United Parks & Resorts NYSE: PRKS executives said fiscal 2025 results fell short of internal expectations, citing uneven consumer conditions, negative international tourism trends, and periods of volatile weather, while also acknowledging the company “should have delivered better results, particularly on the cost side of the income statement.”
On the company’s fourth-quarter 2025 earnings call, CEO Marc Swanson said management has “moved decisively” to address cost management and has updated plans and investments for 2026 aimed at driving attendance and guest spending, including new attractions, an expanded events and concert calendar, upgraded food and retail offerings, and a revamped marketing strategy.
Fourth-quarter results: revenue down, in-park spending hits record
CFO Jim Forrester reported fourth-quarter revenue of $373.5 million, down $10.8 million (2.8%) from the prior-year period. The decline was driven primarily by lower attendance and lower admission per-capita spending, partially offset by higher in-park per-capita spending.
- Attendance: down about 126,000 guests (2.6%) year over year, which the company attributed primarily to lower international visitation.
- Total revenue per capita: down 0.2%.
- Admission per capita: down 2.2%.
- In-park per capita: up 2.1%; Swanson said the company delivered “record in-park per capita spending” during the quarter.
Forrester said operating expenses fell $1.8 million (1.0%) versus the year-ago quarter, while selling, general and administrative expenses rose $8.7 million (17.4%). Net income totaled $15.1 million, compared with $27.9 million in the prior-year quarter. Adjusted EBITDA was $115.2 million.
Swanson said fourth-quarter performance was also affected by fewer operating days than in the fourth quarter of 2024. Weather was described as “essentially flat” year over year, with recovery from prior-year hurricanes offset by unfavorable conditions during certain peak visitation periods, including in San Diego and Williamsburg and in Florida in the final days of the year. Excluding international visitation and operating-day impacts, the company said underlying attendance trends would have been approximately flat for the quarter.
Fiscal 2025: lower revenue and attendance; management flags cost execution
For the full year, Forrester said revenue was $1.66 billion, down $62.7 million (3.6%) from fiscal 2024. Attendance was 21.2 million guests, down about 378,000 (1.8%). Net income was $168.4 million and Adjusted EBITDA was $605.1 million.
Swanson called out cost execution as an area where the company underperformed. While noting the company’s margin performance since 2019, he said there were times in 2025 when cost management and responsiveness “weren’t optimal.” During Q&A, management pointed to several cost headwinds, including contractually or legislatively required minimum wage increases, property tax and insurance pressures, and the need to match labor more dynamically to demand.
Forrester also discussed deferred revenue and pass trends. Deferred revenue was $143.3 million at the end of December, down 4.7% year over year when normalized for a non-cash bad-debt write-off; the company said this improved to down 1.4% as of the end of January. Through December 2025, the company’s pass base was down about 4% compared with December 2024, though management said it was seeing “momentum” in pass sales heading into the peak selling season.
2026 focus: new attractions, events, marketing changes, and cost initiatives
Swanson outlined a broad set of 2026 initiatives meant to improve demand and monetization, including new rides and attractions, updated events, and a stronger concert lineup across SeaWorld and Busch Gardens parks. New attractions highlighted on the call included:
- SeaWorld Orlando: SEAQuest: Legends of the Deep
- SeaWorld San Diego: a reimagined Shark Encounter as part of the Fin Sway project
- SeaWorld San Antonio: Barracuda Strike, described as Texas’ first inverted family coaster
- Busch Gardens Tampa Bay: Lion & Hyena Ridge, a new habitat spanning nearly 35,000 square feet
- Busch Gardens Williamsburg: Verbolten: Forbidden Turn, a reimagined indoor-outdoor multi-launch coaster opening in spring
The company also described a “new and enhanced marketing strategy” intended to optimize media spend and creative execution. On costs, Swanson referenced slide materials describing $50 million in gross cost reductions across labor, operating expenses, SG&A and cost of goods sold, while cautioning he was not providing guidance. In Q&A, management said it was planning to anticipate known expense headwinds and try to flatten year-over-year expense growth, “if not decrease it,” while not relying on revenue growth to cover those pressures.
Forrester noted Florida’s constitutionally required minimum wage increases and a “very substantial” minimum wage increase in San Diego in 2026, and said the company was planning responses across pricing, operations, and labor efficiency efforts, including technology tools.
Capital allocation, real estate, and early demand indicators
Swanson said the company repurchased 6.7 million shares in 2025 and through Feb. 24, 2026, representing about 12% of shares outstanding. On leverage, he said the company does not have a target leverage ratio and works with the board on capital deployment, adding that management was comfortable with the year-end leverage ratio while noting seasonal cash flow dynamics.
The company ended 2025 with a net total leverage ratio of 3.4x, total available liquidity of about $789 million, and cash on hand of roughly $100 million. Capital expenditures were $217.5 million in 2025, including $182.4 million of core CapEx and $35.1 million for expansion or ROI projects. For 2026, management expects about $175 million of core CapEx and about $50 million for growth and ROI projects.
Management also reiterated its view that its owned real estate represents a significant value opportunity. Swanson said the company owns more than 2,000 acres, including more than 400 acres of undeveloped land, and said it has received multiple sale-leaseback proposals while also holding discussions related to hotels, timeshare, residential, and other commercial development. He said the company would provide updates as those discussions progress.
On early 2026 indicators, Swanson said Discovery Cove advanced booking revenue was up high single digits and company-wide group booking revenue was pacing up more than 50%. He also said the sponsorship business had “meaningful upside,” calling it a $30 million-plus revenue opportunity over the coming years; management cited a $15 million-and-growing pipeline for 2026.
In discussing the Orlando market, Swanson said Epic Universe is “a great addition” and believes it benefits the overall market. He said the company was pleased with Orlando attendance results in 2025 and expects strong performance across Orlando parks in 2026, citing planned investments and a differentiated value proposition.
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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