Disappointing Quarterly Results Due to Weather Impacts

Six Flags Entertainment Corporation, the largest regional amusement park operator in North America, released its second-quarter 2025 results and provided an update on its July performance. Despite the merger with Cedar Fair, the second-quarter results fell short of expectations, primarily due to unfavorable weather across most of the company’s key markets. Net revenues totaled $930 million, with $389 million attributed to the legacy Six Flags operations added in the merger. The company reported a net loss of $100 million, with legacy Six Flags operations contributing a net loss of $126 million. Six Flags CEO Richard Zimmerman stated that the results “fell significantly short of our expectations,” emphasizing that poor weather, including prolonged periods of rain and storms, particularly impacted single-day ticket and season pass sales during the critical months of May and June. Overall, 379 days out of a planned 2,042 total operating days in the second quarter were weather-impacted, including 49 days where certain parks were forced to close entirely.

Encouraging July Performance and Improving Consumer Sentiment

Despite the disappointing Q2 results, Six Flags showed signs of significant recovery in July, with improved weather and growing demand. Preliminary consolidated net revenues for the five-week period ended August 3, 2025, are estimated to be in the range of $680-$685 million, a decrease of approximately 3% compared to the same period last year. However, attendance figures showed a 1% increase, totaling 11 million guests during this period. This increase in attendance is driven by “normalized weather” and a compelling 2025 capital program that included new rides and attractions. According to Zimmerman, “As weather normalized in July, demand for our parks has measurably improved, which we believe underscores the long-term effectiveness of our 2025 capital program.” The company also noted that initial sales for the 2026 season pass program, launched earlier this year to capitalize on “pent-up consumer demand,” have been strong, reducing the year-over-year shortfall in the active pass base to approximately 206,000 units.

Financial Management and Long-Term Strategy

Six Flags is revising its full-year outlook, now expecting Adjusted EBITDA between $860 and $910 million. This forecast is based on the assumption that second-half attendance will be flat compared to the previous year and that operating costs and expenses will be reduced by $90 million compared to the second half of 2024. The company emphasizes that the smaller 2025 season pass base will continue to be a headwind on demand in the short term, until the 2026 season pass program ramps up. CEO Zimmerman stressed the company’s commitment to “deleveraging by driving Adjusted EBITDA growth”. To do so, the company is exploring the “potential sale of excess land and other non-core assets”.

Merger Impacts on Financial Results

The second-quarter report reflects the combined financial results of Six Flags and Cedar Fair following the merger. While overall attendance decreased by 9% compared to the combined figures of both companies in the same quarter last year, net revenues increased. This increase is attributed to a rise in operating days (1,993 versus 789), an increase of 5.6 million visitors, and a 2% rise in in-park per capita spending. Operating costs and expenses increased by $324 million, with $238 million attributed to Six Flags operations. Selling, general, and administrative (SG&A) expenses rose by $63 million, with $45 million attributed to Six Flags. These figures indicate that the merger significantly increased the scale of operations and expenses, with Six Flags still facing profitability challenges, as reflected in its $26 million operating loss for the quarter.

Capital Structure and Leverage of the Combined Company

As of June 29, 2025, Six Flags reported deferred revenues of $461 million, an increase of $172 million compared to the same period last year. The increase is mainly attributed to Six Flags’ deferred revenues and was partially offset by a decrease in season pass sales at Cedar Fair. The company’s total liquidity was $540 million, including cash on hand and available revolving credit facility borrowings. The combined company’s net debt reached $5.2 billion, with total debt at $5.31 billion and cash and cash equivalents at $107 million. Company executives believe that debt reduction is one of the key strategic missions for the coming year. The company noted that it continues to focus on realizing merger-related cost synergies, with approximately two-thirds of the $90 million reduction target in the second half of the year coming from permanent cost savings.