Dave and Buster’s Entertainment, Inc (NASDAQ:PLAY) shares are trading higher Wednesday afternoon after the company reported fourth-quarter results that, while still soft on the surface, appeared to give investors confidence that operating trends may be stabilizing and that management's turnaround plan is gaining traction.

Revenue Slips As Winter Storm Weighs On Comparable Store Sales

Revenue in the quarter slipped 0.9% year-over-year to $529.6 million, while comparable store sales fell 3.3%. Management said comparable sales would have been down about 1.5% excluding the impact of Winter Storm Fern, suggesting weather weighed meaningfully on results.

Net Loss Widens, But 2026 Free Cash Flow Outlook May Support Sentiment

The company posted a net loss of $39.8 million, or $1.15 per diluted share, compared with net income of $9.3 million, or 24 cents per share, a year earlier. Adjusted EBITDA also declined to $111.4 million from $127.2 million. Even so, investors may be focusing more on the direction of the business than the backward-looking headline numbers.

CEO Tarun Lal said same-store sales trends improved throughout the year and said the company expects fiscal 2026 to bring growth in comparable sales, revenue and Adjusted EBITDA, along with more than $100 million in free cash flow.

That outlook may be helping sentiment, especially after Dave & Buster's third quarter also showed pressure on revenue and store comps, making this update look more like a potential reset point than another leg lower.

PLAY Shares Surge Wednesday Afternoon

PLAY Price Action: Dave & Buster’s Enter shares were up 23.45% at $13.38 at the time of publication on Wednesday, according to Benzinga Pro data.

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