Financial Analysis

Commitments and Contingencies 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.

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Income Taxes The Companys effective tax rate for the six months ended August4, 2026, was 20.9%, compared to 18.7% for the six months ended August5, 2025. The increase in the effective tax rate for the current-year period was primarily attributed to the effects of state income taxes, tax credits, permanent items and discrete tax items, which had a greater relative impact due to the smaller current-year pretax base. …

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Leases 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. …

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Debt Long-term debt consisted of the following as of the dates presented: August 4, 2026 February 3, 2026 Credit facilityrevolver $ 155.0 $ 170.0 Credit facilityterm 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 …

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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. …

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Segment Information The Company provides premier entertainment and dining experiences for adults and families under the Dave & Busters 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 Companys chief operating decision maker (CODM), reviews the financial information presented on a consolidated basis. The CODM assesses performance and allocates resources based on the Companys 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 Companys 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 Companys 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 p …

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Stockholders' Equity and Share-Based Compensation 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 Companys long-term incentive compensation p …

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