The company's profitability is severely compromised, evidenced by a recent operating margin of -96.6% in 2025Q4 and a failure to maintain positive gross margins in the most recent quarter.
| Sales/Revenue | 127.08M | 130.41M | 111.14M | 115.68M | 119.05M |
| Revenue Growth % | 12.91% | 17.34% | -3.93% | -2.83% | - |
| Cost of Goods Sold | 112.36M | 128.36M | 74.76M | 78.9M | 76.8M |
| COGS % of Revenue | - | 98.43% | 67.27% | 68.2% | 64.51% |
| Gross Profit | 1.98M | 2.05M | 36.38M | 36.78M | 42.24M |
| Gross Margin % | 1.56% | 1.57% | 32.73% | 31.8% | 35.49% |
| Gross Profit Growth % | - | -94.37% | -1.1% | -12.94% | - |
| Operating Expenses | 81.95M | 109.16M | 138.12M | 793.19M | 108.92M |
| OpEx % of Revenue | - | 83.71% | 124.28% | 685.68% | 91.49% |
| Selling, General & Admin | 41.06M | 42.78M | 63.27M | 30.54M | 16.98M |
| SG&A % of Revenue | - | 32.81% | 56.93% | 26.4% | 14.26% |
| Research & Development | 0 | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - |
| Operating Income | -115.67M | -107.11M | -101.74M | -756.41M | -66.67M |
| Operating Margin % | -91.02% | -82.14% | -91.55% | -653.89% | -56% |
| Operating Income Growth % | - | -5.28% | 86.55% | -1034.54% | - |
| EBITDA | -71.45M | -74.92M | -66.95M | -707.97M | -19.32M |
| EBITDA Margin % | -56.23% | -57.45% | -60.25% | -612.02% | -16.22% |
| EBITDA Growth % | -4.48% | -11.9% | 90.54% | -3565.41% | - |
| D&A (Non-Cash Add-back) | 44.21M | 32.19M | 34.78M | 48.43M | 47.36M |
| EBIT | -76.89M | -107.11M | -145.87M | -837.09M | -103.8M |
| Net Interest Income | 943K | 0 | -6.75M | -3.17M | -4.01M |
| Interest Income | 801K | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - |
| Pretax Income | -127.21M | -115.34M | -152.63M | -840.25M | -107.81M |
| Pretax Margin % | -100.1% | -88.45% | -137.33% | -726.37% | -90.56% |
| Income Tax | 700K | 0 | 0 | -2.19M | 3.47M |
| Effective Tax Rate % | -0.55% | 0% | 0% | 0.26% | -3.22% |
| Net Income | -128.96M | -116.74M | -153.21M | -838.07M | -111.28M |
| Net Margin % | -101.48% | -89.52% | -137.86% | -724.48% | -93.47% |
| Net Income Growth % | 8.56% | 23.8% | 81.72% | -653.13% | - |
| Net Income (Continuing) | -127.91M | -115.34M | -152.63M | -838.07M | -111.28M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 9.9M | 9.9M | 9.9M | 0 | 0 |
| EPS (Diluted) | -10.14 | -9.18 | -16.82 | -58.82 | -8.84 |
| EPS Growth % | 44.59% | 45.42% | 71.4% | -565.38% | - |
| EPS (Basic) | - | -9.18 | -16.82 | -58.82 | -8.84 |
| Diluted Shares Outstanding | 12.72M | 12.72M | 9.11M | 14.61M | 12.58M |
| Basic Shares Outstanding | 12.72M | 12.72M | 9.11M | 14.61M | 12.58M |
| Dividend Payout Ratio | - | - | - | - | - |
Structural Hospitality Margin Erosion
As indicated by the quarterly income statement data, SEG's revenue trajectory remains highly inconsistent, with a notable 20.7% contraction in 2026Q1 following a 29.1% expansion in 2025Q4, suggesting that the company's reliance on seasonal hospitality and event-driven income creates significant top-line unpredictability for investors.
The lack of a consistent growth baseline suggests that the company is still struggling to establish a predictable revenue cadence post-spin-off. Investors should monitor whether the recent revenue decline reflects a structural weakness in the Seaport district's foot traffic or merely the expected seasonality of its entertainment assets.
Based on reported financial statements, SEG's gross margin has deteriorated significantly, swinging from a peak of 38.4% in 2024Q2 to negative territory in recent periods, which highlights the difficulty of maintaining profitability within the company's high-touch, labor-intensive hospitality and restaurant operations.
The collapse of gross margins into negative territory suggests that the cost of goods sold is currently outpacing revenue generation, likely driven by the high overhead of the Tin Building and other hospitality venues. This trend implies that the current business model may be structurally unprofitable without a significant shift in pricing power or operational efficiency.
According to the provided income statement data, SEG continues to report deeply negative operating margins, reaching -96.6% in 2025Q4, which demonstrates that the company's current corporate overhead and fixed operating costs are not scaling effectively against its existing revenue base.
The persistent gap between gross profit and operating income suggests that the company is burdened by substantial fixed costs that are not being offset by top-line growth. This lack of operating leverage indicates that the company may require a much larger revenue scale or a drastic reduction in SG&A to reach a break-even point.
As reported in recent filings, SEG's cost structure is heavily weighted toward SG&A and COGS, with operating losses consistently exceeding $20 million per quarter, suggesting that the company's current expense discipline is insufficient to support its high-overhead entertainment and hospitality business model.
The high level of SG&A relative to revenue suggests that the company is currently in a heavy investment phase, potentially masking the true long-term profitability of its assets. Investors should investigate whether these costs are temporary start-up expenses or if they represent a permanent, unsustainable burden on the company's cash flow.
Based on the provided financial data, the company's inability to maintain positive gross margins in recent quarters suggests that the short-seller thesis regarding the structural unprofitability of the hospitality segment may be gaining validity, as the current model appears to consume capital rather than generate it.
The consistent failure to achieve positive gross margins across multiple quarters warrants further investigation into whether the hospitality assets are viable long-term investments. If the company cannot demonstrate a path to positive unit-level economics, the market may continue to discount the value of these assets regardless of their trophy status.
Quick answers to the most common questions about buying SEG stock.
For fiscal year 2025, Seaport Entertainment Group Inc. (SEG) reported total revenue of $130.4M. This represents a 9.5% increase compared to $119.0M in 2022.
Seaport Entertainment Group Inc. (SEG) reported a net loss of $116.7M for the fiscal year ending 2025.
Seaport Entertainment Group Inc. (SEG) reported an operating income of $-107.1M, resulting in an operating profit margin of -82.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Seaport Entertainment Group Inc. (SEG) generated $2.0M in gross profit for the year, representing a gross profit margin of 1.6%. This demonstrates the company's core pricing power and production efficiency.