Six Flags (FUN) Q2 FY26 earnings call: guidance and Q&A

Six Flags made meaningful progress on strategic priorities, including strengthening park-level accountability and improving operating performance. The company restored experienced park presidents at its largest parks, empowering them with full P&L responsibility. A refreshed C-suite was completed with key appointments: Mark Pauls as Chief Operating Officer, Amy Martin Ziegenfuss as Chief Marketing Officer, and Ash Walia as Chief Financial Officer, bringing deep operating, financial, and commercial experience.

The company is developing more precise guest segmentation to tailor messages, products, and value propositions for different audiences, from families to thrill-seekers and passholders. Marketing investment pacing and allocation are being improved, focusing on measuring incremental attendance and revenue rather than just impressions. Unified ticketing, CRM, and first-party data capabilities support more precise offers, better acquisition efficiency, and improved renewal rates.

The season pass and membership strategy is a key source of confidence, with season pass sales increasing and the active pass base growing 6% in Q2. Membership participation expanded, and demand for higher-tier products remained strong. Both single-day and combined season pass/membership products yielded higher average prices. The company expanded its membership offering to 6 additional parks in June, and cross-park visitation continued to grow, deepening engagement and strengthening recurring revenue.

Improving the guest experience is foundational, with ride uptime being a critical driver. Ride uptime improved in Q2 and year-to-date, though performance remains uneven, leading to higher repair and maintenance expenses at some parks. Capital investments are focused on enhancing the guest experience and delivering attractive long-term returns, with multi-year plans addressing amenities and comfort. The 2026 lineup includes new attractions and America 250 programming, with further attractions planned for 2027.

Six Flags simplified its portfolio by selling 7 smaller noncore parks and closing one after the 2025 season, allowing concentration of resources on properties with the greatest long-term potential. The company strengthened its financial position by using proceeds from the portfolio transaction, improved operating cash flow, and disciplined capital spending to reduce borrowings. Deferred revenue increased, and the company ended the quarter with $135 million in cash, $837 million in total liquidity, and $4.9 billion in net debt.

Management expects adjusted EBITDA to continue growing year-over-year in the second half of 2026, despite Q3 headwinds from an unfavorable July 4 calendar shift and wildfire-related air quality disruptions. Healthy performance was observed on unaffected days in July, including the highest summer attendance day in five years. Key demand drivers for the second half include the expanded pass and membership base, a favorable Labor Day calendar shift, and robust Halloween and Holiday in the Park events.

Six Flags is actively pursuing strategies to increase ancillary revenue, including testing different approaches for Fast Lane and launching new flexible dining plan options. Early returns on the new dining programs show double-digit growth in attachment rates. The multi-park pass, introduced recently, has coincided with a stronger trajectory in pass sales and is driving healthy cross-visitation within regions, particularly in areas like Los Angeles with multiple parks.