PLAY

(in millions, except per share amounts; unaudited) Overview The following discussion and analysis of our financial condition and results of operations should be read together with the accompanying unaudited consolidated financial statements and the related notes in Item 1 and with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for fiscal 2025 as filed with the SEC on March 31, 2026. Unless otherwise specified, the meanings of all defined terms in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are consistent with the meanings of such terms as defined in the Notes to unaudited consolidated financial statements. This discussion contains statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “intends,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this report and include statements regarding our intentions, beliefs or current expectations concerning, among other things: our results of operations; financial condition; liquidity; prospects; growth; strategies; the industry in which we operate; expansion and opening of new locations; expectations regarding variability in run-rate levels in our stores and seasonality; expectations of future proceeds from sale leaseback transactions; anticipated breakage; our compliance with debt covenants and the terms of our debt agreement; our defenses to various legal claims we may face; and opportunities and risks affecting our business, industry and financial results, including macroeconomic factors. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully design and execute our business strategy; our effectiveness at integrating and operating our past or future acquisitions; the effects of new or improved technologies or changes in consumer behavior; the potential for unfavorable publicity; our ability to obtain and renew leases on favorable terms or at all; our substantial indebtedness and covenants in our debt agreements restricting our ability to implement our business plan; our success in opening and operating new stores profitably and optimizing existing stores; risks related to our information systems and potential cybersecurity breaches or other privacy or data incidents; the cost and availability of certain commodities; our procurement of new games and entertainment offerings and our ability to obtain related licensing rights; the extensive laws and regulations in which we must comply with; and other factors, including those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on March 31, 2026. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate are consistent with the forward-looking statements contained in this Form 10-Q, such results or developments may not be indicative of results or developments in subsequent periods. Forward-looking statements are based only on information currently available to us and speak only as of the date of this Form 10-Q. We do not undertake any obligation to update or revise the forward-looking statements to reflect events that occur or circumstances that exist after the date on which such statements were made, except to the extent required by law. Quarterly Financial Highlights •First quarter revenue of $559.2 decreased 1.5% compared to the first quarter of 2025. •Comparable store sales decreased 5.4% compared to the same calendar period in 2025. See further discussion of comparable store sales below at Revenues. •Net income totaled $5.7, or $0.16 per diluted share, compared to net income of $21.7, or $0.62 per diluted share in the first quarter of 2025. •Adjusted EBITDA of $123.2 decreased 9.5%, or $12.9, from the first quarter of 2025. See further discussion of Adjusted EBITDA, a non-GAAP measure, at Non-GAAP Financial Measures below along with a reconciliation to net income, the most comparable GAAP measure, at Reconciliations of Non-GAAP Financial Measures below. 15 DAVE & BUSTER’S ENTERTAINMENT, INC. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (in millions, except per share amounts; unaudited) General We are a leading owner and operator of high-volume venues primarily in North America that combine entertainment and dining for both adults and families under the “Dave & Buster’s” and “Main Event” brands. The core of our concept is to offer our customers various forms of entertainment along with quality dining all in one location. Our entertainment offerings provide an extensive assortment of attractions centered around playing games, bowling, and watching live sports and other televised events. Our brands appeal to a relatively balanced mix of male and female adults, as well as families and teenagers. We believe we appeal to a diverse customer base by providing a highly customizable experience in a dynamic and fun setting. Our Dave & Buster’s stores average 36,800 square feet and range in size between approximately 16,100 and 70,000 square feet. Our Main Event stores average about 53,300 square feet and range in size between approximately 37,500 and 78,200 square feet. Generally, our stores are open seven days a week, with normal hours of operation generally from between 10:00 to 11:30 a.m. until midnight, with stores typically open for extended hours on weekends. Key Measures of Our Performance We monitor and analyze several key performance measures to manage our business and evaluate financial and operating performance, including: Comparable store sales — Comparable store sales are a comparison of sales to the same period of prior years for the comparable store base. We historically define the comparable store base to include those stores open for a full 18 months before the beginning of the current fiscal year and exclude stores permanently closed or planned for closure during the current fiscal year. For fiscal 2026, our comparable store base consists of 224 stores, of which 165 are Dave & Buster's branded stores and 59 are Main Event branded stores. New store openings — Our ability to expand our business and reach new customers is influenced by the opening of additional stores in both new and existing markets. The success of our new stores is indicative of our brand appeal and the efficacy of our site selection and operating models. For the three months ended May 5, 2026, we opened one new Dave & Buster’s branded store. Non-GAAP Financial Measures In addition to the results provided in accordance with GAAP, we provide non-GAAP measures which present operating results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with GAAP and include Adjusted EBITDA, Credit Adjusted EBITDA and Store Operating Income Before Depreciation and Amortization (defined below). These non-GAAP measures do not represent and should not be considered as alternatives to net income or cash flows from operations, as determined in accordance with GAAP, and our calculations thereof may not be comparable to similarly titled measures reported by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Although we use these non-GAAP measures to assess the operating performance of our business, they have significant limitations as an analytical tool because they exclude certain material costs. For example, Adjusted EBITDA does not take into account a number of significant items, including our interest expense and depreciation and amortization expense. In addition, Adjusted EBITDA excludes certain other costs that may be important in analyzing our GAAP results. Because Adjusted EBITDA does not account for these expenses, its utility as a measure of our operating performance has material limitations. Our calculations of Adjusted EBITDA adjust for these amounts because we believe they do not directly relate to the ongoing operations of the current business of our stores and therefore complicate the comparison of the underlying business between periods. Nevertheless, because of the limitations described above, management does not view Adjusted EBITDA, Credit Adjusted EBITDA or Store Operating Income Before Depreciation and Amortization in isolation and also uses other measures, such as revenues, gross margin, operating income and net income to measure operating performance. Adjusted EBITDA We define “Adjusted EBITDA” as net income, plus interest expense, net, loss on debt refinancing, provision for income taxes, depreciation and amortization expense, (gain) loss on property and equipment transactions, impairment of long-lived assets, share-based compensation, currency transaction (gains) losses, transaction and integration costs, system implementation costs and other items, net. 16 DAVE & BUSTER’S ENTERTAINMENT, INC. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (in millions, except per share amounts; unaudited) Adjusted EBITDA is presented because we believe that it provides useful information to investors and analysts regarding our operating performance. By reporting Adjusted EBITDA, we provide a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Credit Adjusted EBITDA We define “Credit Adjusted EBITDA” as net income plus certain items as defined at Adjusted EBITDA above, as well as certain other adjustments as defined in our Credit Agreement (see Liquidity and Capital Resources below for additional discussion and reconciliation). These other adjustments include (i) increases in entertainment revenue deferrals, (ii) the cost of new projects, including store pre-opening costs, and (iii) other costs and adjustments as permitted by the Credit Agreement. We believe the presentation of Credit Adjusted EBITDA is appropriate as the metric provides additional information to investors about the calculation of, and compliance with, certain financial covenants in the Credit Agreement. Store Operating Income Before Depreciation and Amortization We define “Store Operating Income Before Depreciation and Amortization” as operating income, plus depreciation and amortization expense, general and administrative expenses, pre-opening costs and other charges and gains. Store Operating Income Before Depreciation and Amortization allows for the evaluation of operating performance across stores of varying size and volume. We believe that Store Operating Income Before Depreciation and Amortization is another useful measure in evaluating our operating performance because the metric removes the impact of general and administrative expenses, which are not incurred at the store level, and the costs of opening new stores, which are non-recurring at the store level, and thus enables the comparability of the operating performance of our stores for the periods presented. We also believe that Store Operating Income Before Depreciation and Amortization is a useful measure in evaluating our operating performance within the entertainment and dining industry because the metric permits the evaluation of store-level productivity, efficiency, and performance, and we use Store Operating Income Before Depreciation and Amortization as a means of evaluating store financial performance compared to our competitors. However, because the measure excludes significant items such as general and administrative expenses, pre-opening costs, and other charges and gains, as well as our interest expense, net, loss on debt refinancing and depreciation and amortization expense, which are important in evaluating our consolidated financial performance from period to period, the value of this measure is limited as a measure of our consolidated financial performance. Presentation of Operating Results 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. Store-Level Variability, Quarterly Fluctuations, Seasonality and Inflation We operate stores of various sizes and experience significant store variability in volumes, operating results and net investment costs. Our new stores typically open with sales volumes in excess of their expected long-term run-rate levels, which we refer to as a “honeymoon” effect. We traditionally expect our new store sales volumes in year two to be lower than our year one targets, and to grow in line with the rest of our comparable store base thereafter. As a result of the substantial revenues associated with each new store, the number and timing of new store openings will result in significant fluctuations in quarterly results. New store operating margins (excluding pre-opening expenses) during the first year of operation may benefit from honeymoon sales leverage on occupancy, management labor and other fixed costs. This benefit is partially offset by normal inefficiencies in hourly labor and other costs associated with establishing a new store. In year two, operating margins may decline due to the loss of honeymoon sales leverage on fixed costs, which is partially offset by improvements in store operating efficiency. Our operating results historically have fluctuated due to seasonal factors. Typically, we have higher revenues associated with the spring and year-end holidays, and sales and customer traffic during these periods are susceptible to the impact of severe, unfavorable or unseasonably mild weather. Our third quarter, which encompasses the back-to-school fall season, has historically had lower revenues as compared to other quarters. 17 DAVE & BUSTER’S ENTERTAINMENT, INC. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (in millions, except per share amounts; unaudited) Economic and environmental conditions and changes in regulatory legislation could exert pressure on both supplier pricing and consumer spending related to entertainment and dining alternatives. There is no assurance that our cost of products will remain stable or that federal, state, or local minimum wage rates will not increase beyond amounts currently legislated. However, the effects of any supplier price increase or wage rate increases might be partially offset by selective price increases if competitively appropriate. Three Months Ended May 5, 2026 (the “2026 period”) Compared to the Three Months Ended May 6, 2025 (the “2025 period”) Results of operations The following table sets forth selected data for the periods indicated. All information, except for Company-owned stores at the end of the period, is derived from the accompanying Consolidated Statements of Comprehensive Income. Three Months Ended May 5, 2026 May 6, 2025 Entertainment revenues $ 345.1 61.7 % $ 366.6 64.6 % Food and beverage revenues 214.1 38.3 % 201.1 35.4 % Total revenues 559.2 100.0 % 567.7 100.0 % Cost of entertainment (1) 27.4 7.9 % 30.6 8.3 % Cost of food and beverage (1) 52.4 24.5 % 51.5 25.6 % Total cost of products 79.8 14.3 % 82.1 14.5 % Operating payroll and benefits 140.1 25.1 % 135.0 23.8 % Other store operating expenses 186.7 33.4 % 188.4 33.2 % General and administrative expenses 27.5 4.9 % 24.4 4.3 % Depreciation and amortization expenses 70.9 12.7 % 63.2 11.1 % Pre-opening costs 5.4 1.0 % 6.1 1.1 % Other charges and gains 1.9 0.3 % 5.3 0.9 % Total operating costs 512.3 91.6 % 504.5 88.9 % Operating income 46.9 8.4 % 63.2 11.1 % Interest expense, net 36.9 6.6 % 36.8 6.5 % Income before provision for income taxes 10.0 1.8 % 26.4 4.7 % Provision for income taxes 4.3 0.8 % 4.7 0.8 % Net income $ 5.7 1.0 % $ 21.7 3.8 % Company-owned stores at end of period 244 234 (1)All percentages are expressed as a percentage of total revenues for the respective period presented, except cost of entertainment, which is expressed as a percentage of entertainment revenues, and cost of food and beverage, which is expressed as a percentage of food and beverage revenues. 18 DAVE & BUSTER’S ENTERTAINMENT, INC. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (in millions, except per share amounts; unaudited) Reconciliations of Non-GAAP Financial Measures Adjusted EBITDA The following table reconciles Net income to Adjusted EBITDA for the periods indicated: Three Months Ended May 5, 2026 May 6, 2025 Net income(1) $ 5.7 1.0 % $ 21.7 3.8 % Interest expense, net 36.9 36.8 Provision for income taxes 4.3 4.7 Depreciation and amortization expense 70.9 63.2 Share-based compensation(2) 2.5 3.0 Transaction and integration costs(3) — 0.2 System implementation costs(4) — 1.5 Other items, net(5) 2.9 5.0 Adjusted EBITDA, a non-GAAP measure (1) $ 123.2 22.0 % $ 136.1 24.0 % (1)All percentages are expressed as a percentage of total revenues for the respective period presented. (2)Non-cash share-based compensation expense, net of forfeitures, recorded in General and administrative expenses on the Consolidated Statements of Comprehensive Income. (3)Transaction and integration costs related to the acquisition and integration of Main Event recorded in Other charges and gains on the Consolidated Statements of Comprehensive Income. (4)System implementation costs represent expenses incurred related to the development of new enterprise resource planning, human capital management and inventory software for our stores and store support teams. These charges are recorded in Other charges and gains on the Consolidated Statements of Comprehensive Income. (5)The amount related to the 2026 first-quarter period ended May 5, 2026 consisted primarily of $1.9 loss on property and equipment transactions and $0.8 of severance costs. The amount for the 2025 period primarily consisted of a $3.8 loss on property and equipment transaction, $0.9 of discretionary retention incentives, and $0.3 of severance costs. Discretionary retention incentives and severance costs are included in General and administrative expenses on the Consolidated Statements of Comprehensive Income. (Gain) loss on property and equipment transactions is included in Other charges and gains on the Consolidated Statements of Comprehensive Income. Store Operating Income Before Depreciation and Amortization The following table reconciles Operating income to Store Operating Income Before Depreciation and Amortization for the periods indicated: Three Months Ended May 5, 2026 May 6, 2025 Operating income (1) $ 46.9 8.4 % $ 63.2 11.1 % General and administrative expenses 27.5 24.4 Depreciation and amortization expense 70.9 63.2 Pre-opening costs 5.4 6.1 Other charges and gains 1.9 5.3 Store Operating Income Before Depreciation and Amortization, a non-GAAP measure (1) $ 152.6 27.3 % $ 162.2 28.6 % (1)All percentages are expressed as a percentage of total revenues for the respective period presented. 19 DAVE & BUSTER’S ENTERTAINMENT, INC. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (in millions, except per share amounts; unaudited) Results of Operations Revenues - Selected revenue data and store data for the periods indicated are as follows: Three Months Ended May 5, 2026 May 6, 2025 Change Comparable store revenues $ 512.3 $ 541.5 $ (29.2) Noncomparable store revenues 37.2 19.1 18.1 Other noncomparable revenues (1) 9.7 7.1 2.6 Total revenues $ 559.2 $ 567.7 $ (8.5) Comparable store operating weeks 2,912 2,912 — Noncomparable store operating weeks 247 106 141 Total store operating weeks 3,159 3,018 141 (1)Includes changes in deferred entertainment revenues, gift card deferrals and certain other revenues not associated with stores. The table below represents our revenue mix for the fiscal periods indicated: Three Months Ended May 5, 2026 May 6, 2025 Entertainment revenues $ 345.1 61.7 % $ 366.6 64.6 % Food revenues 148.6 26.6 % 137.5 24.2 % Beverage revenues 65.5 11.7 % 63.6 11.2 % $ 559.2 100.0 % $ 567.7 100.0 % Total revenues for the 2026 period decreased $8.5, or 1.5%, to $559.2 compared to $567.7 for the 2025 period. The decrease in revenue was primarily related to a $29.2 decrease in comparable store sales, partially offset by an $18.1 increase in noncomparable store revenues, and an increase of $2.6 in other noncomparable revenues. The decrease in comparable store revenues was due to a reduction in walk-in business relative to the prior year period. The change in other noncomparable revenues reflects breakage on unredeemed game play credits, tickets and gift cards corresponding to guest utilization patterns over time. See Revenue Recognition at Note 1 to the unaudited consolidated financial statements for a discussion of revenue recognition associated with game play credits, tickets and gift cards. Cost of products - The total cost of products was $79.8 for the 2026 period and $82.1 for the 2025 period. The total cost of products as a percentage of total revenues decreased to 14.3% for the 2026 period compared to 14.5% for the 2025 period. The decrease in total cost of products as a percentage of total revenues was associated with declines in both entertainment and food and beverage cost of sales, partially offset by a higher food and beverage revenue mix. Cost of entertainment decreased to $27.4 in the 2026 period compared to $30.6 in the 2025 period. The cost of entertainment, as a percentage of entertainment revenues, decreased to 7.9% for the 2026 period from 8.3% in the 2025 period. The decrease was primarily attributable to vendor cost savings and lower redemptions due to ticket payout adjustments and redemption center pricing changes, partially offset by continued tariff cost pressure. Cost of food and beverage products increased to $52.4 for the 2026 period compared to $51.5 for the 2025 period. Cost of food and beverage products as a percentage of food and beverage revenues decreased to 24.5% for the 2026 period from 25.6% for the 2025 period. The increase cost was due to higher food and beverage revenue associated with eat-and-play combo enhancements driving higher food attach rates. The decline as a percentage of food and beverage revenues was due to higher check growth associated with menu enhancements made in the second half of fiscal 2025. 20 DAVE & BUSTER’S ENTERTAINMENT, INC. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (in millions, except per share amounts; unaudited) Operating payroll and benefits Total operating payroll and benefits increased to $140.1 in the 2026 period compared to $135.0 in the 2025 period. The increase was primarily due to a $5.3M increase associated with noncomparable stores. The total cost of operating payroll and benefits as a percentage of total revenues for 2026 was 25.1% compared to 23.8% in 2025. The increase was primarily due to sales deleveraging. Other store operating expenses Other store operating expenses decreased to $186.7 in the 2026 period compared to $188.4 in the 2025 period. Other store operating expense as a percentage of total revenues increased to 33.4% in the 2026 period compared to 33.2% in the 2025 period. The increase was primarily due to sales deleveraging. General and administrative expenses General and administrative expenses increased to $27.5 in the 2026 period compared to $24.4 in the 2025 period, and as a percentage of total revenues were 4.9% in the 2026 period compared to 4.3% in the 2025. The increase in general and administrative expenses in 2026 was driven primarily by higher employee related costs, consulting and legal expenses. Depreciation and amortization expense Depreciation and amortization expense increased to $70.9 in the 2026 period from $63.2 in the 2025 period, primarily due to new store openings, store remodels and new amusement offerings. Pre-opening costs Pre-opening costs decreased to $5.4 in the 2026 period compared to $6.1 in the 2025 period. This decrease was primarily due to the timing of costs in our pipeline of new stores for the respective periods. Other charges and gains Other charges and gains decreased to $1.9 in the 2026 period compared to $5.3 in the 2025 period primarily due to a decrease in the write off of certain assets and a decrease in system implementation costs. Interest expense, net Interest expense, net increased slightly to $36.9 in the 2026 period compared to $36.8 in the 2025 period due primarily to incremental interest expense associated with sale-leaseback transactions, in addition to lower balances on our Credit Facility and lower weighted average effective interest rates of 7.9% during the period, compared to 8.6% in the prior year. See further discussion of the Company's debt activity and failed sale-leaseback transaction at Note 4 and Note 3, respectively, to the unaudited consolidated financial statements. 21 DAVE & BUSTER’S ENTERTAINMENT, INC. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (in millions, except per share amounts; unaudited) Provision for income taxes The effective tax rate for the 2026 period was 43.0%, compared to 17.8% for the 2025 period. The effective tax rate increase for the 2026 period in comparison to the 2025 period was primarily due to the estimated annual effective tax rate applied in the interim provision calculation, which increased the relative impact of state income taxes, tax credits, permanent items and discrete tax items on the quarter’s tax rate. Liquidity and Capital Resources Credit Facility In fiscal 2022, the Company entered into a senior secured credit agreement (as amended periodically, the “Credit Agreement”) including 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, D&B Inc. entered into an amendment with its banking syndicate that amended the Credit Facility (the “Fourth Amendment”). The Fourth Amendment, among other things, increased term loans to 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 of November 1, 2029. The proceeds from the Incremental Term B Loans were primarily used to redeem $440.0 of outstanding senior secured notes, and to pay down $200.0 of the principal on term loans outstanding under the Credit Facility (the “Existing Term B Loans”). In December 2025, D&B Inc., Dave & Buster’s Holdings, Inc. (“D&B Holdings”), the lenders party thereto and Deutsche Bank AG New York Branch, as administrative agent, entered into the Fifth Amendment to the Credit Agreement (the “Fifth Amendment”), The Fifth Amendment among other things: •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 and •increases 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. Both 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 May 5, 2026, we had letters of credit outstanding of $20.5 and an unused commitment balance of $479.5 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 12-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. Sale-leaseback transactions The Company has entered into sale and master lease agreements (a “sale leaseback”) with unrelated third parties. Under these agreements, the Company has sold certain store properties, including land, buildings and certain improvements and then leased the assets back through the sale-leaseback transactions. The sale-leaseback transactions were accounted for as failed sale leasebacks based on GAAP under ASC 842, Leases. As a result, the store property assets remained on the Consolidated Balance Sheet at their historical net book value and are depreciated over the remaining term of the applicable master lease. Financing liabilities were recognized in the amount of the proceeds received, net of certain transactions costs. The Company does not recognize rent expense related to the leased assets. Instead, monthly rent payments under the applicable master lease agreement are recorded as interest expense and a reduction of the outstanding liability. Refer to Note 3 to the unaudited consolidated financial statements for further discussion of these transactions. 22 DAVE & BUSTER’S ENTERTAINMENT, INC. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (in millions, except per share amounts; unaudited) Interest expense The following table sets forth our recorded interest expense, net for the periods presented: Three Months Ended May 5, 2026 May 6, 2025 Interest expense on debt $ 29.3 $ 31.9 Amortization of debt issue discounts and issuance costs 2.3 2.4 Interest expense on sale-leaseback transactions (1) 7.1 4.6 Interest expense on finance leases (1) 0.6 — Interest income (0.8) (0.4) Capitalized interest (1.6) (1.7) Total interest expense, net $ 36.9 $ 36.8 (1) See discussion of failed sale-leaseback transactions and finance leases at Note 3 to the unaudited consolidated financial statements. Credit Adjusted EBITDA and Net Total Leverage Ratio. Credit Adjusted EBITDA, a non-GAAP measure, represents net loss plus certain items as defined at Adjusted EBITDA at Non-GAAP Financial Measures above, as well as certain other adjustments as defined in our Credit Agreement. These other adjustments include (i) entertainment revenue deferrals, (ii) the cost of new projects, including store pre-opening costs, (iii) business optimization expenses and other restructuring costs, and (iv) other costs and adjustments as permitted by the Credit Agreements. The following table reconciles Net income to Credit Adjusted EBITDA, as defined in our Credit Agreement for the period indicated: Trailing Four Quarters Ended May 5, 2026 Net loss $ (64.7) Interest expense, net 154.1 Loss on debt refinancing — Provision for income taxes (19.6) Depreciation and amortization expense 287.1 Share-based compensation (1) 19.1 Transaction and integration costs (2) 0.5 System implementation costs (3) 1.8 Loss on property and equipment transactions and impairments (4) 35.0 Other items, net (5) 10.4 Pre-opening costs (6) 18.4 Credit Facility specific items, net (7) 19.8 Credit Adjusted EBITDA, a non-GAAP measure $ 461.9 23 DAVE & BUSTER’S ENTERTAINMENT, INC. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (in millions, except per share amounts; unaudited) (1)See discussion of share-based compensation at Adjusted EBITDA above. (2)See discussion of transaction and integration costs at Adjusted EBITDA above. (3)See discussion of system implementation costs at Adjusted EBITDA above. (4)Consists of store asset impairments and loss on property and equipment disposals. (5)Primarily consists of discretionary retention incentives, severance costs, (gain) loss on property and equipment transactions and certain third-party consulting fees. The third-party consulting fees are not part of our ongoing operations and were incurred in association with a change in leadership to execute discrete, project-based strategic initiatives aimed at analyzing and summarizing growth opportunities and cost reductions for the Company. The transformative nature, narrow scope, and limited duration of these incremental consulting fees are not reflective of the ordinary course expenses incurred to operate our business. Third-party consulting fees, discretionary retention incentives and severance costs are included in General and administrative expenses on the Consolidated Statements of Comprehensive Income. (6)Represents costs incurred, primarily consisting of occupancy and payroll related expenses, associated with the opening of new stores. These costs are considered a “cost of new projects” as defined in our Credit Facility. (7)Represents other adjustments allowed under our Credit Agreement in the determination of Net Total Leverage Ratio including (i) amortization of software costs, (ii) executive search fees, (iii) public company costs, (iv) estimated impact of remodels to financial performance, (v) the proforma impact of certain leases that were reclassified as finance leases during fiscal 2025 and (vi) the pro forma impact of certain implemented cost saving initiatives. The following table provides the Net Total Leverage Ratio calculation, as defined in our Credit Agreement as of and for the period indicated: As of, and for the Trailing Four Quarters Ended May 5, 2026 Credit Adjusted EBITDA (a) $ 461.9 Total debt (1) $ 1,535.3 Less: Cash and cash equivalents (19.6) Add: Outstanding letters of credit 20.5 Net debt (b) $ 1,536.2 Net Total Leverage Ratio (b / a) 3.3 x (1)Amount represents the face amount of debt outstanding, net of unamortized debt issuance costs and debt discounts, and balances outstanding under finance leases. See discussion of finance leases at Note 3 to the unaudited consolidated financial statements. Dividends and Share Repurchases 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 May 5, 2026. The remaining dollar value of shares that may be repurchased under the program was $104.0 as of May 5, 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. There have been no dividends declared or paid during 2026. Future decisions to pay cash dividends or 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, compliance with debt agreements and other factors that the Board of Directors considers relevant. Cash and Cash Equivalents As of May 5, 2026, the Company had cash and cash equivalents of $19.6. The Company can operate with a working capital deficit because cash from sales is usually received before related liabilities for product supplies, labor and services become due. Our operations do not require significant inventory or receivables, and we continually invest in our business through the growth of stores and operating improvement additions, which are reflected as non-current assets and not a part of working capital. Based on our current business plan, we believe our cash and cash equivalents, combined with expected cash flows from operations and available borrowings under our Revolving Credit Facility, should be sufficient not only for our operating requirements but also to enable us, in the aggregate, to finance our capital allocation strategy, including capital expenditures, through at least the next twelve months. 24 DAVE & BUSTER’S ENTERTAINMENT, INC. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (in millions, except per share amounts; unaudited) Cash Flow Activity Operating Activities — Cash flow from operations typically provides us with a significant source of liquidity. Our operating cash flows result primarily from cash received from our customers, offset by cash payments we make for products and services, team member compensation, occupancy, and other operating costs. Cash from operating activities is also subject to changes in working capital. Working capital at any specific point in time is subject to many variables, including seasonality, the timing of cash receipts and payments, and vendor payment terms, partially offset by lower Other long-term liabilities. Cash flow from operating activities increased to $113.8 for the 2026 period compared to $95.8 for the 2025 period. The increase was primarily driven by changes in working capital due to timing of accruals and payments, partially offset by a decrease in net income. Investing Activities — Cash flow used in investing decreased to $105.3 for the 2026 period from $154.6 for the 2025 period primarily due to a decrease in capital expenditures. The following table reflects accrual-based capital additions for the periods presented along with certain reimbursements from landlords directly related to certain of those capital additions and proceeds from the sale of certain capital assets: Three Months Ended May 5, 2026 May 6, 2025 New stores $ 57.7 $ 53.0 Remodels and other initiatives 8.0 19.6 Games 24.2 30.0 Maintenance capital 4.3 12.6 Total capital additions 94.2 115.2 Proceeds from landlords - tenant improvements and lease incentives (1) (6.1) (5.7) Payments from landlords - sale leaseback transactions (2) (16.8) — Capital additions, net of landlord reimbursements and other proceeds $ 71.3 $ 109.5 (1) Amounts received from landlords as reimbursements for tenant improvements. Amounts related to operating leases are recorded as a reduction to operating lease right of use assets on the Consolidated Balance Sheets and included in cash provided by operating activities in the Consolidated Statements of Cash Flows. Amounts related to finance leases are recorded as a reduction to property and equipment on the Consolidated Balance Sheets and included in cash used in investing activities in the Consolidated Statements of Cash Flows. (2) Amounts received from landlords in sale-leaseback transactions and included in cash provided by financing activities in the Consolidated Statements of Cash Flows. See Note 8 to the unaudited consolidated financial statements for further discussion. Financing Activities — Cash flow used in financing was $5.5 in the 2026 period primarily consisting of net debt payments, partially offset by proceeds from sale-leaseback transactions. Cash flow provided by financing activities of $63.8 in the 2025 period primarily consisted of net debt proceeds, partially offset by share repurchases. Contractual Obligations and Commitments There have been no material changes to our contractual obligations as reported on Form 10-K for the year ended February 3, 2026. Accounting policies and estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosures of contingent assets and liabilities. These estimates and assumptions affect amounts of assets, liabilities, revenues and expenses and the disclosure of gain and loss contingencies at the date of the consolidated financial statements. Our current estimates are subject to change if different assumptions as to the outcome of future events were made. We evaluate our estimates and judgments on an ongoing basis, and we adjust our assumptions and judgments when facts and circumstances dictate. Since future events and their effects cannot be determined with absolute certainty, actual results may differ from the estimates we used in preparing the accompanying consolidated financial statements. A complete description of our critical accounting policies and estimates is included in our annual consolidated financial statements and the related notes in our Annual Report on Form 10-K for the year ended February 3, 2026. 25 DAVE & BUSTER’S ENTERTAINMENT, INC. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (in millions, except per share amounts; unaudited) Recent accounting pronouncements Refer to Note 1 to the unaudited consolidated financial statements for information regarding new accounting pronouncements.