v3.26.1
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information
22.
Segment information

The Company had four reportable operating segments, Falcon’s Creative Group, Destinations Operations, PDP and Falcon’s Beyond Brands for the year ended December 31, 2024. During May 2025, the Company acquired OES and integrated it into the new Falcon's Attractions segment. Therefore, as of December 31, 2025 the Company has five reportable operating segments. 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 impairments and 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 loss from operations and the Company’s consolidated financial statement results.

FCG provides creative and advisory services including destination strategy, master planning, experiential and attraction design, digital media, interactive software, IP development, and creative guardianship for entertainment and hospitality destinations. 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. To reconcile total segment revenue to the Company's total consolidated revenue, FCG's segment revenue is eliminated. To reconcile Segment loss from operations to the Company's consolidated net income before taxes, FCG's Segment income from operations is eliminated and the Company's share of FCG's equity method loss is added.

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 develops, owns, operates, and expands entertainment venues, hospitality experiences, and branded destination concepts across a variety of location‑based formats, utilizing proprietary and third‑party intellectual property. The Company collectively refers to the Destinations Operations and PDP as Falcon’s Beyond Destinations.

Falcon's Attractions designs, engineers, manufactures, and sells proprietary and customized ride systems, attraction hardware, and related technologies for theme parks, location‑based entertainment venues, and destination developments worldwide. Falcon’s Beyond Brands-Other 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.

 

 

Year ended December 31, 2025

 

 

Falcon’s

 

 

Falcon's Beyond Destinations

 

 

Falcon's Beyond Brands

 

 

 

 

 

Creative
Group

 

 

Destinations Operations

 

 

PDP

 

 

Falcon's Attractions

 

 

Other

 

 

Segment Total

 

Revenue external customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services

 

$

38,703

 

 

$

609

 

 

$

—

 

 

$

4,907

 

 

$

—

 

 

$

44,219

 

Product sales

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,841

 

 

 

—

 

 

 

2,841

 

Total revenue

 

 

38,703

 

 

 

609

 

 

 

—

 

 

 

7,748

 

 

 

—

 

 

 

47,060

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue corporate unallocated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,539

 

Revenue FCG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(38,703

)

Total consolidated revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Project design and build expense

 

 

(25,926

)

 

 

—

 

 

 

—

 

 

 

(2,360

)

 

 

—

 

 

 

 

Cost of product sales

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,579

)

 

 

—

 

 

 

 

Selling, general and administrative

 

 

(11,486

)

 

 

(1,263

)

 

 

—

 

 

 

(7,069

)

 

 

(742

)

 

 

 

Research and development expense

 

 

(2

)

 

 

(215

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

Share of gain from equity method investments, excluding gain on Tenerife Sale and joint venture impairments

 

 

—

 

 

 

98

 

 

 

2,363

 

 

 

—

 

 

 

—

 

 

 

 

Segment income (loss) from operations

 

$

1,289

 

 

$

(771

)

 

$

2,363

 

 

$

(3,260

)

 

$

(742

)

 

$

(1,121

)

 

 

Year ended December 31, 2024

 

 

Falcon’s

 

 

Falcon's Beyond Destinations

 

 

Falcon's

 

 

 

 

 

Creative
Group

 

 

Destinations Operations

 

 

PDP

 

 

Beyond
Brands

 

 

Segment Total

 

Revenue - external customers

 

$

53,159

 

 

$

495

 

 

$

—

 

 

$

1

 

 

$

53,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue corporate unallocated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,249

 

Revenue FCG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(53,159

)

Total consolidated revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Project design and build expense

 

 

(38,906

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

Selling, general and administrative

 

 

(13,045

)

 

 

(1,976

)

 

 

—

 

 

 

(2,951

)

 

 

 

Research and development expense

 

 

(1

)

 

 

(171

)

 

 

—

 

 

 

(8

)

 

 

 

Share of gain from equity method investments

 

 

—

 

 

 

288

 

 

 

2,981

 

 

 

—

 

 

 

 

Segment income (loss) from operations

 

$

1,207

 

 

$

(1,364

)

 

$

2,981

 

 

$

(2,958

)

 

$

(134

)

 

A reconciliation of segment loss from operations to net income before taxes is as follows:

 

 

 

Year ended

 

 

December 31,
2025

 

 

December 31,
2024

 

Segment loss from operations

 

$

(1,121

)

 

$

(134

)

Unallocated corporate overhead

 

 

(9,880

)

 

 

(11,233

)

Elimination FCG segment income from operations

 

 

(1,289

)

 

 

(1,207

)

Share of loss from FCG

 

 

(7,184

)

 

 

(6,389

)

Transaction credit (expenses)

 

 

1,692

 

 

 

(7

)

Credit loss expense

 

 

—

 

 

 

(12

)

Depreciation and amortization expense

 

 

(349

)

 

 

(6

)

Share of equity method investee's gain on Tenerife Sale

 

 

30,019

 

 

 

—

 

Impairment of PDP

 

 

(5,332

)

 

 

—

 

Impairment of Karnival

 

 

(3,005

)

 

 

—

 

Interest expense

 

 

(3,384

)

 

 

(1,898

)

Interest income

 

 

12

 

 

 

12

 

Change in fair value of warrant liabilities

 

 

2,886

 

 

 

(836

)

Change in fair value of earnout liabilities

 

 

—

 

 

 

172,270

 

Foreign exchange transaction (loss) gain

 

 

2,147

 

 

 

(1,077

)

Gain on bargain purchase of OES Acquisition

 

 

1,098

 

 

 

—

 

Net income before taxes

 

$

6,310

 

 

$

149,483

 

Identifiable assets are comprised of:

 

 

Total Assets

 

 

Capital Expenditures

 

 

 

As of

 

 

Year ended

 

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2025

 

 

December 31, 2024

 

Falcon’s Creative Group

 

$

17,844

 

 

$

25,028

 

 

$

293

 

 

$

11,124

 

Destinations Operations

 

 

4,610

 

 

 

7,480

 

 

 

3

 

 

 

—

 

PDP

 

 

28,648

 

 

 

24,400

 

 

 

—

 

 

 

—

 

Falcon's Attractions

 

 

10,328

 

 

 

—

 

 

 

144

 

 

 

—

 

Falcon's Beyond Brands-other

 

 

46

 

 

 

251

 

 

 

—

 

 

 

—

 

Unallocated corporate assets and intersegment eliminations

 

 

5,226

 

 

 

4,072

 

 

 

(287

)

 

 

(11,113

)

 

$

66,702

 

 

$

61,231

 

 

$

153

 

 

$

11