Six Flags Is Weighing More Park Sales With Net Debt at $4.66 Billion

Six Flags Entertainment (NYSE: FUN) is looking at selling more parks to cut its debt, and its CEO has declined to say which ones.

On the third-quarter earnings call earlier this month, CEO John Reilly said: "We carry more debt than we want. Bringing it down is a priority." He added that the company is "actively reviewing our parks and real estate, including potential sales of non-core assets, to unlock value, reduce debt, and enhance liquidity." Asked how many parks the company wants to keep, he gave no number.

The numbers behind the pressure

As of Sept. 27, Six Flags carried about $4.9 billion in total debt and $4.66 billion in net debt, against $268 million in cash. Total debt is down roughly $275 million from the end of 2025.

Third-quarter revenue was $1.17 billion, down 11% as reported because eight parks are gone. The net loss was $366.1 million, or $3.59 a share. Of that, $688 million was a non-cash write-down of goodwill from the 2024 merger of Six Flags and Cedar Fair. Adjusted EBITDA came in at $493 million.

The company sold seven parks to EPR Properties this year for $331.4 million: Worlds of Fun, Valleyfair, Michigan's Adventure, Schlitterbahn Galveston, Six Flags St. Louis, Six Flags Great Escape and Canada's La Ronde. It also shut Six Flags America in Bowie, Maryland, after the 2025 season. It has a purchase agreement for that property, with closing expected in late 2027 or early 2028.

Six Flags also confirmed the permanent closure of California's Great America in Santa Clara, announced Nov. 6.

Reilly's stated aim is to bring net debt to roughly four times EBITDA. S&P Global Ratings has revised the company's outlook to negative, citing leverage above seven times EBITDA.

Why the debt is hard to shake

Cedar Fair brought $2.3 billion in debt into the merger and Six Flags brought $2.4 billion, much of it from the COVID shutdowns. Executives planned to pay it down with higher attendance and in-park spending.

That did not happen. Third-quarter attendance was 18.2 million, down 0.2% at comparable parks.

"They just misread it horribly," said Dennis Speigel, owner of International Theme Park Services in Cincinnati, of the leaders who negotiated the merger. "They miscalculated." Speigel credits Reilly, who joined late last year, with stabilizing the company by restoring park leadership and fixing basics at weak parks.

It may not be enough, in his view. "It's either going to be divestiture or it's going to be bankruptcy, in my opinion," Speigel said. "That's the only way out of this situation."

Speigel also says it is a poor time to sell. Industry attendance is stagnant and obvious buyers are scarce. A Six Flags spokesperson declined to answer questions about specific parks and pointed to the earnings call. Speculation about Ohio's Cedar Point and Kings Island has no company statement behind it.

Safety incidents and lawsuits

October added a second problem. A 42-year-old man was thrown from the Goliath coaster at Six Flags Over Georgia on Oct. 12 and died. Georgia's safety regulator is investigating. Six Flags has added seat belts and ordered an outside review of every ride it operates.

October attendance fell 9%, about half from weather and half from the Goliath death and the ride closures that followed. Six Flags now expects fourth-quarter adjusted EBITDA of $140 million to $150 million at its remaining parks, against $167 million a year ago.

In California, X2 at Six Flags Magic Mountain was closed for good on Sept. 29 after lawsuits alleging brain injuries. A fourth suit was filed Nov. 5. Plaintiffs' lawyers say more than 100 other riders have come forward. No dollar figure for any of it appears in the company's filings.

The case that it is not a distress sale

The company's own numbers give it an argument. Revenue at the parks it still runs rose 1.4%. The quarter was better than Wall Street feared, and nothing large comes due before 2028, according to 24/7 Wall St.'s reading of the filings.

The stock reflected that. Shares rose 26% in two days, from $7.93 on the Wednesday before the report to $10.00 at that Friday's close. They are still down about 34% for the year, according to MoneyWise.

Reilly also said proceeds from asset sales would go mainly to paying down debt. That is a deleveraging plan, not a missed payment.

The same shareholders have received nothing for years. According to 24/7 Wall St., Cedar Fair paid $3.74 a unit annually before the merger, and the combined company has paid nothing since.

What comes next

The Q4 EBITDA guidance, the Georgia investigation and the X2 litigation are the near-term variables. The Maryland land sale is not expected to close until late 2027 or early 2028. Reilly has not named a single park beyond those already sold or closed, and until he does, the question of which crown-jewel properties could be offered, and who could afford them, remains open.