What United Parks & Resorts (PRKS) Said on Its Q3 Earnings Call

Key Points

• Q3 results weakened: Revenue fell 1.1% to $506.5 million, attendance dropped 4.7%, and net income declined to $80 million. Higher per-guest spending partly offset the attendance decline, while management cited weather, calendar effects, weaker international visits, and fewer promotional admissions.
• Management sees signs of potential 2027 growth: Third-quarter pass sales rose almost 8%, 2027-specific pass products were up more than 15%, and advance bookings for Discovery Cove and group business were up double digits. International sales revenue also increased by a mid-single-digit percentage.
• Cost and capital plans: The company remains on track for $50 million in gross savings in 2026 and is targeting another $40 million to $50 million in 2027. It had about $675 million in available liquidity and expects to resume share repurchases as cash balances rebuild.

United Parks & Resorts NYSE: PRKS reported lower third-quarter revenue and profit as attendance fell, but executives pointed to rising pass sales and advance bookings as signs of a potential return to growth in 2027.

Revenue declined 1.1% to $506.5 million in the third quarter of 2026 from a year earlier. Attendance fell by approximately 320,000 guests, or 4.7%, while total revenue per guest rose 3.8%.

CEO Marc Swanson attributed the attendance decline to unfavorable weather, calendar effects and weaker international visitation. He estimated those headwinds accounted for approximately 325,000 visits and said attendance would have risen without them. A planned reduction in promotional admissions products also reduced attendance by more than 100,000 visits, he said.

Net income fell to $80 million from $89.3 million a year earlier, while adjusted EBITDA declined $11.2 million to $205.1 million, Interim Chief Financial Officer and Treasurer Jim Forrester said.

Higher spending offsets some attendance pressure

Admissions revenue per guest increased 3.4%, helped by higher realized pricing on certain products and changes in the mix of admissions sold. In-park spending per guest rose 4.4%, supported by greater purchase penetration and pricing initiatives.

Operating expenses fell 1.9% from the prior-year quarter, while selling, general and administrative expenses increased 13.1%.

For the first nine months of 2026, revenue fell 1.6% to $1.27 billion and attendance declined 4.1% to 15.7 million guests. Net income was $109.2 million, down $44.1 million, and adjusted EBITDA fell $31.4 million to $458.6 million.

Swanson said October revenue was projected to grow despite what he described as significant weather disruptions. Separately ticketed Howl-O-Scream events showed meaningful year-over-year growth on days without weather impacts, he said.

Asked whether fourth-quarter adjusted EBITDA could increase from a year earlier, Swanson said persistent adverse weather would make growth more difficult. “We will have to get some break” from the weather pattern he attributed to a super El Niño, he said.

Pass sales and bookings support 2027 outlook

Management expressed optimism about returning to growth next year, citing pass sales, advance bookings and recent international sales trends. Total pass sales rose almost 8% in the third quarter, and the paid pass base was up 0.3% as of October 31 from a year earlier, Forrester said.

The base of 2027-specific pass products was up more than 15% as of October 31. Swanson clarified that the measure reflects the number of products held, rather than a change in pricing. Those products include Fun Cards, which generally are valid for a specific year; annual passes can also transition to month-to-month payments.

Pass products account for roughly 40% of annual attendance across the company, Swanson said. He also said advance booking revenue for Discovery Cove and the group business was running up by double-digit percentages for 2027 compared with the same point a year earlier.

Recent international sales revenue was up by a mid-single-digit percentage, according to Swanson. He said international visitation remained more than 50% below 2019 levels, representing a potential opportunity of roughly 1 million visitors if it returned to that level. International attendance depends in part on broader economic conditions, he added.

Cost savings and capital allocation

United Parks remains on pace to achieve its $50 million gross cost-savings target, most of which it expects to realize in 2026, Swanson said. Management has initially targeted an additional $40 million to $50 million in gross savings for 2027.

Swanson cautioned that savings have helped offset other cost pressures and said the company needs to do a better job of translating gross savings into bottom-line results. Forrester said management is aiming for flat costs or net savings in 2027, with cost growth at an extremely low single-digit rate at most.

At September 30, the company had approximately $675 million in available liquidity, including about $26 million in cash, and a net total leverage ratio of 3.55 times. It expects to spend less than $250 million on capital expenditures in 2026.

Swanson said the company had repurchased approximately $218 million of stock during the year, representing about 12% of outstanding shares, but bought none in the third quarter because of cash-flow dynamics. He said management expects to resume repurchases as cash balances rebuild, subject to liquidity, governance and board approval.

The company is also pursuing real estate opportunities, though Swanson said interest-rate volatility has extended discussions and there is no assurance acceptable terms will be reached. Separately, United Parks signed a nonbinding memorandum of understanding with a new partner for a potential park in the Middle East.

About United Parks & Resorts (NYSE:PRKS)

United Parks & Resorts Inc NYSE: PRKS is a theme park and entertainment company that owns and operates a portfolio of destination amusement and water parks in the United States. Its properties combine rides, live entertainment, animal exhibits, educational experiences, seasonal events and hospitality-related offerings.

The company's portfolio includes SeaWorld parks in Orlando, San Antonio and San Diego; Busch Gardens parks in Tampa and Williamsburg, Virginia; Sesame Place parks in Pennsylvania and California; and water parks and attractions such as Aquatica, Adventure Island, Water Country USA and Discovery Cove.

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