Lindblad Expeditions Q2 Earnings Call Highlights

Key Points

• Strong second-quarter performance: Revenue rose 19% year over year to $199.2 million, while adjusted EBITDA increased 31% to $32.5 million. Occupancy reached a 10-year second-quarter high of 91%, and net yield rose 4% to a record $1,294 per available guest night.
• 2026 outlook raised: Lindblad increased its full-year revenue guidance to $830 million–$860 million and net-yield growth forecast to 4.5%–5.5%, while maintaining adjusted EBITDA guidance of $130 million–$140 million despite elevated fuel costs.
• Bookings and financial position strengthened: 2026 and 2027 bookings remained ahead of prior-year levels, while 2028 launch revenue doubled from the comparable launch period. Cash rose to $364.9 million, free cash flow increased 93% year to date, and net leverage fell to 2.2 times.

Lindblad Expeditions NASDAQ: LIND reported higher second-quarter revenue, occupancy and adjusted EBITDA, while raising its full-year revenue and net-yield outlook amid continued elevated fuel costs.

Total revenue increased 19% year over year to $199.2 million in the second quarter of 2026. Adjusted EBITDA rose 31% to $32.5 million, and adjusted EBITDA margin expanded 150 basis points to 16.3%.

Chief Executive Officer Natalya Leahy said the company delivered improved occupancy and yield despite a 12% increase in capacity. Occupancy rose to 91% from 86% in the prior-year quarter, marking Lindblad's highest second-quarter occupancy level in 10 years. Net yield increased 4% to a second-quarter record of $1,294 per available guest night.

“This marks the sixth consecutive quarter of delivering record net yields,” Leahy said, adding that bookings for both expedition and land travel remained ahead of the prior year for 2026. She also said 2027 bookings were pacing ahead of 2026 in both segments.

Segment Results and Costs

The Lindblad segment generated revenue of $129.2 million, up 16.4% from the prior-year period. The segment absorbed 11.9% additional capacity, while occupancy increased 5 percentage points to 91% and net yield per available guest night rose 4.3% to $1,294, according to Chief Financial Officer Rick Goldberg.

Land Experiences revenue increased 23% to $70 million, driven by 13% growth in guests and an 8% increase in revenue per guest.

Operating expenses before stock-based compensation, transaction-related expenses, depreciation and amortization, interest and taxes rose 16.5% to reflect additional voyages and trips, as well as higher fuel costs. Cost of tours increased 12.3%, while gross margin improved 290 basis points to 48.5%.

Fuel costs increased $2.7 million, or 64%, year over year, as prices remained elevated amid geopolitical tensions in the Middle East. Fuel represented 5.3% of Lindblad segment revenue, compared with 4.8% a year earlier. The company said cost initiatives reduced fuel consumption by more than 3% despite the increase in capacity.

Sales and marketing expense increased 21.3%, primarily due to the final royalty-rate step-up under the company’s National Geographic agreement. General and administrative expenses rose 27%, though Goldberg said approximately half of the increase reflected a $3.4 million one-time employee retention tax credit benefit recorded in the second quarter of 2025. Excluding that prior-year item, G&A expense as a percentage of revenue declined 100 basis points.

Net loss available to stockholders narrowed to $1.4 million, or $0.02 per share, from a loss of $0.18 per share a year earlier. Goldberg said the company would have reported positive GAAP net income excluding accelerated depreciation tied to the planned fourth-quarter retirement of National Geographic Sea Bird and National Geographic Sea Lion.

Raised Revenue Outlook, Maintained EBITDA Guidance

Lindblad raised its 2026 revenue outlook to $830 million to $860 million, from prior guidance of $800 million to $850 million. The company also increased its expected full-year net-yield growth to 4.5% to 5.5%, compared with its previous forecast of 4% to 5%.

The company maintained adjusted EBITDA guidance of $130 million to $140 million, citing elevated fuel prices. Goldberg said the company is modeling scenarios in which fuel remains near $100 per barrel through the remainder of the fiscal year and expects to remain within its EBITDA guidance range under that scenario.

Goldberg also noted that first-half EBITDA included an approximately $3 million one-time benefit in the first quarter related to the timing of Land Experiences tour insurance revenue. Capacity is expected to be roughly flat year over year in the second half, with mid-single-digit growth in the third quarter followed by a mid-single-digit decline in the fourth quarter.

Management also cited the final National Geographic royalty-rate increase and the potential for voyage cancellations related to geopolitical uncertainty as factors affecting the second-half outlook.

Bookings, Product Expansion and Capital Allocation

Leahy said the recently launched 2028 deployment produced twice the revenue during its first several weeks as the comparable launch period last year. The 2028 offerings include a return to French Polynesia and expanded itineraries in European river cruising and the Amazon.

The company also cited growth in several commercial channels:

• Bookings from Australia and New Zealand increased 44% in the six weeks after a market engagement trip, compared with the six weeks before the visit.
• Outbound sales rose 44% from the second quarter of 2025.
• Onboard and extension revenue grew 28% as the company expanded products, services and pre-voyage initiatives.

On the land side, Leahy said Off the Beaten Path’s Alaska Grand Slam itinerary, covering all eight Alaska National Parks, sold out both its initial deployment and added departures within weeks. DuVine’s expanded hiking-and-cycling itineraries showed promising sales trends, while Classic Journeys introduced women-only walks across 20 destinations.

The company ended the quarter with $364.9 million in total cash, up $75.2 million from the end of 2025. Cash from operations totaled $108.5 million, while year-to-date free cash flow increased 93% to $93.6 million. Net leverage declined to 2.2 times from 2.7 times at the end of the first quarter.

Goldberg said capital-allocation priorities remain investing in organic growth, pursuing disciplined and accretive investments in expedition cruising and Land Experiences, and then considering debt reduction or opportunistic share repurchases. The company continues to evaluate fleet expansion and opportunities to diversify its portfolio of land-travel brands.

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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