Summary of United Parks & Resorts Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 2025 Revenue: $373.5 million, down 2.8% from Q4 2024.

Attendance: Decreased by 126,000 guests (2.6%) year-over-year, primarily due to lower international visitation.

Net Income: $15.1 million, down from $27.9 million in Q4 2024.

Adjusted EBITDA: $115.2 million for Q4 2025.

Fiscal 2025 Total Revenue: $1.66 billion, a decrease of 3.6% from 2024.

Total Attendance for 2025: 21.2 million guests, down 1.8%.

Net Total Leverage Ratio: 3.4x with $789 million in total available liquidity.

2Strategic Updates and Business Highlights

Cost Management: Acknowledgment of less-than-optimal cost management in 2025, with plans for improved efficiency and cost reduction initiatives totaling $50 million in 2026.

New Attractions: Exciting lineup for 2026 including new rides and enhanced guest experiences across parks, aimed at driving attendance and spending.

Sponsorship Opportunities: Anticipated growth in sponsorship revenue, with a pipeline expected to exceed $30 million in the coming years.

Recognition: Multiple awards for parks, including SeaWorld Orlando and Discovery Cove, highlighting strong brand reputation.

3Forward Guidance and Outlook

2026 Expectations: Optimism for attendance growth driven by new attractions and events, despite ongoing headwinds from international visitation and weather.

Booking Trends: Positive early indicators for 2026, with advanced booking revenue for Discovery Cove up high single digits and group booking revenue pacing over 50%.

CapEx Plans: Expected capital expenditures of approximately $175 million for core projects and $50 million for growth initiatives in 2026.

4Bad News, Challenges, or Points of Concern

Declining Metrics: Notable declines in attendance and admissions per capita, with admission per capita down 2.2% in Q4.

International Visitation: Continued challenges from reduced international tourism impacting overall attendance.

Cost Pressures: Rising labor costs due to minimum wage increases in key markets, alongside other operational cost pressures.

Weather Impact: Unfavorable weather conditions affecting peak visitation periods, particularly in Florida and other locations.

5Notable Q&A Insights

Attendance Growth: Management expressed cautious optimism about attendance growth in 2026, citing the importance of new attractions and events, while acknowledging the ongoing challenges from international visitation.

Leverage and Capital Deployment: Discussions around leverage indicated a flexible approach to capital allocation, with no set target but a focus on returning cash to shareholders while maintaining operational flexibility.

Cost Management: Management acknowledged past shortcomings in cost management and emphasized a renewed focus on efficiency and proactive measures to address anticipated cost increases.

Market Dynamics: Insights into the consumer environment suggested a K-shaped recovery, with higher-end offerings performing well while lower-end consumers may be more challenged. Overall, while United Parks & Resorts faced significant challenges in 2025, management is optimistic about strategic initiatives and operational improvements set for 2026, aiming to enhance guest experiences and drive financial performance.