Dave & Buster's Entertainment (NASDAQ:PLAY) stock plummeted 5.07% in Thursday's pre-market session, following the company's disappointing third-quarter 2025 earnings report.
The entertainment and dining chain reported a wider net loss of $32.7 million, or $0.84 per share, compared to a loss of $5.2 million, or $0.12 per share, in the same quarter last year. Revenue fell 3% year-over-year to $453.0 million, missing analyst estimates.
The underwhelming financial results, coupled with a downgraded revenue growth forecast for the next three years, have raised concerns among investors about the company's ability to sustain its business momentum. Dave & Buster's cited challenges in attracting customers and managing costs, which contributed to the earnings miss.