| 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 review 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 consider 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 June 30, 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 |
|
$ |
12,508 |
|
|
$ |
147 |
|
|
$ |
— |
|
|
$ |
1,983 |
|
|
$ |
— |
|
|
$ |
14,638 |
|
Product sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,616 |
|
|
|
— |
|
|
|
1,616 |
|
Total revenue |
|
|
12,508 |
|
|
|
147 |
|
|
|
— |
|
|
|
3,599 |
|
|
|
— |
|
|
|
16,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue corporate unallocated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,872 |
|
Revenue FCG |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12,508 |
) |
Total consolidated revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project design and build expense |
|
|
(6,928 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,050 |
) |
|
|
— |
|
|
|
|
Cost of product sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,029 |
) |
|
|
— |
|
|
|
|
Selling, general and administrative |
|
|
(4,551 |
) |
|
|
(300 |
) |
|
|
— |
|
|
|
(2,579 |
) |
|
|
(141 |
) |
|
|
|
Share of gain (loss) from equity method investments, excluding gain on excess distributions over investment of Karnival |
|
|
— |
|
|
|
— |
|
|
|
189 |
|
|
|
— |
|
|
|
— |
|
|
|
|
Segment income (loss) from operations |
|
$ |
1,029 |
|
|
$ |
(153 |
) |
|
$ |
189 |
|
|
$ |
(1,059 |
) |
|
$ |
(141 |
) |
|
$ |
(135 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 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 |
|
$ |
12,319 |
|
|
$ |
146 |
|
|
$ |
— |
|
|
$ |
645 |
|
|
$ |
— |
|
|
$ |
13,110 |
|
Product sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
157 |
|
|
|
— |
|
|
|
157 |
|
Total revenue |
|
|
12,319 |
|
|
|
146 |
|
|
|
— |
|
|
|
802 |
|
|
|
— |
|
|
|
13,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue corporate unallocated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,601 |
|
Revenue FCG |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12,319 |
) |
Total consolidated revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project design and build expense |
|
|
(7,376 |
) |
|
|
— |
|
|
|
— |
|
|
|
(348 |
) |
|
|
— |
|
|
|
|
Cost of product sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(83 |
) |
|
|
— |
|
|
|
|
Selling, general and administrative |
|
|
(2,166 |
) |
|
|
(333 |
) |
|
|
— |
|
|
|
(1,836 |
) |
|
|
(269 |
) |
|
|
|
Research and development expense |
|
|
(2 |
) |
|
|
(88 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
Share of gain (loss) from equity method investments, excluding gain on Tenerife Sale and impairment of PDP |
|
|
— |
|
|
|
20 |
|
|
|
714 |
|
|
|
— |
|
|
|
— |
|
|
|
|
Segment income (loss) from operations |
|
$ |
2,775 |
|
|
$ |
(255 |
) |
|
$ |
714 |
|
|
$ |
(1,465 |
) |
|
$ |
(269 |
) |
|
$ |
1,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 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 |
|
$ |
25,533 |
|
|
$ |
147 |
|
|
$ |
— |
|
|
$ |
3,721 |
|
|
$ |
— |
|
|
$ |
29,401 |
|
Product sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,318 |
|
|
|
— |
|
|
|
3,318 |
|
Total revenue |
|
|
25,533 |
|
|
|
147 |
|
|
|
— |
|
|
|
7,039 |
|
|
|
— |
|
|
|
32,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue corporate unallocated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,808 |
|
Revenue FCG |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(25,533 |
) |
Total consolidated revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project design and build expense |
|
|
(15,554 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,994 |
) |
|
|
(1 |
) |
|
|
|
Cost of product sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,158 |
) |
|
|
— |
|
|
|
|
Selling, general and administrative |
|
|
(8,200 |
) |
|
|
(567 |
) |
|
|
— |
|
|
|
(5,108 |
) |
|
|
(302 |
) |
|
|
|
Share of gain (loss) from equity method investments, excluding gain on excess distributions over investment of Karnival |
|
|
— |
|
|
|
25 |
|
|
|
(234 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
Segment income (loss) from operations |
|
$ |
1,779 |
|
|
$ |
(395 |
) |
|
$ |
(234 |
) |
|
$ |
(2,221 |
) |
|
$ |
(303 |
) |
|
$ |
(1,374 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 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 |
|
$ |
18,590 |
|
|
$ |
146 |
|
|
$ |
— |
|
|
$ |
731 |
|
|
$ |
— |
|
|
$ |
19,467 |
|
Product sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
157 |
|
|
|
— |
|
|
|
157 |
|
Total revenue |
|
|
18,590 |
|
|
|
146 |
|
|
|
— |
|
|
|
888 |
|
|
|
— |
|
|
|
19,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue corporate unallocated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,223 |
|
Revenue FCG |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(18,590 |
) |
Total consolidated revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project design and build expense |
|
|
(12,770 |
) |
|
|
— |
|
|
|
— |
|
|
|
(454 |
) |
|
|
— |
|
|
|
|
Cost of product sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(83 |
) |
|
|
— |
|
|
|
|
Selling, general and administrative |
|
|
(5,534 |
) |
|
|
(614 |
) |
|
|
— |
|
|
|
(3,089 |
) |
|
|
(422 |
) |
|
|
|
Research and development expense |
|
|
(2 |
) |
|
|
(206 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
Share of gain (loss) from equity method investments, excluding gain on Tenerife Sale and impairment of PDP |
|
|
— |
|
|
|
54 |
|
|
|
1,188 |
|
|
|
— |
|
|
|
— |
|
|
|
|
Segment income (loss) from operations |
|
$ |
284 |
|
|
$ |
(620 |
) |
|
$ |
1,188 |
|
|
$ |
(2,738 |
) |
|
$ |
(422 |
) |
|
$ |
(2,308 |
) |
A reconciliation of segment income (loss) from operations to net income (loss) before taxes is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30,
2026 |
|
|
June 30,
2025 |
|
|
June 30,
2026 |
|
|
June 30,
2025 |
|
Segment income (loss) from operations |
|
$ |
(135 |
) |
|
$ |
1,500 |
|
|
$ |
(1,374 |
) |
|
$ |
(2,308 |
) |
Unallocated corporate overhead |
|
|
(2,779 |
) |
|
|
(2,599 |
) |
|
|
(5,622 |
) |
|
|
(5,586 |
) |
Elimination FCG segment income (loss) from operations |
|
|
(1,029 |
) |
|
|
(2,775 |
) |
|
|
(1,779 |
) |
|
|
(284 |
) |
Share of income (loss) from FCG |
|
|
(1,237 |
) |
|
|
688 |
|
|
|
(1,055 |
) |
|
|
(3,883 |
) |
Transaction credit |
|
|
4,000 |
|
|
|
3,299 |
|
|
|
15,057 |
|
|
|
1,778 |
|
Depreciation and amortization expense |
|
|
(130 |
) |
|
|
(40 |
) |
|
|
(264 |
) |
|
|
(44 |
) |
Share of equity method investee's gain on Tenerife Sale |
|
|
— |
|
|
|
29,755 |
|
|
|
— |
|
|
|
29,755 |
|
Impairment of PDP |
|
|
— |
|
|
|
(5,332 |
) |
|
|
— |
|
|
|
(5,332 |
) |
Gain on excess distributions over investment of Karnival |
|
|
1,201 |
|
|
|
— |
|
|
|
1,201 |
|
|
|
— |
|
Interest expense |
|
|
(218 |
) |
|
|
(841 |
) |
|
|
(392 |
) |
|
|
(2,174 |
) |
Interest income |
|
|
7 |
|
|
|
2 |
|
|
|
13 |
|
|
|
5 |
|
Change in fair value of warrant liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,886 |
|
Foreign exchange transaction gain (loss) |
|
|
2 |
|
|
|
1,455 |
|
|
|
18 |
|
|
|
2,207 |
|
Net income (loss) before taxes |
|
$ |
(318 |
) |
|
$ |
25,112 |
|
|
$ |
5,803 |
|
|
$ |
17,020 |
|
Identifiable assets and capital expenditures are comprised of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
Capital Expenditures |
|
|
|
As of |
|
|
Six months ended |
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
FCG |
|
$ |
16,789 |
|
|
$ |
17,844 |
|
|
$ |
62 |
|
|
$ |
139 |
|
Destinations Operations |
|
|
349 |
|
|
|
4,610 |
|
|
|
— |
|
|
|
— |
|
PDP |
|
|
25,865 |
|
|
|
28,648 |
|
|
|
— |
|
|
|
— |
|
Falcon's Attractions |
|
|
9,182 |
|
|
|
10,328 |
|
|
|
12 |
|
|
|
92 |
|
FBB-Other |
|
|
58 |
|
|
|
46 |
|
|
|
— |
|
|
|
— |
|
Unallocated corporate assets and intersegment eliminations |
|
|
11,404 |
|
|
|
5,226 |
|
|
|
(60 |
) |
|
|
(139 |
) |
|
|
$ |
63,647 |
|
|
$ |
66,702 |
|
|
$ |
14 |
|
|
$ |
92 |
|
|