v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information
13.
Segment information

The Company has five reportable operating segments, FCG, Destinations Operations, PDP, Falcon's Attractions and FBB-Other. 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 segment's 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, cost of product sales, selling, general and administrative expenses, research and development expenses, and the share of gain (loss) from equity method investments excluding impairments. 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 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. FBB-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.

 

 

Three months ended March 31, 2026

 

 

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

 

$

13,025

 

 

$

—

 

 

$

—

 

 

$

1,738

 

 

$

—

 

 

$

14,763

 

Product sales

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,702

 

 

 

—

 

 

 

1,702

 

Total revenue

 

 

13,025

 

 

 

—

 

 

 

—

 

 

 

3,440

 

 

 

—

 

 

 

16,465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue corporate unallocated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,936

 

Revenue FCG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,025

)

Total consolidated revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,376

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Project design and build expense

 

 

(8,626

)

 

 

—

 

 

 

—

 

 

 

(944

)

 

 

(1

)

 

 

 

Cost of product sales

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,129

)

 

 

—

 

 

 

 

Selling, general and administrative

 

 

(3,649

)

 

 

(267

)

 

 

—

 

 

 

(2,529

)

 

 

(161

)

 

 

 

Share of gain (loss) from equity method investments

 

 

—

 

 

 

25

 

 

 

(423

)

 

 

—

 

 

 

—

 

 

 

 

Segment income (loss) from operations

 

$

750

 

 

$

(242

)

 

$

(423

)

 

$

(1,162

)

 

$

(162

)

 

$

(1,239

)

 

 

Three months ended March 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

 

$

6,271

 

 

$

—

 

 

$

—

 

 

$

86

 

 

$

—

 

 

$

6,357

 

Product sales

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total revenue

 

 

6,271

 

 

 

—

 

 

 

—

 

 

 

86

 

 

 

—

 

 

 

6,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue corporate unallocated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,622

 

Revenue FCG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,271

)

Total consolidated revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,708

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Project design and build expense

 

 

(5,395

)

 

 

(15

)

 

 

—

 

 

 

(91

)

 

 

—

 

 

 

 

Selling, general and administrative

 

 

(3,368

)

 

 

(281

)

 

 

—

 

 

 

(1,254

)

 

 

(153

)

 

 

 

Research and development expense

 

 

—

 

 

 

(118

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

Share of gain (loss) from equity method investments

 

 

—

 

 

 

34

 

 

 

474

 

 

 

—

 

 

 

—

 

 

 

 

Segment income (loss) from operations

 

$

(2,492

)

 

$

(380

)

 

$

474

 

 

$

(1,259

)

 

$

(153

)

 

$

(3,810

)

 

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

 

 

 

Three months ended

 

 

March 31,
2026

 

 

March 31,
2025

 

Segment income (loss) from operations

 

$

(1,239

)

 

$

(3,810

)

Unallocated corporate overhead

 

 

(2,843

)

 

 

(2,988

)

Elimination FCG segment income (loss) from operations

 

 

(750

)

 

 

2,492

 

Share of income (loss) from FCG

 

 

182

 

 

 

(4,571

)

Transaction (expense) credit

 

 

11,057

 

 

 

(1,521

)

Depreciation and amortization expense

 

 

(134

)

 

 

(4

)

Interest expense

 

 

(174

)

 

 

(1,332

)

Interest income

 

 

6

 

 

 

3

 

Change in fair value of warrant liabilities

 

 

—

 

 

 

2,886

 

Foreign exchange transaction gain (loss)

 

 

16

 

 

 

752

 

Net income (loss) before taxes

 

$

6,121

 

 

$

(8,093

)

Identifiable assets and capital expenditures are comprised of:

 

 

Total Assets

 

 

Capital Expenditures

 

 

 

As of

 

 

Three months ended

 

 

March 31, 2026

 

 

December 31, 2025

 

 

March 31, 2026

 

 

March 31, 2025

 

FCG

 

$

18,026

 

 

$

17,844

 

 

$

51

 

 

$

69

 

Destinations Operations

 

 

3,218

 

 

 

4,610

 

 

 

—

 

 

 

—

 

PDP

 

 

25,836

 

 

 

28,648

 

 

 

—

 

 

 

—

 

Falcon's Attractions

 

 

9,645

 

 

 

10,328

 

 

 

12

 

 

 

89

 

FBB-Other

 

 

126

 

 

 

46

 

 

 

—

 

 

 

—

 

Unallocated corporate assets and intersegment eliminations

 

 

5,508

 

 

 

5,226

 

 

 

(51

)

 

 

(66

)

 

 

$

62,359

 

 

$

66,702

 

 

$

12

 

 

$

92