Six Flags Entertainment Q3 Earnings Call Highlights

Key Points

• Third-quarter same-park results edged higher: Revenue rose 1.4% to $1.17 billion and adjusted EBITDA increased 1.1% to $493.2 million. Six Flags expects fourth-quarter adjusted EBITDA to fall year over year to about $140 million–$150 million, largely because October attendance dropped 9% amid bad weather and ride closures, though it still expects full-year same-park EBITDA growth.
• Safety review underway: Following a guest’s death at Six Flags Over Georgia, the company launched a portfolio-wide ride review led by its COO and supported by independent specialists; local authorities and the ride manufacturer are also investigating. Six Flags said it does not expect potential claim payments to materially affect liquidity.
• Passes and guest spending supported operations: The active pass base grew about 7% by the end of September, while per-capita spending rose approximately 1.3% to $60.51. Nine-month same-park adjusted EBITDA increased about 11%, and net leverage improved to 5.8 times from 6.1 times.

Six Flags Entertainment NYSE: FUN reported modest third-quarter revenue and earnings growth on a same-park basis, but forecast a decline in fourth-quarter adjusted earnings after weather and ride closures contributed to a 9% drop in October attendance.

The company also announced a portfolio-wide safety review following the death of a guest at Six Flags Over Georgia. Chief Executive Officer John Reilly said local authorities and the ride manufacturer are investigating the incident, and the company is conducting its own review.

Third-quarter revenue rose 1.4% to $1.17 billion, while adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, increased 1.1% to $493.2 million. Same-park comparisons exclude seven parks sold in April and a Bowie, Maryland, park that closed after the 2025 season.

October weakness weighs on outlook

Six Flags expects fourth-quarter same-park adjusted EBITDA of approximately $140 million to $150 million, compared with $166.9 million a year earlier. Chief Financial Officer Ash Walia said most of the difference reflects October, which typically generates 60% to 65% of fourth-quarter revenue.

Walia attributed about half of the October attendance decline to unfavorable weather on several key weekends, including Hurricane Isaias, and the other half to the Georgia incident and related ride closures. He said attendance grew year over year in the final week of October when directly affected parks were excluded.

Reilly said the business impact appeared primarily concentrated at Six Flags Over Georgia and Six Flags Magic Mountain, where the company decided to retire the X2 roller coaster, along with some parks where major rides were temporarily closed. He said Six Flags did not see an impact beyond those parks.

Despite the fourth-quarter shortfall, management expects full-year same-park adjusted EBITDA to increase. Walia described the October weakness as temporary and said it had not changed the company’s 2027 operating plan.

Safety review follows Georgia death

Reilly opened the call by extending condolences to the family and friends of Hassan Kariem, who died while visiting Six Flags Over Georgia on Oct. 12. He also acknowledged those injured and others affected, including employees.

Chief Operating Officer Mark Pauls is leading the companywide ride review, supported and verified by independent engineering and inspection specialists, Reilly said. He added that Six Flags inspects each ride daily before opening and could not comment further on the Georgia incident until the investigation is complete.

Walia said the company self-insures claims up to a retention level and has $100 million of comprehensive general liability coverage above that level. Based on its coverage and current information, the company does not expect claim payments to materially affect liquidity, he said.

Pass base grows as spending rises

Third-quarter attendance was essentially flat at 18.2 million, although paid attendance increased as Six Flags issued fewer complimentary tickets. Per-capita spending rose approximately 1.3% to $60.51, helped by higher merchandise and premium-offering spending.

The active pass base was up about 7% at the end of September, and pass holders and members accounted for approximately 61% of quarterly attendance. Reilly said cross-park visits were running at about five times the prior-year level as regional passes allowed guests to visit more parks.

Reilly acknowledged that roughly three percentage points of attendance had shifted from single-day tickets to passes and memberships. He said the company is willing to accept lower spending per visit when additional visits increase total revenue per guest.

Pass sales paced more slowly in October, Reilly said, declining to provide a specific figure. He said a later launch of the 2027 pass program and the expansion of memberships also affected comparisons, and the company expects the pass and membership base to be even with or slightly above the prior year as it enters the new year.

Cash flow improves; asset sales under review

Through nine months, same-park adjusted EBITDA rose about 11% to $639.5 million, with the adjusted EBITDA margin expanding to 28.3% from 26.3%. On a reported basis, operating cash flow less capital spending was $257 million, an improvement of approximately $300 million. Those reported cash figures include parks the company no longer operates for portions of the periods presented.

Six Flags recorded a third-quarter net loss of $366 million, or $3.59 per diluted share, including a $688 million noncash impairment charge related to goodwill, trade names and long-lived assets.

The company ended the quarter with $1.06 billion in liquidity and approximately $4.7 billion in net debt. Its net leverage ratio improved to 5.8 times from 6.1 times, based on trailing 12-month same-park adjusted EBITDA. Management’s longer-term target is approximately four times.

Reilly said discussions are underway about further park and real estate sales, but the company has no target number of parks to sell. Six Flags is also evaluating bids for its Richmond asset, while a Maryland asset sale remains targeted for late 2027, he said.

Walia said Six Flags has sufficient liquidity to fund the potential purchase of the remaining Six Flags Over Georgia partnership units in January. The payment could total about $370 million if all partners choose to be paid out, though some may elect to retain their units and defer payment.

About Six Flags Entertainment (NYSE:FUN)

Six Flags Entertainment Corporation is a regional theme park operator headquartered in Charlotte, North Carolina. The company owns and operates amusement parks, water parks and resort properties, offering roller coasters, family rides, live entertainment, seasonal events, food and beverage, merchandise, and other guest experiences. Its portfolio includes parks operating under the Six Flags, Cedar Fair and affiliated brand names, including Six Flags Great Adventure, Cedar Point, Knott's Berry Farm and Kings Island.

The company serves guests primarily in the United States, as well as in Canada and Mexico.

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