Breaking Down Cedar Fair, L.P. (FUN) Financial Health: Key Insights for Investors

You're looking at Cedar Fair, L.P. (FUN), but the reality is you're analyzing Six Flags Entertainment Corporation, the combined giant that kept the FUN ticker after the July 2024 merger. Honestly, the financial picture right now is a mixed bag, demanding a defintely close look at integration risks versus long-term synergy potential. The headline numbers from the Q3 2025 report show a clear disconnect: while attendance grew to a solid 21.1 million guests, in-park per capita spending dropped 4% to just $59.08, dragging down overall revenue to $1.318 billion for the quarter. Worse, the company had to slash its full-year 2025 Adjusted EBITDA guidance significantly, now projecting a range of only $780 million to $805 million, well below earlier expectations, and the stock price has seen a nearly 64% decline since the merger closed. This isn't just a weather story; it's a deep dive into whether the new management can monetize a massive footprint while wrestling with a 6.2x debt-to-earnings leverage ratio. Let's break down where the real value lies and what actions you should consider right now.

Revenue Analysis

You need to look at Cedar Fair, L.P. (FUN)'s revenue through a new lens because the company merged with Six Flags Entertainment Corporation on July 1, 2024. The immediate takeaway is that the combined entity now boasts a trailing twelve months (TTM) revenue of approximately $3.16 billion as of November 2025, creating the largest regional amusement park operator in North America.

But the raw scale is only half the story. The combined company's revenue model is dual-pronged, focusing on getting guests through the gates and maximizing what they spend once they are inside. The primary revenue streams remain consistent with the legacy Cedar Fair business, just significantly amplified by the addition of the Six Flags portfolio of approximately 40 parks.

• Admissions: Revenue from park tickets, season passes, and group sales. This is the foundation.
• In-Park Spending: Money spent on food and beverage, merchandise, games, and premium access products like Fast Lane. This segment is key to margin expansion.
• Out-of-Park/Resorts: Revenue from hotel stays and other integrated hospitality amenities at select properties.

The year-over-year revenue growth rate, which hit 15.82% for the TTM period ending in 2025 versus the 2024 full-year revenue of $2.70 billion, is defintely distorted by the merger. Here's the quick math on the pre-merger trend: the legacy Cedar Fair saw a 20% increase in net revenues in the first quarter of 2024, but this was driven by a 27% jump in attendance, which was partially offset by a 6% decrease in in-park per capita spending to $60.53.

This dynamic-higher attendance from season passes but lower per-person spending-is a critical trend to watch. The combined entity's in-park per capita spending was reported at $59.08 in Q3 2025, indicating that the pricing strategy is still navigating the high-volume, lower-price-point model inherited from Six Flags.

The most significant change is the post-merger integration itself. The combined company has already achieved $120 million in cost synergies ahead of schedule, which is good, but the revenue side is struggling. The Q2 2025 revenue miss and the subsequent cut to the full-year 2025 Adjusted EBITDA guidance is a clear signal that the promised revenue growth and operational leverage aren't materializing as quickly as management hoped. This poor performance has led to a major portfolio adjustment, including the permanent closure and sale of Six Flags America and its Hurricane Harbor water park in November 2025.

The immediate risk is that the spike in the debt-to-earnings leverage ratio to 6.2x will force further divestitures of non-core assets, which could stabilize the balance sheet but also reduce the overall revenue base. If you want to understand the investor sentiment driving this volatility, you should read Exploring Cedar Fair, L.P. (FUN) Investor Profile: Who's Buying and Why?

Next Step: Analyst Team: Model the impact of a $500 million asset divestiture on the revised $780M-$805M EBITDA guidance by end of next week.

Profitability Metrics

The profitability picture for Cedar Fair, L.P. (FUN) as of late 2025 is a tale of two periods: strong historical operational efficiency now heavily obscured by the accounting impact of the Six Flags merger and associated costs. The direct takeaway is that while the underlying business shows high gross margins, near-term net profitability is deeply negative, signaling a crucial period of integration and cost absorption.

For the trailing twelve months (TTM) ending in November 2025, the company's operating margin stands at a concerning -8.86%. This sharp decline from the prior year's performance is a clear signal of the massive transaction and integration expenses hitting the income statement. To be fair, the company's full-year 2025 Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) guidance remains relatively strong at a range of $780 million to $805 million, which is the figure management uses to show underlying cash operational strength, but it strips out the very real costs of depreciation and interest. Here's the quick math on the pre-tax bottom line: TTM Pretax Income is a loss of approximately $0.29 billion USD. That's a defintely tough number to swallow.

When you look at the profitability trends, the recent figures are a stark departure from the past. Before the full impact of the merger and its one-time expenses, the legacy Cedar Fair business demonstrated superior operational efficiency compared to its current TTM figures. For the 2024 fiscal year, the company had a calculated:

• Gross Profit Margin: Approximately 64.6%
• Operating Income Margin: Roughly 21.3%
• Net Profit Margin: Around 8.1%

That 64.6% gross margin shows excellent cost management (Cost of Goods Sold) for a seasonal, experience-based business. The challenge isn't in generating revenue over direct costs; it's in managing the hefty operating expenses, especially the non-cash ones like depreciation and amortization, and the one-time merger costs.

Industry Comparison and Operational Efficiency

A comparison of profitability ratios with key industry players highlights the current pressure on Cedar Fair, L.P. The negative TTM operating margin is an outlier, but the historical margin provides a better sense of its competitive position. The underlying operational efficiency, particularly the gross margin trend, remains a core strength, indicating the company maintains a strong pricing power and cost control over its direct park operations (e.g., food, merchandise, and labor directly tied to attendance).

This table maps the TTM Operating Margin for Cedar Fair, L.P. against its major competitors, illustrating the immediate financial headwind created by the merger's accounting impact:

The gap between Cedar Fair's TTM operating margin and the margins of Six Flags and SeaWorld Entertainment is massive. This isn't a sign of permanent business failure, but rather the short-term cost of a major corporate action-the merger-which includes significant non-recurring expenses. The key action for you is to monitor the quarterly reports for a clear separation of recurring operating expenses from these one-time integration costs. If the underlying, normalized operating margin starts to trend back toward the 20% range, the investment thesis is intact. For a deeper dive into the investor base, consider Exploring Cedar Fair, L.P. (FUN) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

The core takeaway for investors looking at Cedar Fair, L.P. (FUN) is that the company's capital structure is heavily reliant on debt financing, a situation significantly amplified by the July 2024 merger with Six Flags. You need to understand that this is a high-leverage model, which can magnify returns but also introduces substantial risk, especially in a capital-intensive industry.

As of June 2025, the combined entity's total debt stood at approximately $5.51 Billion USD, representing a massive shift from the pre-merger structure. This debt is overwhelmingly long-term, which is typical for a business with high property, plant, and equipment assets (PP&E) like amusement parks. The good news is that management has been proactive in managing the near-term debt wall.

In May 2024, Cedar Fair executed a key refinancing move, successfully closing a new 7-year, $1.0 billion senior secured term loan B, maturing in 2031. They used the proceeds to redeem all outstanding $1.0 billion of 5.500% Senior Secured Notes that were originally due in May 2025. This action effectively pushed a major debt maturity out by six years, meaning the company has no significant near-term debt maturities, which is a defintely positive sign for liquidity.

Here's the quick math on the debt-to-equity picture. The high leverage is immediately apparent when you look at the debt-to-equity ratio (D/E). This ratio measures how much debt a company uses to finance its assets relative to the value of its shareholders' equity (the capital structure). A recent calculation puts Cedar Fair, L.P.'s D/E ratio at approximately 8.53.

To be fair, capital-intensive businesses like amusement parks often carry more debt than, say, a tech company. Still, this 8.53 ratio is dramatically higher than the Amusement and Recreation Services industry median D/E of 1.70 reported for 2024. This disparity shows the combined company is taking on significantly more financial risk than its peers, a fact that has led to a debt-to-earnings leverage ratio (Total Debt / Adjusted EBITDA) as high as 6.2x in August 2025.

The financing strategy clearly favors debt over equity. This is a calculated move: debt financing is generally cheaper than equity, especially when interest rates are low, and it allows existing unitholders to maintain control and benefit from amplified earnings per share. But the trade-off is higher fixed interest payments and less flexibility. The company's focus is on using its strong cash flow from park operations to service this debt and invest in high-return capital projects, like new rides, instead of issuing more stock, which would dilute existing ownership. This is a classic private equity-style approach to a public company.

• Debt Focus: The company uses debt to fund major capital investments and growth, avoiding equity dilution.
• Refinancing Win: They successfully pushed a 2025 debt maturity to 2031, removing a near-term risk.
• High Leverage: The D/E ratio of 8.53 is a clear sign of significant financial risk relative to the industry average.

What this estimate hides is the successful integration of the merger and the ability to realize the projected cost synergies, which are crucial for generating the Adjusted EBITDA needed to comfortably service this massive debt load. For a deeper dive into who is betting on this strategy, you should be Exploring Cedar Fair, L.P. (FUN) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You're looking at Cedar Fair, L.P. (FUN)'s balance sheet to see if the company has enough short-term cash to cover its bills. The short answer is that the company operates with a structurally tight liquidity position, which is common for seasonal, capital-intensive amusement park operators, but the recent TTM (Trailing Twelve Months) figures show a negative working capital and sub-1.0 liquidity ratios, which is defintely a concern.

Assessing Cedar Fair, L.P. (FUN)'s Liquidity

Liquidity ratios measure the ability of Cedar Fair, L.P. to meet its near-term obligations. For the most recent TTM period, the numbers show a heavy reliance on future cash flow rather than current assets. The Current Ratio, which compares current assets to current liabilities, stands at only 0.58. This means the company has only 58 cents of current assets for every dollar of short-term debt. The Quick Ratio (or Acid-Test Ratio), which excludes inventory-a less liquid asset for a service business like this-is even lower at 0.41. Neither of these ratios hits the 1.0 benchmark that analysts typically prefer for comfort.

Here's the quick math on why this is a structural risk:

• Current Ratio: 0.58 (Below the 1.0 comfort level)
• Quick Ratio: 0.41 (Shows even less cash/receivables available)
• Working Capital: -$359.72 million (Current Assets minus Current Liabilities)

A negative working capital of -$359.72 million is a clear signal of a liquidity squeeze, where short-term liabilities exceed short-term assets. This trend is exacerbated by the company's seasonal business model-they collect cash for season passes early in the year, which creates a large deferred revenue liability that must be serviced over the operating season.

Cash Flow Statement Overview and Trends

When liquidity ratios are weak, the cash flow statement (CFS) becomes the most crucial document. Cedar Fair, L.P. generates substantial cash from operations, but a heavy investment schedule eats it up. For the TTM period, the cash flow breakdown is clear:

The company's core business is profitable on a cash basis, producing $332.57 million in OCF. But, the Investing Cash Flow, largely composed of CapEx for new attractions and maintenance-which is crucial for driving future attendance-was -$501.27 million. This high investment cost is the primary reason for the negative Free Cash Flow (FCF) of -$168.71 million. This means Cedar Fair, L.P. is not generating enough cash internally to fund its growth and maintenance CapEx, forcing it to rely on Financing Cash Flow activities, like debt or equity, to bridge the gap.

Near-Term Liquidity Strengths and Concerns

The biggest strength is the predictable, strong Operating Cash Flow. People will always go to amusement parks, so the cash generation is reliable, even if attendance growth was only 1% in Q3 2025. The primary concern is the negative FCF and the resulting need for external financing, especially in a higher interest rate environment. The recent merger with Six Flags Entertainment Corporation, though complex, is intended to create a larger, more diversified entity with potential for accelerated investment, which you can read more about in Exploring Cedar Fair, L.P. (FUN) Investor Profile: Who's Buying and Why? The key action for you is to monitor the new combined entity's debt-to-equity ratio and its ability to reduce CapEx spending without sacrificing future revenue growth.

Valuation Analysis

Is Cedar Fair, L.P. (FUN) overvalued or undervalued? As of November 2025, the stock is defintely trading at a significant discount, suggesting it is undervalued by the market, but this is a complex value play driven by a massive stock price collapse and negative earnings. The average analyst price target of $28.97 suggests an upside of over 106.77% from the current price of $12.83.

You need to look past the surface ratios, though. The negative Price-to-Earnings (P/E) ratio of -3.16 for the trailing twelve months (TTM) tells you Cedar Fair, L.P. is currently losing money, with an EPS of -$18.67. This isn't a typical value stock with low P/E; it's a turnaround story where current earnings are negative.

Here's the quick math on the key valuation metrics as of November 2025:

The Enterprise Value-to-EBITDA (EV/EBITDA) ratio of 8.99 is the most useful metric here, as it bypasses the non-cash charges and high debt that skew the P/E ratio. It's a reasonable multiple for a leisure and entertainment company, but still requires the company to hit its earnings targets to justify the valuation.

Stock Price Trend and Analyst Sentiment

The stock price trend over the last 12 months is brutal. Cedar Fair, L.P. shares have plummeted from a 52-week high of $49.77 to a low of $12.76, where it was trading recently in November 2025. That's a drop of nearly 74%, and it shows the market has heavily discounted the stock due to operational concerns and the negative earnings.

Still, Wall Street analysts are surprisingly bullish, which is a key signal you can't ignore. The consensus rating is a strong BUY, based on the ratings of 20 analysts. They see the current price as a massive entry point, betting on a successful merger execution and a major EBITDA inflection in 2025.

• Current Price: $12.83 (Nov 20, 2025).
• 52-Week High: $49.77.
• Analyst Consensus: BUY.
• Average Price Target: $28.97.

The stock is a high-risk, high-reward play right now.

Dividend Status and Payout Reality

Cedar Fair, L.P. is a publicly traded partnership, and historically it has paid a distribution (like a dividend) four times a year, typically in March, June, September, and December. However, with the TTM Earnings Per Share (EPS) at a negative -$18.67, the traditional dividend payout ratio is meaningless. You cannot calculate a simple payout ratio when earnings are negative.

The company's focus has shifted. The priority is now on operational execution and the successful integration of its merger, which is expected to drive significant EBITDA growth. You should not be buying this stock for the dividend yield in 2025; you buy it for the capital appreciation potential if management executes the turnaround and synergy capture. Understanding the long-term strategic direction is vital, so review the Mission Statement, Vision, & Core Values of Cedar Fair, L.P. (FUN) to grasp their renewed focus.

What this estimate hides is the execution risk of integrating two large park operators. If onboarding takes 14+ days, churn risk rises, and the same applies to merging two corporate cultures and systems.

Risk Factors

You're looking for a clear-eyed view of Cedar Fair, L.P. (FUN) right now, and the primary takeaway is this: the company is navigating a complex, high-stakes integration while facing immediate pressure on visitor spending. The biggest near-term risk is execution failure on the Six Flags merger, compounded by a clear operational challenge in monetizing attendance.

The Q3 2025 results for the Combined Company (now trading as FUN) highlighted this tension. While attendance grew by a modest 1% to 21.1 million guests, in-park per capita spending dropped by 4% to just $59.08. This disconnect is the core operational headwind, dragging down overall revenue and forcing a revised full-year 2025 Adjusted EBITDA guidance to a range of $780 million to $805 million. That's a significant downward revision, and it signals that the revenue-per-guest model is under stress.

• Attendance is up, but spending is defintely down.

Operational and Financial Risks

The integration of Cedar Fair and Six Flags, completed in July 2024, is the single largest strategic risk. Mergers of equals are notoriously difficult, and the company is trying to unify 27 amusement parks, 15 water parks, and nine resorts into a cohesive North American giant. The primary risks here are not abstract-they are concrete integration failures that hit the bottom line.

Here's the quick math: the company is targeting approximately $1.0 billion in combined capital expenditures across 2025 and 2026 to drive growth and synergies. If the integration of systems, standards, and personnel falters, that massive investment won't deliver the expected returns. Management has already noted that some 2025 investments in underperforming parks haven't paid off yet, so future CapEx is being refocused on higher-return projects.

On the financial side, the company has shown a proactive move by refinancing its debt. They redeemed the outstanding $1.0 billion 5.500% Senior Secured Notes due May 2025 by securing a new 7-year term loan. This removed a near-term maturity risk, but the overall debt load and leverage remain a factor in the integration's success.

External and Regulatory Headwinds

The external environment presents classic cyclical risks. The amusement park industry is highly competitive, pitting Cedar Fair, L.P. (FUN) against major players like SeaWorld Entertainment and Walt Disney. When economic pressures hit, consumers first cut back on discretionary spending, which directly impacts the in-park purchases-food, merchandise, and premium access-that have already shown a 4% decline.

Also, a current regulatory and legal risk stems from the merger itself. There is a securities fraud class action lawsuit filed on behalf of investors who acquired stock related to the July 1, 2024 merger. While the outcome is uncertain, a lawsuit of this nature adds a layer of unpredictable expense and management distraction.

Clear Mitigation Strategies

The good news is that management is not standing still. Their strategies are focused on what they can control: integration and capital deployment. They are already seeing some benefits from integration efforts, such as a unified website and ticketing system, which should help streamline costs and guest experience (the 'synergies' you hear about). Plus, the strategic partnership with JANA Partners, including leveraging high-profile figures like Travis Kelce, is a clear effort to increase public interest and drive brand value into 2026.

• Refocus capital spending on only high-return projects.
• Unify digital platforms to capture cost synergies.
• Leverage new brand partnerships for 2026 marketing.

For a deeper dive into the valuation implications of these risks, you should read our full analysis: Breaking Down Cedar Fair, L.P. (FUN) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking past the current quarter's noise, and honestly, that's the right move. The near-term view for Cedar Fair, L.P. (FUN) is tempered by recent performance, but the long-term outlook is defintely defined by one massive, transformative action: the merger with Six Flags Entertainment Corporation. This combination creates a regional amusement park powerhouse with a much stronger financial profile and a clear path to significant cost savings.

To be fair, the company just reported a challenging Q3 2025, with GAAP earnings per share (EPS) at -$11.77, missing estimates by a stark $14.02. Plus, in-park per capita spending fell 4% to $59.08, dragging down revenue to $1.32 billion for the quarter. This softness led to a revised full-year 2025 Adjusted EBITDA outlook, now projected between $780 million and $805 million. So, the immediate focus is on integrating the merger and stabilizing the core revenue model.

The Six Flags Merger: Scale and Synergies

The merger with Six Flags is the single most important growth driver. It immediately expands the company's footprint to a combined portfolio of 42 iconic parks and 9 resort properties across the US, Canada, and Mexico. This scale is a game-changer, mitigating the impact of seasonality by giving the combined entity a more balanced presence in year-round operating climates, which reduces earnings volatility.

The financial opportunity here is in the cost side. Management is targeting $200 million in total synergies, which is a huge boost to the bottom line. Here's the quick math: if they achieve even half of that target, say $100 million, it helps drive the projected combined earnings before interest, taxes, depreciation, and amortization (EBITDA) from an estimated $1.1 billion in 2024 to $1.4 billion by 2027. That's a powerful engine for future investment and debt reduction.

Strategic Initiatives and Product Innovation

Beyond the merger, Cedar Fair, L.P. (FUN) is focused on two key areas for organic growth: better monetization and high-return capital projects. The revenue model is dual-pronged, focusing on admissions and ancillary spending like food, merchandise, and premium experiences such as Fast Lane access. Interestingly, out-of-park revenues, like merchandise and food, rose 6% year-over-year to $108 million in Q3 2025, showing where the growth is already happening.

They are also getting smarter with capital allocation. While the company continues to invest in new rides and attractions to maintain its competitive edge, management is now being more targeted with its capital expenditures (CapEx) on underperforming parks, focusing strictly on high-return projects. A great example of a partnership driving interest is the collaboration with JANA Partners, which includes celebrity Travis Kelce, a move management aims to leverage for the 2026 season.

• Focus CapEx on high-return projects, not underperformers.
• Use technology for a unified ticketing system and guest experience.
• Leverage the JANA Partners/Travis Kelce deal for 2026 marketing.

Competitive Advantages and Future Projections

Cedar Fair, L.P. (FUN) maintains a significant competitive advantage-a wide moat-due to the high barrier to entry in the amusement park industry. Building a theme park of a similar scale can cost an estimated $300 million and take two years, which keeps new competitors out. The company's focus on a superior guest experience, consistently investing in new attractions, is what drives repeat visits.

The long-term revenue growth rate for the next three to five years is estimated at 3.54%. This is a realistic number, driven by modest attendance growth (1-2%) and a continued increase in revenue per visit (2-3%). This is how you build sustainable growth, one season at a time. For a deeper dive into the company's valuation, you can read more here: Breaking Down Cedar Fair, L.P. (FUN) Financial Health: Key Insights for Investors.