Executive Summary

Q3 2024 consolidated revenue was $2.07M, up sequentially from $1.80M in Q2 and $1.52M in Q1, while unconsolidated affiliates continued to scale: FCG revenue $13.2M (+190% YoY) and PDP revenue $17.8M (+$2.0M YoY) .
GAAP net income was $39.3M (diluted EPS $0.46), primarily driven by a $40.6M non‑cash gain from the change in fair value of earnout liabilities; Adjusted EBITDA improved to ($1.6)M from ($6.2)M in Q3’23 .
Capital structure simplified: 17.5M performance-based earnout shares forfeited; stock dividend of 0.2 shares per Class A share declared; revolving credit facility expanded to $15M and term debt refinanced at 8% with 2034 maturity, reducing earnings volatility and extending runway .
Potential stock reaction catalysts: accelerating project activity tied to Qiddiya (Dragon Ball theme park, Aquarabia, gaming/esports) and balance-sheet clean‑up that reduces overhang and supports execution through 2025 .

What Went Well and What Went Wrong

What Went Well

Significant growth at affiliates: FCG revenue rose to $13.2M (+$8.6M YoY), with operating income of $0.1M versus a ($5.2)M operating loss last year; PDP revenue increased to $17.8M with net income of $3.2M (FBYD share $1.6M) .
Non‑cash tailwinds and cost discipline: Q3 net income benefited from a $40.6M gain on earnout liabilities and a $17.9M reduction in operating losses YoY; Adjusted EBITDA improved to ($1.6)M from ($6.2)M in Q3’23 .
Management tone on pipeline strength: “ongoing project work for the Qiddiya Investment Company…first-of-its-kind immersive entertainment projects for Qiddiya City,” underscoring visibility into 2025+ demand (Simon Philips) .

What Went Wrong

Core consolidated scale remains small: consolidated revenue was $2.07M, reflecting primarily corporate/shared services fees, while operating loss was ($2.46)M in the quarter .
Equity-method headwinds at FCG in Q3: After QIC preferred return and basis amortization, FBYD’s share from FCG was a net loss of $1.7M (vs. positive in Q1–Q2), introducing quarterly variability .
Liquidity tightness: cash and cash equivalents were $0.83M at 9/30/24, reinforcing reliance on related-party and revolver capacity despite facility expansion .

Financial Results

Consolidated P&L and Non-GAAP

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD Millions)	$1.52	$1.80	$2.07
Net Income attributable to common ($USD Millions)	$17.17	$1.23	$5.87
Diluted EPS ($)	$1.53	$0.01	$0.46
Adjusted EBITDA ($USD Millions)	($4.51)	($1.94)	($1.61)

Notes: Consolidated comparability across periods is affected by the deconsolidation of FCG (equity method since July 27, 2023) .

Year-over-Year (Q3 2023 vs Q3 2024)

Metric	Q3 2023	Q3 2024
Revenue ($USD Millions)	$1.58	$2.07
Adjusted EBITDA ($USD Millions)	($6.24)	($1.61)
GAAP Net Income ($USD Millions)	$4.31	$39.30

Drivers: Q3’24 GAAP net income primarily reflects $40.65M gain from earnout liabilities and improved operating profile; prior-year benefited from a $27.4M deconsolidation gain (not repeated) .

Versus Estimates

Metric	Consensus (S&P Global)	Actual Q3 2024	Surprise
Revenue	N/A*	$2.07M	N/A*
Diluted EPS	N/A*	$0.46	N/A*

S&P Global consensus was unavailable at the time of analysis; comparisons are not shown. Values marked with * would be retrieved from S&P Global.

Segment/Affiliate Performance (Equity-Method and JV Metrics)

Metric	Q1 2024	Q2 2024	Q3 2024
FCG Revenue ($USD Millions)	$14.9	$15.7	$13.2
PDP Revenue ($USD Millions)	$7.5	$11.3	$17.8
FBYD Share from FCG ($USD Millions)	$0.5	$1.0	($1.7)
FBYD Share from PDP ($USD Millions)	$0.5	$0.7	$1.6

Selected KPIs and Balance Sheet

KPI	Q1 2024	Q2 2024	Q3 2024
Change in Fair Value of Earnout Liabilities ($USD Millions)	+$118.62	+$13.01	+$40.65
Change in Fair Value of Warrant Liabilities ($USD Millions)	+$0.21	($2.60)	+$0.68
Cash and Cash Equivalents ($USD Millions, period-end)	$1.05	$1.66	$0.83
Total Debt Components ($USD Millions, period-end)	ST $8.47; CPLTD $6.66; LT $20.48	ST $8.47; CPLTD $7.19; LT $19.85	ST $8.47; CPLTD $1.87; LT $25.53

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company financial guidance (revenue, margins, OpEx, tax)	FY/Q4 2024+	None disclosed	None disclosed	N/A
Capital actions	Q3 2024	N/A	Forfeiture of 17.5M performance-based earnout shares to reduce liability overhang	Simplification
Capital actions	Q4 distribution	N/A	Stock dividend: 0.2 shares per Class A share, record 12/10/24, payable 12/17/24	Distribution
Liquidity/credit lines	Effective 9/30/24	Revolver $10M	Revolver increased to $15M; term debt refinanced to 8% with 2034 maturity	Increased capacity/extended tenor

No formal quantitative revenue/EPS/margin guidance was provided in the quarter’s materials .

Earnings Call Themes & Trends

Note: No Q3 2024 earnings call transcript found in the company document set; themes below draw from Q1–Q3 press releases and Q3 earnings slides.

Topic	Previous Mentions (Q1–Q2 2024)	Current Period (Q3 2024)	Trend
Qiddiya mega‑projects (Dragon Ball theme park, Aquarabia, gaming/esports)	Q1: Announced leadership roles and visibility into multiple districts . Q2: Continued progress, cited as core driver for FCG growth .	Emphasized ongoing master planning and design work; cornerstone of business momentum into 2025+ .	Strengthening pipeline visibility
FCG revenue growth and profitability	Q1: $14.9M revenue, positive net income . Q2: $15.7M revenue, positive net income .	$13.2M revenue (+190% YoY); small operating profit at FCG but FBYD’s share negative after preferences .	Solid YoY; mixed sequential share impact
PDP (hotel JV) performance	Q1: $7.5M revenue, higher rates . Q2: $11.3M revenue, higher occupancy and rates .	$17.8M revenue, continued occupancy/rate gains; FBYD share $1.6M .	Improving
Capital structure and overhang	Q1–Q2: No major corporate actions cited.	Earnout forfeiture, stock dividend, revolver upsized, term debt refinanced .	De‑risking/extended runway
Non‑cash P&L drivers	Q1: +$118.6M earnout FV gain . Q2: +$13.0M earnout FV gain; warrants negative .	+$40.6M earnout FV gain; warrants modest positive .	Volatile but supportive in 2024

Management Commentary

“One of the key highlights of this quarter is our ongoing project work for the Qiddiya Investment Company…master planning and designing…first-of-its-kind immersive entertainment projects for Qiddiya City.” — Simon Philips, President .
“We continue to see positive momentum…a year-over-year increase in revenue in excess of 190% in Falcon’s Creative Group, and a significant reduction in Company overhead costs…restructure and simplify its capital and debt stack…” — Jo Merrill, CFO .
“We saw continued strength…positive revenue increases across FCG, PdP, and FBG…grow our differentiated product and services…” — Scott Demerau, Executive Chairman (Q2) .
“This quarter’s achievements underscore the strength of our business model…enduring appeal of our unique entertainment offerings.” — Simon Philips (Q1) .

Q&A Highlights

No Q3 2024 earnings call transcript was available in the company document set; no Q&A themes to report this quarter [ListDocuments showed none].

Estimates Context

S&P Global consensus (revenue, EPS) was unavailable at the time of analysis; as a result, we do not present beat/miss figures this quarter. Values would be retrieved from S&P Global if available (and would be marked with an asterisk and the “Values retrieved from S&P Global” disclaimer).
Directionally, consolidated revenue rose sequentially for the third straight quarter while diluted EPS was positive, but GAAP results were heavily influenced by non‑cash fair value gains on earnout liabilities .

Key Takeaways for Investors

Execution leverage sits in affiliates: FCG and PDP demonstrated strong YoY growth and operating profitability at the affiliate/JV level; FBYD’s consolidated P&L remains small but improves as equity-method income scales .
P&L volatility driven by non‑cash items: Earnout/warrant fair value changes materially shaped GAAP net income; Adjusted EBITDA offers a clearer view of underlying progress (improving to ($1.6)M) .
Balance‑sheet simplification: Earnout share forfeiture and stock dividend reduce liability overhang and may dampen future P&L volatility; expanded revolver and 2034 term debt maturity bolster liquidity runway .
2025+ pipeline visibility: Continued Qiddiya engagements (Dragon Ball, Aquarabia, gaming/esports) and partnerships (Hershey, PBS Kids, K11, Tanseisha) support multi‑year opportunity set, with potential for incremental monetization via FBB (attractions/tech sales) .
Watch sequential conversion: Track FBYD’s share of affiliate earnings (especially FCG after QIC preference) and PDP seasonality to gauge how project milestones translate to consolidated cash flow .
Liquidity and cash conversion: Low quarter‑end cash underscores the importance of revolver access and working capital management as the project slate scales .
Near‑term trading setup: Narrative momentum (Qiddiya progress) and balance‑sheet clean‑up are supportive; absence of formal guidance and estimate visibility increases focus on quarterly affiliate updates and contract wins .

Citations:

Q3 2024 8‑K press release, financial statements, and non‑GAAP reconciliation .
Q2 2024 8‑K press release and financials .
Q1 2024 8‑K press release and financials .
Q3 2024 earnings slides (pipeline/partnerships, affiliate highlights) .
Oct 1, 2024 press release and 8‑K on stock dividend and earnout forfeiture .

Falcon's Beyond Global, Inc. (FBYD)·Q3 2024 Earnings Summary