United Parks & Resorts NYSE: PRKS reported first-quarter results that management said fell short of expectations, as unfavorable weather and weaker international visitation weighed on attendance and revenue. Executives on the company’s earnings call said they remain confident in growth for the full year, citing stronger pass sales, improved deferred revenue, new attractions and cost-saving efforts.
Chief Executive Officer Marc Swanson said the company’s first-quarter performance was hurt by poor weather in San Diego and Florida in January and February, as well as weather challenges in Florida and Texas during peak spring break periods. He also said international attendance declined in line with broader U.S. international tourism trends tied to “geopolitical and other dynamics.”
Swanson said attendance was negatively impacted by about 140,000 guests due to weather and about 80,000 guests due to declines in international visitation. Adjusting for those factors, he said attendance would have increased more than 1% in the quarter.
Revenue Declines as Attendance Falls
Interim Chief Financial Officer and Treasurer James W. Forrester Jr. said first-quarter revenue totaled $278.3 million, down $8.7 million from the first quarter of 2025. Attendance decreased by about 171,000 guests compared with the prior-year period, primarily due to unfavorable weather and lower international visitation.
Total revenue per capita increased 2.1% in the quarter. Admission per capita declined 0.5%, which Forrester attributed to lower realized pricing on certain admission products and the net impact of admissions product mix. In-park per capita spending rose 5.3% to a record $40.62, driven by increased demand across many in-park offerings.
The company reported a net loss of $34.1 million for the quarter, compared with a net loss of $16.1 million in the first quarter of 2025. Adjusted EBITDA was $58 million, down $9.5 million year over year. Forrester said the EBITDA decline was driven by lower revenue and a modest increase in expenses.
Operating expenses increased $10 million compared with the prior-year quarter. Forrester said the increase was primarily due to a roughly $3.7 million increase in non-cash self-insurance adjustments and about $3.3 million in one-time consulting and other costs. Selling, general and administrative expenses rose $3.9 million, largely due to a non-cash $3.1 million increase in information technology costs tied mainly to amortization of a new enterprise resource planning system.
Pass Sales and Deferred Revenue Provide Forward Indicators
Despite the weaker first-quarter results, management pointed to several metrics it said support a more favorable outlook. Swanson said paid pass sales rose approximately 10% during the quarter and were up approximately 12% through April 30, 2026.
Forrester said the company’s deferred revenue balance at the end of March was $203.8 million, up approximately 4.1% from March 2025. He said the increase reflects a “healthy outlook” for ticketing, group business and ancillary products. Deferred revenue includes ticketing, vacation packages, annual and seasonal passes, group sales and ancillary products.
Swanson said advanced booking revenue for Discovery Cove and the company’s group business are both outpacing 2025 levels, with Discovery Cove bookings up by a double-digit percentage. He also noted that Discovery Cove was named Newsweek’s No. 1 best theme park for 2026 in the publication’s Readers’ Choice Awards.
Management Reiterates Confidence in 2026 Growth
Swanson said United Parks remains committed to delivering growth in revenue and adjusted EBITDA in 2026, despite first-quarter headwinds. He cited the company’s lineup of new rides, shows and attractions, an updated events calendar, expanded concerts, upgraded food and retail locations, and a revamped marketing plan.
During the question-and-answer portion of the call, Stifel analyst Steven Wieczynski asked about management’s confidence in EBITDA growth given the first-quarter shortfall and uncertainty around weather and international visitation. Swanson said most of the company’s attendance and revenue remain ahead in the year, and he pointed to new attractions, potential weather comparisons, improved pass sales, deferred revenue growth, Discovery Cove bookings and group sales as reasons for confidence.
Swanson also said the company expects to begin lapping some of the international attendance decline later in the year, noting that the decline was more of a second-half factor in 2025.
Asked about April and May trends, Swanson said the Easter calendar shift moved some days from the second quarter into the first quarter and created an expected headwind in April. He said weather was mixed, with better conditions in Williamsburg but some poor weather in Florida after Easter. He added that May is “such a backloaded month” that it was too early to draw many conclusions.
Cost Savings, Technology and Sponsorships Remain Priorities
Swanson said the company continues to make progress toward its $50 million gross cost savings target for 2026. He said the company is pursuing technology initiatives including AI-powered camera technology, autonomous cleaning robots, additional digital ordering kiosks, automated front turnstiles and automated parking tools.
Forrester said the company did “an exceptional job” managing hourly labor and theme park labor during the quarter despite headwinds, and pointed to efforts to reduce claims and introduce technology to lower labor costs.
On sponsorships, Swanson said United Parks entered into two sponsorship agreements with high-quality brands during the first quarter and expects to sign several more in coming months. He said the company expects to realize more than $15 million in sponsorship revenue in 2026 and continues to expect sponsorships to become at least a $30 million business line in future years.
Swanson also provided updates on several strategic initiatives. He said the company has received multiple formal proposals related to its real estate portfolio and is evaluating them with advisors. On international development, he said United Parks remains in discussions with multiple partners. On intellectual property partnerships, he said the company is in active discussions to bring “compelling and well-recognized IP” into its parks, with announcements expected later this year related to 2026, 2027 and beyond.
Share Repurchases Continue
United Parks continued to repurchase stock during and after the quarter. Swanson and Forrester said the company repurchased 2.6 million shares for approximately $92.7 million during the first quarter. After quarter-end, it repurchased an additional 1.8 million shares for approximately $64.8 million.
Forrester said the company had approximately $198 million remaining under the $500 million stock repurchase authorization approved in 2025. Swanson said management continues to believe the company’s shares are materially undervalued and expects to repurchase shares as long as the stock trades at levels it finds attractive.
Swanson said that if the company reaches a limit on repurchases, management and the board would consider other forms of capital return, including regular or special dividends, debt paydown and other investment opportunities. He said the company is comfortable with its leverage ratio and expects cash generation to improve as the business enters its traditionally busier season.
For capital expenditures, Forrester said United Parks spent $69.6 million in the first quarter, including about $62.7 million on core CapEx and about $7.0 million on expansion and return-on-investment projects. For 2026, the company expects to spend approximately $175 million to $200 million on core CapEx and about $50 million on growth and ROI projects.
Swanson closed the call by highlighting the company’s animal rescue work, saying United Parks came to the aid of 211 animals in need during the first quarter and has helped more than 43,000 animals over its history.
About United Parks & Resorts NYSE: PRKS
United Parks & Resorts, Inc is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.
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