Lindblad Expeditions Q1 Earnings Call Highlights

Key Points

• Record quarter: Lindblad posted 93% occupancy and a 7% increase in net yield to $1,631 per available guest night, driving total revenue to $208 million (+15.7%) and adjusted EBITDA to $34.8 million (+16.2%), with net income of $6 million versus a prior slight loss.
• Severe Antarctic weather and geopolitical cancellations in Egypt cost the company a "multi-million dollars" hit—affecting some of its most profitable voyages and raising land costs—but management said profitability still improved and the company maintained full-year guidance.
• Balance-sheet strength: cash rose to $321 million, free cash flow increased to $42.6 million, net leverage fell to 2.7x with a Moody's upgrade, and Lindblad reiterated 2026 targets of $800–$850 million in revenue and $130–$140 million in adjusted EBITDA.

Lindblad Expeditions NASDAQ: LIND reported first-quarter 2026 results that management described as record-setting, citing higher occupancy, yield growth, and improved profitability despite weather disruptions in Antarctica and geopolitical-related cancellations affecting Egypt itineraries.

Record occupancy and yield drive revenue growth

Chief Executive Officer Natalya Leahy said the company delivered “another record quarter” amid what she called a “complex macro and geopolitical environment.” Lindblad achieved first-quarter occupancy of 93% on a 6% increase in capacity, and net yield rose 7% to a record $1,631 per available guest night, she said.

Chief Financial Officer Rick Goldberg provided additional detail, stating total company revenue rose to $208 million, up $28.3 million, or 15.7%, from the prior-year quarter. Lindblad segment revenue increased 16.3% to $152.5 million, supported by a 4-percentage-point occupancy increase from 89% to 93% and a 7.2% increase in net yield per available guest night to $1,631.

Land Experiences revenue rose 14.2% to $55.5 million, which Goldberg said was driven by higher revenue per guest.

Disruptions in Antarctica and Egypt weigh on results, but profitability improves

Leahy said the quarter included “some of the most difficult weather conditions in Antarctica in over a decade,” which contributed to increased cancellations in the company’s Antarctica flight program as well as “several Egyptian river cruises.” She said those disruptions affected revenue from “some of our most profitable voyages” and also increased land costs in cases where guests were already traveling or on the ground when disruptions occurred.

Asked about the magnitude of the impact, Goldberg said the combined effect of Antarctica weather cancellations and Egypt cancellations tied to geopolitical conditions was “multi-million dollars.”

Even with those challenges, Goldberg reported adjusted EBITDA of $34.8 million, up $4.8 million, or 16.2%, year over year. Net income available to stockholders was $6 million, or $0.10 per share, compared with “a slight loss” in the year-ago quarter.

By segment, Goldberg said Lindblad segment EBITDA increased $1.6 million, or 6.2%, despite the cancellations. Land Experiences EBITDA rose $3.2 million, or 88%, including an approximately $3 million one-time benefit related to the timing of tour insurance revenue recognized in the quarter.

Costs rise with expansion; fuel and marketing remain key considerations

Operating expenses before stock-based compensation, transaction-related expenses, depreciation and amortization, interest, and taxes increased $23.4 million, or 15.7%, Goldberg said. Cost of tours increased $13.9 million, or 15%, reflecting additional voyages and trips as well as higher air expense tied to expansion of the company’s Antarctica Direct program.

Fuel remained a focus amid Middle East volatility. Leahy said the company is “closely monitoring the rapidly evolving situation” and noted that historically fuel costs have averaged around 3% to 4% of total revenues due to the company’s diversified portfolio. Goldberg said fuel represented 5.2% of Lindblad segment revenue in the quarter, and while absolute fuel spend rose year over year, it declined by 40 basis points as a percentage of revenue due to stronger revenue growth. Fuel was 3.9% of total company revenue in the quarter, he said.

Goldberg added a sensitivity estimate: a 10% change in fuel costs would have an impact of “just under $2 million for the remainder of the year.”

Sales and marketing expense rose $7.7 million, or 27.2%, primarily due to higher royalties associated with “the final royalty rate step up under our National Geographic agreement” and investments in demand generation, Goldberg said. Leahy also told analysts the company increased demand-generation spending after seeing “a slight uptake in cancellation rates in the last couple months,” which she said helped “re-energize the market environment.”

General and administrative costs (excluding certain items) increased $1.9 million, or 6.5%, driven by higher personnel costs, Goldberg said. As a percentage of revenue, G&A was 14.7%, down 120 basis points year over year, which Goldberg attributed to efficiencies as the company scales.

Booking momentum, pricing, and commercial initiatives

Leahy said Lindblad delivered a “historically strong wave season,” maintained booking pace for 2026, and saw “accelerated bookings momentum for 2027.” On pricing, she told analysts the company’s approach is demand-driven rather than a direct response to fuel prices, adding that the company is taking pricing up as demand supports it. She said pricing adjustments are being reviewed frequently in certain regions: “On some of our more popular destinations like Alaska and Antarctica, we literally are reviewing prices on a weekly basis and adjusting them as needed.”

In response to a question about yield cadence, Goldberg said the company’s assumptions have not changed, citing higher capacity growth in the first half—particularly in the second quarter—followed by stronger net yield growth in the back half of the year. He said the company expects “double-digit capacity growth in Q2,” and that yield growth should be lower in Q2 and stronger later in the year.

Leahy also highlighted several commercial initiatives discussed on the call:

• Disney partnership: Bookings from Disney EarMarked travel agents increased 67% year over year in the quarter, Leahy said. She also noted a first-ever charter agreement with Club 33, which she said sold out “within a couple of hours.”
• Onboard sales conversion: On vessels with dedicated expedition sales consultants, “more than a quarter of our guests are booking their next voyage before disembarking,” Leahy said, calling performance stronger than initially expected.
• Outbound sales: Leahy said the outbound sales program increased 64% year over year, supported by higher lead generation.
• International markets: Leahy said the company continues to see momentum in the U.K. market launched last year and is “deepening” its presence in Australia.

Analysts also asked whether geopolitical conditions were shifting demand among destinations. Leahy said the company is monitoring for changes across “over 70 locations” but has not observed specific shifts, adding that demand growth in areas such as Alaska and Baja began before the current geopolitical issues. She said Baja finished “a very, very strong quarter,” and described it as “basically 100% booked on cabin basis with very strong demand.”

Balance sheet, leverage, and full-year outlook maintained

Goldberg said the company ended the quarter with $321 million in total cash, up $31.3 million from the end of 2025. He attributed the increase to $49.5 million in cash from operations, driven by strong results and increased bookings for future travel. The company used $6.9 million in investing activities, primarily for maintenance of its ships. Free cash flow increased 21.7% to $42.6 million, he said.

Net leverage declined to 2.7x from 3.1x at year-end, Goldberg said, adding that Moody’s recently upgraded the company’s rating.

For full-year 2026, Goldberg said Lindblad is maintaining prior guidance, including:

• Available guest nights growth of 4.5% to 5%
• Net yield per available guest night growth of 4% to 5%
• Total company revenue of $800 million to $850 million
• Adjusted EBITDA of $130 million to $140 million

Management reiterated interest in accretive growth opportunities, including expanding the expedition fleet and adding to the Land Experiences brand portfolio. Asked whether geopolitical volatility was affecting M&A discussions, Goldberg said the company remains actively focused on both areas and is “not seeing any impact of the geopolitical situation on either of those.”

About Lindblad Expeditions NASDAQ: LIND

Lindblad Expeditions NASDAQ: LIND is a global leader in expedition cruising, specializing in immersive small-ship voyages to some of the world's most remote and wildlife-rich regions. The company operates a fleet of purpose-built vessels designed to navigate challenging waters and shorelines, offering guests up-close encounters with natural environments such as the polar ice caps, the Galápagos Islands, Costa Rica's rainforests and the waterways of Alaska, Patagonia and the Arctic.

Founded on the pioneering spirit of Lars-Eric Lindblad, regarded as the father of expedition travel, Lindblad Expeditions carries forward a legacy of discovery that dates back to the 1960s.

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