Falcon's Beyond (US:FBYD)2025-11-14 12:31Revenue 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].