Six Flags Posts $366 Million Loss, Insiders Buy $15 Million

Six Flags Entertainment (NYSE: FUN) reported a $366.1 million third-quarter net loss, or $3.59 per share, and its insiders immediately went shopping. Between Nov. 6 and Nov. 10, funds managed by director Rehan Jaffer bought 1.45 million shares for roughly $14.93 million at an average price near $10.30, lifting the funds' holdings by almost 30% to about 6.35 million shares, according to the disclosed filings.

Jaffer, who sits on the company's Audit and Finance Committee and specializes in distressed investing, was not alone. Executive Chairman Richard Haddrill and Chief Legal Officer Christopher Bennett also purchased shares after the earnings release. Their timing followed a quarter in which non-cash accounting charges, not cash burn, produced the headline loss.

What Drove the $366 Million Loss?

Non-cash asset impairments of approximately $687.7 million accounted for most of the GAAP result. The write-downs covered legacy park goodwill, trade names and fixed assets; such charges (accounting reductions in asset value) do not directly affect cash liquidity or daily park operations, though they can obscure underlying performance.

Beneath the accounting, operations improved. Same-park third-quarter revenue rose 1.4% to $1.17 billion, and the company generated $493.2 million in adjusted EBITDA at a 42% margin, helped by 54 additional operating days from the Labor Day calendar shift. Wildfire smoke disrupted some parks. Through nine months, same-park adjusted EBITDA climbed 10.7% to $639.5 million, while operating cash flow increased 36.5% to $498.5 million, supporting $257.3 million in free cash flow (cash from operations minus capital spending) — a roughly $300 million year-over-year improvement.

The active season pass and membership base grew 7.1% to about 7.1 million passes, with cross-park visitation running at roughly five times last year's rate. A newly hired Chief Procurement Officer supports management's target of $70 million to $80 million in full-year gross cost savings. Peer United Parks & Resorts (NYSE: PRKS), by contrast, posted slight year-over-year declines in third-quarter attendance and adjusted EBITDA.

How Serious Is the Debt Burden?

Net debt stands at approximately $4.66 billion, a management-calculated net leverage ratio of 5.8x trailing same-park adjusted EBITDA. Liquidity, however, remains ample: $1.06 billion in total, comprising $267.9 million in cash and $792.8 million in undrawn revolving credit capacity. An early-year refinancing cleared senior note maturities until 2028, and about 70% of debt carries fixed rates.

One obligation looms: an exercised option to buy out remaining partnership units of Six Flags Over Georgia in early 2027, requiring up to $370 million. Eliminating roughly $26 million in annual partner distributions more than offsets an estimated $21 million in revolving interest, making the deal slightly cash-flow accretive. Management is also evaluating non-core park and real estate divestitures, following a $331 million agreement to sell seven parks to EPR Properties.

What Comes Next?

October attendance fell 9% year over year on poor weekend weather and proactive ride closures after the October safety incident at the Georgia property. Management cut fourth-quarter adjusted EBITDA guidance to $140 million–$150 million, from $166.9 million a year earlier. S&P Global revised its credit outlook to Negative in June 2025, citing slower-than-expected deleveraging, and JANA Partners is pressing for strategic alternatives.

The market prices the equity at roughly 0.4 times trailing sales and about 8 times enterprise value to EBITDA, with a consensus Hold rating and an average analyst target of $14.85 against a price near $11.18. Short interest of 27.8 million shares — nearly 28% of the public float at the end of October — could amplify any recovery. The boardroom, at least, has placed its bet.