As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer discretionary - leisure facilities industry, including Dave & Buster's (NASDAQ: PLAY) and its peers.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Leisure facilities companies own and operate theme parks, fitness centers, bowling alleys, and other venue-based entertainment destinations, generating revenue from admissions, memberships, and on-site spending. Tailwinds include consumer preference for experiential spending, tourism recovery, and technology-enhanced guest experiences that support premium pricing. Headwinds are notable: high fixed costs, such as real estate, labor, and maintenance, make profitability highly sensitive to attendance fluctuations during economic slowdowns. Weather, pandemics, and safety incidents can disrupt operations unpredictably. Rising construction and labor costs inflate expansion budgets, while competition from at-home entertainment alternatives and other experiential options limits pricing power in many markets.

The 10 consumer discretionary - leisure facilities stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 0.8% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.2% since the latest earnings results.

Dave & Buster's (NASDAQ: PLAY)

Founded by a former game parlor and bar operator, Dave & Buster’s (NASDAQ: PLAY) operates a chain of arcades providing immersive entertainment experiences.

Dave & Buster's reported revenues of $544.1 million, down 2.4% year on year. This print fell short of analysts’ expectations by 2.3%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.

“We are energized by the obvious, actionable, and enormous opportunities ahead for Dave & Buster’s and Main Event,” said Darin Harper, Chief Executive Officer. “Our Back-to-Basics strategy is gaining momentum with enhanced executional urgency. We are experiencing ongoing growth in food and beverage sales as well as in special events sales. The same store sales of our remodels continue to outperform the system. Further, we improved overall same store sales in July, and saw continued improvement in overall same store sales during the third quarter to date. We are laser focused on returning to same-store sales and EBITDA growth, sharpening our margin management with cost saving initiatives, generating significant free cash flow, and delivering meaningful shareholder value. I have tremendous confidence in the direction of our business and am excited about what we will accomplish together as we shape the future of our company.”

Dave & Buster's delivered the weakest performance against analyst estimates in the group. The market seems disappointed with the results as the stock is down 23.9% since reporting and currently trades at $6.45.

Read our full report on Dave & Buster's here, it’s free.

Best Q2: Sphere Entertainment (NYSE: SPHR)

Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE: SPHR) hosts live entertainment events and distributes content across various media platforms.

Sphere Entertainment reported revenues of $313.6 million, up 11% year on year, outperforming analysts’ expectations by 1.8%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.8% since reporting. It currently trades at $127.77.

Is now the time to buy Sphere Entertainment? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Xponential Fitness (NYSE: XPOF)

Owner of Club Pilates, Stretch Lab, BFT and Pure Barre, Xponential Fitness (NYSE: XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.

Xponential Fitness reported revenues of $65.97 million, down 13.4% year on year, exceeding analysts’ expectations by 2.5%. Still, it was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.

Xponential Fitness delivered the slowest revenue growth and weakest full-year guidance update of the whole group. As expected, the stock is down 27% since the results and currently trades at $4.65.

Read our full analysis of Xponential Fitness’s results here.

AMC Entertainment (NYSE: AMC)

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE: AMC) operates movie theaters primarily in the US and Europe.

AMC Entertainment reported revenues of $1.60 billion, up 14.2% year on year. This number surpassed analysts’ expectations by 8.7%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates.

AMC Entertainment scored the biggest analyst estimate beat and fastest revenue growth among its peers. The stock is up 43.2% since reporting and currently trades at $2.78.

Read our full, actionable report on AMC Entertainment here, it’s free.

Planet Fitness (NYSE: PLNT)

Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE: PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.

Planet Fitness reported revenues of $365.2 million, up 7.1% year on year. This print topped analysts’ expectations by 2.4%. It was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates.

The stock is down 26.6% since reporting and currently trades at $41.52.

Read our full, actionable report on Planet Fitness here, it’s free.

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.