Six Flags Entertainment  Q2 revenue misses estimates, CEO to step down

Overview

• Six Flags Q2 revenue misses expectations at $930 mln, per LSEG data

• Adjusted EBITDA for Q2 misses analyst expectations, per LSEG data

• Company attributes Q2 underperformance to adverse weather impacting attendance

• Company says CEO Richard A. Zimmerman will step down by the end of 2025

Outlook

• Six Flags expects 2025 Adjusted EBITDA between $860 mln and $910 mln

• Company anticipates flat attendance in second half of 2025

• Six Flags sees in-park per capita spending down 3% in second half

• Company notes smaller 2025 season pass base as demand headwind

Result Drivers

• WEATHER IMPACT - Adverse weather conditions significantly affected attendance and park operations, contributing to Q2 underperformance

• ATTENDANCE DROP - Lower attendance reflects a drop in single-day ticket sales, fewer sales of season passes and memberships, and lower renewal rates on season passes

• ASSET DIVESTITURE - Company is evaluating the sale of non-core assets to accelerate deleveraging efforts

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the leisure & recreation peer group is "buy"

• Wall Street's median 12-month price target for Six Flags Entertainment Corp is $43.00, about 28.6% above its August 5 closing price of $30.70

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw2NRWva