Six Flags Stock (NYSE:FUN) Hits New Low Ahead of Earnings – What To Expect

Six Flags Entertainment stock (NYSE: FUN) hit a new low ahead of earnings at $18.27, falling 9.76% on Thursday. A confluence of activist pressure, leadership changes, and mixed financial performance paint a complex picture for analysts as the company heads towards its next earnings announcement. The report is scheduled to be released today, before market open, with FUN trading 4.62% higher pre-market.

Analysts project that FUN will report an EPS of $2.05, slightly below the $2.13 earned in the same quarter last year, indicating a modest dip in profitability. Revenue is expected to total about $1.34 billion, reflecting a 0.9% year-over-year decline, suggesting relatively stable but slightly softer performance amid potential fluctuations in park attendance or guest spending.

The past few months have been a rollercoaster for FUN shareholders. The stock enjoyed a significant boost in October following the disclosure that Jana Partners, along with NFL star Travis Kelce and other prominent executives, had taken a 9% stake in the company.

This activist group is pushing for strategic changes aimed at improving the visitor experience and unlocking shareholder value, sending the stock soaring 17.7% on the news. Another activist backer, Land & Buildings Investment Management, is advocating for the monetization of Six Flags' real estate assets, potentially through a REIT or sale-leaseback agreements.

However, this enthusiasm is tempered by recent financial results and analyst concerns. In the second quarter of 2025, Six Flags reported a net loss of $99.65 million, a stark contrast to the $33.55 million profit in the same period last year. Revenue also disappointed, coming in at $930 million compared to analyst expectations of $987.3 million. The company blamed adverse weather conditions for the shortfall, which impacted attendance and park operations.

These results have led to analyst downgrades. Jefferies lowered its rating on FUN from “Buy” to “Hold,” slashing its price target to $25.00, citing leadership uncertainty and the suspension of the company's three-year financial outlook. Stifel also reduced its price target, from $50.00 to $43.00, while maintaining a “Buy” rating. The average analyst price target currently sits at $36.36, significantly below the current trading price, suggesting potential downside risk.

Adding to the uncertainty, Six Flags is undergoing a significant leadership transition. Executive Chairman Selim Bassoul and Lead Independent Director Daniel J. Hanrahan are stepping down at the end of the year, with Marilyn Spiegel slated to become the non-executive Chair. The company is also actively searching for a new CEO. This period of transition creates both risks and opportunities, as a new leader could bring fresh ideas and strategies, but also introduces uncertainty about the company's future direction.

Operationally, Six Flags continues to invest in new attractions and expansion projects. The company recently unveiled plans for “Tormenta Rampaging Run,” a record-breaking dive coaster coming to Six Flags Over Texas. Moreover, the development of Six Flags Qiddiya City in Saudi Arabia is progressing, representing a significant international expansion. These investments demonstrate a commitment to long-term growth, but their success will depend on the company's ability to navigate its current challenges.

While the prevailing narrative focuses on the potential pitfalls facing Six Flags, a contrarian viewpoint suggests the company might be undervalued. The market may be overreacting to short-term headwinds like weather-related disruptions, while underestimating the potential of the activist backer influence. Jana Partners' involvement, coupled with the potential for real estate monetization, could provide a significant catalyst for growth, potentially exceeding current analyst expectations.