Six Flags reports Q3 EPS with items ($11.77), consensus $2.05

Reports Q3 revenue $1.32B, consensus $1.34B. Q3 EPS includes impairment charges totaling $1.5B to lower the carrying amount of goodwill and other intangible assets at certain reporting units. These are non-cash charges that do not impact cash flow, Adjusted EBITDA, or future park operations. The non-cash charges are the result of an internal impairment assessment triggered by the recent change in performance versus expectations, as well as a sustained lower share price. By comparison, the Company recorded a $42M non-cash charge related to goodwill impairment last year. “Following strong performance in July and August, as discussed in our Labor Day update, attendance trends moderated in September,” said Six Flags (FUN) President and CEO Richard Zimmerman. “Our efforts to stimulate demand did not achieve the desired returns and our decision to shift to more advertising spend earlier in the year in an effort to drive consumer awareness further impacted third quarter results, particularly at our underperforming parks. Our 2025 strategy has focused on investing ahead of attendance growth to lay the foundation for stronger guest satisfaction, which continues to improve across the portfolio. We are disciplined in our approach to capital allocation and prepared to prioritize investments in our highest return properties moving forward.”