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Seaport Entertainment Group Inc. (SEG)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $39.801M, up 18.2% year over year; net loss improved to ($14.8M) with diluted EPS of ($1.16), and non-GAAP adjusted EPS of ($0.58) .
  • Entertainment led the quarter with 22 rooftop concerts (15 sold out) and a >90% sell-through rate; segment adjusted EBITDA rose meaningfully year over year on lower per-show costs and lapping a prior-year bad debt provision .
  • Hospitality revenue declined on Tin Building venue closures and reduced hours, but same-store hospitality grew 1% and segment operating costs were contained; corporate G&A was down ~55% YoY to $8.3M .
  • Management is exploring strategic alternatives for 250 Water Street and targeting operational breakeven sometime in 2026; Nike exercised an early office lease termination at Pier 17, paying $2M in Q2 and $2M due in 2027 .

What Went Well and What Went Wrong

What Went Well

  • Entertainment momentum: “We are in the midst of a strong summer concert season… 22 shows during the second quarter, including 15 sold out performances… sell through rate was over 90%” .
  • Cost discipline and mix: Entertainment operating EBITDA rose on “lower per show production expenses and artist fees… and a non repeating $1,000,000 bad debt provision taken in Q2 2024” .
  • Hospitality stabilization: “Hospitality operating EBITDA including unconsolidated ventures grew 38% YoY… disciplined cost management at the Tin Building” .

What Went Wrong

  • Tin Building headwinds: “Total hospitality revenues… decreased 4% YoY, while same store hospitality revenue increased 1%… declines… largely a result of reduced operating hours and select venue closures at the Tin Building” .
  • Event comp at Ballpark: “Year over year headwind… due to the absence of the Savannah Bananas… did not repeat this season” .
  • Segment profitability still negative: Consolidated segment adjusted EBITDA remained slightly negative in Q2 despite improvements; consolidated operating loss was ($16.0M) .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Thousands)$22,844 $16,069 $39,801
Operating Income (Loss) ($USD Thousands)($25,253) ($32,702) ($16,007)
Net Loss Attributable to Common Stockholders ($USD Thousands)($41,626) ($31,888) ($14,774)
Diluted EPS ($USD)($3.63) ($2.51) ($1.16)
Non-GAAP Adjusted Net Loss ($USD Thousands)($19,189) ($22,758) ($7,415)
Non-GAAP Adjusted EPS ($USD)($1.67) ($1.79) ($0.58)
Q2 YoY VarianceAmountPercent
Revenue YoY+$6,131 +18.2%
Net Loss YoY+$20,573 +58.8%
Adj. Net Loss YoY+$20,969 +73.9%
Adj. EPS YoY+$4.56 +88.6%

Segment breakdown (company format; includes intercompany eliminations):

SegmentQ2 2024 Pro Forma Revenue ($USD Thousands)Q2 2025 Revenue ($USD Thousands)Q2 2024 Pro Forma Segment Adj. EBITDA ($USD Thousands)Q2 2025 Segment Adj. EBITDA ($USD Thousands)
Hospitality$17,804 $15,197 ($3,426) ($2,129)
Entertainment$17,153 $20,118 $2,134 $4,744
Landlord Operations$9,139 $9,771 ($5,893) ($2,968)
Intercompany Eliminations——$0 $134
Consolidated Segment Adj. EBITDA——($16,256) ($353)

Key KPIs (Seaport NYC)

KPIQ1 2025Q2 2025
Seaport EBITDA Per Sq. Ft. (Total)($25.04) ($8.21)
Pier 17 EBITDA Per Sq. Ft.($28.52) ($2.98)
Tin Building EBITDA Per Sq. Ft.($106.99) ($67.91)
Same-Store F&B – Managed Restaurants YoY+2.1% +11.6%
Same-Store F&B – Tin Building YoY(23.9%) (17.1%)
Total Same-Store Seaport Hospitality YoY(11.9%) +1.1%

Balance sheet highlights

MetricQ4 2024Q1 2025Q2 2025
Cash, Restricted Cash & Equivalents ($USD Thousands)$167,845 $132,000 $125,363
Total Debt Outstanding ($USD Thousands)$102,387 $102,387 $101,401
Net Debt ($USD Thousands)—($29,613) ($23,962)
Weighted Avg Effective Interest Rate7.8% 7.3% 7.3%
Next Meaningful Debt MaturityQ3 2029 Q3 2029 Q3 2029

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Operational breakeven targetFY 2026Not previously specified“Operational breakeven sometime in 2026” New target
Pier 17 winter enclosureFall/Winter 2025Announced year-round programming with enclosure (Q4 2024) Initial installation in October; opening to public in November Timeline clarified
Concert programming20255-year Live Nation extension effective 1/1/2025 Strong Q2 sell-through; booking winter season Maintained; execution improving
Nike lease termination payment2025–2027N/A$2M received in Q2 2025; $2M due at end of revised term in 2027 New disclosure
Corporate G&A trajectory2025–2026N/AExpect some one-time tech costs in 2H 2025; aim to improve quarterly run-rate in 2026 New trajectory
250 Water Street strategy2025Exploring monetization (mentioned Q4 2024) Active strategic alternatives process; update expected near-term Progressing

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
250 Water Street monetization“Exploring long-term monetization… sale or strategic partnership” “Tremendous interest… evaluating options… optimistic for further update” Advancing
Internalizing F&B / Tin BuildingInitial internalization with CCMC in Q4/Q1 Collapsed JV; converted management to license agreements; SEG directly managing operations Structural completion; focus on efficiency
Rooftop at Pier 17 programming5-year Live Nation extension; plan for enclosure in 2025 22 Q2 shows, 15 sold out; >90% sell-through; winter enclosure installation in Oct, opening Nov Strong execution; expanding calendar
Las Vegas Aviators & BallparkStrong team performance highlighted in Q1 Secured PCL playoff spot; adding home games in Sept; internalizing “Enchant” event Positive sports catalyst; off-season events expansion
Leasing progressMeow Wolf lease in Q1; GITANO NYC opening New leases: Willett’s NYC, Cork Wine Bar; Nike terminating office lease early (creates optionality) Improving occupancy/mix
Corporate costsHigh separation-related costs in 2024 G&A down 55% YoY to $8.3M; targeted run-rate improvements Structural improvement

Management Commentary

  • “We are optimistic the year-over-year gains we achieved in the second quarter across all lines of business will carry into the third quarter…” (Anton Nikodemus, CEO) .
  • “These changes enable Seaport Entertainment Group to directly manage the hospitality operations… a win win for us as well as the JG team.” (CEO on collapsing Tin Building JV and licensing) .
  • “The Q2… show count was double that of Q2 2024… sell through rate was over 90%… outperforming similar sized venues across the country despite difficult weather.” (CEO on Rooftop concerts) .
  • “Entertainment operating EBITDA… increased by 122%… lower per show production expenses and artist fees… non repeating $1,000,000 bad debt provision taken in Q2 2024.” (CFO) .
  • “Stabilizing the Tin Building and reducing its cash burn remains our highest priority.” (CEO) .

Q&A Highlights

  • Format: Questions were solicited in advance and incorporated into prepared remarks (no live Q&A segment) .
  • Themes addressed: 250 Water Street monetization timeline; Tin Building operating plan and cost efficiency; Rooftop winter enclosure schedule; Aviators playoff impact; corporate G&A run-rate outlook .
  • Clarifications: Nike termination payment recognition is ratable over remaining lease term to 2027; additional $2M due at end of revised term .
  • Tone: Constructive and execution-focused; emphasis on building a foundation and near-term operational catalysts (concerts, events, playoffs) .

Estimates Context

  • Wall Street consensus for Q2 2025 EPS and revenue was not available via S&P Global at the time of this analysis; we validated S&P data, which provides actuals but did not surface Q2 consensus figures for SEG. Values retrieved from S&P Global*.
  • Implication: With estimates unavailable, buyside will anchor on YoY/seq trends and segment profitability inflections; Entertainment outperformance and G&A reductions are positives, while Tin Building stabilization remains the key swing factor .

Key Takeaways for Investors

  • Entertainment strength is durable: doubled show count, >90% sell-through, and improved unit economics should continue to support revenue/margin mix through Q3 and into the winter enclosure period .
  • Hospitality is stabilizing: same-store +1% with cost containment offsetting Tin Building closures; watch for the amended operating plan later this year as the main margin catalyst .
  • G&A and interest line are tailwinds: Q2 G&A down 55% YoY; interest moved positive on capitalized interest, cash yields, and lower loan balance—supporting loss improvement trajectory .
  • Near-term catalysts: Aviators’ September playoffs add revenue; major fall events (NYC Wine & Food Festival) and new premium offerings (Liberty Club, Patron Patio) should sustain traffic and upsell .
  • Strategic optionality: 250 Water Street process could reduce cash burn and reshape the balance sheet; early Nike lease termination increases Pier 17 flexibility for hospitality-led tenancy .
  • Balance sheet capacity: Net debt negative; no meaningful maturities until Q3 2029; execution, not liquidity, is the primary constraint .
  • Trading setup: With estimates sparse, the narrative hinges on continued Entertainment outperformance, visible cost improvements, and Tin Building stabilization updates—positive headlines on 250 Water Street or winter enclosure execution are likely stock-moving catalysts .

Citations:

Note: Values retrieved from S&P Global* where estimates context was discussed.