Six Flags financial trouble started well before tragic death
By Chris Isidore, Matt Egan, CNN
(CNN) — Six Flags shares sank sharply Tuesday to their lowest level since 2009 after a rollercoaster rider tragically fell to his death at a Georgia park. But the company was under legal and financial pressure long before this week’s deadly incident.
At roughly $10 per share, Six Flags stock is now worth less than in 2020, when the pandemic caused visitor traffic to grind to a virtual halt for most of the year.
The company hasn’t recorded a profitable quarter since the summer of 2024, following the completion of an $8 billion merger with rival Cedar Fair that left it drowning in debt. Shareholders have seen more than 80% of the stock’s value (FUN) evaporate since the merger was completed that same year. Current investors include NFL star and brand ambassador Travis Kelce, who bought a stake in the company last year.
Beyond its debt, the amusement park is facing headwinds from the high cost of living. “Mounting inflationary pressure” from gas prices and high borrowing costs “can’t help but weigh on the theme park customer,” according to research from Citigroup.
The company’s parks suffered a 15% year-over-year tumble in foot traffic in the April to June period, according to Citi analysts.
Six Flags reported a $203 million net loss during that same quarter, more than double the nearly $100 million loss it saw a year earlier. Any income was outweighed by its $102 million in debt payments. That prompted the company to unload seven parks to EPR Properties for $331 million just before the start of the 2026 summer season. It also closed a Maryland-based amusement park and waterpark at the end of the 2025 season.
The company faces multiple safety issues beyond Monday’s fatality, which poses a risk to its shaky finances.
Last month, it announced it was closing its most famous roller coaster, the X2 at its Magic Mountain park in Valencia, California, after a CNN investigation exposed a long history of life-altering severe injuries and deaths linked to the ride. The company faces numerous lawsuits over the ride, which it insisted had passed a multitude of required safety tests.
That list, the company warns, poses a risk for its ability to get adequate and affordable insurance.
“Although the company carries liability insurance to cover possible incidents, coverage may not be adequate to cover liabilities (and) the company may not be able to obtain coverage at commercially reasonable rates,” the company warned in its annual financial filing at the start of this year.
Six Flags reports its earnings for the summer months in early November. Wall Street analysts forecast it will return to profitability but expect losses for the rest of the year.
Six Flags is backed by NFL star Kelce, the husband of Taylor Swift. The company announced Kelce as brand ambassador in March.
Kelce teamed up with activist hedge fund Jana Partners in October 2025 to buy a 9% stake in Six Flags. Kelce said at that time that he was making the investment because he was “a lifelong Six Flags fan” who had grown up “going to these parks with my family and friends.”
Last month, Jana Partners called on Six Flags to immediately hire an investment bank to explore a sale, The Wall Street Journal reported.
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