NYSE:FUN
Six Flags Entertainment Corporation/NEW
A distressed but high-traffic amusement park operator with massive debt burdens facing significant profitability challenges despite strong gross margins.
Key Metrics
Investment Thesis
Bull Case
The company boasts healthy operating cash flows of $327.5M and substantial gross profits of $2.83B, suggesting underlying business strength despite accounting losses. Strong brand loyalty and a diverse park portfolio provide resilience against inflation-driven ticket price increases. Potential for debt restructuring or strategic asset sales could unlock significant value if the balance sheet is cleaned up.
Bear Case
Net losses have deepened dramatically to -$1.55B in the latest period, signaling severe operational or one-time issues that threaten solvency. The debt-to-equity ratio is extreme with $7.25B in liabilities versus just $549.8M in equity, leaving little room for error. Continued cash burn and lack of profitability could lead to further dilution through equity issuance or bankruptcy risk.
About Six Flags Entertainment Corporation/NEW
Six Flags Entertainment Corporation operates major amusement parks and water parks across North America, serving families and thrill-seekers with a portfolio of branded destinations. The company generates revenue primarily through admissions, food and beverage sales, merchandise, and seasonal ticket packages. As a leader in the leisure and entertainment sector, it leverages its extensive IP library to drive visitor attendance and spending.
Analysis
Management Discussion
While operating gross profit remains robust at $2.83B, the company is posting a significant net loss of -$1.55B in 2025, indicating severe non-operating pressures or impairment charges. Cash flow from operations of $327.5M is being partially consumed by heavy investing outflows of -$479.7M and debt repayments of $13.8M. The balance sheet shows a liability-heavy structure with total liabilities of $7.25B against only $549.8M in shareholders equity.
Industry Overview
The amusement park industry is cyclical and highly competitive, relying on consumer confidence and discretionary spending power. Companies with strong IP portfolios like Six Flags enjoy pricing power but face intense competition from resorts and digital entertainment alternatives.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2024 | 2025 |
|---|---|---|
| Revenue | $2.71B | $3.10B |
| Cost of Revenue | $232.6M | $269.7M |
| Gross Profit | $2.48B | $2.83B |
| Operating Expenses | $2.17B | $4.21B |
| Operating Income | $310.5M | $-1.38B |
| G&A | $411.2M | $439.4M |
| Stock-Based Comp | $63.6M | $63.5M |
| D&A | $318.1M | $486.4M |
| Other OpEx | $1.75B | $3.77B |
| Non-Operating Income | $-276.3M | $-338.4M |
| Pre-Tax Income | $34.2M | $-1.71B |
| Income Tax | $240.8M | $-164.0M |
| Continuing Ops | $-206.7M | $-1.55B |
| Discontinued Ops | $0 | $0 |
| Net Income | $-206.7M | $-1.55B |
| Minority Interest | $24.5M | $49.6M |
| Net to Common | $-231.2M | $-1.60B |
| Metric | 2024 | 2025 |
|---|---|---|
| Current Assets | $399.9M | $472.9M |
| Cash & Equivalents | $83.2M | $91.1M |
| Accounts Receivable | $164.9M | $160.3M |
| Inventory | $71.1M | $68.5M |
| Other Current Assets | $80.7M | $152.9M |
| Long-Term Assets | $8.73B | $7.33B |
| Intangibles | $897.8M | $722.5M |
| Goodwill | $3.30B | $2.07B |
| Operating Leases | $227.3M | $215.0M |
| Other LT Assets | $4.31B | $4.32B |
| Total Assets | $9.13B | $7.80B |
| Current Liabilities | $926.7M | $685.1M |
| Accounts Payable | $107.1M | $74.2M |
| Current Debt | $210.0M | $15.0M |
| Current Leases | $25.8M | $26.3M |
| Deferred Revenue | $302.3M | $293.1M |
| Taxes Payable | $41.0M | $35.7M |
| Other Current Liab | $240.5M | $240.8M |
| Long-Term Liabilities | $6.16B | $6.56B |
| Long-Term Debt | $4.72B | $5.17B |
| LT Operating Leases | $229.1M | $219.0M |
| Other LT Liab | $919.4M | $1.16B |
| Total Liabilities | $7.09B | $7.25B |
| Shareholders' Equity | $2.04B | $549.8M |
| Paid-In Capital | $2.21B | $2.25B |
| Retained Earnings | $-164.3M | $-1.76B |
| AOCI | $-2.3M | $66.6M |
| Total L&E | $9.13B | $7.80B |
| Metric | 2024 | 2025 |
|---|---|---|
| Net Income (CFO) | $-206.7M | $-1.55B |
| Non-Cash Adjustments | $680.8M | $1.80B |
| Working Capital Changes | $-100.7M | $72.3M |
| Cash from Operations | $373.4M | $327.5M |
| Cash from Investing | $-472.6M | $-479.7M |
| Debt Repayments | $5.0M | $13.8M |
| Cash from Financing | $118.0M | $155.4M |
| FX Effect | $-1.1M | $4.8M |
| Net Change in Cash | $17.7M | $8.0M |
| Beginning Cash | $65.5M | $83.2M |
| Ending Cash | $83.2M | $91.1M |
Frequently Asked Questions
How does Six Flags Entertainment Corporation/NEW make money?
Theme parks and water parks admissions driving core revenue; Food, beverage, and merchandise sales providing ancillary income streams; Franchise operations contributing to the broader portfolio.
What are the main risks for FUN?
Massive long-term debt load of $5.17B creating severe interest coverage risks and vulnerability to refinancing; Persistent net losses eroding equity and retained earnings; Sensitivity to discretionary spending during economic downturns or high inflation periods.
What is FUN's competitive advantage?
Strong brand recognition across multiple iconic park locations including Six Flags Magic Mountain and Great America; High fixed-cost structure creates a moat when attendance is strong due to low marginal costs for additional guests.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.