Falcon's Beyond Global, Inc.

What they do

Falcon's Beyond designs, develops, and commercializes immersive entertainment experiences through its three divisions: Falcon's Creative Group (FCG), Falcon's Beyond Brands (FBB), and Falcon's Beyond Destinations (FBD). It generates revenue from attraction services/product sales, management fees from its 50:50 joint venture with Meliá Hotels International (Producciones de Parques, or PDP), and corporate/shared services fees from FCG. It also operates a Falcon's Attractions business established in mid-2025 from the acquisition of Oceaneering Entertainment Systems (OES) assets.

Revenue drivers

• Falcon's Attractions — Provides attraction design, engineering, spares and service; generated Q2 2026 revenue within consolidated $5.6M and had a contracted pipeline of $28.4M at quarter-end.
• Management fees from Producciones de Parques (PDP) — 50:50 joint venture with Meliá Hotels International; PDP recognized $6.5M revenue in Q2 2026, and Falcon's earns management fees included in consolidated revenue.
• Corporate and shared services fees from Falcon's Creative Group — FCG is an unconsolidated subsidiary that generated $12.5M revenue in Q2 2026; Falcon's charges it corporate/shared services fees, which are part of consolidated revenue.

Recent performance

For Q2 2026 (three months ended June 30, 2026), Falcon's reported consolidated revenue of $5.6 million, more than double the prior-year period, and a net loss of $0.3 million. Adjusted EBITDA was a loss of $5.2 million, excluding a $4.0 million reversal of accrued transaction expenses and a gain on partial liquidation of the Karnival joint venture. FCG generated $12.5 million revenue and $0.4 million net income; Falcon's share of FCG net loss was $1.2 million after Qiddiya preferred return and basis difference amortization. PDP generated $6.5 million revenue and $0.4 million net income; Falcon's share of PDP net gain was $0.2 million. Consolidated revenue for the three months ended March 31, 2026 was $5.4 million, and cash and equivalents were $3.1 million at June 30, 2026.

Strategy

Management emphasizes building Falcon's Attractions, which added its first major design and build contract in Q2 2026, incremental to the spares and service business from the OES acquisition. They plan to leverage the integrated experience platform across creative development, proprietary technologies, and engineering to scale entertainment experiences globally. The company continues to monitor equity method investments for impairment, recording $8.3 million in such losses in 2025. Warrants were amended to exchange for Class A shares on October 6, 2028, and earnout shares were forfeited in September 2024.

Risks

• Negative operating cash flow — Operating cash flow was negative $24.6 million in 2025 and has been negative in each year from 2022 through 2025, indicating potential liquidity pressure.
• Equity method investment impairments — The company recorded $8.3 million in impairment losses on equity method investments in 2025, and may incur further impairments if fair values decline.
• Dependence on joint ventures — Revenue relies on management fees from PDP and FCG, which are unconsolidated entities, exposing Falcon's to their operating performance and governance.
• Warrant dilution — Warrants are exchangeable for 0.25 shares of Class A common stock on October 6, 2028, which will result in issuance of new shares and potential dilution.

Outlook

Management expressed confidence in the momentum of Falcon's Attractions, citing a $28.4 million contracted pipeline at Q2 2026. FCG's pipeline was $17.1 million at quarter-end. The company expects to build on the OES acquisition and add more design and build contracts. No forward-looking financial guidance was provided in the earnings release.