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The Walt Disney Co (NYSE:DIS) is taking a bold leap forward with plans for its seventh theme park resort in Abu Dhabi a move CEO Bob Iger calls a defining moment in Disney's 102-year history. CEO Bob Iger, speaking from the future site, emphasized that the park will be authentically Disney and distinctly Emirati, blending Disney magic with local culture to create immersive experiences driven by contemporary architecture and advanced technology.
But behind the fanfare, Disney's financials reveal a different story. In Q2 2025, Disney reported ESPN's Q2 primetime audience among the key 18-49 demographic was up 32%, driven by major sports programming including NFL and College Football. Meanwhile, Marvel's Thunderbolts emerged as the No. 1 movie globally, further boosting the entertainment segment. While the company celebrated the strong performance of its entertainment segment, highlighted by the global box office success of Marvel's Thunderbolts and ESPN's record Q2 primetime audience surge, its financial health shows a concerning trend. The attached chart reveals a widening gap between cash reserves and mounting debt, with debt levels consistently outpacing cash reserves from early 2022 through mid-2025a trend that underscores ongoing leverage pressure that investors should closely monitor.
As Disney pushes forward, it's pinning hopes on a loaded release calendar from Lilo & Stitch and Avatar: Fire and Ash to the highly anticipated ESPN direct-to-consumer launch. But as Disney dials up its content and park investments, the real question is whether it can juggle these bold moves against a swelling debt load that's becoming impossible to ignore.
This article first appeared on GuruFocus.