Falcon's Beyond Global, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue for Q3 2026 was $7.3 million, an 80% increase compared to the prior year period.
• Revenue composition included attraction services, product sales, creative services, management fees from Producciones de Parques (PDP), and corporate/shared services fees from Falcon's Creative Group (FCG).
• Falcon's Creative Group (unconsolidated subsidiary) generated $5.2 million in revenue, a $0.5 million decrease year-over-year, with an operating loss of $4.0 million and net loss of $4.2 million; Falcon's share of net loss was $5.9 million.
• Producciones de Parques (unconsolidated joint venture) generated $11.8 million in revenue, a $0.6 million increase year-over-year, with operating income of $3.7 million and net income of $3.5 million; Falcon's share of net gain was $1.7 million.
• Consolidated net loss was $7.7 million for Q3 2026, a $2.7 million improvement over the prior year.
• Adjusted EBITDA loss was $7.4 million for Q3 2026, a $0.3 million improvement over the prior year.
• As of September 30, 2026, cash and cash equivalents were $1.941 million, compared to $1.868 million as of December 31, 2025.
• Total assets were $61.036 million as of September 30, 2026, down from $66.702 million as of December 31, 2025.
• Total liabilities were $38.072 million as of September 30, 2026, down from $42.881 million as of December 31, 2025.
• Short-term debt was $636 thousand as of September 30, 2026, down from $1.386 million as of December 31, 2025.
• Long-term debt was $15.466 million ($7.903 million current + $7.563 million non-current) as of September 30, 2026, compared to $14.234 million ($1.769 million current + $12.465 million non-current) as of December 31, 2025.
• Contract liabilities increased to $8.725 million as of September 30, 2026, from $19 thousand as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $2.114 million, compared to net cash used of $20.280 million in the prior year period.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $2.562 million, compared to net cash provided of $23.189 million in the prior year period.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $537 thousand, compared to $2.768 million in the prior year period.

Guidance and Future Outlook:

• The company is transitioning from building pipeline to executing and delivering major projects, with the VAI project now underway.
• Management remains focused on disciplined execution to scale the business and capitalize on significant opportunities.
• Forward-looking statements indicate risks regarding the ability to sustain growth, manage anticipated future growth, and implement business strategies.
• Liquidity resources currently raise substantial doubt about the company's ability to continue as a going concern.
• The timing of revenue recognition from the contracted pipeline is difficult to predict and may extend over multiple fiscal years.

Business Segments and Product Lines:

• Falcon's Attractions and Falcon's Beyond Creative ended Q3 2026 with a combined contracted pipeline totaling $28.0 million.
• Falcon's Creative Group (FCG) closed Q3 2026 with a contracted pipeline of $13.0 million.
• Falcon's Beyond operates through three divisions: Falcon's Creative (creative and advisory services), Falcon's Beyond Brands (IP, technologies, and operating businesses), and Falcon's Beyond Destinations (development, ownership, and operation of entertainment venues).
• The VAI project integrates capabilities of Falcon's Creative and Falcon's Attractions across creative design, engineering, and attraction delivery.

Market and Competitive Landscape:

• The company operates in the global experience economy, designing and commercializing immersive physical and digital experiences for brands, developers, and destination operators.
• The company faces risks associated with doing business internationally, including in the Kingdom of Saudi Arabia.
• The company relies on strategic relationships with local partners to offer and market products in certain jurisdictions.

Risks and Challenges:

• Current liquidity resources raise substantial doubt about the ability to continue as a going concern.
• Risks include impairments of intangible assets and equity method investments in joint ventures.
• The company faces risks related to raising additional capital and the closure of Katmandu Park DR, sale of interests in Sol Tenerife Hotel, and winding up of the Karnival joint venture.
• Customer concentration exists within the Falcon's Creative Group segment.
• Contractual restrictions relating to the Strategic Investment may affect access to public markets.
• The company has identified material weaknesses in internal controls over financial reporting that require remediation.
• Significant share ownership concentration exists with the Demerau Family and Cecil D. Magpuri.
• The company may be required to make substantial payments to unitholders under its Tax Receivable Agreement.
• Risks include the outcome of pending legal proceedings and compliance with Nasdaq listing standards.

Management Commentary and Tone:

• Cecil D. Magpuri, CEO, stated that third-quarter results demonstrate continued progress in the growth strategy as the company moves from building pipeline to executing major projects.
• Management emphasized a focus on disciplined execution while scaling the business.
• The net loss improvement was attributed to careful oversight of operating expenses as the business continues to scale.

Other Key Points:

• The company reported a $15.057 million transaction credit for the nine months ended September 30, 2026, compared to a $1.788 million credit in the prior year period.
• The company received a $3.451 million distribution from equity method investment PDP during the nine months ended September 30, 2026.
• The company received a $5.450 million distribution from equity method investment Karnival during the nine months ended September 30, 2026.
• Share-based compensation expense was $1.871 million for the nine months ended September 30, 2026.
• The company has an Up-C entity structure.
• The company is headquartered in Orlando, FL.