Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) saw its stock tumble more than 15% on Tuesday after the company reported fiscal second-quarter 2025 results that came in well below Wall Street expectations, with comparable store sales continuing to decline.

The company posted adjusted earnings of $0.40 per share for the quarter ended August 5, 2025, missing the consensus forecast of $0.95 by a wide margin. Revenue was $557.4 million, nearly flat year-over-year with just a 0.05% increase, and fell short of analysts' estimates of $565.02 million. Comparable store sales slipped 3% from the prior year, underscoring ongoing challenges in driving traffic.

Net income dropped sharply to $11.4 million, or $0.32 per diluted share, compared with $40.3 million, or $0.99 per share, a year earlier. Adjusted EBITDA fell to $129.8 million from $151.6 million in the same period of fiscal 2024.