FUN

FUN is the merged Cedar Fair/Former Six Flags entity (combined July 1, 2024) and the FY2025 numbers are a tale of two stories. The top line looks healthy — revenue grew 14.4% to $3.10B as a full year of the combined park portfolio (26 amusement parks, 15 water parks, nine resorts) flowed through — but the bottom line shows a -$1.60B net loss, a -$1.38B operating loss and -$15.89 diluted EPS. Critically, operating cash flow stayed positive at $327M, so the loss is dominated by non-cash merger/impairment charges rather than the parks burning cash day-to-day. The MD&A and Risk Factors are blunt that integration is 'complex, costly and time consuming,' that anticipated synergies 'may not be realized fully or at all,' and that extreme weather already 'negatively impacted the Company's results during the second quarter of 2025' — a structural seasonal risk given ~70% of attendance falls in Q2–Q3.

The balance sheet is where the caution lives. Long-term debt is $5.17B against just $550M of equity and $91.1M of cash, with retained earnings now at -$1.76B and ROE at -290.9%. Worse, capex jumped 49.5% to $480M and exceeded operating cash flow, producing negative free cash flow of roughly -$153M. On enterprise value (market cap ~$2.09B plus ~$5.1B net debt ≈ $7.2B) the stock is closer to ~2.3x revenue, so the headline 0.7x P/S overstates how cheap it really is. A leveraged, seasonal, weather-exposed operator that is outspending its cash flow while still digesting a merger is fragile.