Falcon's Beyond Global, Inc. (FBYD)·Q2 2024 Earnings Summary

Executive Summary

• Q2 2024 consolidated revenue was $1.8M; unconsolidated units delivered strong topline: Falcon’s Creative Group (FCG) $15.7M (+202% YoY) and Producciones de Parques (PDP) $11.3M, with FBYD’s share of income of $1.0M (FCG) and $0.7M (PDP) .
• Consolidated net income swung to $8.0M from a loss of $(8.8)M in Q2 2023, driven primarily by a $13.0M gain from change in fair value of earnout liabilities and reduced operating losses, partially offset by a $(2.6)M loss from warrant fair value changes .
• Adjusted EBITDA improved materially YoY to $(1.9)M from $(8.4)M, aided by lower SG&A following the post‑de-SPAC transition and positive equity-method contributions .
• No formal quantitative guidance and no Q2 2024 earnings call transcript were available in the document catalog; investor narrative centers on momentum in Qiddiya/Dragon Ball and PDP hotels, alongside equity income and liability fair-value dynamics .

What Went Well and What Went Wrong

What Went Well

• FCG revenue reached $15.7M and delivered operating income of $2.3M and net income of $2.5M; Falcon’s share of FCG income was $1.0M for Q2, reflecting execution on Dragon Ball theme park, Aquarabia, and the Gaming & Esports district workstreams at Qiddiya .
• PDP JV revenue rose to $11.3M with operating income of $1.6M and net income of $1.3M; Falcon’s share of PDP income was $0.7M, driven by occupancy and rate improvements at Tenerife and Mallorca .
• Management highlighted strategic momentum: “continued strength… with positive revenue increases across Falcon’s Creative Group, Producciones de Parques and Falcon’s Beyond Global” (Scott Demerau) and “monumental achievement” on the first‑ever Dragon Ball theme park (Simon Philips), underscoring pipeline visibility and brand positioning .

What Went Wrong

• Consolidated revenue remains small at $1.8M (reflecting deconsolidation of FCG and reliance on equity-method contributions), which can limit near-term reported operating leverage .
• Fair-value volatility persists: a $(2.6)M warrant liabilities loss reduced reported results, highlighting sensitivity of GAAP earnings to non-operating marks .
• Balance sheet shows large earnout liabilities ($73.8M current; $216.9M non-current), and warrant liabilities ($6.3M), which may sustain earnings volatility and investor focus on liability trajectories .

Financial Results

Segment and JV performance (reported outside consolidation):

Selected KPIs and balance sheet items:

Notes:

• Q1 EPS and EBITDA benefited from a large earnout fair value gain ($118.6M), while Q2 included a smaller earnout gain ($13.0M) and a warrant fair value loss ($(2.6)M), materially impacting GAAP comparability .

Guidance Changes

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available in the document catalog; trend analysis below references press releases.

Management Commentary

• “We saw continued strength in the second quarter of 2024 with positive revenue increases across Falcon’s Creative Group, Producciones de Parques and Falcon’s Beyond Global.” — Scott Demerau, Co‑Founder and Executive Chairman .
• “Our master planning, attraction design and creative guardian work on the first‑ever Dragon Ball theme park has been a monumental achievement… we are excited about future opportunities… The momentum we are building is just the beginning of an extraordinary journey.” — Simon Philips, President .
• “Adjusted EBITDA… improvement primarily driven by lower selling, general and administrative expenses… and positive returns from the Company’s equity method investments.” — Company statement; CFO echoed robust performance and overhead reduction .

Q&A Highlights

• No Q2 2024 earnings call transcript was available in the document catalog; Q&A details and any guidance clarifications could not be assessed .

Estimates Context

• S&P Global Wall Street consensus for Q2 2024 EPS and revenue was unavailable at the time of this analysis due to access limitations; therefore, estimate comparisons are omitted. Values would be retrieved from S&P Global when available.

Key Takeaways for Investors

• Equity-method engines are performing: FCG and PDP both delivered revenue growth and profitability, with FBYD’s share of income totaling $1.7M in Q2 (FCG $1.0M; PDP $0.7M), supporting cash-light reported operations .
• GAAP earnings are materially influenced by fair-value marks: a $13.0M earnout gain and $(2.6)M warrant loss shaped Q2 results; investors should focus on Adjusted EBITDA trajectory and segment/JV fundamentals for core performance .
• Cost structure is improving: SG&A reductions post-public readiness are translating to meaningfully better Adjusted EBITDA YoY (from $(8.4)M to $(1.9)M), tightening the path to breakeven .
• PDP hotels show solid demand: occupancy and rate tailwinds in Tenerife and Mallorca continue, underpinning predictable JV income contributions .
• Strategic pipeline momentum: Qiddiya’s Dragon Ball, Aquarabia, and Gaming & Esports district projects bolster visibility for FCG’s revenue and margin sustainability .
• Liquidity/capital considerations: cash rose to $1.664M and investments in equity method interests increased to $62.826M, but large earnout/warrant liabilities warrant monitoring for future P&L volatility .
• Near-term trading: focus on incremental announcements from Qiddiya/FCG deliveries and PDP performance updates; medium-term thesis hinges on scaling brand/IP activations and ride/technology sales while stabilizing fair-value noise .