Summary of Lindblad Expeditions Q3 2025 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $240 million, up 16.6% year-over-year.

Lindblad Segment Revenue: $138 million, a 13.4% increase.

Land Experience Segment Revenue: $103 million, up 21.1%.

Occupancy Rate: 88%, a 6 percentage point increase from the previous year.

Net Yield per Available Guest Night: $1,314, a 9% increase, marking the highest yield for Q3 in company history.

Adjusted EBITDA: $57.3 million, a 25% increase, with margins expanding to 23.8%.

Net Income: Approximately breakeven at $0.00 per diluted share, impacted by $23.5 million in debt refinancing expenses.

Cash Position: Total cash of $290.1 million, up $74 million from the end of 2024.

2Strategic Updates and Business Highlights

Achieved record guest Net Promoter Scores, reflecting strong customer satisfaction.

Successful marketing initiatives, including partnerships with Disney and National Geographic, driving increased bookings, particularly in family-friendly destinations.

Expansion of charter offerings and new itineraries for 2027, including European river cruises and additional voyages.

Continued focus on cost innovation, resulting in renegotiated leases and lower interest rates from debt refinancing.

Strong performance from the onboard sales program, which tripled bookings year-over-year.

3Forward Guidance and Outlook

Net Yield Guidance: Expected to increase by 12.5% to 14% year-over-year.

Revenue Guidance: Raised to $745 million - $760 million, up from $725 million - $750 million.

EBITDA Guidance: Increased to $119 million - $123 million, from a previous range of $108 million - $115 million.

Strong booking momentum for 2026 and 2027, with significant increases noted in net booking costs.

4Bad News, Challenges, or Points of Concern

Anticipated pressure on Q4 EBITDA due to increased marketing expenses and a higher number of dry/wet docks compared to the previous year.

Potential headwinds from macroeconomic factors, although the impact on demand has been minimal thus far.

Expected increase in royalties in 2026, which may affect profitability.

5Notable Q&A Insights

Management indicated that while they are seeing strong demand and booking trends, they are cautious about projecting yield growth for 2026, which may not match the double-digit increases seen in 2025.

The company is actively evaluating various growth opportunities, including charters, acquisitions, and new builds, but emphasized a balanced approach to leverage and financial health.

There is confidence in maintaining price integrity moving into next year, with a focus on avoiding discounting while capitalizing on strong demand. Overall, Lindblad Expeditions reported a strong Q3 performance, with solid revenue growth and strategic initiatives positioning the company well for future growth, despite some anticipated challenges in the upcoming quarter.