Core Viewpoint - Lindblad Expeditions Holdings, Inc. has announced the exercise of its mandatory conversion right on all outstanding shares of its 6.0% Series A Convertible Preferred Stock, which is expected to strengthen its balance sheet and simplify its capital structure [1][4]. Group 1: Mandatory Conversion Details - The mandatory conversion was triggered on January 16, 2026, when the volume-weighted average price of the company's common stock exceeded $14.25 for at least 20 out of 30 consecutive trading days [2]. - The effective date for the mandatory conversion is set for February 3, 2026, at which point all 62,000 shares of Preferred Stock will be converted into approximately 9.0 million shares of common stock [3]. - Post-conversion, assuming no additional issuances, Lindblad will have approximately 64.4 million shares of common stock outstanding, with no Preferred Stock remaining [3]. Group 2: Company Overview - Lindblad Expeditions is a leader in global expedition travel, offering immersive journeys across all seven continents through its six brands [4]. - The company collaborates with National Geographic to provide ship-based voyages that allow guests to explore remote destinations alongside scientists and naturalists [4]. - Lindblad's portfolio includes award-winning land-based brands that offer wildlife, cultural, and adventure-focused experiences, fostering a deep appreciation for the planet [4].

Core Viewpoint - Lindblad Expeditions (LIND) has experienced a significant stock price increase, attributed to positive market sentiment driven by its operational improvements and financial flexibility [2][4]. Group 1: Stock Performance - LIND shares rose by 12.3% to $16.89 in the last trading session, with a trading volume higher than average [1]. - Over the past four weeks, the stock has gained 8.8% [1]. Group 2: Financial Outlook - The company is projected to report a quarterly loss of $0.32 per share, reflecting a year-over-year improvement of 33.3% [3]. - Expected revenues for the upcoming quarter are $170.17 million, marking a 14.5% increase from the same quarter last year [3]. Group 3: Market Sentiment and Competitive Positioning - The recent stock rally is fueled by strong demand trends, disciplined pricing, and higher occupancy rates in its expedition and land-based offerings [2]. - Lindblad's premium travel model and expanding itineraries enhance its competitive positioning in the market [2]. - Improvements in the balance sheet, including refinancing actions, have mitigated financial risks, further supporting positive market sentiment [2]. Group 4: Earnings Estimates and Stock Trends - The consensus EPS estimate for Lindblad has remained stable over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [4]. - The stock currently holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to other stocks in the leisure and recreation services industry [5].

Group 1 - GoPro (GPRO) is currently ranked 2 (Buy) in the Zacks Rank system, indicating strong analyst sentiment and an improving earnings outlook, with a 55% increase in the consensus estimate for full-year earnings over the past quarter [3] - Year-to-date, GoPro has returned 3.6%, outperforming the Consumer Discretionary sector average return of 2.8% [4] - GoPro belongs to the Audio Video Production industry, which is ranked 25 in the Zacks Industry Rank, and has slightly underperformed its industry with an average gain of 16.1% so far this year [5] Group 2 - Lindblad Expeditions (LIND) is another stock in the Consumer Discretionary sector that has outperformed, with a year-to-date return of 4.3% and a 64.2% increase in its consensus EPS estimate [4][5] - The Leisure and Recreation Services industry, which includes Lindblad Expeditions, is ranked 63 and has seen a year-to-date increase of 10.5% [6]

Acquisition and Expansion - The company completed the acquisition of Torcatt Enterprises Limitada for $16.0 million, expanding its vessel and guest capacity in the Galápagos Islands[83]. Financial Performance - The company reported that tour revenues consist of guest ticket sales and other related services, with direct costs including payroll, food, and fuel expenses[87]. - Tour revenues for Q3 2025 increased by $34.2 million, or 17%, to $240.2 million compared to $206.0 million in Q3 2024, driven by a 12% increase in guest nights sold and guests traveled[109]. - For the nine months ended September 30, 2025, tour revenues rose by $91.7 million, or 18%, to $587.8 million, with an 11% increase in guest nights sold and a 9% increase in guests traveled, excluding Thomson Group[110]. - Operating income for Q3 2025 was $35.97 million, a 22% increase from $29.48 million in Q3 2024[122]. - Net income for Q3 2025 was a loss of $4.57 million, compared to a profit of $25.20 million in Q3 2024, reflecting a decrease of $20.63 million or 82%[120]. - Adjusted EBITDA for the three months ended September 30, 2025 was $57.3 million, compared to $45.8 million for the same period in 2024[135]. - Operating income for the three months ended September 30, 2025 increased by $1.6 million to $13.2 million compared to $11.7 million for the same period in 2024[127]. - Operating income for the nine months ended September 30, 2025 was $19.6 million, up from $10.1 million for the same period in 2024[128]. Revenue Segmentation - The company operates two segments: the Lindblad segment and the Land Experiences segment, which includes various adventure travel brands[82]. - The Lindblad segment's tour revenues for Q3 2025 increased by $16.3 million, or 13%, while the Land Experiences segment saw an increase of $17.9 million, or 21%[122]. - Tour revenues for the Land Experiences Segment for the three months ended September 30, 2025 increased by $17.9 million, or 21%, to $102.6 million compared to $84.7 million for the same period in 2024[130]. - For the nine months ended September 30, 2025, tour revenues for the Land Experiences Segment increased by $44.6 million, or 27%, to $208.1 million compared to $163.5 million for the same period in 2024[131]. Operational Metrics - The company utilizes various operational metrics, including Adjusted EBITDA and Net Yield, to analyze performance and financial condition[90]. - Adjusted EBITDA is defined as net income excluding depreciation, interest, and other non-operating items, providing insight into operating results[92]. - Net yield per available guest night increased by 9% to $1,314 from $1,205 in 2024 for the three months ended September 30, 2025[125]. Costs and Expenses - Total cost of tours for Q3 2025 increased by $14.6 million, or 13%, to $124.4 million, attributed to higher operating costs from additional voyages and trips[111]. - General and administrative expenses for Q3 2025 rose by $5.8 million, or 20%, to $34.8 million, mainly due to higher stock-based compensation and personnel costs[113]. - Selling and marketing expenses for Q3 2025 increased by $5.1 million, or 20%, to $30.1 million, driven by higher royalties and commission expenses associated with increased revenues[115]. - Depreciation and amortization expenses for Q3 2025 increased by $2.2 million, or 17%, to $14.9 million, primarily due to depreciation of assets supporting the vessel fleet[117]. Cash Flow and Debt - Net cash provided by operating activities increased to $96.9 million for the nine months ended September 30, 2025, compared to $90.7 million for the same period in 2024, reflecting a $6.2 million increase[2]. - The company had $261.8 million in unrestricted cash and cash equivalents as of September 30, 2025[3]. - Long-term debt obligations totaled $675.0 million as of September 30, 2025, with cash on hand expected to cover operations and debt service for at least the next 12 months[4]. - The company issued $675.0 million of 7.00% senior secured notes in August 2025, primarily to repay prior senior secured notes[6]. - The Revolving Credit Facility was amended to increase commitments from $45.0 million to $60.0 million, extending the maturity date to August 2030[7]. - As of September 30, 2025, the company had a working capital deficit of $74.8 million, improved from a deficit of $114.0 million as of December 31, 2024[8]. Guest Experience and Partnerships - The relationship with National Geographic has been extended through 2040, enhancing guest experiences through expert-led expeditions[74]. - The company emphasizes eco-conscious travel and partnerships with organizations like the World Wildlife Fund to promote sustainable tourism[76]. Guest Metrics - Occupancy for the Lindblad segment improved to 88% in Q3 2025, up from 82% in Q3 2024, with guest nights sold increasing to 84,143 from 74,845[123]. - The number of guests for the Land Experiences Segment increased to 8,746 for the three months ended September 30, 2025, up from 7,806 in 2024[129]. - The company’s Lindblad brand tour revenues are traditionally higher in the first and third quarters, influenced by seasonal demand and maintenance schedules[106].

Financial Data and Key Metrics Changes - Total company revenues for Q3 2025 were $240 million, an increase of $34 million or 16.6% compared to Q3 2024 [22] - Adjusted EBITDA for the quarter was $57.3 million, the highest quarterly result in company history, reflecting a 25% increase year over year [24][25] - Net income available to stockholders for Q3 was approximately breakeven, reflecting $23.5 million in debt refinancing expenses [25] Business Line Data and Key Metrics Changes - Lindblad segment revenues were $138 million, an increase of $16 million or 13.4% compared to the prior year, with occupancy increasing from 82% to 88% [22][23] - Land Experience segment revenues were $103 million, an increase of $18 million or 21.1%, driven by a 12% increase in guests and an 8% increase in revenue per guest [23] Market Data and Key Metrics Changes - The luxury travel segment is expected to grow at a 10% CAGR through 2028, reinforcing confidence in the company's positioning for sustained growth [10] - The company has seen a significant uptick in bookings for 2027, with strong demand in popular destinations like Alaska [9][10] Company Strategy and Development Direction - The company focuses on three strategic pillars: maximizing revenue generation, optimizing financial performance, and exploring accretive growth opportunities [10][11] - The partnership with Disney and National Geographic is expected to introduce the brand to new audiences and expand distribution channels [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving historical occupancy levels in 2026 and beyond, supported by strong booking momentum for 2025 and 2026 [9][29] - The company is raising full-year guidance for net yields, revenue, and EBITDA due to strong performance [20][30] Other Important Information - The company completed a comprehensive refinancing of its debt, lowering its cost of debt by approximately 75 basis points and enhancing financial flexibility [28] - The company ended the quarter with total cash of $290.1 million, an increase of $74 million compared to the previous year [26] Q&A Session Summary Question: Can you provide more color around booking trends for 2026 and 2027? - Management noted that bookings for 2026 are strong, with significant upticks in both segments, and they are on track to achieve historical occupancy levels [38][39] Question: How do you view pricing and yield growth for next year? - Management indicated that while double-digit yield growth is not expected to continue, they will maintain price integrity and continue to increase occupancy [41][42] Question: Are there any macroeconomic headwinds affecting the business? - Management acknowledged the geopolitical environment but noted that demand remains stable, particularly among higher net worth customers [56][57] Question: What are the financing alternatives for growth opportunities? - Management expressed confidence in pursuing expansion opportunities through charters, acquisitions, and new builds, supported by a strengthened balance sheet [63][65]

Financial Data and Key Metrics Changes - Total company revenues for Q3 2025 were $240 million, an increase of $34 million, or 16.6% compared to Q3 2024 [16] - Adjusted EBITDA for the quarter was $57.3 million, the highest quarterly result in company history, reflecting a 25% increase year over year [18] - Net income available to stockholders for the third quarter was roughly break-even, reflecting $23.5 million in debt refinancing expenses [19] Business Line Data and Key Metrics Changes - Lindblad segment revenues were $138 million, an increase of $16 million, or 13.4% compared to the prior year, with occupancy increasing from 82% to 88% [16][17] - Land Experiences segment revenues were $103 million, an increase of $18 million, or 21.1% compared to Q3 2024, driven by a 12% increase in guests and an 8% increase in revenue per guest [17] Market Data and Key Metrics Changes - The company reported a 9% increase in net yield per available guest night to $1,314, the highest third-quarter yield in company history [16][18] - The demand for luxury tourism is projected to grow at a 10% CAGR through 2028, reinforcing the company's confidence in its positioning for sustained growth [7] Company Strategy and Development Direction - The company focuses on three strategic pillars: maximizing revenue generation, optimizing financial performance, and exploring accretive growth opportunities [7][12] - The company is actively expanding its charter offerings and evaluating accretive acquisitions to enhance its capacity and market presence [12][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong booking trends for 2026 and 2027, with bookings significantly ahead of the prior year [7][25] - The company raised its full-year guidance for net yields, revenue, and EBITDA, reflecting continued strength in business performance [14][22] Other Important Information - The company completed a comprehensive refinancing of its debt, which strengthens its balance sheet and enhances financial flexibility [21] - The company ended the quarter with total cash of $290.1 million, an increase of $74 million versus the end of 2024 [19] Q&A Session Summary Question: Can you provide more color around booking trends for 2026 and 2027? - Management noted that bookings for 2026 are significantly ahead of the previous year, with encouraging upticks in demand [25][26] Question: How do you view pricing and yield growth for next year? - Management indicated that while double-digit yield growth is not expected to continue, they maintain pricing integrity and anticipate continued occupancy increases [28][30] Question: Are there any macroeconomic headwinds affecting demand? - Management acknowledged the importance of monitoring the geopolitical environment but noted that demand has remained stable despite economic changes [33] Question: What is the current mix of revenues and future plans for expansion? - Management expressed comfort with the current revenue mix and highlighted plans to pursue charters, acquisitions, and new builds for growth [35][36]

Core Insights - Lindblad Expeditions (LIND) reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, but down from $0.36 per share a year ago, representing an earnings surprise of +50.00% [1] - The company achieved revenues of $240.17 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.07% and up from $206.01 million year-over-year [2] - Lindblad Expeditions has outperformed consensus EPS estimates three times over the last four quarters and has topped revenue estimates four times in the same period [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.30 on revenues of $168.75 million, and for the current fiscal year, it is -$0.28 on revenues of $747.22 million [7] Industry Context - The Leisure and Recreation Services industry, to which Lindblad Expeditions belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Revenue Growth - Total revenue for Q3 2025 increased by 17% to $240.2 million compared to Q3 2024, driven by growth in both Lindblad and Land Experiences segments[5] - Tour revenues for the three months ended September 30, 2025, were $240.172 million, a 16.5% increase from $206.005 million in the same period of 2024[28] - Total guest ticket revenues for Q3 2025 were $120,979,000, up from $109,140,000 in Q3 2024, reflecting an increase of 10.9%[34] Segment Performance - Lindblad segment tour revenues rose by 13% to $137.6 million, with a net yield per available guest night increasing by 9% to $1,314 and occupancy improving to 88% from 82%[6] - Land Experiences segment tour revenues increased by 21% to $102.6 million, driven by additional trips and higher pricing[6] - Adjusted EBITDA for the Lindblad segment reached $32,773,000 in Q3 2025, compared to $26,238,000 in Q3 2024, reflecting a year-over-year increase of 24.5%[32] Financial Performance - Adjusted EBITDA for Q3 2025 increased by 25% to $57.3 million, reflecting strong performance in both segments[9] - Operating income for Q3 2025 increased by 22% to $35.97 million compared to Q3 2024, with both segments contributing to this growth[12] - Operating income for the nine months ended September 30, 2025, was $50.993 million, compared to $29.124 million for the same period in 2024, reflecting a growth of 74.5%[28] Cash and Debt Management - Cash and cash equivalents increased to $290.1 million as of September 30, 2025, up from $216.1 million at the end of 2024, largely due to increased bookings[13] - The company refinanced its long-term debt, lowering the interest rate to 7.00% and extending maturity to 2030, enhancing financial flexibility[14] - The company had a total debt position of $675.0 million as of September 30, 2025, and was in compliance with all applicable debt covenants[15] Loss and Adjustments - The net loss available to stockholders was $49 thousand, a significant decrease from a net income of $21.3 million in Q3 2024, primarily due to $23.5 million in debt refinancing expenses[8] - The company incurred a loss on extinguishment of debt amounting to $23.492 million during the nine months ended September 30, 2025[28] - The company reported a net loss of $1.383 million for the nine months ended September 30, 2025, an improvement from a net loss of $3.005 million in the same period of 2024[30] Cash Flow and Assets - Net cash provided by operating activities for the nine months ended September 30, 2025, was $97.141 million, an increase from $90.675 million in 2024[30] - Total assets increased to $976.534 million as of September 30, 2025, up from $876.905 million as of December 31, 2024, representing an increase of 11.4%[26] - Total liabilities increased to $1,105.338 million as of September 30, 2025, from $1,022.440 million as of December 31, 2024, reflecting an increase of 8.1%[26] Guest Metrics - The number of guests increased to 10,685 in Q3 2025, compared to 9,414 in Q3 2024, marking a growth of 13.5%[34] - Occupancy rate improved to 88% in Q3 2025, up from 82% in Q3 2024, showing a significant increase of 7.3 percentage points[34] - The maximum guests capacity increased to 11,909 in Q3 2025 from 11,225 in Q3 2024, indicating a growth of 6.1%[34] Guidance - The company expects full-year 2025 Adjusted EBITDA to be in the range of $119 million to $123 million[17] - The company provided Adjusted EBITDA guidance for the full year 2025 in the range of $119 million to $123 million[37] Cost Management - Adjusted Net Cruise Cost Excluding Fuel for the nine months ended September 30, 2025, was $248,093,000, compared to $226,092,000 in the same period of 2024, an increase of 9.7%[36] - Free Cash Flow for the nine months ended September 30, 2025, was $60,363,000, a decrease from $67,028,000 in the same period of 2024, indicating a decline of 10.0%[34]

Core Insights - Lindblad Expeditions Holdings, Inc. will report its third quarter financial results for 2025 on November 4, 2025, before the market opens [1] - A conference call to discuss the results will take place at 9:00 am Eastern Time, accessible via specific phone numbers for both the United States and international callers [1][2] Company Overview - Lindblad Expeditions is a leader in global expedition travel, offering immersive journeys across all seven continents through six pioneering brands [3] - The company collaborates with National Geographic to provide ship-based voyages that allow guests to explore remote destinations alongside scientists and naturalists [3] - Lindblad's portfolio includes modern expedition cruises and award-winning land-based brands, focusing on wildlife, cultural, and adventure experiences [3][4]

Company Overview - Lindblad Expeditions (LIND) currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4] Price Performance - Over the past week, LIND shares increased by 0.55%, while the Zacks Leisure and Recreation Services industry declined by 1% [6] - In a longer time frame, LIND's monthly price change is 3.47%, outperforming the industry's 1.94% [6] - Over the past quarter, LIND shares have risen by 26.43%, and over the last year, they are up 43.17%, compared to the S&P 500's increases of 9.68% and 20%, respectively [7] Trading Volume - LIND's average 20-day trading volume is 383,605 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Estimates - In the past two months, one earnings estimate for LIND has moved higher, raising the consensus estimate from -$0.36 to -$0.28 [10] - For the next fiscal year, two estimates have increased with no downward revisions during the same period [10] Conclusion - Considering the strong momentum indicators and positive earnings outlook, LIND is recommended as a solid pick for near-term investment [12]