Seaport Entertainment Group Inc (SEG) Q4 2025 Earnings Call Highlights: Revenue Growth and ...

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Net Loss Improvement: 24% year-over-year improvement in net loss for 2025.

Non-GAAP Adjusted Net Loss Improvement: 49% year-over-year improvement in non-GAAP adjusted net loss for 2025.

Revenue: Fourth quarter 2025 revenue was $29.5 million, a 7% increase year-over-year; full year 2025 revenue was $130.4 million, flat compared to 2024.

Hospitality Revenue Decline: 23% decline in Q4 2025 on a pro forma basis, primarily due to lower performance of the Tin Building.

Entertainment Revenue Increase: 68% increase in Q4 2025 year-over-year, driven by internalization of operations in Las Vegas.

Landlord Rental Revenue Increase: 14% increase in Q4 2025 year-over-year on a pro forma basis.

Consolidated Segment Adjusted EBITDA: Improved by $1.3 million year-over-year in Q4 2025 on a pro forma basis.

General and Administrative Expenses: $6.8 million in Q4 2025, a 31% improvement year-over-year.

Interest Expense: Increased by $3.3 million in Q4 2025 compared to the prior year quarter.

Cash and Cash Equivalents: Year-end 2025 balance was over $87 million; pro forma balance post-250 Water Street sale was $163 million.

Long-term Debt: Reduced to $100.4 million by year-end 2025.

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For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Seaport Entertainment Group Inc (NYSE:SEG) achieved a 24% year-over-year improvement in net loss and a 49% improvement in non-GAAP adjusted net loss for 2025.

The sale of 250 Water Street generated net proceeds of approximately $75 million, eliminating $7 million of annual cash burn related to interest expense and carrying costs.

The new lease with Lux Entertainment for the Balloon Museum is expected to improve the company's pro forma annual EBITDA by more than $22 million.

SEG's Las Vegas Aviators won the 2025 Pacific Coast League Championship, enhancing the Seaport's reputation as a premier event destination.

The company has a strong cash position with $163 million in cash, restricted cash, and cash equivalents, providing liquidity and optionality for future investments.

The process of finalizing the sale of 250 Water Street took longer than anticipated, indicating potential challenges in executing large transactions.

The closure of the Tin Building as a culinary experience highlights historical challenges and the need for a fundamental repositioning of the asset.

Hospitality segment revenues declined by 23% in Q4 2025 on a pro forma basis, primarily due to lower performance of the Tin Building.

Interest expense increased by $3.3 million in Q4 2025 compared to the prior year, due to the suspension of interest capitalization on 250 Water Street.

The landlord segment's 2025 consolidated adjusted EBITDA declined 55% year-over-year on a pro forma basis, primarily due to nonrecurring charges.

Q: How much of the $163 million cash pro forma is committed to current projects at the Seaport, and what are the plans for the remaining funds? A: Lenah Elaiwat, CFO, stated that approximately $70 million to $90 million is expected to be used for current projects, with an initial target range of $100 million to $125 million for stabilization. CEO Matthew Partridge added that they are evaluating opportunities in hospitality, entertainment, and event spaces, and may also consider using the buyback program depending on stock performance.

Q: Are there any internal hurdles for achieving a 20% return on the event space investment? A: Matthew Partridge, CEO, explained that while the hospitality space typically has low margins, the events business offers better margins. They aim to leverage existing talent to improve flow-through and focus on growing earnings efficiently, though no specific financial targets have been set yet.

Q: What is the status of the remaining space at the Seaport, and what growth can it drive? A: Matthew Partridge, CEO, mentioned that over 50,000 square feet remain, with one-third being restaurant-oriented. They are considering complementary restaurant concepts and expect the Balloon Museum and other attractions to drive visitation, benefiting existing and future food and beverage operations.

Q: What are the plans for special events at the Seaport, and how will they drive engagement? A: Matthew Partridge, CEO, highlighted plans for diverse programming, including concerts, cultural events, and sporting events like the FIFA World Cup. These initiatives aim to attract visitors and support local businesses, creating a vibrant community hub.

Q: What criteria will trigger the stock buyback program, and how will it be executed? A: Matthew Partridge, CEO, stated that while they believe the stock is undervalued, buybacks will be used opportunistically. The decision will be made by the Board, considering stock performance and capital allocation alternatives.