Group 1: Market Overview - U.S. stocks experienced an upward trend, with the Dow Jones index increasing by approximately 200 points on Wednesday [1] Group 2: Dynavax Technologies Corp - Shares of Dynavax Technologies Corp rose significantly after Sanofi SA announced its acquisition for $15.50 per share in cash, totaling an equity value of around $2.2 billion [1] - The acquisition enhances Sanofi's position in the adult immunization market [1] - Dynavax shares surged by 38.6% to close at $15.44 on Wednesday [1] Group 3: Other Notable Stock Movements - Omeros Corp shares increased by 66.8% to $14.60 following FDA approval of YARTEMLEA for treating hematopoietic stem cell transplant-associated thrombotic microangiopathy [3] - Edgewise Therapeutics Inc gained 23.8% to $26.94 after updates from the ongoing CIRRUS-HCM Phase 2 trial of EDG-7500 [3] - Agios Pharmaceuticals Inc shares surged by 17.9% to $29.00 after FDA approval of AQVESME for treating anemia in adults with thalassemia, priced at approximately $425,000 per patient per year [3] - Wheels Up Experience Inc saw a gain of 14.8% to $0.73 [3] - Travere Therapeutics Inc increased by 14.3% to $40.41 [3] - Coincheck Group NV shares rose by 12.5% to $2.88 [3] - Polestar Automotive Holding UK Plc jumped 11.8% to $16.92 after announcing a $300 million equity investment [3] - CapsoVision Inc gained 11.6% to $14.39 [3] - X4 Pharmaceuticals Inc increased by 9.5% to $4.52 [3] - Falcon's Beyond Global Inc shares rose by 9.4% to $18.35 following a $100 million mixed shelf offering [3] - BIOAGE Labs Inc jumped 8.8% to $14.37 [3] - Kodiak Sciences Inc gained 8.6% to $29.81 [3] - UiPath Inc increased by 7.9% to $17.23 after being announced as a replacement for Synovus Financial in the S&P MidCap 400 [3] - Immuneering Corp rose by 6.8% to $6.83, with an upcoming update on a clinical trial scheduled for January 7, 2026 [3] - Nike Inc shares gained 4.7% to $60.03 amid mixed investor sentiment regarding insider purchases and concerns over tariffs and demand in China [3] - Micron Technology Inc increased by 3.5% to $286.01 [3]

Core Insights - Falcon's Beyond Global, Inc. has been included on the preliminary list for addition to the Russell 2000® Index, indicating a significant recognition in the market [1] - The final membership is expected to be effective after the reconstitution of the Russell U.S. Indexes on December 22, 2025, which could enhance the company's visibility and investment appeal [1] Company Summary - Falcon's Beyond is recognized as a leader in innovative and immersive storytelling, showcasing its unique position within the industry [1] - The inclusion in the Russell 2000® Index reflects the company's growth and potential for future investment opportunities [1]

Financial Performance - Falcon's Beyond reported consolidated revenue of $4.1 million for Q3 2025, reflecting an increase in attraction maintenance fees and management fees from joint ventures [2]. - Falcon's Creative Group (FCG) generated $5.7 million in revenue for Q3 2025, a decrease of $7.4 million or 56.3% compared to Q3 2024, resulting in an operating loss of $3.5 million [2]. - Producciones de Parques (PDP) generated $11.2 million in revenue for Q3 2025, a $0.3 million increase from the same period in 2024 [2]. - Total revenue for the three months ended September 30, 2025, was $4,054,000, compared to $2,069,000 for the same period in 2024, representing a 96.2% increase [25]. - The net loss attributable to common stockholders for the three months ended September 30, 2025, was $4,374,000, compared to a net income of $5,869,000 for the same period in 2024 [25]. - Adjusted EBITDA for the three months ended September 30, 2025, was $(7,686,000), compared to $(1,606,000) for the same period in 2024 [29]. - Adjusted EBITDA loss increased to $(7.7) million for Q3 2025, compared to $(1.6) million in Q3 2024, driven by increased losses from equity method investments and operational integration costs [7]. Net Loss and Financial Position - Falcon's Beyond reported a consolidated net loss of $10.4 million for Q3 2025, compared to a net income of $39.3 million in Q3 2024, primarily due to the absence of non-cash fair value gains [4]. - Cash and cash equivalents increased to $4,257,000 as of September 30, 2025, from $825,000 at the beginning of the period [27]. - Total assets as of September 30, 2025, were $66,793,000, an increase from $61,231,000 as of December 31, 2024 [23]. - Total liabilities decreased to $46,957,000 as of September 30, 2025, from $81,328,000 as of December 31, 2024 [23]. - The company reported a net cash used in operating activities of $20,280,000 for the nine months ended September 30, 2025 [27]. Capital and Investment Activities - The company issued 5,747,742 shares of 11% Series B Cumulative Convertible Preferred Stock, raising $8.0 million in cash and exchanging $20.7 million of long-term debt [7]. - Falcon's Beyond entered into a new $15 million revolving line of credit to support the expansion of its attraction services business, maturing on September 30, 2030 [7]. - The company recognized a gain on bargain purchase of $1,098,000 from the OES Acquisition [25]. - The company is focused on strengthening its balance sheet and reallocating capital towards high-growth divisions following the acquisition of OES in May 2025 [7]. Future Outlook - The company anticipates the FCG division could double its revenues over the next twelve months, necessitating rapid scaling of workforce and infrastructure [9]. - Falcon's Beyond has a contracted pipeline of $48.3 million as it entered Q4 2025, indicating potential future revenue growth [2].

Revenue Performance - Total revenue for the three months ended September 30, 2025, was $4,054,000, a 96.1% increase from $2,069,000 for the same period in 2024[17]. - Revenue for the nine months ended September 30, 2025, was $8,311 million, up 54% from $5,383 million in the same period of 2024[171]. - Revenue from the USA for the three months ended September 30, 2025, was $3.426 million, up from $1.722 million for the same period in 2024[72]. - The Falcon's Creative Group segment generated revenue of $15.8 million for the nine months ended September 30, 2025, with significant contributions from two major customers[45]. - For the three months ended September 30, 2025, total consolidated revenue was $4,054 million, a decrease from $13,503 million for the same period in 2024[130][131]. Operating Loss and Expenses - Operating expenses for the three months ended September 30, 2025, were $7,738,000, up 70.5% from $4,530,000 in the prior year[17]. - The company reported a loss from operations of $3,684,000 for the three months ended September 30, 2025, compared to a loss of $2,461,000 in the same period of 2024[17]. - The Company incurred project design and build expenses of $(18,775) million for the nine months ended September 30, 2025[131]. - Selling, general and administrative expenses for the nine months ended September 30, 2025, were $(8,447) million[131]. - Selling, general and administrative expenses for the three months ended September 30, 2025, increased by $1,684 million, primarily due to a $2.1 million rise in payroll and related costs[173]. Net Income and Loss - The net loss for the three months ended September 30, 2025, was $10,412,000 compared to a net income of $39,301,000 for the same period in 2024[19]. - Net income for the nine months ended September 30, 2025, was $6,608, compared to $161,353 for the same period in 2024, indicating a significant decline[21]. - The total comprehensive loss for the three months ended September 30, 2025, was $10,318,000, compared to a comprehensive income of $39,305,000 for the same period in 2024[19]. - The Company reported a net loss before taxes of $10,413 million for the three months ended September 30, 2025, compared to a net income of $39,301 million for the same period in 2024[132]. - For the nine months ended September 30, 2025, the company experienced a net loss of $161.4 million, a decrease of $154.7 million from a net income of $6.6 million in the same period of 2024[198]. Cash Flow and Liquidity - Net cash used in operating activities increased to $(20,280) for the nine months ended September 30, 2025, from $(8,758) in 2024, reflecting a worsening cash flow situation[21]. - Cash and cash equivalents increased significantly to $4,257,000 as of September 30, 2025, compared to $825,000 as of December 31, 2024[15]. - Cash flows from financing activities generated $2,768 in 2025, down from $8,926 in 2024, indicating reduced financing activity[21]. - As of September 30, 2025, the Company had cash and cash equivalents of $4.3 million and a working capital deficiency of $27.0 million, including $8.2 million of debt that matured on May 16, 2025[39]. - The Company does not currently have sufficient cash or liquidity to pay maturing liabilities and fund ongoing operations, raising substantial doubt about its ability to continue as a going concern[40]. Assets and Liabilities - Total assets increased to $66,793,000 as of September 30, 2025, from $61,231,000 as of December 31, 2024, reflecting a growth of 9.3%[15]. - Current liabilities decreased to $38,943,000 as of September 30, 2025, from $45,640,000 as of December 31, 2024, a reduction of 14.7%[15]. - The total equity deficit as of September 30, 2025, was reported at $9,475 thousand, indicating a need for improved financial performance[25]. - The company's long-term debt as of September 30, 2025, totals $16,060 million, with a current portion of long-term debt and short-term debt of $10,069 million[95]. - Total accrued expenses and other current liabilities as of September 30, 2025, amount to $21,131 million, a decrease from $25,870 million as of December 31, 2024[94]. Investments and Acquisitions - The company completed a merger with FAST II on October 5, 2023, followed by an acquisition merger with Falcon's Opco on October 6, 2023, establishing a new corporate structure[27]. - The company issued 1,655,416 Series B preferred shares, raising significant capital to support its operations[25]. - The Company acquired tangible assets and intellectual property from Oceaneering Entertainment Systems for $1.6 million, expanding its attractions services business[65]. - The company recognized a cash dividend distribution of $27.0 million from its joint venture PDP following the sale of a hotel in Tenerife[77]. - The share of net income from PDP for the nine months ended September 30, 2025, included a $30 million gain from the sale of Tertian, contributing to the overall financial performance[179]. Strategic Plans and Future Outlook - The company plans to continue expanding its market presence following the merger, leveraging synergies from the combined entities[26]. - The company anticipates an increase in capital expenditures and working capital requirements in the near future due to growth initiatives and operating as a public company[210]. - The Company has committed to develop venues themed with Hershey's trademarks in at least four locations by 2028, with a one-time development fee of $0.3 million and a 6% royalty fee on gross sales starting in 2025[123]. - The contracted pipeline for the company as of September 30, 2025, was $48.3 million, reflecting potential future revenue[204]. - The Company aims to expand its operations through equity method investments and developing new product offerings[168]. Legal and Regulatory Matters - The Company accrued $11.1 million for alleged fees and expenses related to a lawsuit filed by Guggenheim Securities, LLC, which is linked to the Business Combination completed on October 6, 2023[120]. - The Company is facing a claim from FAST Sponsor II LLC for $9.1 million regarding two loans related to the deSPAC transaction that closed in October 2023[121]. - The company is actively negotiating transaction costs related to the Business Combination, which total $16.3 million and are not yet settled as of September 30, 2025[212]. Impairments and Losses - An impairment charge of $5.3 million was recognized for the investment in PDP as of June 30, 2025, due to a significant change in circumstances[79]. - The Company recognized an other-than-temporary impairment charge of $3.0 million for its investment in Karnival, reducing its fair value to $4.2 million as of September 30, 2025[82]. - The share of loss from Karnival for the nine months ended September 30, 2025, was $2.94 million, compared to a gain of $0.24 million for the same period in 2024[85]. - The Company recognized a $5.3 million impairment charge related to its investment in PDP as of June 30, 2025[180]. - The Sierra Parima investment was sold for nominal consideration on May 30, 2025, after being deemed other-than-temporarily impaired as of December 31, 2023[85].

Core Insights - Falcon's Creative Group (FCG), a division of Falcon's Beyond Global, Inc., has appointed Mitchell Magill as President, indicating a strategic move towards enhancing leadership and operational direction within the company [1] Company Overview - Falcon's Creative Group is recognized as a leader in innovative and immersive storytelling, suggesting a focus on creativity and innovation in its offerings [1] Leadership Changes - The appointment of Mitchell Magill as President signifies a commitment to guiding growth and innovation across FCG's strategic, creative, and operational aspects [1]

Core Insights - Falcon's Beyond Global, Inc. has entered into an agreement with CD PROJEKT RED to develop concepts for Cyberpunk 2077 themed venues, highlighting the collaboration between immersive storytelling and popular gaming franchises [1] Company Overview - Falcon's Beyond is recognized as a leader in innovative and immersive storytelling, indicating its strong position in the entertainment and theme park industry [1] - CD PROJEKT RED is known for its critically acclaimed video game series, including The Witcher and the best-selling Cyberpunk 2077, showcasing its influence in the gaming sector [1]

Executive Summary This section provides a high-level overview of Falcon's Beyond's financial performance and key operational achievements for the second quarter of 2025 [Q2 2025 Key Financial Highlights](index=1&type=section&id=Q2%202025%20Key%20Financial%20Highlights) Falcon's Beyond reported $2.5 million consolidated revenue, with FCG and PDP contributing significant revenue and a substantial hotel sale gain Q2 2025 Key Financial Highlights | Metric | Q2 2025 Value | | :------------------------------------------------ | :------------ | | Consolidated Revenue | $2.5 Million | | FCG Revenue (Unconsolidated Subsidiary) | $12.3 Million | | PDP Gain on Sale of Sol Tenerife Hotel (Unconsolidated JV) | $59.6 Million | | PDP Revenue from Continuing Operations (Unconsolidated JV) | $6.5 Million | Second Quarter 2025 Financial Results This section details Falcon's Beyond's Q2 2025 financial performance, including revenue, net income, and Adjusted EBITDA [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Consolidated revenue increased, FCG revenue decreased due to project timing, and PDP's continuing revenue grew, boosted by a hotel sale gain Q2 2025 Revenue Performance | Metric | Q2 2025 | Q2 2024 | Change (YoY) | % Change (YoY) | | :------------------------------------------------ | :------ | :------ | :----------- | :------------- | | Falcon's Beyond Consolidated Revenue | $2.5M | $1.8M | +$0.7M | +38.9% | | FCG Revenue | $12.3M | $15.7M | -$3.4M | -21.6% | | FCG Operating Income | $2.4M | $2.3M | +$0.1M | +4.3% | | FCG Net Income | $2.3M | $2.5M | -$0.2M | -8.0% | | Falcon's Beyond Share of FCG Net Income | $0.7M | N/A | N/A | N/A | | PDP Revenue (Continuing Operations) | $6.5M | $5.9M | +$0.6M | +10.2% | | PDP Net Income (Continuing Operations) | $0.8M | ($0.1)M | +$0.9M | N/A | | PDP Net Income (incl. hotel sale gain) | $60.9M | N/A | N/A | N/A | [Net Income Analysis](index=2&type=section&id=Net%20Income%20Analysis) Consolidated net income significantly increased to $25.1 million in Q2 2025, primarily driven by a substantial gain from the Tenerife hotel sale and other financial adjustments Consolidated Net Income (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------------------------------ | :------ | :------ | :----- | | Consolidated Net Income | $25.1M | $8.0M | +$17.1M | - Primary drivers for the increase in consolidated net income: * **$29.8 million** share of gain from the sale of the Tenerife hotel[4](index=4&type=chunk) * **$3.5 million** credit to transaction expenses from a settlement[4](index=4&type=chunk) * **$1.6 million** increase in unrealized foreign currency transactional gains[4](index=4&type=chunk) * **$2.6 million** quarter-over-quarter change in fair value of warrant liabilities[4](index=4&type=chunk) - Partially offset by: * **$5.3 million** other than temporary impairment of remaining investment in PDP[4](index=4&type=chunk) * **$13.0 million** decrease in change in the fair value of earnout liabilities[4](index=4&type=chunk) * **$0.3 million** decrease in share of income from equity method investments[4](index=4&type=chunk) * **$0.4 million** increase in interest expense[4](index=4&type=chunk) * **$1.3 million** increase in other operating expenses related to the new Falcon's Attractions business[4](index=4&type=chunk) [Adjusted EBITDA](index=2&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA loss decreased by $0.2 million to $(1.7) million in Q2 2025, primarily due to increased foreign exchange gains, partially offset by decreased equity method gains and increased operating losses Adjusted EBITDA (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :------------- | :------ | :------ | :----- | | Adjusted EBITDA Loss | $(1.7)M | $(1.9)M | +$0.2M | | Foreign exchange transaction gains | +$1.6M | N/A | N/A | | Share of gain from equity method investments | -$0.3M | N/A | N/A | | Losses from operations (OES integration) | +$1.1M | N/A | N/A | Other Business Highlights This section outlines Falcon's Beyond's strategic acquisitions and divestitures, including the OES acquisition and the sale of the Sol Tenerife hotel [Strategic Acquisitions and Divestitures](index=2&type=section&id=Strategic%20Acquisitions%20and%20Divestitures) Falcon's Beyond completed the acquisition of key assets from Oceaneering Entertainment Systems (OES) to bolster its attraction integration services and sold the Sol Tenerife hotel through its PDP joint venture, distributing $27 million from the net proceeds - Oceaneering Entertainment Systems (OES) Transaction (May 9, 2025): * Acquired key tangible assets, intellectual property (patented technologies, proprietary engineering/manufacturing processes)[7](index=7&type=chunk) * Assumed lease for a **106,000+ sq-ft facility** in Orlando, FL for Falcon's Beyond Brands division[7](index=7&type=chunk) * Hired key OES team members in February 2025 to bolster research, development, manufacturing, and attraction integration services[7](index=7&type=chunk) - Tenerife Hotel Sale (May 30, 2025): * Completed the sale of the Sol Tenerife Hotel through the PDP joint venture with Melia[7](index=7&type=chunk) * Transaction structured as a sale of all shares of Tertian XXI, S.L., which owned the hotel's real estate assets[7](index=7&type=chunk) * Purchasers paid an aggregate of **€71 million**[7](index=7&type=chunk) * PDP distributed **$27 million** to Falcon's Beyond from the net proceeds[7](index=7&type=chunk) About Falcon's Beyond This section provides an overview of Falcon's Beyond, highlighting its mission as an innovator in immersive storytelling and detailing its three core business units [Company Overview and Business Units](index=3&type=section&id=Company%20Overview%20and%20Business%20Units) Falcon's Beyond is an innovator in immersive storytelling, operating across content, technology, and experiences, activating intellectual property through three core business units: Falcon's Creative Group (FCG), Falcon's Beyond Destinations (FBD), and Falcon's Beyond Brands (FBB) - Falcon's Beyond is a visionary innovator in immersive storytelling, focusing on content, technology, and experiences, and invents immersive rides, attractions, and technologies globally[8](index=8&type=chunk) - Core Business Units: * **Falcon's Creative Group (FCG):** Creates master plans, designs attractions and experiential entertainment, and produces content, interactives, and software[8](index=8&type=chunk) * **Falcon's Beyond Destinations (FBD):** Develops diverse entertainment experiences using owned and third-party licensed IP, spanning location-based entertainment, dining, and retail[8](index=8&type=chunk) * **Falcon's Beyond Brands (FBB):** Brings brands and IP to life through animation, movies, licensing, merchandising, gaming, and ride/technology sales[8](index=8&type=chunk)[14](index=14&type=chunk) Financial Statements This section presents Falcon's Beyond's condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, for the periods ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a significant increase in cash and cash equivalents and total assets as of June 30, 2025, compared to December 31, 2024, with a positive shift in total equity from a deficit Condensed Consolidated Balance Sheets (Selected Items) | Item | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------------------ | :----------------------------- | :------------------------------- | | Cash and cash equivalents | $26,064 | $825 | | Total current assets | $28,547 | $4,134 | | Total assets | $89,207 | $61,231 | | Total current liabilities | $55,965 | $45,640 | | Total liabilities | $88,283 | $81,328 | | Total equity (deficit) | $924 | ($20,097) | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements of operations show a substantial increase in net income for both the three and six months ended June 30, 2025, driven by a significant share of gain from equity method investments, despite an increase in operating expenses Condensed Consolidated Statements of Operations (Selected Items) | Item | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Revenue | $2,549 | $1,798 | $4,257 | $3,314 | | Total operating expenses | $3

**FORM 10-Q Filing Information**](index=1&type=section&id=FORM%2010-Q%20Filing%20Information) [Registrant Information](index=1&type=section&id=Registrant%20Information) Falcon's Beyond Global, Inc. is a Delaware corporation with Class A common stock and warrants listed on Nasdaq. - Falcon's Beyond Global, Inc. is a Delaware corporation, with **Class A common stock** and **warrants** listed on The Nasdaq Stock Market LLC[2](index=2&type=chunk)[3](index=3&type=chunk) Outstanding Shares as of August 14, 2025 | Class of Stock | Shares Outstanding | | :--------------- | :----------------- | | Class A common stock | 37,232,805 | | Class B common stock | 83,814,187 | - The registrant is a non-accelerated filer, smaller reporting company, and emerging growth company, and has filed all required reports during the preceding **12 months**[3](index=3&type=chunk)[4](index=4&type=chunk) **TABLE OF CONTENTS**](index=2&type=section&id=TABLE%20OF%20CONTENTS) **CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND RISK FACTORS PREAMBLE**](index=3&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS%20AND%20RISK%20FACTORS%20PREAMBLE) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements about future financial performance and strategies, subject to risks and uncertainties. - The report includes forward-looking statements about future financial performance and business strategies, which are not guarantees and are subject to risks[7](index=7&type=chunk) [Key Risk Factors](index=3&type=section&id=Key%20Risk%20Factors) The Company faces significant risks including growth, asset impairments, going concern, capital, FBD transition, client concentration, and internal controls. - The Company may not sustain growth, effectively manage future growth, or implement business strategies as anticipated[8](index=8&type=chunk) - Impairments of intangible assets and equity method investments have materially impacted results and may do so again[8](index=8&type=chunk) - Current liquidity raises substantial doubt about the Company's ability to continue as a going concern, potentially leading to a total loss for security holders[8](index=8&type=chunk) - Additional capital will be required for business growth, which may not be available on acceptable terms or could result in substantial dilution to stockholders[8](index=8&type=chunk) - The FBD business is in transition, with repositioning and rebranding projects subject to timing, budgeting, and other risks, and ongoing capital expenditures could materially adversely affect financial condition and liquidity[8](index=8&type=chunk) - A significant portion of FCG's and the Company's revenue is derived from one large client, and any loss or decrease in services to that client could harm results of operations[8](index=8&type=chunk) - The Company has identified material weaknesses in its internal controls over financial reporting, which could affect accurate and timely financial reporting and stock price[9](index=9&type=chunk) **PART I. FINANCIAL INFORMATION**](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Falcon's Beyond Global, Inc. and its subsidiaries, including balance sheets, statements of operations and comprehensive income, cash flows, and stockholders' equity (deficit) for the periods ended June 30, 2025 and 2024, along with detailed notes explaining the company's business, accounting policies, significant transactions, and financial position. [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands of U.S. dollars) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | **Assets** | | | | Cash and cash equivalents | $26,064 | $825 | | Total current assets | $28,547 | $4,134 | | Investments and advances to equity method investments | $55,473 | $56,560 | | Total assets | $89,207 | $61,231 | | **Liabilities and Stockholders' Equity (Deficit)** | | | | Total current liabilities | $55,965 | $45,640 | | Long-term debt, net of current portion | $30,177 | $30,977 | | Warrant liabilities | $— | $4,711 | | Total liabilities | $88,283 | $81,328 | | Total equity (deficit) | $924 | $(20,097) | | Total liabilities and equity | $89,207 | $61,231 | - Cash and cash equivalents significantly increased from **$0.8 million** at Dec 31, 2024, to **$26.1 million** at June 30, 2025[13](index=13&type=chunk) - Total equity shifted from a deficit of **$(20.1) million** at Dec 31, 2024, to a positive equity of **$0.9 million** at June 30, 2025[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Condensed Consolidated Statements of Operations and Comprehensive Income (in thousands of U.S. dollars) | Item | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $2,549 | $1,798 | $4,257 | $3,314 | | Loss from operations | $(1,350) | $(3,522) | $(7,687) | $(8,835) | | Share of gain from equity method investments | $25,846 | $1,720 | $21,783 | $2,874 | | Net income before taxes | $25,112 | $8,028 | $17,020 | $122,051 | | Net income | $25,112 | $8,028 | $17,020 | $122,052 | | Net income attributable to common stockholders | $11,226 | $1,234 | $7,611 | $18,404 | | Net income per share, basic | $0.30 | $0.10 | $0.21 | $1.61 | | Net income per share, diluted | $0.30 | $0.00 | $0.17 | $1.14 | - Revenue increased by **41.7%** for the three months ended June 30, 2025, compared to the same period in 2024, and by **28.5%** for the six months[16](index=16&type=chunk) - Loss from operations decreased significantly, from **$(3.5) million** to **$(1.4) million** for the three-month period, and from **$(8.8) million** to **$(7.7) million** for the six-month period, indicating improved operational efficiency or reduced losses[16](index=16&type=chunk) - Share of gain from equity method investments saw a substantial increase, from **$1.7 million** to **$25.8 million** for the three-month period, and from **$2.9 million** to **$21.8 million** for the six-month period, primarily due to the Tenerife Sale[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands of U.S. dollars) | Cash Flow Activity | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(6,959) | $(6,385) | | Net cash provided by (used) in investing activities | $25,233 | $(5) | | Net cash provided by financing activities | $6,931 | $7,397 | | Net increase in cash and cash equivalents | $25,205 | $1,007 | | Cash and cash equivalents at end of period | $26,064 | $1,664 | - Net cash used in operating activities increased slightly from **$(6.4) million** in 2024 to **$(7.0) million** in 2025[18](index=18&type=chunk) - Net cash provided by investing activities dramatically increased from **$(0.0) million** in 2024 to **$25.2 million** in 2025, primarily due to a **$26,955K** distribution from equity method investment PDP[18](index=18&type=chunk) - Net cash provided by financing activities decreased from **$7.4 million** in 2024 to **$6.9 million** in 2025[18](index=18&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) Condensed Consolidated Statements of Stockholders' Equity (Deficit) (in thousands of U.S. dollars) | Item | December 31, 2024 | June 30, 2025 | | :------------------------------------ | :---------------- | :------------ |

Company Overview - Falcon's Beyond is a global entertainment powerhouse specializing in crafting world-class destinations and experiences by integrating design, technology, and brand development[14] - The company operates at the intersection of content, technology, and experiences, aiming to connect people with brands and each other through digital and physical experiences[33] - Falcon's Beyond has a diversified business model encompassing Falcon's Creative Group (FCG), Falcon's Beyond Brands (FBB), and Falcon's Beyond Destinations[45] Financial Highlights - Falcon's Creative Group (FCG) experienced significant year-over-year (YoY) revenue growth in Q1 2024, with an 87% increase, reaching $149 million[128] - FCG's revenue continued to climb in Q2 2024, showing a 202% YoY increase, totaling $157 million[133] - Producciones de Parques (PDP) revenue also increased YoY in Q1 2024 by $12 million, reaching $75 million[131], and in Q2 2024 by $09 million, reaching $113 million[133] - In Q3 2024, FCG revenue increased by 190% YoY, reaching $132 million, while PDP revenue increased by $20 million YoY, reaching $178 million[137] Strategic Partnerships and Projects - Qiddiya Investment Company made a $30 million investment in Falcon's Creative Group (FCG)[128] - Falcon's secured its largest master planning and design services agreement in FCG history with Qiddiya, valued at up to $831 million[131] - Falcon's is involved in the development of the first-ever Dragon Ball theme park in Qiddiya City, spanning over 500,000 square meters[202]

Financial Performance - Total revenue for the three months ended March 31, 2025, was $1,708,000, an increase of 12.7% compared to $1,516,000 for the same period in 2024[17] - The net loss attributable to common stockholders for the three months ended March 31, 2025, was $3,615,000, compared to a net income of $17,169,000 for the same period in 2024[17] - The company reported a total comprehensive loss of $8,007,000 for the three months ended March 31, 2025, compared to a comprehensive income of $114,028,000 for the same period in 2024[17] - The company reported a share of loss from equity method investments of $4.1 million for the three months ended March 31, 2025, compared to income of $1.2 million for the same period in 2024[55] - The Company reported a net loss before taxes of $8,093 million for the three months ended March 31, 2025, compared to a net income of $114,023 million for the same period in 2024[89] Operating Expenses - Operating expenses for the same period were $8,047,000, up from $6,829,000, reflecting a 17.8% increase year-over-year[17] - The company reported a loss from operations of $6,339,000 for the three months ended March 31, 2025, compared to a loss of $5,313,000 in the prior year[17] - Selling, general and administrative expenses decreased by $0.5 million to $6.3 million for the three months ended March 31, 2025, primarily due to a $1.8 million decrease in audit and professional service fees[120] - Research and development expenses for the three months ended March 31, 2025, were $118 million, while there were no expenses reported for the same period in 2024[89] - Research and development expenses increased to $0.1 million for the three months ended March 31, 2025, compared to $16 thousand for the same period in 2024, primarily due to the development of a location-based entertainment experience[122] Cash and Liquidity - Cash and cash equivalents at the end of the period were $1,108,000, an increase from $1,050,000 at the end of March 31, 2024[19] - The Company reported cash provided by operating activities of $0.9 million for the three months ended March 31, 2025, compared to cash used of $(3.8) million for the same period in 2024, representing a $4.7 million improvement[157] - Cash used in investing activities was $(0.1) million for the three months ended March 31, 2025, a decrease from $(2.1) million in the same period of 2024, primarily due to reduced advances to unconsolidated joint ventures[158] - Net cash used by financing activities increased to $(0.6) million in the three months ended March 31, 2025, compared to cash provided of $6.2 million in the same period of 2024, mainly due to a $5.2 million decrease in net proceeds from related party loans[159] Assets and Liabilities - Total current assets decreased to $2,656,000 as of March 31, 2025, down from $4,134,000 as of December 31, 2024[15] - Total liabilities increased to $82,667,000 as of March 31, 2025, compared to $81,328,000 as of December 31, 2024[15] - The company has a working capital deficiency of $(39.1) million, excluding $10.4 million of debt maturing in the next 12 months as of March 31, 2025[35] - Total accrued expenses and other current liabilities increased to $32.2 million as of March 31, 2025, from $25.9 million as of December 31, 2024[59] - As of March 31, 2025, the company's total long-term debt amounted to $30.565 million, down from $30.977 million as of December 31, 2024, reflecting a decrease of approximately 1.3%[60] Revenue Concentration - The company reported significant revenue concentration in the Falcon's Creative Group segment, with QIC generating revenues of $5.9 million for the three months ended March 31, 2025, compared to $14.7 million for the same period in 2024[39] - The Company had one customer contributing $1.6 million, representing 95% of total revenue for Q1 2025, compared to $1.5 million or 100% for Q1 2024[40] - Accounts receivable from this customer totaled $0.3 million, accounting for 52% of total accounts receivable as of March 31, 2025[41] Financing and Investments - The company is reliant on stockholders and third parties to obtain additional financing through debt or equity raises to fund its working capital needs and expansion plans[35] - The company has committed to fund its share of additional investment in Karnival TP-AQ Holdings Limited for constructing Vquarium Entertainment Centers in China[34] - The Company has committed to funding non-interest-bearing advances of $9.0 million to the Karnival joint venture, with $6.6 million funded as of March 31, 2025[53] - The Company received net cash proceeds of $0.9 million from the Business Combination, net of $1.3 million in transaction costs related to FAST II and $1.6 million for Falcon's Opco[152] Business Operations - The company operates through three business divisions: Falcon's Creative Group, Falcon's Beyond Destinations, and Falcon's Beyond Brands, which are designed to accelerate growth[26] - The company aims to expand its physical operations and develop new product offerings as part of its growth strategy[33] - FCG recognized $4.7 million in revenue from a Dragon Ball theme park consultancy agreement during the three months ended March 31, 2025[132] - FCG anticipates that its capital expenditures and working capital requirements will increase materially in the near future[149] Internal Controls and Compliance - The Company has identified material weaknesses in its internal control over financial reporting as of March 31, 2025, and is implementing measures to improve these controls[161] - The Company has engaged third-party consulting firms to enhance its risk assessment and financial reporting processes as part of its remediation efforts[163]