Q2 2025 Earnings Release Overview This section provides an overview of Seaport Entertainment Group's second quarter 2025 earnings release CEO Statement CEO Anton Nikodemus expressed optimism about the company's Q2 year-over-year gains and anticipated continued Q3 momentum - The company has made tremendous progress in its first year as a standalone public company, establishing a strong foundation for future growth2 - Positive Q3 outlook is fueled by the Seaport Concert Series, diversified hospitality offerings, real estate strategy, and the Las Vegas Aviators' potential playoff run2 Financial & Operational Highlights This section details the company's key financial and operational achievements for the quarter and year-to-date Second Quarter 2025 Highlights In Q2 2025, the company reported a net loss of $14.8 million while advancing strategic real estate and partnership initiatives Q2 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net Loss | ($14.8) million | | Net Loss per Share | ($1.16) | | Non-GAAP Adjusted Net Loss | ($7.4) million | | Non-GAAP Adjusted Net Loss per Share | ($0.58) | - The company is exploring strategic alternatives for its 250 Water Street development site5 - Completed a corporate restructuring with Jean-Georges Restaurants, converting management agreements for the Tin Building and The Fulton into new license agreements5 - Nike exercised an early termination right for its Pier 17 office space, with half the termination payment received in Q2 2025 and the remainder due in 20275 - The company uplisted to the NYSE and was added to the Russell 2000 and Russell Microcap Indexes5 Year-to-Date 2025 Highlights For H1 2025, the company reported a net loss of $46.7 million while internalizing F&B operations and expanding leased space H1 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net Loss | ($46.7) million | | Net Loss per Share | ($3.68) | | Non-GAAP Adjusted Net Loss | ($30.2) million | | Non-GAAP Adjusted Net Loss per Share | ($2.38) | - Internalized food and beverage operations at most Seaport restaurants by hiring employees from Creative Culinary Management Company LLC (CCMC)10 - Leased, programmed, or established development plans for approximately 98,900 square feet of space within the Seaport neighborhood, including new leases and planned event space10 - Announced the Seaport neighborhood as the host location for the New York City Wine & Food Festival in October 202510 Financial Performance Analysis This section analyzes the company's financial performance for Q2 and H1 2025 compared to prior periods, along with balance sheet highlights Quarterly Results (Q2 2025 vs Q2 2024) Q2 2025 total revenues increased by 18.2% to $39.8 million, with net loss significantly narrowing to ($14.8) million Q2 2025 vs Q2 2024 Financial Performance | Metric ($ in thousands, except per share) | Q2 2025 | Q2 2024 | YoY Change | YoY % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $39,801 | $33,670 | $6,131 | 18.2% | | Net Loss Attributable to Common Stockholders | ($14,774) | ($34,997) | $20,223 | 57.8% | | Net Loss Per Share | ($1.16) | ($6.34) | $5.17 | 81.6% | | Non-GAAP Adjusted Net Loss | ($7,415) | ($28,384) | $20,969 | 73.9% | - The year-over-year revenue comparison was impacted by the consolidation of the Tin Building by Jean-Georges as of January 1, 2025, which was previously accounted for under the equity method7 Year-to-Date Results (H1 2025 vs H1 2024) H1 2025 total revenues grew 16.0% to $55.9 million, with net loss improving by 41.0% to ($46.7) million H1 2025 vs H1 2024 Financial Performance | Metric ($ in thousands, except per share) | H1 2025 | H1 2024 | YoY Change | YoY % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $55,870 | $48,181 | $7,689 | 16.0% | | Net Loss Attributable to Common Stockholders | ($46,662) | ($79,075) | $32,413 | 41.0% | | Net Loss Per Share | ($3.68) | ($14.32) | $10.64 | 74.3% | | Non-GAAP Adjusted Net Loss | ($30,173) | ($63,028) | $32,855 | 52.1% | Balance Sheet Summary (as of June 30, 2025) As of June 30, 2025, the company held $125.4 million in cash with $101.4 million in total consolidated debt and no significant maturities until Q3 2029 - The company had $125.4 million in cash, cash equivalents and restricted cash12 - Total consolidated debt was $101.4 million, with a weighted-average maturity of approximately 7.7 years and no meaningful maturities until Q3 202912 - The debt structure consists of 40% fixed-rate debt at a 4.9% weighted-average interest rate and 60% floating-rate debt at an effective rate of 8.8% after a total return swap12 Financial Statements This section presents the company's consolidated financial statements, including balance sheets and statements of operations Consolidated Balance Sheets This statement presents the company's assets, liabilities, and equity as of June 30, 2025, showing a decrease in total assets and an increase in total liabilities Consolidated Balance Sheets | Balance Sheet Item ($ in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $717,226 | $743,556 | | Cash and cash equivalents | $123,276 | $165,667 | | Net investment in real estate | $480,055 | $463,141 | | Total Liabilities | $189,421 | $172,174 | | Mortgages payable, net | $100,632 | $101,593 | | Total Equity | $527,805 | $571,382 | Consolidated and Combined Statements of Operations This statement details the company's revenues and expenses for Q2 and H1, with entertainment and hospitality as primary revenue sources Revenue Breakdown | Revenue Breakdown ($ in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Hospitality revenue | $15,177 | $9,053 | | Entertainment revenue | $19,908 | $17,153 | | Rental revenue | $4,232 | $6,814 | | Total revenues | $39,801 | $33,670 | Expense Breakdown | Expense Breakdown ($ in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Hospitality costs | $17,845 | $9,693 | | Entertainment costs | $15,281 | $14,925 | | Operating costs | $7,684 | $10,375 | | General and administrative | $8,291 | $18,613 | | Total expenses | $55,682 | $58,939 | Reconciliation of Net Loss to Non-GAAP Measures This section reconciles GAAP Net Loss to Non-GAAP Adjusted Net Loss, adjusting for non-cash items like depreciation and non-cash compensation Reconciliation of Net Loss to Non-GAAP Adjusted Net Loss | Reconciliation ($ in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss attributable to common stockholders | ($14,774) | ($34,997) | | Depreciation and amortization | $7,603 | $6,397 | | Non-cash compensation | $1,738 | ($592) | | Capitalized interest | ($1,688) | — | | Non-GAAP adjusted net loss | ($7,415) | ($28,384) | Additional Information This section provides details on the investor conference call, company overview, and important disclaimers regarding forward-looking statements and non-GAAP measures Investor Conference Call Information The company will host an investor conference call and webcast on August 12, 2025, to discuss the Q2 2025 results - The investor conference call to present Q2 2025 results is scheduled for Tuesday, August 12, 2025, at 8:30 AM ET13 About Seaport Entertainment Group Seaport Entertainment Group is a premier entertainment and hospitality company focused on owning, operating, and developing unique integrated assets - The company's business model focuses on delivering experiences through a combination of restaurant, entertainment, sports, retail, and hospitality offerings integrated into one-of-a-kind real estate15 Forward-Looking Statements & Non-GAAP Measures This section includes standard safe harbor statements for forward-looking information and explains the use of supplemental non-GAAP financial measures - The press release contains forward-looking statements that are based on current expectations and involve risks and uncertainties, as detailed in the company's SEC filings18 - Non-GAAP measures are used to provide a supplemental view of operating performance by excluding certain non-cash or non-recurring items such as depreciation, amortization, and non-cash compensation1921
Seaport Entertainment Group Inc.(SEG) - 2025 Q2 - Quarterly Results