Six Flags Q1 2025: Contradictions Unveiled on Attendance, Revenue Growth, and Cost Management

Attendance and revenue growth expectations, first quarter performance as a percentage of full year attendance and revenue, season pass sales and attendance growth, and cost management and savings are the key contradictions discussed in Six Flags Entertainment's latest 2025Q1 earnings call.



Operating Performance and Seasonality:
- Six Flags Entertainment Corp reported an operating loss that was greater than the combined loss of the legacy companies in 2024, though consistent with the level of off-season investment necessary for park preparations.
- The first quarter of 2025 represented approximately 5.5% of full-year attendance and 6% of full-year revenue, lower than the normal historical pacing of 7% due to strategic changes in park operating calendars.
- The results were impacted by fewer operating days due to strategic cost savings and calendar shifts, along with the COVID-19 pandemic's lingering effects.

Impact of Weather and Calendar Shifts:
- Weather disruptions, particularly in the last two weeks of April, resulted in an estimated 175,000 lost visits.
- The shift of the Boysenberry Festival at Knott's Berry Farm to the second quarter was a significant driver of first quarter year-over-year declines.
- Normalized for weather differences, April attendance showed an 8% year-over-year increase, highlighting the demand for parks despite adverse weather conditions.

Cost Management and Synergy Realization:
- The company plans to achieve cost synergies of $120 million by the end of the year, with $70 million already realized in 2024.
- Six Flags is expected to reduce full-year operating costs and expenses by more than 3% compared to combined 2024 actuals for both legacy companies.
- The cost reductions are the result of a corporate restructuring process, flattening the organizational structure, and streamlining decision-making.

Capital Expenditure and Growth Strategy:
- Six Flags plans to invest approximately $475 million to $500 million in capital expenditures for 2025, aligning with a growth strategy emphasizing high-quality, close-to-home entertainment options.
- The capital strategy focuses on high margin, high growth parks, with approximately 30% of annual CapEx budget allocated to discretionary infrastructure projects that can be delayed if necessary.
- The company is positioned to use excess free cash flow to pay down debt quickly and efficiently.