the Company had finance lease liabilities related to three properties. The current outstanding finance lease liability of $0.5 was included in Accrued liabilities on the Consolidated Balance Sheets and the long-term outstanding finance lease liability of $32.4 was included in Other long-term liabilities on the Consolidated Balance Sheets.

Long-term debt consisted of the following as of the dates presented:

			August 4, 2026						February 3, 2026
Credit facility—revolver			$	155.0					$	170.0
Credit facility—term loans			1,378.8						1,382.3
Total debt outstanding			1,533.8						1,552.3
Less: current installments of long-term debt			(7.0)						(7.0)
Less: unamortized debt issue discounts and unamortized debt issuance costs			(26.3)						(30.3)
Long-term debt, net			$	1,500.5					$	1,515.0

Credit Facility

The Company is party to a senior secured credit agreement (as amended, the “Credit Agreement”), which provides for a revolving credit facility (the “Revolving Credit Facility”) and a term loan facility (together with the Revolving Credit Facility, the “Credit Facility”). On November 1, 2024, the Company entered into the fourth amendment to the Credit Agreement which, among other things, increased term loans by an aggregate principal amount of $700.0 (the “Incremental Term B Loans”) with a maturity date of November 1, 2031, and increased the Revolving Credit Facility by $150.0 to a total of $650.0 and extended the maturity date to November 1, 2029.

In December 2025, D&B Inc. entered into the fifth amendment to the Credit Agreement which provides for an increase in the maximum permitted net total leverage ratio of D&B Inc. and its restricted subsidiaries from 3.50:1.00 to 4.00:1.00 as of the end of each fiscal quarter when applicable to test the net total leverage ratio. In addition, the fifth amendment increased the margin applicable to the revolving loans to, in the case of SOFR loans, 3.25% per annum and, in the case of ABR loans, 2.25% per annum, if the net total leverage exceeds 3.00x.

Both the term loans outstanding under the Credit Facility prior to the Incremental Term B Loans (the “Existing Term B Loans”) and the Incremental Term B Loans bear interest at Term SOFR or ABR (each, as defined in the amended Credit Agreement) plus (i) in the case of Term SOFR loans, 3.25% per annum and (ii) in the case of ABR loans, 2.25% per annum. Borrowings under the Revolving Credit Facility bear interest subject to a pricing grid based on net total leverage, at Term SOFR plus a spread ranging from 2.50% to 3.25% per annum or ABR plus a spread ranging from 1.50% to 2.25% per annum. Unused commitments under the Revolving Credit Facility incur initial commitment fees of 0.30% to 0.50%. Additionally, the interest rate margin applicable to the Existing Term B Loans and loans outstanding under the Revolving Credit Facility would be subject to an additional 0.25% step-down if a rating of B1/B+ or higher from Moody’s and S&P is achieved (which will step up if such rating is subsequently not maintained).

A portion of the Revolving Credit Facility not to exceed $35.0 is available for the issuance of letters of credit. As of August 4, 2026, we had letters of credit outstanding of $18.9 and an unused commitment balance of $476.1 under the Revolving Credit Facility. The Credit Facility may be increased through incremental facilities, by an amount equal to the greater of (i) $400.0 and (ii) 0.75 times trailing twelve-month Adjusted EBITDA, as defined in the Credit Agreement, plus additional amounts subject to compliance with applicable leverage ratio and/or interest coverage ratio requirements.

Restrictive covenants and debt compliance

Our Credit Facility contains restrictive covenants that, among other things, place certain limitations on our ability to incur additional indebtedness, make loans or advances to subsidiaries and other entities, pay dividends, acquire other businesses or sell assets. The Credit Facility also requires the Company to maintain a maximum net total leverage ratio, as defined in the Credit Agreement, as of the end of each fiscal quarter when applicable to test the net total leverage ratio. As of August 4, 2026, we believe we were in compliance with our debt covenants and the terms of our debt agreements.

Interest expense

The Company’s weighted average effective interest rate on its total debt facilities was 7.8% and 8.5% for the six months ended August 4, 2026 and August 5, 2025, respectively.

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The following table sets forth our total interest expense, net for the periods presented:

			Three Months Ended												Six Months Ended
			August 4, 2026						August 5, 2025						August 4, 2026						August 5, 2025
Interest expense on debt			$	29.4					$	32.1					$	58.7					$	64.0
Amortization of debt issue discounts and issuance costs			2.2						2.0						4.5						4.4
Interest expense on sale-leaseback transactions (1)			7.0						5.0						14.1						9.6
Interest expense on finance leases (1)			0.6						0.2						1.2						0.2
Interest income			—						(0.1)						(0.8)						(0.5)
Capitalized interest			(1.2)						(0.5)						(2.8)						(2.2)
Total interest expense, net			$	38.0					$	38.7					$	74.9					$	75.5

The Company is subject to certain legal proceedings and claims that arise in the ordinary course of our business, including claims alleging violations of federal and state law regarding workplace and employment matters, discrimination, slip-and-fall and other customer-related incidents and similar matters. In the opinion of management, based upon consultation with legal counsel, the amount of ultimate liability with respect to such legal proceedings and claims will not materially affect the consolidated results of our operations or our financial condition. Legal costs related to such claims are expensed as incurred.

Share issuances and repurchases

The Company treats shares withheld for tax purposes on behalf of its employees in connection with the vesting of time-based and performance-based restricted stock units as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. These were immaterial for all periods presented.

In March 2023, our Board of Directors approved a share repurchase program with an initial authorized limit of $100.0. Subsequently, our Board of Directors approved additional repurchases for a total authorized limit of $600.0 under the plan as of August 4, 2026. The remaining dollar value of shares that may be repurchased under the program was $104.0 as of August 4, 2026. Future decisions to repurchase shares continue to be at the discretion of the Board of Directors and will be dependent on our operating performance, financial condition, capital expenditure requirements and other factors that the Board of Directors considers relevant.

Share-based compensation

Our share-based compensation expense, which is included in General and administrative expenses on the Consolidated Statements of Comprehensive Income (Loss), was as follows for the periods presented:

			Three Months Ended												Six Months Ended
			August 4, 2026						August 5, 2025						August 4, 2026						August 5, 2025
Share-based compensation expense			$	0.9					$	7.9					$	3.4					$	10.9

Share-based awards

The Company’s long-term incentive compensation plan provides awards to executive and management personnel, as well as directors, including share-based awards. Options granted to employees generally become exercisable ratably over a three-year period from the grant date. Performance-based restricted stock units and market stock units awarded to employees generally either vest ratably over three years or fully vest after three years, subject to the achievement of

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specified performance or market conditions, as applicable. Time-based restricted stock units have various service periods not exceeding five years.

Our share-based compensation award activity during the six months ended August 4, 2026 was as follows:

			Options						Restricted Stock Units (1)						Total
Outstanding as of February 3, 2026			1.87						1.02						2.89
Granted			0.71						1.27						1.98
RSUs vested and distributed			—						(0.16)						(0.16)
Forfeited or cancelled			(0.41)						(0.46)						(0.87)
Outstanding as of August 4, 2026			2.17						1.67						3.84
Remaining unrecognized compensation expense			$	6.7					$	16.4					$	23.1

(1)    Includes performance-based restricted stock units, market-based restricted stock units and time-based restricted stock units.

The fair value of our time-based and performance-based restricted stock units was based on our closing stock price on the date of grant. The grant date fair value of stock options was determined using the Black-Scholes option valuation model. The unrecognized expense will be substantially recognized by the end of fiscal 2028.

During fiscal 2026, the Company granted certain options, time-based and performance-based restricted stock units to the Company’s executive officers, the Board of Directors, and employees. The majority of these grants vest over three years.

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The Company provides premier entertainment and dining experiences for adults and families under the “Dave & Buster’s” and “Main Event” brands and offers guests the opportunity to “Eat, Drink, Play, Watch” all in one location. The Company's Chief Executive Officer, the Company’s chief operating decision maker (“CODM”), reviews the financial information presented on a consolidated basis. The CODM assesses performance and allocates resources based on the Company’s Consolidated Statements of Comprehensive Income (Loss), since the Company provides its offerings and key metrics, costs and margins similarly to both business units. The CODM manages and evaluates the results of the business in a consolidated manner to drive synergies and develop uniform strategies. Accordingly, key components and processes of the Company’s operations are centrally managed, including site acquisition and development, customer service, marketing, human resources, finance and accounting, legal, risk management, and government affairs. Segment asset information is not used by the CODM to allocate resources. Under the described organizational and reporting structure, the Company has one reportable segment. As a single reportable segment entity, the Company’s primary segment performance measure was Net income (loss). See Note 1 for a description of the Company's disaggregated revenues by offering (entertainment and other revenues and food and beverage revenues).

Significant segment expenses are presented in the Company’s Consolidated Statements of Comprehensive Income (Loss). Some expenses not separately presented in the Company’s Consolidated Statements of Comprehensive Income (Loss) have been disaggregated on a functional basis and presented below.

						Three Months Ended												Six Months Ended
Other store operating expenses						August 4, 2026						August 5, 2025						August 4, 2026						August 5, 2025
Store lease expenses (1)						$	51.6					$	51.7					$	104.0					$	104.2
Advertising and marketing costs (2)						25.5						24.6						49.0						52.3
Other costs (3)						115.8						110.6						226.6						218.8
Total other store operating expenses						$	192.9					$	186.9					$	379.6					$	375.3

(1)Amounts represent minimum and variable lease costs incurred to operate certain of our stores. See Note 3 for further discussion.

(2)Amounts represent costs incurred to market our brands at a local and national level.

(3)Remaining amounts include various costs incurred to operate our stores that are not considered individually significant.

						Three Months Ended												Six Months Ended
Other charges and gains						August 4, 2026						August 5, 2025						August 4, 2026						August 5, 2025
System implementation costs (1)						$	—					$	0.9					$	—					$	2.5
Asset losses (2)						0.9						0.2						2.8						3.9
Total other charges and gains						$	0.9					$	1.1					$	2.8					$	6.4

(1)Amounts represent non-capitalizable costs incurred to implement software at both the store and corporate level.

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