Summary of United Parks & Resorts Q1 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $278.3 million, down $8.7 million from Q1 2025.

Attendance: Decreased by approximately 171,000 guests, attributed to unfavorable weather and reduced international visitation.

Adjusted EBITDA: $58 million, a decrease of $9.5 million year-over-year.

Net Loss: $34.1 million, compared to a net loss of $16.1 million in Q1 2025.

In-Park Per Capita Spending: Increased 5.3% to a record $40.62.

Paid Pass Sales: Up approximately 10% in Q1 and 12% through April 30, 2026.

Deferred Revenue: Increased 4.1% year-over-year to $203.8 million, indicating a positive outlook for future ticketing and group business.

2Strategic Updates and Business Highlights

Share Repurchases: 2.6 million shares repurchased for approximately $92.7 million in Q1, with an additional 1.8 million shares repurchased post-quarter.

New Attractions and Events: Planned investments in new rides, shows, and an enhanced marketing strategy are expected to drive attendance and guest spending.

Sponsorships: Two new agreements signed in Q1, with expectations to generate over $15 million in sponsorship revenue in 2026.

Real Estate Initiatives: Ongoing evaluations of proposals for the company's real estate portfolio.

Technology Investments: Implementing AI and automation technologies to enhance guest experience and operational efficiency.

3Forward Guidance and Outlook

2026 Expectations: Despite a challenging Q1, management remains optimistic about achieving revenue and adjusted EBITDA growth for the year, driven by new attractions and improved weather conditions.

Cost Management: Committed to a $50 million gross cost savings target for 2026, while managing inflationary pressures.

Market Position: Confidence in the company’s resilience and ability to navigate macroeconomic uncertainties, including geopolitical factors and consumer spending pressures.

4Bad News, Challenges, or Points of Concern

Weather Impact: Unfavorable weather conditions in key markets negatively affected attendance and revenue in Q1.

International Visitation Decline: Ongoing geopolitical issues have led to reduced international attendance, impacting overall guest numbers.

Increased Operating Expenses: Operating expenses rose by $10 million, with notable increases in noncash self-insurance adjustments and consulting costs.

Net Loss: The increase in net loss raises concerns about profitability amidst declining revenues.

5Notable Q&A Insights

EBITDA Growth: CEO Marc Swanson expressed confidence in achieving EBITDA growth despite Q1 results, citing a strong lineup of attractions and improved weather as key factors.

April and May Performance: Management indicated that April weather was mixed, with expectations for a more normalized trend in May, though they acknowledged challenges from the Easter holiday shift.

Deferred Revenue Inflection: The positive change in deferred revenue was highlighted as a significant indicator of future performance, driven by increased sales of passes and ancillary products.

Cost Management: Management acknowledged challenges in controlling costs but emphasized ongoing efforts to manage labor and operational expenses effectively. Overall, while United Parks & Resorts faced challenges in Q1 2026, management remains optimistic about the future, bolstered by strategic initiatives and a strong lineup of attractions planned for the year.