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Seaport Entertainment Group Inc. (SEG)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered a narrower loss and an EPS beat versus S&P Global consensus, but revenue missed due to lower Tin Building performance and reduced concert count; GAAP diluted EPS was ($2.61) vs consensus ($0.76), a beat of $0.19, while revenue was $45.05M vs consensus $46.90M, a miss of ~$1.85M (consensus values marked with asterisks; see Estimates Context).
  • Management increased the agreed sale price for 250 Water Street to $152.0M with deposit at $7.5M and extended the outside closing date to December 15, 2025, expected to improve cash burn by >$7M post-close through debt repayment and carrying cost elimination .
  • Operational highlights included record event-driven performance (Macy’s 4th of July produced the single highest revenue day), strong Rooftop at Pier 17 sell-through (86%), and successful NYC Wine & Food Festival hosting (~35,000 visitors), offset by softness at certain legacy venues and the Tin Building .
  • Balance sheet remains strong with $116.8M in cash, cash equivalents and restricted cash, net debt negative at ($15.4M), and no meaningful maturities until Q3 2029; 40% fixed at 4.9%, 60% floating at 8.8% effective with swap .
  • Near-term focus: flow-through over top-line growth in Q4, leasing/programming momentum (Flanker Kitchen + Hidden Boot Saloon at Pier 17), Tin Building strategy update next call, and monetization/optimization of key assets (Nike termination income recognition through Q1 2027; ESPN rent ceases) .

What Went Well and What Went Wrong

What Went Well

  • “Single highest grossing revenue day in SEG’s history” driven by Macy’s 4th of July Fireworks celebration and multi-venue buyouts, showcasing the district’s marquee-event capability .
  • Rooftop at Pier 17: Q3 hosted 35 concerts with 22 near sell-outs; sell-through rate 86% and premium upsell initiatives (Patron Patio, Liberty Club) increased spend and enhanced guest experience .
  • NYC Wine & Food Festival drew ~35,000 visitors; partnership with Chef Jean‑Georges highlighted SEG’s hospitality platform and drove awareness for the Seaport .

What Went Wrong

  • Hospitality segment softness at Tin Building and certain legacy standalone restaurants pressured revenue; consolidated hospitality revenue declined year-over-year on a pro forma basis despite Long Club/Dutano strength .
  • Entertainment revenue declined 5% YoY due to seven fewer concerts versus prior year; segment-adjusted EBITDA down 51% YoY given timing shifts and higher sponsorship fulfillment costs .
  • Landlord segment incurred ~$6M non-cash charges (loss on 250 Water Street “held for sale” and Rooftop winter structure write-off), depressing reported results; excluding these, landlord segment-adjusted EBITDA improved 76% YoY .

Financial Results

Headline metrics vs prior periods and consensus

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$39.43 $39.80 $45.05
GAAP Diluted EPS ($USD)($5.89) ($1.16) ($2.61)
Non-GAAP Adjusted EPS ($USD)($4.54) ($0.58) ($0.57)

Actual vs S&P Global consensus (Q3 2025)

MetricConsensus (Q3 2025)Actual (Q3 2025)Surprise
Revenue ($USD Millions)$46.90*$45.05 Miss (~$1.85M; ~3.9%)
GAAP Diluted EPS ($USD)($0.76)*($2.61) Beat ($0.19)

Consensus values retrieved from S&P Global*

Segment revenue and Segment Adjusted EBITDA

SegmentQ3 2024 Pro Forma Revenue ($M)Q3 2025 Revenue ($M)Q3 2024 Pro Forma Segment Adj. EBITDA ($M)Q3 2025 Segment Adj. EBITDA ($M)
Hospitality$17.24 $16.69 ($0.33) ($2.46)
Entertainment$23.24 $22.52 $3.83 $1.87
Landlord Operations$8.91 $9.02 ($5.13) ($7.43)
Other—$0.32 —$0.15
Consolidated Segment Adj. EBITDA——($0.91) ($7.87)

Note: Segment revenue totals include intercompany eliminations; consolidated revenue per statements is $45.05M . Intercompany eliminations: $3.04M (Hosp), ($0.13M) (Ent), ($2.76M) (Landlord), ($0.17M) (Other) .

Selected KPIs and balance sheet

KPIQ2 2025Q3 2025
Cash, cash equivalents & restricted cash ($M)$125.4 $116.8
Total debt outstanding ($M)$101.4 $101.4
Net debt ($M)($24.0) ($15.4)
Fixed-rate debt (%; Wtd Avg Rate)40% at 4.9% 40% at 4.9%
Floating-rate debt (%; Effective Rate with swap)60% at 8.8% 60% at 8.8%
Weighted-average maturity (years)~7.7 ~7.5
Next meaningful maturitiesQ3 2029 Q3 2029
Rooftop concerts (Q3)—35 shows; 22 near sell-outs; 86% sell-through
NYC Wine & Food FestivalAnnounced hosting ~35,000 visitors hosted
Macy’s 4th of July—Single highest revenue day for SEG

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
250 Water Street sale price & closingOutside closing date Dec 15, 2025$150.5M agreement Price increased to $152.0M; deposit $7.5M; extensions exercised Raised price; extended outside closing date
Tin Building strategic planNext call (early March timing)Not specifiedFull assessment and go-forward plan to be provided next earnings call New timing commitment
Q4 2025 F&B revenue growthQ4 2025Not specifiedExpect moderation in F&B revenue growth to prioritize flow-through/profitability Lower growth focus; margin emphasis
Nike termination income recognitionThrough Q1 2027Half payment received Q2 2025 Recognize termination income through 2026 and into Q1 2027; monthly rent continues Clarified recognition timeline
ESPN rental revenueOngoingESPN tenant at Pier 17 No further rental revenue recognition from ESPN going forward Lowered/ceased

Earnings Call Themes & Trends

TopicQ1 2025 (Prior-2)Q2 2025 (Prior-1)Q3 2025 (Current)Trend
Rooftop winter enclosurePlanned installation for year-round programming Advancing approvals; initial install targeted Decision not to proceed given cost/complexity Reversed; focus on outdoor season and premium upsells
Hospitality optimizationInternalized F&B ops; CCMC agreement; Tin Building consolidation Same-store F&B up 1%; total down 4% due to Tin Building; cost-containment Same-store F&B up 8%; total hospitality incl unconsolidated up 5%; Tin Building softness persists Sequential improvement ex Tin Building
Event programmingGITANO NYC launch; concert season kickoff 22 Q2 shows; >90% sell-through; Macy’s planning 35 Q3 shows; 86% sell-through; Macy’s 4th, Nike Global Finals, M&M’s event; NYC WFF hosted Strong, scaling marquee events
Leasing/programmingMeow Wolf lease; meeting/event space at Pier 17 Willett’s NYC, Cork Wine Bar; river deck bar buildout Flanker Kitchen + Hidden Boot Saloon; ~110k sq ft leased/programmed TTM Growing pipeline; back-half 2026 openings
Macro/tourismN/AN/AInternational visitation ~90% of 2019; domestic resilient; Lower Manhattan residential growth supports demand Mixed macro; favorable local demand drivers
Aviators/Las Vegas BallparkN/APlayoff spot secured; off-season Enchant plans PCL Champions; Enchant internalized; ~175k attendees anticipated Strong franchise performance; off-season monetization

Management Commentary

  • “We are increasingly optimistic about our prospects for 2026 as multiple new concepts prepare to open at the Seaport and our long-term vision for the Company continues to take shape.” — CEO Matt Partridge .
  • “We have now completed a number of technology initiatives, including fully centralizing our point-of-sale and procurement systems... enabling us to better optimize performance and margins across the portfolio.” — CEO Matt Partridge .
  • “The Macy’s 4th of July Fireworks Celebration… helped drive the single highest grossing revenue day in SEG’s history.” — CEO Matt Partridge .
  • “Once completed [250 Water Street sale], we estimate the sale will positively improve historical cash burn by more than $7 million… through repayment of the land loan and other carrying costs.” — CEO Matt Partridge .

Q&A Highlights

  • Path to profitability: Levers include accelerating rent commencement by opening tenants (roughly ~100k sq ft including Nike space back in 2027), filling remaining vacancy, and driving G&A efficiencies; velocity of openings expected back half of next year, aim to have key concepts open before Meow Wolf .
  • Event strategy as catalyst: Large-scale events (Macy’s, WFF) pull new visitors, act as marketing flywheel, and support partner success via foot traffic and dwell time; ongoing efforts to bring back and expand marquee events .
  • Tin Building: No 2026 guidance yet; restructuring brought team in-house and moved to license agreements to reduce external management fees; full plan to be outlined next call .
  • Capex outlook: Q4 2025 somewhat light (Meow Wolf landlord work, Willett’s, Quirk); ~$50M committed across announced projects with spend mid-to-back half 2026 .

Estimates Context

  • S&P Global consensus for Q3 2025: Revenue $46.90M*, Primary EPS ($0.76)*; SEG delivered $45.05M revenue and ($2.61) GAAP diluted EPS; EPS beat by $0.19 and revenue missed by ~$1.85M .
  • Non-GAAP adjusted EPS improved to ($0.57), down ~$3.97 YoY; consolidated segment-adjusted EBITDA improved 76% YoY excluding non-recurring items (250 Water Street “held for sale” loss, winter structure write-off, prior-year hospitality reimbursement) .
  • Implication: Street may reduce revenue expectations for near-term quarters given focus on flow-through, Tin Building repositioning, and ESPN rent cessation, while raising confidence in loss-narrowing due to cost discipline, event monetization, and lease/termination income cadence .

Consensus values retrieved from S&P Global*

Key Takeaways for Investors

  • Event-led operating model is proving out: marquee events and premium upsells drive high incremental margin days; expect continued narrative strength around the Rooftop and district programming .
  • Leasing/programming pipeline (>110k sq ft) and 250 Water Street monetization are catalysts for improved cash burn and path toward break-even in 2026, pending execution .
  • Near-term tilt toward profitability over top-line growth: management explicitly guiding to Q4 F&B growth moderation to prioritize flow-through .
  • Segment dynamics: Entertainment resilient but show count timing matters; Tin Building and legacy venues are the key drag — watch for the strategic plan next call .
  • Balance sheet strength and negative net debt provide flexibility to reinvest and absorb timing variances; no material maturities before Q3 2029 .
  • Rental mix shift (ESPN exit, Nike termination income recognition) changes landlord revenue profile; monitor rent commencement and private event activity as offsets .
  • Trading lens: EPS beat versus consensus, revenue miss, plus sale-price increase at 250 Water Street and strong event KPIs create a mixed headline — stock likely reacts to confidence in 2026 setup versus near-term top-line variability .