| Segment Information |
The Company has four reportable operating segments, Falcon’s Creative Group, PDP, Destinations Operations and Falcon’s Beyond Brands. The Company’s Chief Operating Decision Makers ("CODM") is its Executive Chairman and Chief Executive Officer, who reviews financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. Operating segments are organized based on product lines and, for our location-based entertainment, by geography. The CODM assesses the segments' performance by using each segments' income (loss) from operations, these results are used predominantly in the budgeting and forecasting process. The CODM considers segment results when making decisions about the allocation of operating and capital resources. Segment income (loss) from operations include costs directly attributable to the segment including project design and build expenses, selling, general and administrative expenses, research and development expenses, and the share of gain from equity method investments, excluding gain from Tenerife Sale. Unallocated corporate expenses which include accounting, audit, and professional services fees that support external reporting activities, are presented as a reconciling item between total segment income (loss) from operations and the Company’s unaudited condensed consolidated financial statement results. FCG provides master planning, media, interactive and audio production, project management, experiential technology and attraction hardware development services and attraction hardware sales on a work-for-hire model. For the purpose of assessing financial performance and making resource allocation decisions, the CODM reviews full FCG results as if FCG was consolidated, instead of only the share of FCG's equity method gain (loss). To reconcile total segment revenue to the Company's total consolidated revenue, FCG's segment revenue is eliminated. To reconcile Segment income (loss) from operations to the Company's consolidated net income before taxes, FCG's Segment income (loss) from operations is eliminated and the Company's share of FCG's equity method gain (loss) is added. Prior quarter segment results for FCG have been recast to show FCG segment results on a comparable basis, as if it had been consolidated by the Company for the entire quarter. PDP develops, owns and operates hotels, theme parks and retail, dining and entertainment venues. Destinations Operations provides development and management services for themed entertainment to PDP and new development opportunities, including our investment in Karnival. The Company collectively refers to the Destinations Operations and PDP as Falcon’s Beyond Destinations. Falcon’s Beyond Brands is utilized for the development and commercialization of Company owned and third-party intellectual property through consumer products and media. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.
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Three months ended June 30, 2025 |
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Falcon’s |
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Falcon's Beyond Destinations |
Falcon's |
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Creative
Group |
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Destinations Operations |
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PDP |
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Beyond
Brands |
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Segment Total |
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Revenue - external customers |
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$ |
12,319 |
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$ |
146 |
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$ |
— |
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$ |
802 |
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$ |
13,267 |
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Reconciliation of revenue |
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Revenue corporate unallocated |
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1,601 |
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Revenue FCG |
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(12,319 |
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Total consolidated revenue |
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2,549 |
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Project design and build expense |
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(7,376 |
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— |
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— |
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(431 |
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Selling, general and administrative |
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(2,166 |
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(333 |
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— |
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(2,105 |
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Research and development expense |
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(2 |
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(88 |
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— |
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— |
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Share of gain from equity method investments, excluding gain on Tenerife Sale and impairment of PDP |
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— |
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20 |
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714 |
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— |
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Segment income (loss) from operations |
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$ |
2,775 |
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$ |
(255 |
) |
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$ |
714 |
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$ |
(1,734 |
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$ |
1,500 |
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Three months ended June 30, 2024 |
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Falcon’s |
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Falcon's Beyond Destinations |
Falcon's |
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Creative
Group |
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Destinations Operations |
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PDP |
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Beyond
Brands |
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Segment Total |
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Revenue - external customers |
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$ |
15,720 |
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$ |
101 |
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$ |
— |
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$ |
— |
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$ |
15,821 |
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Reconciliation of revenue |
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Revenue corporate unallocated |
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1,697 |
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Revenue FCG |
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(15,720 |
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Total consolidated revenue |
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1,798 |
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Project design and build expense |
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(10,209 |
) |
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— |
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— |
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— |
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Selling, general and administrative |
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(2,862 |
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(506 |
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— |
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(794 |
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Research and development expense |
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— |
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(10 |
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— |
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— |
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Share of gain from equity method investments |
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— |
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76 |
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656 |
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— |
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Segment income (loss) from operations |
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$ |
2,649 |
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$ |
(339 |
) |
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$ |
656 |
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$ |
(794 |
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$ |
2,172 |
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Six months ended June 30, 2025 |
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Falcon’s |
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Falcon's Beyond Destinations |
Falcon's |
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Creative
Group |
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Destinations Operations |
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PDP |
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Beyond
Brands |
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Segment Total |
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Revenue - external customers |
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$ |
18,590 |
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$ |
146 |
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$ |
— |
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$ |
888 |
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$ |
19,624 |
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Reconciliation of revenue |
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Revenue corporate unallocated |
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3,223 |
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Revenue FCG |
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(18,590 |
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Total consolidated revenue |
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4,257 |
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Project design and build expense |
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(12,770 |
) |
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— |
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— |
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(537 |
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Selling, general and administrative |
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(5,534 |
) |
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(614 |
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— |
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(3,511 |
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Research and development expense |
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(2 |
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(206 |
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— |
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— |
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Share of gain from equity method investments, excluding gain on Tenerife Sale and impairment of PDP |
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— |
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54 |
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1,188 |
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— |
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Segment income (loss) from operations |
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$ |
284 |
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$ |
(620 |
) |
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$ |
1,188 |
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$ |
(3,160 |
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$ |
(2,308 |
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Six months ended June 30, 2024 |
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Falcon’s |
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Falcon's Beyond Destinations |
Falcon's |
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Creative
Group |
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Destinations Operations |
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PDP |
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Beyond
Brands |
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Segment Total |
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Revenue - external customers |
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$ |
30,647 |
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$ |
99 |
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$ |
— |
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$ |
— |
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$ |
30,746 |
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Reconciliation of revenue |
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Revenue corporate unallocated |
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3,215 |
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Revenue FCG |
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(30,647 |
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Total consolidated revenue |
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3,314 |
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Project design and build expense |
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(19,748 |
) |
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— |
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— |
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— |
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Selling, general and administrative |
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(6,343 |
) |
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(989 |
) |
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— |
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(1,457 |
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Research and development expense |
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— |
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(26 |
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— |
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— |
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Share of gain from equity method investments |
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— |
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163 |
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1,190 |
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— |
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Segment income (loss) from operations |
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$ |
4,556 |
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$ |
(753 |
) |
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$ |
1,190 |
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$ |
(1,457 |
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$ |
3,536 |
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A reconciliation of segment income (loss) from operations to net income before taxes is as follows:
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Three months ended |
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Six months ended |
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June 30,
2025 |
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June 30,
2024 |
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June 30,
2025 |
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June 30,
2024 |
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Segment income (loss) from operations |
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$ |
1,500 |
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$ |
2,172 |
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$ |
(2,308 |
) |
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$ |
3,536 |
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Unallocated corporate overhead |
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(2,599 |
) |
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(2,311 |
) |
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(5,586 |
) |
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(6,440 |
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Elimination FCG segment income from operations |
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(2,775 |
) |
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(2,649 |
) |
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(284 |
) |
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(4,556 |
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Share of gain (loss) from FCG |
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688 |
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|
988 |
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(3,883 |
) |
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1,521 |
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Transaction credit (expenses) |
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3,299 |
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— |
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1,778 |
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(7 |
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Credit loss expense |
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— |
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— |
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— |
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(12 |
) |
Depreciation and amortization expense |
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(40 |
) |
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(2 |
) |
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(44 |
) |
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(3 |
) |
Share of equity method investee's gain on Tenerife Sale |
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29,755 |
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— |
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29,755 |
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— |
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Impairment of PDP |
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(5,332 |
) |
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— |
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(5,332 |
) |
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— |
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Interest expense |
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(841 |
) |
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(438 |
) |
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(2,174 |
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(707 |
) |
Interest income |
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2 |
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|
3 |
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5 |
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|
6 |
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Change in fair value of warrant liabilities |
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— |
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(2,599 |
) |
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|
2,886 |
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(2,391 |
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Change in fair value of earnout liabilities |
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— |
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13,006 |
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— |
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|
131,621 |
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Foreign exchange transaction gain (loss) |
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|
1,455 |
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(142 |
) |
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|
2,207 |
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(517 |
) |
Net income before taxes |
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$ |
25,112 |
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$ |
8,028 |
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$ |
17,020 |
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$ |
122,051 |
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Identifiable assets and capital expenditures are comprised of:
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Total Assets |
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Capital Expenditures |
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As of |
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Six months ended |
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June 30, 2025 |
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December 31, 2024 |
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|
June 30, 2025 |
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|
June 30, 2024 |
|
Falcon’s Creative Group |
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$ |
21,146 |
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$ |
25,028 |
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$ |
139 |
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$ |
10,903 |
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Destinations Operations |
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32,976 |
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|
7,480 |
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|
— |
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— |
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PDP |
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27,142 |
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|
24,400 |
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— |
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— |
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Falcons Beyond Brands |
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5,993 |
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|
251 |
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|
92 |
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— |
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Unallocated corporate assets and intersegment eliminations |
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|
1,950 |
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|
4,072 |
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|
(139 |
) |
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(10,898 |
) |
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$ |
89,207 |
|
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$ |
61,231 |
|
|
$ |
92 |
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$ |
5 |
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|