Falcon's Beyond (FBYD) - 2025 Q2 - Quarterly Report

FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q%20Filing%20Information) Registrant Information 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][3] 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][4] 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 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] Key Risk Factors 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] - Impairments of intangible assets and equity method investments have materially impacted results and may do so again[8] - 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] - 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] - 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] - 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] - 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] PART I. FINANCIAL INFORMATION](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Item 1. Financial Statements 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 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] - 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] Condensed Consolidated Statements of Operations and Comprehensive Income 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] - 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] - 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] Condensed Consolidated Statements of Cash Flows 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] - 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] - Net cash provided by financing activities decreased from $7.4 million in 2024 to $6.9 million in 2025[18] Condensed Consolidated Statements of Stockholders' Equity (Deficit) Condensed Consolidated Statements of Stockholders' Equity (Deficit) (in thousands of U.S. dollars) | Item | December 31, 2024 | June 30, 2025 | | :------------------------------------ | :---------------- | :------------ |