PLAY

The headline P/S of 0.2 is a trap. It only looks cheap because it ignores the $1.51B of long-term debt sitting on a business with just $91.2M of stockholders' equity and $16.6M of cash. On an enterprise basis the company is far from cheap, and the more telling number is that interest expense ($154.0M, up from $135.3M) now exceeds operating income of $86.1M — the business no longer earns enough to cover its own interest, which is exactly how FY2026 produced a $67.9M pretax loss and a $48.7M net loss (EPS -$1.40) versus a $58.3M profit the year prior.

The operating deterioration is broad, not a one-off. Operating margin collapsed from 10.3% to 4.1% as other store operating expenses (32.4%→34.5% of revenue), G&A (4.7%→5.6%) and D&A (11.2%→13.3%) all outran a revenue line that fell 1.4% to $2.10B — down two straight years from the FY2024 peak of $2.21B. Even the company's preferred metric, Adjusted EBITDA, fell from $506.2M (23.7% margin) to $436.6M (20.8%), so the weakness isn't purely non-cash. Management's own filing flags $17.8M of impairments on underperforming stores from its annual long-lived-asset review — a tell that the store base is being pruned, not just grown.