Falcon’s Beyond Reports Third Quarter 2025 Financial Results

Falcon’s Beyond Reports Third Quarter 2025 Financial Results November 14, 2025 Company Strengthens Balance Sheet Through $28.7 Million Preferred Stock Issuance, Including $20.7 Million Debt-to-Equity Exchange Company Reports Consolidated Revenue of $4.1 Million Company's Unconsolidated Subsidiary, Falcon's Creative Group generated Q3 Revenue of $5.7 Million Company's Unconsolidated Joint Venture, Producciones de Parques generated Q3 revenue of $11.2 Million from continuing operations Falcon’s Beyond Global, Inc. (Nasdaq: FBYD) (“Falcon’s Beyond”, “Falcon’s” or the “Company”), a visionary leader in innovative and immersive storytelling through its divisions Falcon’s Creative Group (“FCG”), Falcon’s Beyond Destinations (“FBD”), and Falcon’s Beyond Brands (“FBB”) today reported its financial results for the third quarter of fiscal year 2025 ended September 30, 2025. Third Quarter 2025 Financial Results Revenue: Falcon’s Beyond generated consolidated revenues of $4.1 million for the three months ended September 30, 2025 representing the ramping up of Falcon's Attraction's spares and maintenance fees, fees for corporate and shared services earned from its FCG division, and management fees from its Producciones de Parques, S.L. (“PDP”) 50:50 joint venture with Melia Hotels Int’l.FCG generated $5.7 million in revenue the three months ended September 30, 2025, representing a decrease of $7.4 million, or 56.3%, over the corresponding period of 2024, reflecting project timing within FCG's multi-year contract performance obligations. FCG recorded an operating loss of $3.5 million and net loss of $3.8 million in the three months ended September 30, 2025, compared with operating income of $0.1 million and net loss of $0.1 million for the corresponding 2024 period. After the Qiddiya Investment Company's (QIC) preferred return and amortization of basis difference, Falcon’s Beyond’s share of net loss from FCG was $5.4 million for the three months ended September 30, 2025. FCG has a contracted pipeline of $48.3 million as it entered the fourth quarter of 2025.PDP generated revenues from the Sol Katmandu Park and Resort property of $11.2 million for the three months ended September 30, 2025, a $0.3 million increase over the corresponding period of 2024. In May 2025, PDP completed the sale of the corporate entity that owns the Sol Tenerife hotel property and accordingly, the results of the operations of this hotel were reclassified to discontinued operations by the joint venture. Net income from continuing operations increased $0.2 million to $3.8 million for the three months ended September 30, 2025, compared with the corresponding period of 2024. Net income was $3.1 million for the three months ended September 30, 2025 compared with net income of $3.2 million for the corresponding period of 2024 of which Falcon's recognized its 50% ownership share. Net Income: Falcon’s Beyond reported a consolidated net loss of $10.4 million for the three months ended September 30, 2025, compared with consolidated net income of $39.3 million the corresponding 2024 period. This change was primarily driven by the absence of non-cash fair value gains of $40.6 million on earnout liabilities, and $0.7 million in warranty liabilities compared with the corresponding period of 2024 following the prior year capital restructuring to remove these obligations from our balance sheet. Share of loss from equity method investments increased $6.9 million for the three months ended September 30, 2025 driven by a $3.0 million impairment of our Karnival TP-AQ Holdings Limited joint venture (Karnival) equity method investment due to a decision by the Karnival board to terminate the project in Hong Kong and commence windup of the joint venture, the $5.4 million share of net loss from FCG, partially offset by our share of net income from our PDP investment. Net operating loss increased $1.2 million from our investment in the integration and growth of the Falcon's Attraction's business following the OES acquisition in May 2025, partially offset by a $1.1 million gain on bargain purchase for this acquisition. EBITDA: Falcon's Beyond's adjusted EBITDA (1) loss increased $6.1 million to $(7.7) million loss for the three months ended September 30, 2025, compared with $(1.6) million loss for the corresponding 2024 period. Such increase in loss was driven by a $4.0 million net increase in share of loss from equity method investments, $1.2 million increase in net loss from operations primarily due to the integration and expansion of the OES acquisition and a $0.9 million decrease in foreign exchange gain due to settlement of intergroup loans with a Spanish subsidiary. ____________________ (1) Adjusted EBITDA is a non-GAAP financial measure. See “Use and Definition of Non-GAAP Financial Measure" below for more information and a reconciliation to the most directly comparable GAAP measure. Other Business Highlights Series B Preferred Stock issuance and Conversion of Long Term Debt: On September 8, 2025, the Company issued 5,747,742 shares of newly created 11% Series B Cumulative Convertible Preferred Stock at a purchase price of $5.00 per share. The Company received $8.0 million in cash and the exchange of $20.7 million of outstanding long-term debt and accrued interest.$15 Million Line of Credit: On November 10, 2025 the Company entered into a new $15.0 million five-year revolving line of credit to provide dedicated working capital for the expansion of Falcon's Beyond Brands' attraction services business. The arrangement matures on September 30, 2030 and has a variable interest rate of the three-month Secured Overnight Financing Rate on the first day of the applicable quarter plus 2.75%. In conjunction with the new line of credit the Company reduced the capacity on its existing $15 million revolving credit arrangement with the same lender to $5.5 million. “During the first three quarters of 2025 we have focused on strengthening our balance sheet, divesting non-core assets, and reallocating capital resources toward our highest-growth divisions,” said Cecil D. Magpuri, Chief Executive Officer of Falcon’s Beyond. “This quarter’s successful capital restructuring has provided the dedicated working capital required to accelerate the integration and expansion of Falcon’s Attractions. Building on early momentum in our attraction services and support business, this division is well-positioned to secure significant new contracts for world-class attractions in the near term. At the same time, we anticipate the opportunity for our FCG division to double its revenues over the next twelve months. To meet growing demand from our largest customers, we are rapidly scaling our workforce and infrastructure. Our unwavering focus remains on operational integration, cost discipline, and delivering sustainable value for our shareholders as we continue executing on our long-term growth vision.” About Falcon’s Beyond Falcon’s Beyond is a visionary innovator in immersive storytelling, sitting at the intersection of three potential high growth business opportunities: content, technology, and experiences. Falcon’s Beyond propels intellectual property (IP) activations concurrently across physical and digital experiences through three core business units: Falcon’s Creative Group creates master plans, designs attractions and experiential entertainment, and produces content, interactives, and software.Falcon’s Beyond Destinations develops a diverse range of entertainment experiences using both Falcon’s Beyond owned and third party licensed intellectual property, spanning location-based entertainment, dining, and retail.Falcon’s Beyond Brands endeavors to bring brands and intellectual property to life through animation, movies, licensing and merchandising, gaming as well as ride and technology sales. Falcon’s Beyond also invents immersive rides, attractions, and technologies for entertainment destinations around the world. FALCON’S BEYOND and its related trademarks are owned by Falcon’s Beyond. Falcon’s is headquartered in Orlando, Fla. Learn more at falconsbeyond.com. Falcon’s Beyond may use its website as a distribution channel of material Company information. Financial and other important information regarding the Company is routinely accessed through and posted on our website at https://investors.falconsbeyond.com. In addition, you may automatically receive email alerts and other information about Falcon’s when you enroll your email address by visiting the Email Alerts section at https://investors.falconsbeyond.com. Cautionary Note Regarding Forward-Looking Statements This press release contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, words such as “will,” “would”, and similar expressions identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those expressed in or implied by the forward-looking statements, including (1) any failure to realize the anticipated benefits of the acquisition of OES, (2) risks related to legacy OES products and our ability to service such products, (3) the risk that the OES acquisition, integration of the OES personnel we hired, and efforts to grow Falcon’s Attractions disrupts our other operations, (4) our ability to grow current and future potential customer relationships, (5) our ability to sustain our growth, effectively manage our anticipated future growth, and implement our business strategies to achieve the results we anticipate, (6) our current liquidity resources raise substantial doubt about our ability to continue as a going concern (7) impairments of our intangible assets and equity method investment in our joint ventures, (8) our ability to raise additional capital, (9) the closure of Katmandu Park DR and the repositioning and rebranding of our FBD business, (10) the success of our growth plans in FCG, (11) our customer concentration in FCG, (12) the timing of recognition of revenue from our contracted pipeline is difficult to predict with certainty and in some cases may extend over a number of fiscal years, (13) the risk that contractual restrictions relating to the Strategic Investment may affect our ability to access the public markets and expand our business, (14) the risks of doing business internationally, including in the Kingdom of Saudi Arabia, (15) our indebtedness, (16) our dependence on strategic relationships with local partners in order to offer and market our products and services in certain jurisdictions, (17) our reliance on our senior management and key employees, and our ability to hire, train, retain, and motivate qualified personnel, (18) cybersecurity-related risks, (19) our ability to protect our intellectual property, including the intellectual property purchased from OES, (20) our ability to remediate identified material weaknesses in our internal controls over financial reporting, (21) the concentration of share ownership and the significant influence of the Demerau Family and Cecil D. Magpuri, (22) the outcome of pending, threatened and future legal proceedings, (23) our continued compliance with Nasdaq continued listing standards, (24) risks related to our Up-C entity structure and the fact that we may be required to make substantial payments to certain unitholders under our Tax Receivable Agreement, and (25) the risks disclosed under the caption “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, and the Company’s other filings with the Securities and Exchange Commission. The forward-looking statements herein speak only as of the date of this press release, and the Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. Use and Definition of Non-GAAP Financial Measure We prepare our consolidated financial statements in accordance with US GAAP. In addition to disclosing financial results prepared in accordance with US GAAP, we disclose information regarding Adjusted EBITDA which is a non-GAAP measure. We define Adjusted EBITDA as net income (loss), determined in accordance with US GAAP, for the period presented, before net interest and expense, income tax expense, depreciation and amortization, transaction (credit) expenses related to the business combination, credit loss expense related to the closure of the Sierra Parima Katmandu Park, share of equity method investee’s gain on Tenerife Sale, impairment of PDP, impairment of Karnival, change in fair value of warrant liabilities, change in fair value of earnout liabilities, and gain on bargain purchase of OES Acquisition. We believe that Adjusted EBITDA is useful to investors as it eliminates the non-cash depreciation and amortization expense that results from our capital investments and intangible assets recognized in any business combination and improves comparability by eliminating the interest expense associated with our debt facilities, and eliminating the change in fair value of warrant and earnout liabilities, which may not be comparable with other companies based on our structure. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under US GAAP. Some of these limitations are (i) it does not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments, (ii) it does not reflect changes in, or cash requirements for, our working capital needs, (iii) it does not reflect interest expense, or the cash requirements necessary to service interest or principal payments, on our debt, (iv) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements, (v) it does not adjust for all non-cash income or expense items that are reflected in our statements of cash flows, and (vi) other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures. BEYOND GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands of U.S. dollars, except share and per share data) As of (UNAUDITED) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 4,257 $ 825 Accounts receivable 2,818 1,716 Contract assets 1,464 — Other current assets 3,394 1,593 Total current assets 11,933 4,134 Investments and advances to equity method investments 48,725 56,560 Operating lease right-of-use assets 3,350 — Property and equipment, net 1,082 24 Intangible assets, net 1,119 — Other non-current assets 584 513 Total assets $ 66,793 $ 61,231 Liabilities and stockholders’ equity (deficit) Current liabilities: Accounts payable $ 7,075 $ 9,540 Accrued expenses and other current liabilities 21,131 25,870 Contract liabilities 228 — Operating lease liability, current 440 — Short-term debt 8,203 8,471 Long-term debt, current 1,866 1,759 Total current liabilities 38,943 45,640 Operating lease liability, net of current portion 2,023 — Long-term debt, net of current portion 5,991 30,977 Warrant liabilities — 4,711 Total liabilities 46,957 81,328 Stockholders’ equity (deficit) Equity (deficit) attributable to common stockholders 9,151 (8,965 ) Non-controlling interest 10,685 (11,132 ) Total equity (deficit) 19,836 (20,097 ) Total liabilities and equity $ 66,793 $ 61,231 FALCON’S BEYOND GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands of U.S. dollars, except share and per share data) Three months ended Nine months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Revenue $ 4,054 $ 2,069 $ 8,311 $ 5,383 Operating expenses: — — Project design and build expense 1,408 — 1,946 — Selling, general and administrative expense 6,174 4,490 19,114 16,591 Transaction (credit) expenses (10 ) — (1,788 ) 7 Credit loss expense — — — 12 Research and development expense (2 ) 39 199 65 Depreciation and amortization expense 168 1 212 4 Total operating expenses 7,738 4,530 19,683 16,679 Loss from operations (3,684 ) (2,461 ) (11,372 ) (11,296 ) Share of (loss) gain from equity method investments (6,840 ) 38 14,944 2,912 Interest expense (930 ) (421 ) (3,104 ) (1,128 ) Interest income 4 4 9 10 Change in fair value of warrant liabilities — 676 2,886 (1,715 ) Change in fair value of earnout liabilities — 40,649 — 172,271 Foreign exchange transaction (loss) gain (61 ) 816 2,146 298 Gain on bargain purchase of OES Acquisition 1,098 — 1,098 — Net (loss) income before taxes $ (10,413 ) $ 39,301 $ 6,607 $ 161,352 Income tax benefit 1 — 1 1 Net (loss) income $ (10,412 ) $ 39,301 $ 6,608 $ 161,353 Net (loss) income attributable to noncontrolling interest (6,038 ) 33,432 3,371 137,081 Net (loss) income attributable to common stockholders (4,374 ) 5,869 3,237 24,272 Net (loss) income per share Net (loss) income per share, basic (0.13 ) 0.49 0.07 2.09 Net (loss) income per share, diluted (0.13 ) 0.39 0.04 1.52 Weighted average shares outstanding, basic 37,529,174 12,079,955 37,458,975 11,640,446 Weighted average shares outstanding, diluted 37,529,174 12,303,698 37,521,292 11,888,103 FALCON’S BEYOND GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands of U.S. dollars) Nine months ended September 30, 2025 September 30, 2024 Cash flows from operating activities Net income $ 6,608 $ 161,353 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 212 4 Foreign exchange transaction gain — (261 ) Share of gain from equity method investments (14,944 ) (2,912 ) Interest converted to preferred stock 441 — Credit loss expense — 12 Change in fair value of earnouts — (172,271 ) Change in fair value of warrants (2,886 ) 1,715 Share based compensation expense 1,214 1,072 Loss on sale of equipment — 2 Gain on bargain purchase of OES Acquisition (1,098 ) — Changes in assets and liabilities: Accounts receivable (1,068 ) 441 Contract assets (1,464 ) — Deferred transaction costs 588 — Other current assets (319 ) 36 Other non-current assets (1 ) (274 ) Accounts payable (2,495 ) 854 Accrued expenses and other current liabilities (5,389 ) 1,471 Contract liabilities 228 — Operating lease assets and liabilities 93 — Net cash used in operating activities (20,280 ) (8,758 ) Cash flows from investing activities Purchase of property and equipment (133 ) (9 ) Proceeds from sale of equipment 2 2 Short-term advances to affiliate (2,003 ) — Distribution from equity method investment PDP 26,955 — OES Acquisition (1,632 ) — Net cash provided by (used) in investing activities 23,189 (7 ) Cash flows from financing activities Proceeds from issuance of Series B preferred stock 8,033 — Short-term advances from affiliates — 2,287 Proceeds from debt – related party — 7,221 Proceeds from debt – third party — 1,250 Repayment of debt – related party (268 ) (2,297 ) Repayment of debt – third party (1,491 ) (1,344 ) Proceeds from related party credit facilities 1,769 6,464 Repayment of related party credit facilities (5,384 ) (5,392 ) Proceeds from exercised warrants — 111 Proceeds from RSUs issued to affiliates 529 626 Settlement of RSUs (420 ) — Net cash provided by financing activities 2,768 8,926 Net increase in cash and cash equivalents 5,677 161 Foreign exchange impact on cash (2,245 ) (5 ) Cash and cash equivalents at beginning of period 825 672 Cash and cash equivalents at end of period $ 4,257 $ 828 Reconciliation of Non-GAAP Financial Measure (Unaudited) The following table sets forth reconciliations of net income under US GAAP to Adjusted EBITDA for the following periods: Three months ended Nine months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net (loss) income $ (10,412 ) $ 39,301 $ 6,608 $ 161,353 Interest expense 930 421 3,104 1,128 Interest income (4 ) (4 ) (9 ) (10 ) Income tax benefit (1 ) — (1 ) (1 ) Depreciation and amortization expense 168 1 212 4 EBITDA (9,319 ) 39,719 9,914 162,474 Transaction (credit) expenses (10 ) — (1,788 ) 7 Credit loss expense related to the closure of the Sierra Parima Katmandu Park — — — 12 Share of equity method investee's gain on Tenerife Sale (264 ) — (30,019 ) — Impairment of PDP — — 5,332 — Impairment of Karnival 3,005 — 3,005 — Change in fair value of warrant liabilities — (676 ) (2,886 ) 1,715 Change in fair value of earnout liabilities — (40,649 ) — (172,271 ) Gain on bargain purchase of OES Acquisition (1,098 ) — (1,098 ) — Adjusted EBITDA $ (7,686 ) $ (1,606 ) $ (17,540 ) $ (8,063 ) Source: Falcon’s Beyond Global, Inc.