United Parks & Resorts (PRKS -2.76%), the operator of SeaWorld, Busch Gardens, and associated sights, launched its outcomes for Q2 FY2025 on August 7, 2025. The headline: each GAAP earnings per share and income missed analysts’ forecasts. Earnings per diluted share (GAAP) landed at $1.45, in need of the $1.80 GAAP consensus. Whole income (GAAP) was $490.2 million, slightly below the $498.8 million GAAP estimate and down from $497.6 million (GAAP) in Q2 FY2024. Regardless of a modest enhance in attendance of 0.8%, Per visitor (in-park per capita) spending decreased 0.4%, and internet revenue (GAAP) shrank. Free money circulation (non-GAAP) noticed a big bounce. General, the quarter confirmed areas of operational resilience, however the enterprise confronted clear strain on margins and pricing energy.

Supply: Analyst estimates offered by FactSet. Administration expectations primarily based on administration’s steerage, as offered in Q1 2025 earnings report.

In regards to the Enterprise and Latest Priorities

United Parks & Resorts owns and operates 12 theme parks in america and licenses a SeaWorld-branded park within the United Arab Emirates. Its portfolio consists of household leisure parks in addition to thrill-ride locations, resembling SeaWorld, Busch Gardens, Aquatica, and Sesame Place. These parks function over 800 sights, together with animal habitats and quite a lot of rides.

The corporate’s technique depends on its diversified geographic footprint, robust model portfolio, and dedication to animal welfare. Latest enterprise priorities have targeted on balancing attendance development with yield—which means how a lot every customer spends. Key success components embrace leveraging strategic alliances and mental property, supporting animal conservation, and cautious administration of prices and capital expenditures in a altering atmosphere.

This Quarter: Attendance Up, Spending Down, Prices Tighten

Whole attendance nudged up by about 0.8%, helped by favorable shifts within the timing of college holidays like Easter and Spring Break. Orlando parks, together with SeaWorld Orlando, Aquatica Orlando, and Discovery Cove, posted increased customer numbers. Each group and worldwide attendance had been additionally stronger, the latter nonetheless making up a small a part of general visitors. Regardless of these positive factors, per visitor spending metrics advised a distinct story. Admission per visitor fell 3.9%. This mirrored a slight decline within the cross base and the influence of pricing changes. General income per visitor slid 2.2%.

Income (GAAP) dipped 1.5% 12 months over 12 months. Web revenue (GAAP) contracted by 12.1%, reflecting not simply softer gross sales but in addition much less flexibility in managing working prices. Adjusted EBITDA—a measure of revenue earlier than curiosity, taxes, depreciation, and sure different bills—fell 5.4%. Margin strain turned clear because the drop in internet revenue (GAAP) outpaced the general income decline. Working bills, together with labor and advertising, rose 7.7%, regardless of administration’s statements that these had been successfully managed. Advertising and marketing spend held regular however shifted towards strategic markets and timing. The corporate additionally cited harsh climate as a significant motive for the miss on top-line numbers, calling the interval “amongst the worst weather we have ever experienced in a second quarter.” This impacted attendance, together with throughout peak visitation durations.

Notably, free money circulation jumped 36.2% 12 months over 12 months. This enchancment mirrored a pointy 33.8% discount in capital expenditures, particularly on enlargement and return-on-investment initiatives, for the primary six months of 2025. Money and equivalents on the stability sheet rose to $193.9 million as of June 30, 2025, up from $115.9 million as of December 31, 2024. The board approved a brand new $500 million share repurchase, topic to shareholder approval, pointing to ongoing confidence within the firm’s worth and liquidity within the face of earnings volatility.

United Parks & Resorts additionally highlighted its continued animal rescue and conservation management, supporting its model. 500 animals had been aided, bringing its all-time complete to over 42,000. This reinforces the corporate’s place as a frontrunner in animal welfare inside the theme park sector, in addition to aligning with shopper values that may help attendance and popularity.

The corporate’s core enterprise consists of family-focused parks (SeaWorld, Sesame Place, and Aquatica) and thrill locations (Busch Gardens and choose thrill coasters). Key product areas are each day admission tickets, annual passes, and in-park experiences resembling meals, merchandise, and particular animal encounters. Premium occasions—together with seasonal Halloween and Christmas applications—proceed to develop in recognition. Ahead bookings for occasions like Howl O’ Scream are forward of the prior 12 months’s tempo. The corporate didn’t open new parks this quarter however continues to leverage its mix of sights and ongoing property enhancements throughout its community.

Attendance combine shifted, with extra group guests and a modest enhance in worldwide friends. Per capita income was pressured by elevated visits from current cross holders and adjustments in product combine. an vital metric for theme parks as a result of it displays each pricing energy and product combine. Administration famous that altering admission packages and aggressive market situations, notably in Orlando the place different main new sights opened, possible influenced visitor conduct and ticket selections.

Outlook: No Steerage, Give attention to Ahead Bookings and Shareholder Returns

Administration didn’t present express ahead monetary steerage for income or revenue. In Q1 FY2025, administration said they ‘proceed to anticipate new information in income and Adjusted EBITDA in 2025,’ however didn’t difficulty particular quantitative steerage. As a substitute, management expressed optimism about the remainder of the 12 months, pointing to robust reserving tendencies on the Discovery Cove property and group occasions. Early ahead reserving ticket gross sales for Howl O’ Scream occasions throughout the parks are operating forward of the prior 12 months. These components may assist offset strain in per visitor spending if occasion demand holds up. Nonetheless, administration’s language within the launch struck a extra cautious tone in comparison with earlier within the 12 months.

The corporate’s board has really useful a $500 million share repurchase authorization, topic to shareholder approval, which may cut back the share rely additional and help per-share monetary metrics. Wanting forward, buyers will wish to look ahead to any reversal in per visitor spending tendencies, progress on deliberate capital initiatives, and updates on strategic alliances or new sights that would increase visitation and spending in future quarters.

Income and internet revenue offered utilizing U.S. typically accepted accounting rules (GAAP) except in any other case famous.