Falcon’s Beyond Global recently released its 10-Q report. The company operates in entertainment and location-based experiences, providing creative, advisory, design, software, and engineering services for destinations and attractions, while also developing and operating resorts, theme parks, retail, dining, and other venue concepts. It is headquartered in Orlando, Florida.
In Item 2, management said the company’s business is organized into three divisions: Falcon’s Creative Group, Falcon’s Beyond Brands, and Falcon’s Beyond Destinations, with five operating segments. Falcon’s Creative Group handles destination strategy, master planning, attraction design, digital media, interactive software, IP development, and creative oversight; Falcon’s Beyond Brands includes intellectual property, proprietary technologies, and businesses tied to entertainment systems and products; and Falcon’s Beyond Destinations develops and operates entertainment venues and hospitality concepts through Producciones de Parques, S.L. and Destinations Operations.
Management also noted the May 9, 2025 acquisition of certain OES assets, including patented technologies and proprietary engineering and manufacturing processes, for $1.6 million, which expanded the attractions services business and helped form the Falcon’s Attractions segment. The company said its contracted pipeline at Falcon’s Attractions was $28.4 million as of June 30, 2026.
For the three months ended June 30, 2026, revenue rose to $5.618 million from $2.549 million a year earlier. For the six-month period, revenue increased to $10.994 million from $4.257 million. The company said the increase was primarily driven by growth in Falcon’s Attractions.
Revenue from services delivered over time totaled $4.002 million in the quarter, up from $2.392 million, and $7.676 million for the first half, up from $4.100 million. Within that, attraction services climbed to $1.983 million from $645,000 in the quarter and to $3.721 million from $731,000 in the first half. Product sales also increased sharply, reaching $1.616 million in the quarter versus $157,000 a year earlier, and $3.318 million for the first half versus $157,000.
Project design and build expense rose to $1.069 million in the quarter from $348,000, and to $2.014 million for the half from $454,000, which management tied to new attractions service contracts. Cost of product sales increased to $1.029 million in the quarter from $83,000, and to $2.158 million for the half from $83,000, due to new attractions product sales. Selling, general and administrative expense increased to $7.652 million in the quarter from $6.644 million, and to $15.388 million for the half from $12.940 million, reflecting OES integration, attraction-services growth, and added support functions.
The company recorded a transaction credit of $4.0 million in the quarter and $15.057 million for the first half, both tied to the reversal of accrued transaction expenses related to the business combination. That compared with a $1.778 million transaction credit in the first half of 2025.
Operating loss narrowed to $262,000 in the quarter from $1.350 million a year earlier, while the first half swung to operating income of $6.227 million from an operating loss of $7.687 million. Net loss for the quarter was $318,000, compared with net income of $25.112 million in the prior-year quarter. For the first half, net income was $5.803 million versus $17.020 million a year earlier.
The biggest swing below operating income came from equity method investments. Falcon’s reported $153,000 of income from equity method investments in the quarter, down from $25.846 million a year earlier, and a $63,000 loss for the first half versus $21.783 million of income in the prior-year period. Management said the prior-year results included a $29.755 million gain on the sale of the Sol Tenerife Hotel, a $5.332 million impairment charge in 2025, and a $1.623 million gain on the sale of land at FCG. In 2026, Karnival contributed a $1.201 million gain on excess distributions over investment in both the quarter and first half.
Interest expense fell to $218,000 in the quarter from $841,000, and to $392,000 for the half from $2.174 million, reflecting lower short* and long-term debt after principal payments and the exchange of debt and accrued interest for Series B Preferred Stock in the third quarter of 2025. Interest income was modest at $7,000 in the quarter and $13,000 for the half.
On liquidity, management said net cash used in operating activities was $0.3 million for the first six months of 2026, an improvement from prior periods. At June 30, 2026, working capital was negative $8.4 million, including $8.9 million of debt obligations classified as current, of which $6.9 million related to a Deferred Loan Settlement. As a result of these announcements, the company's shares have moved -0.8% on the market, and are now trading at a price of $9.92. For the full picture, make sure to review Falcon's Beyond Global's 10-Q report.
