United Parks & Resorts (PRKS) Q1 2025 earnings summary

Executive summary

• Q1 2025 results were impacted by the timing shift of Easter and spring break, moving peak days and higher spending into Q2, resulting in a 3.5% revenue decline to $286.9 million and a net loss of $16.1 million, compared to $11.2 million in Q1 2024.

• Attendance declined 1.7% year-over-year to 3.4 million, but April 2025 attendance rebounded, up 8.1% year-over-year.

• In-park per capita spending reached a record $38.58, up 1.1% year-over-year, marking growth in 19 of the last 20 quarters.

• Significant investments in new rides, attractions, and in-park offerings are expected to drive further growth.

• The company repurchased 100,000 shares for $4.6 million in Q1 2025.

Financial highlights

• Q1 2025 revenue was $286.9 million, down 3.5% year-over-year, with admissions revenue at $156.1 million (down 5.8%) and food, merchandise, and other revenue at $130.8 million (down 0.6%).

• Net loss for Q1 was $16.1 million; Adjusted EBITDA was $67.4 million, down 14.8% year-over-year.

• Operating expenses decreased by $3.6 million (2.2%), and SG&A expenses fell by $3.7 million (7.8%) year-over-year.

• Net cash provided by operating activities was $25.7 million, down from $71.4 million in Q1 2024; free cash flow was negative $31.2 million.

• Deferred revenue at March-end was $195.9 million, down 6.7% year-over-year.

Outlook and guidance

• Management expects new records in revenue and Adjusted EBITDA for 2025, with 75% of attendance and revenue opportunity still ahead as of April 30.

• Bookings for Discovery Cove, group bookings, and international ticket sales are all running ahead of 2024.

• Seasonality will continue, with highest revenues in Q2 and Q3; liquidity needs are expected to be met through cash flow and available credit.

• Strategies are in place to improve admissions per capita and capitalize on increased market visitation due to new attractions.

• Inflation and labor market challenges are expected to persist, potentially impacting costs and operations.