I imagine some of it has to do with cutting 8 parks from your portfolio. Supposedly on a park-level, there has been some growth.
News Six Flags Financials
- Thread starter Phoggy
- Start date
SFA was actually profiting $100M per year and SF didn't know it when they shut it down.
Full transcript of the call is here: https://finance.yahoo.com/quote/FUN/earnings/FUN-Q2-2026-earnings_call-662056.html
As compared with the second quarter of 2025 on a Same-Park Basis:
- Net revenues totaled $864 million, an increase of $20 million, or 2.4%, from $844 million.
- Net loss attributable to Six Flags Entertainment Corporation was $194 million, compared with a net loss of $87 million.
Their loss increased even on the same park comparison. The debt this company is caring and the interest associated with it is like an anchor.
If they are serious about reducing debt to an acceptable level, more parks must be for sale. I can't see another way for Six Flags to accomplish that goal. They aren't making much headway reducing debt. The money from the EPR park sale was used to pay down the revolving credit facility, but they are going to use the revolving credit facility to take on debt for the Georgia parks buyout. Money from the Six Flags America and Kings Dominion land sales isn't coming in anytime soon.
The loss is a write down from their report today:
In connection with the 2026 Sale Transaction, the Company recognized a $37.8 million loss equal to the amount by which the purchase price, adjusted for
working capital and other closing related adjustments, was less than the net book value of the assets and liabilities in the disposal group. In addition, as a result
of the 2026 Sale Transaction, the projected revenues related to the Six Flags trade name and Schlitterbahn trade name were reduced by the revenues
contributed by the disposal group. As a result, the Company tested the Six Flags trade name and Schlitterbahn trade name for impairment during the first quarter
of 2026 resulting in impairment losses totaling $38.6 million.
After the items above, operating loss for the six months ended June 28, 2026 totaled $223.6 million compared with $246.5 million for the six months ended
June 29, 2025.
Link here:
In connection with the 2026 Sale Transaction, the Company recognized a $37.8 million loss equal to the amount by which the purchase price, adjusted for
working capital and other closing related adjustments, was less than the net book value of the assets and liabilities in the disposal group. In addition, as a result
of the 2026 Sale Transaction, the projected revenues related to the Six Flags trade name and Schlitterbahn trade name were reduced by the revenues
contributed by the disposal group. As a result, the Company tested the Six Flags trade name and Schlitterbahn trade name for impairment during the first quarter
of 2026 resulting in impairment losses totaling $38.6 million.
After the items above, operating loss for the six months ended June 28, 2026 totaled $223.6 million compared with $246.5 million for the six months ended
June 29, 2025.
Link here:
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I feel like it's worth highlighting that Six Flags' stock has been getting absolutely battered this summer. It's now sub-$14 and down 37% in the last three months. Given broad market performance (and even direct competitor performance, namely United) over the same period, it's truly horrific. Wall St. can't be happy at all. Quite worried about what new changes could be forced on the chain as a result.
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My financial advisor finally convinced me to dump my shares when I lost enough to cover tax on gains on my annuity that had absurd gains.
https://www.wsj.com/business/deals/activist-jana-partners-urges-six-flags-to-explore-sale-4c9e3a93
"Activist hedge fund Jana Partners is urging theme-park operator Six Flags Entertainment FUN -0.57% to explore a sale, according to people familiar with the matter.
"Activist hedge fund Jana Partners is urging theme-park operator Six Flags Entertainment FUN -0.57% to explore a sale, according to people familiar with the matter.
The details
The activist investor on Tuesday called on the company’s board of directors to immediately hire an investment bank to explore a sale, citing its disappointment with Six Flags’ second-quarter earnings, the people said. "The issue is though they are making money. They are just choosing the write down the effects of the merger and schlitterbahn to take losses. I guess because they can. If they stopped or when they can no longer right down these paper losses, presumably to save on taxes, they’ll be posting revenue.
They're bringing in massive revenue. However, they are not able to turn a profit. The write down was forced because of a $1.5 billion non-cash impairment charge. This was because the post-merger performance fell well short of expectations. Auditors had them do this and it erased $553.7 million off the book value of Magic Mountain alone. These write-downs happened because the parks, while potentially generating positive cash flow, are not hitting their financial targets.
The company at the corporate level is carrying around $5 billion of debt. In Q2 alone, the interest payment on the debt was more than what the parks generated. Attendance, despite being down for Q2 overall (mostly because of the sales) was up almost 4% on a same-park basis. Even so, the parks only posted $88.6 million in operating income when the interest expense alone was $102 million. This guarantees net losses will continue basically, especially as we head into only a handful of parks remaining open. Then we have to wait for Q2 next year for all to be open again.
This interest will likely drag down the bottom line through 2027 and potentially 2028, barring a severe recession. Of course, operational performance rebounds and even more sales of parks could help accelerate this. S&P Global project that the integration cuts, revenue growth, and the initial sales to EPR this year will expand the company's EBITDA margins. Leverage will then drop to sustainable levels by the end of next year, allowing the company to at least come close to breaking even.
2028, as long as everything moves on the same path, should be a little better for the chain. We just have to hope that things don't suffer much more on the operational level.
With all of that said, while it does seem dire now, especially with the share price, there is light at the end of the tunnel if they can make some decisions to push a rebound for operational performance. I'm convinced they could even get through it without additional sales BUT sales could help accelerate it.
The company at the corporate level is carrying around $5 billion of debt. In Q2 alone, the interest payment on the debt was more than what the parks generated. Attendance, despite being down for Q2 overall (mostly because of the sales) was up almost 4% on a same-park basis. Even so, the parks only posted $88.6 million in operating income when the interest expense alone was $102 million. This guarantees net losses will continue basically, especially as we head into only a handful of parks remaining open. Then we have to wait for Q2 next year for all to be open again.
This interest will likely drag down the bottom line through 2027 and potentially 2028, barring a severe recession. Of course, operational performance rebounds and even more sales of parks could help accelerate this. S&P Global project that the integration cuts, revenue growth, and the initial sales to EPR this year will expand the company's EBITDA margins. Leverage will then drop to sustainable levels by the end of next year, allowing the company to at least come close to breaking even.
2028, as long as everything moves on the same path, should be a little better for the chain. We just have to hope that things don't suffer much more on the operational level.
With all of that said, while it does seem dire now, especially with the share price, there is light at the end of the tunnel if they can make some decisions to push a rebound for operational performance. I'm convinced they could even get through it without additional sales BUT sales could help accelerate it.
This sounds like financials are reviewed in a vacuum separate of guest behaviors against their experiences over time.
Unless I'm mistaken, outside of selling assets including the parks and the land under them plus any naming rights for quick cash, these companies rely upon guests to generate revenue for keeping a long-term sustainable business going - management contracts included.
Although us thoosies may be more likely to spend on purchasing admissions and on in-park items, the much larger segment of guests may be less likely based on the economy, their own wealth or lack thereof, and if they want to experience something new in a familiar environment.
There's several ways to deal with this, and different personas and segments to filter through things, but almost all of it requires large amounts of capex spending, regardless of what corporate financial tools get used to appease shareholders.
Otherwise, we'll likely start seeing more repeats of Astroland, Geauga Lake and Wonderland Sydney - perfectly good parks that have degraded conditions over time due to a lack of investment thus becoming less profitable while also becoming a target for a sale, possibly to eliminate the park altogether.
Unless I'm mistaken, outside of selling assets including the parks and the land under them plus any naming rights for quick cash, these companies rely upon guests to generate revenue for keeping a long-term sustainable business going - management contracts included.
Although us thoosies may be more likely to spend on purchasing admissions and on in-park items, the much larger segment of guests may be less likely based on the economy, their own wealth or lack thereof, and if they want to experience something new in a familiar environment.
There's several ways to deal with this, and different personas and segments to filter through things, but almost all of it requires large amounts of capex spending, regardless of what corporate financial tools get used to appease shareholders.
Otherwise, we'll likely start seeing more repeats of Astroland, Geauga Lake and Wonderland Sydney - perfectly good parks that have degraded conditions over time due to a lack of investment thus becoming less profitable while also becoming a target for a sale, possibly to eliminate the park altogether.
Last night I was at work talking with my coworkers about it and I had a flash of realization and immediately called my dad and told him to sell. Glad I did, got out before it dropped too far
At this point they need to stop delaying the inevitable and go ahead and file for bankruptcy and get it over with! We also need to be preparing ourselves for the possibility that ArieForce 1 may not get built at all and will either sit in a warehouse and collect dust for a number of years or they just sell it to another chain.
Holy mental gymnastics
What does that have to do with anything? Seriously. A man is dead and you're making this about a relocated RMC?
I am not making the incident about ArieForce at all. My point is the financial situation right now is not good and this incident along with X2 is only making things worse so I don't see how the company gets out of it without declaring bankruptcy or mass sell offs. When you're bankrupt you can't spend money to build coasters whether brand new or relocated. That was my point.