Seaport Entertainment Group Inc. (SEG)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 revenue was $16.07M, with net loss attributable to common stockholders of ($31.89)M and diluted EPS of ($2.51); non-GAAP adjusted net loss improved to ($22.76)M, reflecting better expense management and the consolidation of Tin Building operations .
• YoY, consolidated revenue rose 10.7% on a GAAP basis due to consolidation effects, while non-GAAP adjusted net loss per share improved by 71% to ($1.79); G&A fell 41% YoY to $9.78M, establishing a lower baseline exiting Q1 .
• Sequentially, Q1 is seasonally soft versus Q4 and Q3; hospitality revenue declined driven by strategic hour reductions and concept closures at Tin Building, partially offset by managed restaurant growth and stronger entertainment revenues from winter activations and Aviators ticketing .
• Management reiterated milestones: breakeven in 2026, profitability in 2027, stabilization by 2028, supported by Pier 17 winter structure (target completion by Nov) and new 17,500 sq ft event space; marketing for monetization of 250 Water Street attracted 130+ interested parties .
• Potential stock reaction catalysts: event space and winter enclosure enabling year-round monetization, Meow Wolf lease at Pier 17, and clearer G&A baseline; note that Wall Street consensus estimates were unavailable via S&P Global, limiting beat/miss assessment (values retrieved from S&P Global).

What Went Well and What Went Wrong

What Went Well

• Entertainment strength: Entertainment revenue +18% YoY, supported by Seaport winter activations, higher Aviators ticket sales, and sponsorships at Rooftop at Pier 17 .
• Expense discipline and mix: G&A reduced ~41% YoY to just under $10M; total operating EBITDA increased ~10% YoY (incl. unconsolidated ventures) despite seasonal softness, reflecting improved Tin Building efficiency and Lawn Club events momentum .
• Strategic milestones: “We had a productive start to 2025…well-positioned to capitalize on operational improvements, drive profitability, and further reduce cash burn.” — CEO Anton Nikodemus . Plans for Pier 17 winter structure and 17,500 sq ft event space broaden year-round activation and monetization pathways .

What Went Wrong

• Hospitality headwinds: Total hospitality revenue down 16% YoY (same-store -12%) driven by strategic reductions in operating hours and closures at Tin Building (Tin Building revenue -33%), highlighting near-term volume pressure .
• Negative EBITDA in quarter: Consolidated Segment Adjusted EBITDA was ($14.66)M in Q1 2025, reflecting seasonality and transition costs, keeping consolidated margins deeply negative in the quarter .
• Revenue softness vs prior quarter: Sequential decline from Q4’s $22.84M to Q1’s $16.07M due to seasonality and hospitality closures; net loss margin worsened sequentially even with YoY improvement in loss per share .

Financial Results

Quarterly Trend Comparison (seasonal context: Q3 strongest, Q1 softest)

YoY Comparison (GAAP and pro forma context)

Note: Pro forma YoY comparison includes Tin Building as consolidated for Q1 2024 for comparability .

Margins (calculated from reported figures)

Calculated by dividing net loss attributable to common stockholders by total revenue (Fintool calculation from cited figures).

Revenue Category Breakdown (Q1)

Period-over-period comparability impacted by consolidation of Tin Building beginning Jan 1, 2025 .

Balance Sheet and Capitalization (Q1 2025)

Guidance Changes

SEG did not issue formal quantitative revenue/EPS guidance; management provided qualitative milestones and baselines.

Earnings Call Themes & Trends

Management Commentary

• “We had a productive start to the year…well-positioned to capitalize on operational improvements, drive profitability, and further reduce cash burn.” — Anton Nikodemus, CEO .
• “Same-store hospitality revenues were down 12%…overall hospitality revenues declined 16%, driven by a 33% reduction at the Tin Building…offset by 5% growth at managed restaurants.” — Anton Nikodemus .
• “General and administrative expenses…just under $10M, resulting in a…41% reduction…Q2 corporate G&A should represent a baseline.” — Matt Partridge, CFO .
• “We launched the marketing process [for 250 Water Street]…over 130 potential buyers or partners expressed interest.” — Anton Nikodemus .
• “We are making progress…transform the Seaport from a seasonal destination into a year-round vibrant neighborhood.” — Anton Nikodemus .

Q&A Highlights

• Estimates/G&A baseline: Management flagged non-repeating separation costs in 2024 and one-time onboarding costs in Q1; Q2 G&A intended as a baseline for longer-term improvements .
• Segment reporting and consolidation: Reclassified segments; Tin Building consolidated in 2025 to reflect internalized F&B ops, with pro forma 2024 comps provided for apples-to-apples analysis .
• Tin Building trajectory: Despite revenue declines from closures, asset-level EBITDA improved 7% YoY; focus on optimizing operations with Jean-Georges .
• Year-round monetization: Winter enclosure (target Nov) and 17,500 sq ft event space at Pier 17 to mitigate seasonality and expand events capacity up to ~3,800 combined attendees .
• 250 Water Street monetization: Active marketing process with robust interest; intent to drive best long-term value via sale/partnership .

Estimates Context

• Wall Street consensus (S&P Global) for Q1 2025 EPS and revenue was unavailable; no consensus metrics were returned for SEG. Values retrieved from S&P Global.

*Values retrieved from S&P Global; consensus unavailable via S&P Global for Q1 2025.

Implication: Without consensus, formal beat/miss cannot be assessed; investors should anchor on reported trends (YoY adjusted net loss improvement, G&A baseline formation, entertainment momentum) and track emerging coverage.

Key Takeaways for Investors

• Q1 seasonality and intentional F&B closures pressured revenue, but non-GAAP adjusted net loss improved materially and G&A reset lower; watch Q2 as the cost baseline and summer activation inflection point .
• Entertainment momentum and year-round infrastructure (winter enclosure + event space) are critical to mitigating seasonality and expanding monetization windows; construction completion targeted by November .
• Tin Building consolidation increases comparability; despite revenue declines, unit-level EBITDA improved—execution with Jean-Georges remains a key lever for margin recovery .
• Robust interest in 250 Water Street monetization offers potential balance sheet simplification and capital recycling; outcome could be a medium-term valuation catalyst .
• GITANO NYC grand opening and Meow Wolf lease reinforce destination appeal and traffic drivers at Pier 17; expect incremental sponsorship and events upside .
• Negative net debt and long-dated maturities (no meaningful until Q3 2029) provide financial flexibility to execute the strategy through the transition period .
• Near-term trading: Expect narratives to focus on Q2 G&A baseline, summer entertainment cadence, and visible progress on Pier 17 projects; medium-term thesis hinges on consistent event monetization, hospitality optimization, and 250 Water Street monetization.