Six Flags Entertainment Corporation (FUN) gave investors a thrill ride on Thursday, with shares surging over 15% after the company reported first-quarter revenue that beat Wall Street's expectations. The amusement park operator posted net revenues of $225.6 million, up from $202.06 million a year ago and well above the $207.75 million analysts had forecast.

But the revenue beat wasn't the only thing driving the stock higher. With short interest exceeding 23% of the float, the rally had all the hallmarks of a short squeeze—where bears scrambling to cover their positions add fuel to the fire. The stock was up 15.54% at $22.75 in premarket trading, according to market data.

Spending Gains Drive Revenue Beat

Six Flags saw a 6% increase in per-capita spending, which hit $69.26. Management credited effective ticket pricing and higher food and beverage sales for the bump. Total attendance also rose 4% to 2.9 million visits, even though operating days decreased to 369 from 393 in the prior-year period. That's a sign that guests are spending more when they come, even if the parks aren't open as often.

Bottom Line Pressures Persist

Despite the top-line beat, the bottom line remains under pressure. The quarterly net loss attributable to Six Flags totaled $269 million, wider than the $220 million loss reported a year ago. However, there's a silver lining: adjusted EBITDA loss narrowed to $123 million, a $48 million improvement year-over-year. That suggests the company's cost controls and operational efficiencies are starting to pay off, even if the net loss figure looks ugly.

Liquidity and Debt Profile

As of March 29, Six Flags reported total liquidity of $462 million. Deferred revenues—money collected for season passes and memberships that hasn't been recognized yet—rose 2% to $381 million, indicating strong advance sales. Net debt stands at $5.27 billion, calculated as total debt of $5.39 billion (before debt issuance costs and acquisition fair value layers) less cash and cash equivalents of $117 million. That's a hefty debt load, but the company's liquidity position provides some cushion.

CEO Highlights "Encouraging" Trends

CEO John Reilly expressed confidence in the company's trajectory. "We delivered meaningful year-over-year improvement in the first quarter, driven by higher attendance, increased guest spending, and disciplined execution," Reilly said. He added, "Although it is still early in the season, demand trends in the second quarter are encouraging."

Leadership Changes at Six Flags

Six Flags also announced several executive changes. Amy Martin Ziegenfuss will join as chief marketing officer, and Christopher Bennett as chief legal and compliance officer, both effective June 3, 2026. Ziegenfuss previously served as CMO at Carnival Cruise Line, while Bennett is currently a partner at Dentons. Meanwhile, CFO Brian Witherow will step down effective May 8, with Chief Accounting Officer Dave Hoffman serving as interim finance lead until a successor is named. Reilly said the changes are intended to strengthen the company's marketing, legal, and commercial capabilities as it focuses on profitability and long-term growth.

With a revenue beat, a potential short squeeze, and encouraging early-season trends, Six Flags is giving investors plenty to ride—but the debt and net loss figures are a reminder that the park isn't out of the woods yet.