Cedar Fair Reports Mixed Q2 Results, Updates FY25 Outlook

Cedar Fair reported Q2 GAAP EPS of $0.99, beating estimates by $0.18. Revenue of $930.39M (+62.8% Y/Y) missed estimates by $51.65M. Adjusted EBITDA totaled $243 million, up from $205 million in Q2 2024. The company updated its FY25 outlook, citing strong attendance and revenue growth.

Cedar Fair (NYSE: FUN), previously known as Six Flags Entertainment Corporation, has released its Q2 2025 earnings report. The company reported a GAAP EPS of $0.99, exceeding analyst estimates by $0.18. Revenue came in at $930.39M, which was a 62.8% year-over-year increase but missed estimates by $51.65M. Adjusted EBITDA totaled $243 million, marking a significant increase from $205 million in Q2 2024. The company also updated its FY25 outlook, citing strong attendance and revenue growth [2].

The earnings report highlights Cedar Fair's ability to maintain strong profitability despite missing revenue estimates. The company's earnings per share (EPS) of $0.99 beat the consensus estimate of $0.84, demonstrating its resilience in the face of challenging market conditions [1]. The revenue growth of 62.8% year-over-year indicates a robust recovery from the pandemic, although the miss in revenue estimates suggests that the company may still be facing headwinds in its pricing strategies and market positioning.

Cedar Fair's Adjusted EBITDA of $243 million reflects the company's efforts to manage costs and improve operational efficiency. The increase from $205 million in Q2 2024 underscores the company's commitment to margin expansion and cost-cutting initiatives. The company's updated FY25 outlook, which includes strong attendance and revenue growth, is a positive sign for investors looking for long-term growth prospects [3].

However, the report also highlights areas where Cedar Fair needs to improve. The company missed its revenue estimates by a significant margin, which could indicate challenges in pricing and demand management. Additionally, the company's net margin remains below industry standards, pointing to difficulties in achieving strong profitability. The company's return on equity (ROE) and return on assets (ROA) also lag behind industry averages, suggesting challenges in maximizing returns on equity capital and efficiently utilizing assets [1].

Despite these challenges, Cedar Fair's strong earnings performance and updated outlook indicate that the company is well-positioned to navigate the post-pandemic leisure economy. The company's focus on cost management, pricing power, and reinvigorating attendance through capital investments suggests a strategic approach to driving long-term value. However, investors should closely monitor the company's execution against its Q2 2025 earnings report and FY25 outlook to assess the potential for a valuation re-rating.

References
[1] https://www.benzinga.com/insights/earnings/25/08/46863552/cedar-fair-earnings-preview
[2] https://seekingalpha.com/news/4478743-legacy-cedar-fair-q2-2025-earnings-preview
[3] https://www.ainvest.com/news/unlocking-margin-expansion-reaccelerating-guest-spending-cedar-fair-q2-2025-earnings-outlook-2508/