Six Flags reports loss despite higher attendance
Posted
From the press release:
Six Flags Entertainment Corporation (NYSE: FUN) (the “Company”, “Six Flags”, or the “Combined Company”), the largest regional amusement park operator in North America, today announced results for its 2025 third quarter ended Sept. 28, 2025. The Company is also providing a fourth quarter performance update through Nov. 2, 2025, and updating its previously provided full year Adjusted EBITDA(1) guidance.Third Quarter 2025 Results
- Total operating days were 2,573 compared with 2,585 days in the third quarter of 2024.
- Net revenues totaled $1.32 billion, down $31 million or 2% compared with the third quarter of 2024.
- Net loss attributable to Six Flags Entertainment Corporation, which reflects a $1.5 billion non-cash impairment charge on goodwill and other intangibles, totaled $1.2 billion, compared with net income attributable to Six Flags Entertainment Corporation of $111 million in the prior year period.
- Adjusted EBITDA(1) totaled $555 million, down $3 million compared with the third quarter of 2024.
- Attendance totaled 21.1 million guests, up 1% or approximately 138,000 visits compared with the third quarter of 2024.
- In-park per capita spending(2) was $59.08, down 4% compared with the third quarter of 2024.
- Out-of-park revenues(2) totaled $108 million, up 6% compared with the third quarter of 2024.
Management Commentary
“Following strong performance in July and August, as discussed in our Labor Day update, attendance trends moderated in September,” said Six Flags President and CEO Richard Zimmerman. “Our efforts to stimulate demand did not achieve the desired returns and our decision to shift to more advertising spend earlier in the year in an effort to drive consumer awareness further impacted third quarter results, particularly at our underperforming parks. Our 2025 strategy has focused on investing ahead of attendance growth to lay the foundation for stronger guest satisfaction, which continues to improve across the portfolio. We are disciplined in our approach to capital allocation and prepared to prioritize investments in our highest return properties moving forward.
“We are very pleased that our largest and most established parks have continued to perform well during this challenging year,” continued Zimmerman. “This subset of Six Flags’ portfolio, which represents approximately 70% of park-level Modified EBITDA through the first nine months of 2025, has benefited from consistent investment in rides, attractions, and upgraded park facilities in recent years, all of which drive customer satisfaction and higher visitation. This year, several parks in this portfolio subset are on pace to deliver record or near-record results, validating our sound investments and strong consumer demand for the experiences our parks offer. Our teams remain focused on executing against our ongoing integration initiatives, sharpening our marketing messaging and strategies, and delivering an all-around better guest experience as we work to improve the value proposition of all our parks, and ensure we return to driving EBITDA growth across our portfolio.”
Commenting on recent shareholder engagement, Zimmerman added, “It was recently announced that a group led by JANA Partners, which includes NFL superstar Travis Kelce, has acquired a significant stake in Six Flags. We have been in active conversations with this group regarding our mutual goal of enhancing shareholder value. As part of these efforts, Six Flags is engaged with Kelce’s team to work together on a broader branding relationship, capitalizing on Kelce’s long history with our parks and his desire to help renew and enhance the fun and excitement he has enjoyed with us for future generations. These discussions come at an ideal time as we continue to invest across our business to modernize our brands, reinforce their longstanding cultural relevance, and build stronger connections with guests.”
Financial Results for the Third Quarter
Operating days – During the third quarter of 2025, operating days totaled 2,573 (net of 27 closed days) compared with 2,585 operating days (net of 29 closed days) in the third quarter of 2024. The minor variance reflects normal calendar differences and the removal of lower-volume operating days at certain parks.
Net revenues – For the quarter ended Sept. 28, 2025, net revenues totaled $1.32 billion, down $31 million (2%) versus the third quarter of 2024 ($1.35 billion). The decrease in revenues reflected:
- Attendance – up 1% (+138,000 visits) to 21.1 million guests, driven by the strong performance of parks representing the majority of park-level Modified EBITDA.
- In-park per capita spending – down 4% ($59.08 vs. $61.27 in Q3 2024), including admissions per capita spending (2) of $31.48 (down 8% from Q3 2024) and per capita spending on in-park products (2) of $27.60 (up 2% from Q3 2024). The decrease in admissions per capita spending reflects increased promotional activity during the quarter, including bring-a-friend offers, as well as the impact of a shift in attendance mix toward more season pass visitation and fewer higher-yielding single-day visitors. The increase in per capita spending on in-park products was driven by higher guest spending on food and beverage, and extra-charge products during the quarter. This reflects the success of continued investments to upgrade food and beverage offerings across the parks and higher demand for compelling premium experiences at higher attendance levels.
- Out-of-park revenues – up 6% (+$6 million) to $108 million, driven in large part by increased sponsorship activity in Q3 2025.
Operating costs and expenses – In the third quarter of 2025, operating costs and expenses totaled $772 million, a decrease of $122 million compared to the third quarter of 2024. The decline in operating costs and expenses was driven by:
- Operating expenses – down $26 million from prior year due to reductions in full-time and seasonal wages ($19 million) and lower insurance costs ($15 million), offset by higher utility and maintenance costs.
- SG&A expenses – down $97 million, including a $56 million decrease in merger-related costs and a $20 million decrease in equity compensation expense. Excluding these factors, SG&A expenses in the third quarter decreased as a result of a planned reduction in advertising costs ($26 million) and lower full-time wages ($6 million), offset by higher technology costs, including merger-related integration costs.
- Cost of goods sold – up $1.3 million in the quarter due primarily to higher attendance. Additionally, cost of goods sold as a percentage of food, merchandise, and games revenue declined 10 basis points year over year due to menu mix and vendor sourcing efficiencies.
Depreciation and amortization – During the third quarter of 2025, depreciation and amortization expense totaled $128 million, a decrease of $17 million compared with the third quarter of 2024. The decrease was due to the impact of a higher fair value for legacy Six Flags property and equipment during the third quarter of 2024 and the impact of a change in interim depreciation method for legacy Cedar Fair. During the third quarter of 2025, the Company also recognized a $3 million loss on retirement of fixed assets in the normal course of business. By comparison, the Company recognized a $5 million loss on the retirement of fixed assets during the third quarter of 2024.
During the third quarter of 2025, the Company also recognized impairment charges totaling $1.5 billion to lower the carrying amount of goodwill and other intangible assets at certain reporting units. These are non-cash charges that do not impact cash flow, Adjusted EBITDA, or future park operations. The non-cash charges are the result of an internal impairment assessment triggered by the recent change in performance versus expectations, as well as a sustained lower share price. By comparison, the Company recorded a $42 million non-cash charge related to goodwill impairment during the third quarter of 2024.
Operating income – Following the items above, including the $1.5 billion non-cash impairment charge, operating loss for the three months ended Sept. 28, 2025, totaled $1.1 billion, compared with operating income of $263 million for the three months ended Sept. 29, 2024.
Net interest expense – For the third quarter of 2025, net interest expense totaled $91 million, up $9 million compared to the prior year third quarter. The increase was primarily a result of interest accretion related to the Six Flags Over Georgia call option liability.
Taxes – During the three months ended Sept. 28, 2025, the Company recorded a benefit for income taxes of $38 million, compared with a $43 million provision recorded during the three months ended Sept. 29, 2024. The decrease in provision for income taxes was primarily attributable to a change in forecasted pre-tax book income.
Net income (loss) – After the items discussed above and income attributable to non-controlling interests, net loss attributable to the Company for the third quarter of 2025, totaled $1.2 billion, or a net loss of $11.77 per diluted share, compared with net income attributable to the Company of $111 million, or $1.10 per diluted share, for the third quarter of 2024.
Adjusted EBITDA – Management believes Adjusted EBITDA is a meaningful measure of park-level operating results. For the three months ended Sept. 28, 2025, Adjusted EBITDA totaled $555 million, reflecting a $3 million decline in Adjusted EBITDA compared to results for the three months ended Sept. 29, 2024. The variance in Adjusted EBITDA was entirely due to lower revenues during the quarter, driven by a decline in in-park per capita spending, offset in part by a reduction in operating expenses, particularly lower labor and advertising costs.
October Update
Operating days during the five-week periods ended Nov. 2, 2025, and Nov. 3, 2024, respectively, totaled 435 days (net of 5 closed days) and 451 days (with no closed days).
Based on preliminary operating results, attendance for the Combined Company over the five-week period ended Nov. 2, 2025, totaled 5.8 million guests, representing an 11% decrease in attendance compared to the same five-week period last year when October attendance was up approximately 20% due to exceptional weather. For an alternate comparison, our October 2025 attendance increased 7% compared to combined attendance for the two legacy companies during this same five-week period in 2023. Management believes this two-year comparison provides a more relevant indication of our growth trajectory.
Providing an update on long-lead indicators, the Company also noted that sales of 2026 season passes as of Nov. 2, 2025, were up approximately 3% compared to sales of 2025 season passes at this same time last year. The increase in sales reflects a 5% increase in the average season pass price, offset by a 3% decrease in the number of units sold to date.
Balance Sheet and Liquidity Highlights
As of Sept. 28, 2025, the Company reported the following:
Deferred revenues totaled $365 million compared with $359 million on Sept. 29, 2024. The $6 million increase in deferred revenues was primarily attributable to increased sales of 2026 season-long products, offset somewhat by the timing of sponsorship billings.
Total liquidity was $763 million, including cash and available borrowings under the Company’s revolving credit facility.
Net debt(3) totaled $4.98 billion, calculated as total debt of $5.03 billion (before debt issuance costs and acquisition fair value layers) less cash and cash equivalents of $71 million.
Updated Fiscal 2025 Outlook
Based on year-to-date results, combined with October’s preliminary results and the Company’s current expectations for the last two months of the year, the Company anticipates full year 2025 Adjusted EBITDA(1) of $780 million to $805 million.
CreditWh0re:
The more I think about it, I'm convinced that SFMM is on the block. At least at SFGAdv they have mentioned that the '26 thing is moving to '27.
I still don't think Great Adventure is out of the woods yet as far as a sale or closure. Until there is actual physical evidence of any sort of new investment or significant attraction, I think Dorney is safer than Great Adventure.
There’s not really a hold. I mean I agree that there’s a lack of progress on the site, but on the earnings call they said they still plan to spend $400 million I think I heard, on cap ex in 2026. So only $100 million less than the $500 million originally announced in the $1 b press release.
I imagine some are delayed/rolled projects to 2027, like Great Adventure, but could be SFMM as well.
The Magic Mountain project has been delayed several times in the permitting phase. Wouldn’t read into that pile of dirt as an indicator of a sale.
No matter what happens, I don’t think Magic Mountain is going to stop operations- during the investor calls in 23/24 they had slides touting the potential in this market. Essentially “if we do what we did with Knotts down the road, we’ll make a lot of money at this property.”
The interesting thing is that a REIT would probably work better at a larger attendance park than a smaller park. Land sale in Valencia (or Vaughn) would be valuable and management might be thinking high growth potential means they can offset the cost of the lease.
Fun:
The interesting thing is that a REIT would probably work better at a larger attendance park than a smaller park. Land sale in Valencia (or Vaughn) would be valuable and management might be thinking high growth potential means they can offset the cost of the lease.
Yes, that's the appeal of a SLB. Unfortunately, and as Vegas is about to find out, once you do the SLB, the writing is on the wall, and the clock starts ticking on the business.
Class action litigation filed against Six Flags last week.
https://www.rgrdlaw.com/cas...t-fun.html
Complaint (names Zimmerman, Bassoul and certain other officers):
https://www.rgrdlaw.com/med...plaint.pdf
Robbins Geller Rudman & Dowd LLP has filed a class action lawsuit seeking to represent purchasers or acquirers of Six Flags Entertainment Corporation f/k/a CopperSteel HoldCo, Inc. (NYSE: FUN) common stock pursuant or traceable to the company’s registration statement and prospectus issued in connection with the July 1, 2024 merger of legacy Six Flags Entertainment Corporation (“Legacy Six Flags”) with Cedar Fair, L.P. (“Cedar Fair”), and their subsidiaries and affiliates (the “Merger”). Captioned City of Livonia Employees’ Retirement System v. Six Flags Entertainment Corporation, No. 25-cv-02394 (N.D. Ohio), the Six Flags class action lawsuit charges Six Flags and certain top executive officers with violations of the Securities Act of 1933.
If you suffered substantial losses and wish to serve as lead plaintiff of the Six Flags class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the Six Flags class action lawsuit must be filed with the court no later than January 5, 2026.
CASE ALLEGATIONS: Six Flags is an amusement park operator.
The Six Flags class action lawsuit alleges that the registration statement for the Merger failed to disclose that, notwithstanding its executives’ claims that the company had pursued transformational investment initiatives in the years leading up to the Merger, Legacy Six Flags in fact suffered from chronic underinvestment and its parks required millions of dollars in additional capital and operational expenditures above the company’s historical cost trends in order to maintain (let alone grow) Legacy Six Flags’ share in the intensely competitive amusement park market. Additionally, after taking over as CEO in November 2021, defendant Selim Bassoul slashed employee headcount to cut costs, but in so doing had degraded the company’s operational competence and guest experience. In short, at the time of the Merger, Legacy Six Flags required a massive, undisclosed capital infusion to turn the company around, and these acute capital needs undermined the entire rationale for the deal as portrayed in the registration statement.
On the Merger closing date, July 1, 2024, Six Flags stock traded above $55 per share. The price of Six Flags stock subsequently fell as low as $20 per share, a nearly 64% decline.
There is no dividend. There hasn’t been a dividend since the merger and for CF, about a year prior to the merger since they paid a distribution. They never announced since the merger when or if it would be reinstated but they have to get the debt covenants in line to pay one from what I understood.
Wasn't the Cedar Fair dividend at least in part to help cover taxes? It was taxed as a partnership meaning entity didn't pay federal income taxes but its unitholders did.
And my recollection of the company's credit agreements is they restricted cash dividends/distributions. Financial covenant restriction that I believe was leverage based.
CreditWh0re:
Yes, that's the appeal of a SLB. Unfortunately, and as Vegas is about to find out, once you do the SLB, the writing is on the wall, and the clock starts ticking on the business.
You are so right! I saw someone describe the OpCo/PropCo arrangement as "a reverse mortgage for businesses." That seems pretty accurate.
-Matt
I don't know what good a class action lawsuit will achieve. However, I don't see how the FUN board thought that this would be good for the unitholders. They must have figured this merger wouldn't be popular with the FUN unitholders, since they put all that effort into finding a way to push this through without a vote. If I'm correct, the SIX shareholders did have a vote and approved the merger, so I think it must be better for them. (Or less worse, depending on how you look at it.)
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