Six Flags Entertainment Corp. (NYSE: FUN) stock traded higher Thursday after the amusement park operator reported third-quarter 2026 results that beat revenue estimates but missed earnings expectations.

The company reported a quarterly loss of $3.59 per share, wider than Wall Street's estimate of a $1.88 loss.

Revenue fell 11% year over year to $1.173 billion from $1.318 billion. However, sales topped analysts' estimate of $1.158 billion.

Six Flags reported a net loss of $366.1 million, compared with a $1.19 billion loss a year earlier. The latest quarter included $687.7 million in noncash impairment charges, compared with $1.52 billion last year.

Same-Park Revenue Ticks Higher

Reported revenue declined partly because the prior-year quarter included eight parks that Six Flags no longer operates. Seven were sold to EPR Properties, while one in Bowie, Maryland, closed after the 2025 season.

Excluding those parks, same-park revenue rose 1.4% to $1.17 billion.

Same-park attendance declined 0.2% to 18.2 million visitors. However, spending per guest increased 1.3% to $60.51.

Adjusted EBITDA fell 11.1% to $493.2 million on a reported basis but increased 1.1% on a same-park basis.

The company's active season pass and membership base grew 7.1% to 7.1 million. Passholders and members accounted for about 61% of same-park attendance.

October Delivers a Double Blow to Q4 Outlook

Six Flags expects fourth-quarter same-park adjusted EBITDA of $140 million to $150 million, compared with $167 million a year earlier.

Management said October performance was weaker than expected because of unfavorable weather and an incident at Six Flags Over Georgia that led to ride closures.

CEO John Reilly addressed the incident, saying the company had launched a comprehensive ride safety review across its parks with independent engineering and inspection specialists.

Six Flags also lowered its 2026 capital spending forecast to $350 million to $375 million from $400 million to $425 million.

The company attributed the reduction to the timing of major new ride projects rather than maintenance cuts.

Cash Flow Improves As Debt Declines

Operating cash flow for the first nine months increased 36.5% to $498.5 million.

Capital expenditures totaled $241.2 million, down from $408.1 million a year earlier.

Six Flags ended September with $267.9 million in cash and cash equivalents, compared with $70.7 million a year earlier.

Total liquidity reached $1.06 billion, with no outstanding borrowings under its revolving credit facility.

Total debt stood at $4.91 billion, down $275 million from Dec. 31, 2025. Net debt was $4.66 billion.

Short Float Adds Fuel For Volatility

Six Flags also carries significant short interest, which could amplify the stock's gains.

About 24.59 million shares are sold short, representing 29% of the company's 84.81 million-share float.

The high short float raises the possibility of a short squeeze if the stock continues to climb and bearish traders rush to cover their positions.

FUN Price Action: Six Flags Entertainment shares were up 9.08% at $8.65 during premarket trading on Thursday, according to market data.