Core Insights - The article emphasizes the importance of value investing as a preferred strategy for identifying strong stocks in various market conditions [2] - Lindblad Expeditions (LIND) is highlighted as a stock currently attracting investor attention, holding a Zacks Rank 2 (Buy) and a Value grade of A [3] Financial Metrics - LIND has a Price-to-Sales (P/S) ratio of 1, which is lower than the industry average P/S of 1.23, indicating potential undervaluation [4] - The Price-to-Cash Flow (P/CF) ratio for LIND is 12.53, compared to the industry's average of 14.44, suggesting it may be undervalued based on cash flow strength [5] - Over the past 12 months, LIND's P/CF has fluctuated between a high of 210.20 and a low of 11.83, with a median of 24.62 [5] Investment Outlook - The combination of LIND's favorable financial metrics and strong earnings outlook positions it as a compelling value stock at the moment [6]

Core Viewpoint - Lindblad Expeditions Holdings, Inc. has announced the pricing of $675 million in senior secured notes, reflecting an increase of $25 million from the initial offering amount, aimed at refinancing existing debt and supporting corporate purposes [1][2]. Group 1: Offering Details - The new notes are priced at par with a 7.000% interest rate and are due in 2030 [1]. - The offering is expected to close around August 20, 2025, pending customary closing conditions [1]. - The notes will be senior obligations and secured by a first-priority lien on substantially all assets of the issuer and its guarantors [1]. Group 2: Use of Proceeds - Proceeds from the offering will be used to fund a tender offer for all outstanding 6.750% Senior Secured Notes due 2027 and to redeem all 9.000% Senior Secured Notes due 2028 [2]. - Any remaining proceeds will be allocated for general corporate purposes [2]. Group 3: Company Overview - Lindblad is a leader in global expedition travel, offering immersive journeys across all seven continents through various brands [5]. - The company collaborates with National Geographic to provide unique ship-based voyages that allow exploration of remote destinations [5]. - Lindblad's portfolio includes both ship-based and land-based expedition brands, focusing on wildlife, culture, and adventure experiences [5].

Core Viewpoint - Lindblad Expeditions Holdings, Inc. has initiated a cash tender offer to purchase all outstanding 6.750% Senior Secured Notes due 2027, totaling $360 million in principal amount [1][2]. Tender Offer Details - The tender offer includes a consent solicitation to amend the indenture governing the Notes, aiming to eliminate most restrictive covenants and release the Notes from secured debt status [2][9]. - The consent for the proposed amendments requires a majority of the outstanding Notes, while the collateral release requires at least 75% consent [2]. Financial Terms - The tender offer is set to expire on September 3, 2025, with an early tender deadline on August 18, 2025, where early participants will receive an additional payment [5][8]. - The total consideration for the Notes will be based on the yield to maturity of a specified U.S. Treasury reference security plus a fixed spread [7]. Settlement Dates - The expected settlement date for Notes tendered by the early deadline is August 20, 2025, while those tendered after will settle by September 5, 2025 [8]. Redemption Plans - The company plans to redeem any Notes not tendered by February 15, 2026, at 100% of the principal amount plus accrued interest [11]. Company Overview - Lindblad Expeditions is an expedition travel company focusing on ship-based and land-based travel, partnering with National Geographic for conservation and sustainable tourism initiatives [16][17].

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for the reporting period [ITEM 1. Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for Lindblad Expeditions Holdings, Inc. and its subsidiaries, including balance sheets, statements of operations, comprehensive income (loss), stockholders' deficit, and cash flows, along with detailed notes explaining the company's business, accounting policies, and specific financial line items [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' deficit at specific dates | Metric | As of June 30, 2025 (in thousands) | As of December 31, 2024 (in thousands) | | :-------------------------------- | :---------------------------------- | :----------------------------------- | | Total Assets | $936,523 | $876,905 | | Total Liabilities | $1,080,566 | $1,022,440 | | Total Stockholders' Deficit | $(263,809) | $(253,114) | | Cash and cash equivalents | $200,929 | $183,941 | | Unearned passenger revenues | $381,692 | $318,666 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance over specific periods, including revenues, operating income, and net loss **For the three months ended June 30:** | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :--------------------------------------- | :------------------ | :------------------ | :--------- | | Tour revenues | $167,945 | $136,499 | 23% | | Operating income (loss) | $4,407 | $(8,208) | NM | | Net loss | $(6,968) | $(23,994) | 71% | | Basic Undistributed loss per share | $(0.18) | $(0.48) | - | **For the six months ended June 30:** | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :--------------------------------------- | :------------------ | :------------------ | :--------- | | Tour revenues | $347,666 | $290,113 | 20% | | Operating income (loss) | $15,021 | $(357) | NM | | Net loss | $(5,958) | $(28,203) | 79% | | Basic Undistributed loss per share | $(0.18) | $(0.58) | - | [Condensed Consolidated Statements of Comprehensive (Loss) Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20%28Loss%29%20Income) This section presents the total comprehensive loss, including net loss and other comprehensive income or loss components **For the three months ended June 30:** | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------------------------- | :------------------ | :------------------ | | Net loss | $(6,968) | $(23,994) | | Total comprehensive loss | $(7,262) | $(23,994) | | Comprehensive loss attributable to Lindblad Expeditions Holdings, Inc. | $(8,812) | $(24,667) | **For the six months ended June 30:** | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------------------------- | :------------------ | :------------------ | | Net loss | $(5,958) | $(28,203) | | Total comprehensive loss | $(6,246) | $(28,203) | | Comprehensive loss attributable to Lindblad Expeditions Holdings, Inc. | $(7,646) | $(28,645) | [Condensed Consolidated Statements of Stockholders' Deficit](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Deficit) This section details changes in the company's stockholders' deficit, including common stock, additional paid-in capital, and accumulated deficit **Balance as of June 30, 2025 (in thousands):** | Metric | Shares | Amount | | :-------------------------------- | :--------- | :----- | | Common Stock | 54,733,299 | $6 | | Additional Paid-In Capital | - | $118,007 | | Accumulated Deficit | - | $(381,822) | | Total Stockholders' Deficit | - | $(263,809) | **Balance as of December 31, 2024 (in thousands):** | Metric | Shares | Amount | | :-------------------------------- | :--------- | :----- | | Common Stock | 54,507,977 | $6 | | Additional Paid-In Capital | - | $109,473 | | Accumulated Deficit | - | $(362,881) | | Total Stockholders' Deficit | - | $(253,114) | - Stock-based compensation expense for the six months ended June 30, 2025, was **$9.1 million**, compared to **$4.8 million** for the same period in 2024, indicating a significant increase in equity-based awards[17](index=17&type=chunk)[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports the cash inflows and outflows from operating, investing, and financing activities over specific periods **For the six months ended June 30:** | Cash Flow Activity | 2025 (in thousands) | 2024 (in thousands) | | :----------------------------------- | :------------------ | :------------------ | | Net cash provided by operating activities | $77,614 | $62,566 | | Net cash used in investing activities | $(44,741) | $(13,893) | | Net cash used in financing activities | $(1,401) | $(18,357) | | Net increase in cash, cash equivalents and restricted cash | $31,184 | $30,316 | | Cash, cash equivalents and restricted cash at end of period | $247,327 | $217,660 | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [NOTE 1—BUSINESS AND BASIS OF PRESENTATION](index=9&type=section&id=NOTE%201%E2%80%94BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) This note describes the company's business segments and the basis for financial statement presentation, including recent accounting standard adoptions - Lindblad Expeditions Holdings, Inc. operates two reportable business segments: the Lindblad Segment (ship-based expeditions, **12** owned and **7** seasonal charter vessels, partnered with National Geographic) and the Land Experiences Segment (primarily land-based brands including Natural Habitat, Off the Beaten Path, DuVine, Classic Journeys, and Thomson Group)[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - The company adopted ASU 2023-09 (Income Taxes) on January 1, 2025, which will increase annual disclosures related to income taxes. ASU 2024-03 (Expense Disaggregation Disclosures) will be adopted on January 1, 2027, and will increase financial statement disclosures of certain expense items[29](index=29&type=chunk)[30](index=30&type=chunk) [NOTE 2—EARNINGS PER SHARE](index=10&type=section&id=NOTE%202%E2%80%94EARNINGS%20PER%20SHARE) This note explains the calculation of basic and diluted earnings per share, considering the impact of potential common shares - Due to net losses available to stockholders for the three and six months ended June 30, 2025 and 2024, potential common shares (including unvested restricted shares, exercisable options, and convertible preferred stock) were anti-dilutive and excluded from diluted EPS calculations, resulting in basic and diluted net loss per share being the same[33](index=33&type=chunk)[34](index=34&type=chunk) **Undistributed Loss per Share Available to Stockholders:** | Period | Basic EPS (2025) | Basic EPS (2024) | Diluted EPS (2025) | Diluted EPS (2024) | | :----------------------- | :--------------- | :--------------- | :----------------- | :----------------- | | Three months ended Jun 30 | $(0.18) | $(0.48) | $(0.18) | $(0.48) | | Six months ended Jun 30 | $(0.18) | $(0.58) | $(0.18) | $(0.58) | [NOTE 3—REVENUES](index=11&type=section&id=NOTE%203%E2%80%94REVENUES) This note details the company's revenue recognition policies and provides a breakdown of tour revenues by segment and sales channel - Unearned passenger revenues, representing guest deposits for future travel, increased to **$381.7 million** as of June 30, 2025, from **$318.7 million** as of December 31, 2024[36](index=36&type=chunk) **Tour Revenues by Segment and Sales Channel (in thousands):** | Segment | Sales Channel | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Lindblad Segment | Direct | $68,158 | $62,315 | $147,012 | $135,044 | | | Agencies | $30,018 | $21,255 | $63,813 | $51,541 | | | **Total Lindblad Tour Revenues** | **$111,045** | **$93,053** | **$242,153** | **$211,356** | | Land Experiences | Direct | $48,470 | $36,718 | $90,136 | $66,900 | | | Agencies | $5,768 | $4,750 | $9,779 | $7,627 | | | **Total Land Experiences Tour Revenues** | **$56,900** | **$43,446** | **$105,513** | **$78,757** | [NOTE 4—FINANCIAL STATEMENT DETAILS](index=12&type=section&id=NOTE%204%E2%80%94FINANCIAL%20STATEMENT%20DETAILS) This note provides detailed breakdowns of specific financial statement line items, including cash, restricted cash, and prepaid expenses **Cash, Cash Equivalents and Restricted Cash (in thousands):** | Metric | As of June 30, 2025 | As of June 30, 2024 | | :-------------------------------------------------- | :------------------ | :------------------ | | Cash and cash equivalents | $200,929 | $168,123 | | Restricted cash | $46,398 | $49,537 | | Total cash, cash equivalents and restricted cash | $247,327 | $217,660 | **Restricted Cash Breakdown (in thousands):** | Category | As of June 30, 2025 | As of December 31, 2024 | | :-------------------------------- | :------------------ | :---------------------- | | Credit card processor reserves | $12,500 | $12,750 | | Federal Maritime Commission and other escrow | $32,203 | $18,101 | | Certificates of deposit and other restricted deposits | $1,695 | $1,351 | | Total restricted cash | $46,398 | $32,202 | **Prepaid Expenses and Other Current Assets (in thousands):** | Category | As of June 30, 2025 | As of December 31, 2024 | | :-------------------------------- | :------------------ | :---------------------- | | Prepaid tour expenses | $42,502 | $28,585 | | Other | $32,689 | $33,705 | | Total prepaid expenses and other current assets | $75,191 | $62,290 | [NOTE 5—LONG-TERM DEBT](index=13&type=section&id=NOTE%205%E2%80%94LONG-TERM%20DEBT) This note outlines the company's long-term debt obligations, including notes payable and revolving credit facilities, and compliance with covenants **Long-Term Debt (in thousands):** | Debt Type | Principal (Jun 30, 2025) | Balance (Jun 30, 2025) | Principal (Dec 31, 2024) | Balance (Dec 31, 2024) | | :---------------- | :----------------------- | :--------------------- | :----------------------- | :--------------------- | | 6.75% Notes | $360,000 | $356,522 | $360,000 | $355,424 | | 9.00% Notes | $275,000 | $270,751 | $275,000 | $270,001 | | Other | $8 | $8 | $29 | $29 | | **Total long-term debt, non-current** | **$635,000** | **$627,273** | **$635,000** | **$625,425** | **Deferred Financing Costs Charged to Interest Expense (in thousands):** | Period | 2025 | 2024 | | :----------------------- | :----- | :----- | | Three months ended Jun 30 | $0.9M | $0.9M | | Six months ended Jun 30 | $1.8M | $1.9M | - The company has a **$45.0 million** senior secured revolving credit facility maturing in February 2027, with no borrowings outstanding as of June 30, 2025[43](index=43&type=chunk) - The company was in compliance with all covenants related to its **6.75%** Notes, Revolving Credit Facility, and **9.00%** Notes as of June 30, 2025[45](index=45&type=chunk) [NOTE 6—FAIR VALUE MEASUREMENTS](index=14&type=section&id=NOTE%206%E2%80%94FAIR%20VALUE%20MEASUREMENTS) This note provides information on the fair value of financial instruments, particularly long-term debt - The estimated fair value of the company's long-term debt as of June 30, 2025, was **$649.3 million**[46](index=46&type=chunk) [NOTE 7—STOCKHOLDERS' EQUITY](index=14&type=section&id=NOTE%207%E2%80%94STOCKHOLDERS%27%20EQUITY) This note details components of stockholders' equity, including stock repurchase plans and outstanding preferred stock - The company's stock and warrant repurchase plan has a remaining balance of **$12.0 million** as of June 30, 2025. No shares were repurchased under this plan during the six months ended June 30, 2025[47](index=47&type=chunk) - As of June 30, 2025, **62,000** shares of Series A Redeemable Convertible Preferred Stock were outstanding, with accumulated dividends, convertible into approximately **8.7 million** shares of common stock at the holder's option[48](index=48&type=chunk) [NOTE 8—STOCK BASED COMPENSATION](index=15&type=section&id=NOTE%208%E2%80%94STOCK%20BASED%20COMPENSATION) This note provides details on stock-based compensation expense and the types of equity awards granted **Stock-Based Compensation Expense (in thousands):** | Period | 2025 | 2024 | | :----------------------- | :----- | :----- | | Three months ended Jun 30 | $5,400 | $2,700 | | Six months ended Jun 30 | $9,100 | $4,800 | - During the six months ended June 30, 2025, the company awarded **455,511** restricted stock units (RSUs) and **229,023** performance-based restricted share units (PSUs)[51](index=51&type=chunk)[52](index=52&type=chunk) - Stock-based compensation expense related to Mr. Bressler's equity incentive opportunity for Natural Habitat's performance was **$2.1 million** and **$4.1 million** for the three and six months ended June 30, 2025, respectively[54](index=54&type=chunk) [NOTE 9—INCOME TAXES](index=15&type=section&id=NOTE%209%E2%80%94INCOME%20TAXES) This note explains the company's effective tax rate and factors contributing to its deviation from the statutory rate **Effective Tax Rate:** | Period | 2025 | 2024 | | :----------------------- | :----- | :----- | | Three months ended Jun 30 | **8.5%** (expense) | **22.8%** (expense) | | Six months ended Jun 30 | **13.6%** (benefit) | **20.0%** (expense) | - The effective tax rate differs from the statutory rate due to the mix of jurisdictions generating income and the valuation allowance against certain loss and interest carryforwards in the United States[57](index=57&type=chunk) - The company is currently assessing the impact of the recently enacted One Big Beautiful Bill Act (OBBB) on its consolidated financial statements[58](index=58&type=chunk) [NOTE 10—COMMITMENTS AND CONTINGENCIES](index=16&type=section&id=NOTE%2010%E2%80%94COMMITMENTS%20AND%20CONTINGENCIES) This note describes the company's commitments, including redeemable noncontrolling interests and future minimum charter payments - The company holds controlling interests in several subsidiaries with redeemable noncontrolling interests subject to put/call agreements, which are adjusted to their present value using a discounted cash flow model[59](index=59&type=chunk)[60](index=60&type=chunk) **Rollforward of Redeemable Non-Controlling Interest (in thousands):** | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Beginning balance | $29,424 | $37,784 | | Net income attributable to noncontrolling interest | $1,400 | $442 | | Redemption value adjustment of put option | $9,157 | $1,704 | | Distribution | $(795) | $(900) | | Redemption of put and/or call options | $- | $(14,797) | | Ending balance | $39,186 | $24,233 | **Future Minimum Charter Payments (in thousands):** | Year Ended December 31, | Amount | | :---------------------- | :----- | | 2025 (six months) | $6,039 | | 2026 | $14,865 | | 2027 | $468 | | **Total** | **$21,372** | [NOTE 11—SEGMENT INFORMATION](index=17&type=section&id=NOTE%2011%E2%80%94SEGMENT%20INFORMATION) This note provides financial information disaggregated by the company's operating segments: Lindblad and Land Experiences **Segment Tour Revenues (in thousands):** | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (%) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (%) | | :---------------- | :------------------------------- | :------------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | Lindblad | $111,045 | $93,053 | 19% | $242,153 | $211,356 | 15% | | Land Experiences | $56,900 | $43,446 | 31% | $105,513 | $78,757 | 34% | | **Total Tour Revenues** | **$167,945** | **$136,499** | **$31,446** | **$347,666** | **$290,113** | **$57,553** | **Segment Operating Income (Loss) (in thousands):** | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (%) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (%) | | :---------------- | :------------------------------- | :------------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | Lindblad | $(2,070) | $(9,372) | 78% | $6,316 | $(1,589) | NM | | Land Experiences | $6,477 | $1,164 | 456% | $8,705 | $1,232 | 607% | | **Total Operating Income (Loss)** | **$4,407** | **$(8,208)** | **$12,615** | **$15,021** | **$(357)** | **$15,378** | **Segment Total Assets (in thousands):** | Segment | As of June 30, 2025 | As of December 31, 2024 | | :---------------- | :------------------ | :---------------------- | | Lindblad | $654,312 | $667,799 | | Land Experiences | $282,211 | $209,106 | | **Total Assets** | **$936,523** | **$876,905** | **Segment Goodwill (in thousands):** | Segment | As of June 30, 2025 | As of December 31, 2024 | | :---------------- | :------------------ | :---------------------- | | Lindblad | $- | $- | | Land Experiences | $59,198 | $59,031 | | **Total Goodwill** | **$59,198** | **$59,031** | [NOTE 12—ACQUISITIONS](index=19&type=section&id=NOTE%2012%E2%80%94ACQUISITIONS) This note details recent acquisitions, including Torcatt Enterprises Limitada and the Thomson Group, and their strategic impact - On January 9, 2025, the company acquired Torcatt Enterprises Limitada, which owns and operates two vessels in the Galápagos Islands, for **$16.0 million** in cash, expanding its capacity in a core market[67](index=67&type=chunk) - On July 31, 2024, the company acquired the Thomson Group for **$30.0 million**, consisting of **$24.0 million** in cash and **$6.0 million** in Lindblad common stock, adding to its land-based subsidiary Natural Habitat[68](index=68&type=chunk) [NOTE 13—SUBSEQUENT EVENT](index=19&type=section&id=NOTE%2013%E2%80%94SUBSEQUENT%20EVENT) This note discloses significant events that occurred after the balance sheet date but before the financial statements were issued - On July 8, 2025, the company amended and restated Mr. Bressler's employment agreement, extending its term through December 31, 2028, creating a Bonus Pool based on Natural Habitat's net profits, and providing options in connection with the perpetual put right[69](index=69&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed discussion and analysis of Lindblad Expeditions' financial condition and results of operations for the three and six months ended June 30, 2025, compared to the same periods in 2024. It covers business overview, financial presentation, consolidated and segment results, liquidity, capital resources, and critical accounting policies [Business Overview](index=21&type=section&id=Business%20Overview) This section describes Lindblad Expeditions' core business, operating segments, and strategic focus on expedition travel and recent acquisitions - Lindblad Expeditions offers expedition cruising and land-based adventure travel, focusing on exploration, discovery, and up-close encounters with nature, wildlife, history, and culture[74](index=74&type=chunk) - The company operates two segments: the Lindblad segment (**12** owned and **7** seasonal charter expedition ships, partnered with National Geographic) and the Land Experiences segment (Natural Habitat, Off the Beaten Path, DuVine, Classic Journeys, and Thomson Group brands)[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk)[83](index=83&type=chunk) - A key highlight for 2025 was the acquisition of Torcatt Enterprises Limitada on January 9, 2025, for **$16.0 million** in cash, expanding the company's vessel and guest capacity in the Galápagos Islands[84](index=84&type=chunk) [Financial Presentation](index=22&type=section&id=Financial%20Presentation) This section defines key financial statement line items and non-GAAP measures used to evaluate the company's performance and seasonality - Tour revenues include guest ticket revenues and other tour revenues from excursions, accommodations, air transportation, and onboard services[88](index=88&type=chunk) - Cost of tours encompasses direct costs associated with revenues, payroll for expedition personnel, food costs, fuel costs, and other tour expenses like port costs and drydock[88](index=88&type=chunk) - The company utilizes non-GAAP financial measures such as Adjusted EBITDA, Net Yields, Occupancy, and Net Cruise Costs to evaluate performance, noting that these may not be comparable to other companies[90](index=90&type=chunk)[92](index=92&type=chunk) - Lindblad brand tour revenues are mildly seasonal, typically larger in the first and third quarters, while Land Experiences brands (Natural Habitat, Off the Beaten Path, DuVine, Thomson Group, Classic Journeys) also exhibit seasonality, with peak revenues generally in the second, third, and fourth quarters depending on the brand[106](index=106&type=chunk) [Results of Operations — Consolidated](index=24&type=section&id=Results%20of%20Operations%20%E2%80%94%20Consolidated) This section analyzes the consolidated financial performance, including changes in tour revenues, operating expenses, and net loss for the periods presented **Consolidated Financial Performance (in thousands):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------------ | :------------------------------- | :------------------------------- | :--------- | :--------- | | Tour revenues | $167,945 | $136,499 | $31,446 | 23% | | Cost of tours | $91,391 | $82,953 | $8,438 | 10% | | General and administrative | $31,083 | $29,836 | $1,247 | 4% | | Selling and marketing | $26,390 | $18,281 | $8,109 | 44% | | Depreciation and amortization | $14,674 | $13,637 | $1,037 | 8% | | Operating income (loss) | $4,407 | $(8,208) | $12,615 | NM | | Net loss | $(6,968) | $(23,994) | $17,026 | 71% | | Basic EPS | $(0.18) | $(0.48) | $0.30 | - | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------------ | :------------------------------- | :------------------------------- | :--------- | :--------- | | Tour revenues | $347,666 | $290,113 | $57,553 | 20% | | Cost of tours | $184,239 | $167,405 | $16,834 | 10% | | General and administrative | $63,805 | $57,073 | $6,732 | 12% | | Selling and marketing | $54,632 | $41,038 | $13,594 | 33% | | Depreciation and amortization | $29,969 | $24,954 | $5,015 | 20% | | Operating income (loss) | $15,021 | $(357) | $15,378 | NM | | Net loss | $(5,958) | $(28,203) | $22,245 | 79% | | Basic EPS | $(0.18) | $(0.58) | $0.40 | - | - The increase in tour revenues for both periods was driven by a rise in guest nights sold and guests traveled for continuing operations, as well as the inclusion of Thomson Group operations acquired in July 2024[109](index=109&type=chunk)[110](index=110&type=chunk) - Selling and marketing expenses significantly increased due to higher royalties and commission expenses tied to increased revenues and royalty rates from the National Geographic agreement, alongside increased marketing spend for future growth[115](index=115&type=chunk)[116](index=116&type=chunk) [Results of Operations — Segments](index=26&type=section&id=Results%20of%20Operations%20%E2%80%94%20Segments) This section provides a detailed analysis of the financial performance and key metrics for both the Lindblad and Land Experiences segments **Segment Tour Revenues (in thousands):** | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (%) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (%) | | :---------------- | :------------------------------- | :------------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | Lindblad | $111,045 | $93,053 | 19% | $242,153 | $211,356 | 15% | | Land Experiences | $56,900 | $43,446 | 31% | $105,513 | $78,757 | 34% | **Segment Operating Income (Loss) (in thousands):** | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (%) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (%) | | :---------------- | :------------------------------- | :------------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | Lindblad | $(2,070) | $(9,372) | 78% | $6,316 | $(1,589) | NM | | Land Experiences | $6,477 | $1,164 | 456% | $8,705 | $1,232 | 607% | **Lindblad Segment Guest Metrics:** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Available Guest Nights | 81,515 | 77,404 | 156,840 | 163,358 | | Guest Nights Sold | 70,198 | 60,174 | 137,172 | 125,137 | | Occupancy | 86% | 78% | 87% | 77% | | Net Yield per Available Guest Night | $1,241 | $1,094 | $1,376 | $1,160 | - Lindblad segment's operating loss decreased by **$7.3 million** for the three months ended June 30, 2025, and it generated operating income of **$6.3 million** for the six months, driven by increased tour revenues partially offset by higher operating expenses, royalties, commissions, and marketing spend[126](index=126&type=chunk)[127](index=127&type=chunk) **Land Experiences Segment Guest Metrics:** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Guests | 5,978 | 4,907 | 10,387 | 8,469 | | Departures | 788 | 630 | 1,287 | 1,026 | - Land Experiences segment's operating income significantly increased for both periods, primarily due to higher tour revenue from increased guests and the inclusion of Thomson Group results, partially offset by higher operating and personnel costs and marketing spend[131](index=131&type=chunk)[132](index=132&type=chunk) [Adjusted EBITDA — Consolidated](index=29&type=section&id=Adjusted%20EBITDA%20%E2%80%94%20Consolidated) This section presents the consolidated and segment Adjusted EBITDA, a non-GAAP measure used to assess operational profitability **Consolidated Adjusted EBITDA (in thousands):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(6,968) | $(23,994) | $(5,958) | $(28,203) | | Adjusted EBITDA | $24,841 | $10,384 | $54,823 | $31,990 | **Segment Adjusted EBITDA (in thousands):** | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Lindblad | $16,330 | $6,541 | $42,649 | $27,013 | | Land Experiences | $8,511 | $3,843 | $12,174 | $4,977 | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, cash flow activities, debt obligations, and ability to meet its financial commitments - As of June 30, 2025, the company had **$200.9 million** in unrestricted cash and cash equivalents and **$46.4 million** in restricted cash[137](index=137&type=chunk) - Net cash provided by operating activities increased by **$15.0 million** to **$77.6 million** for the six months ended June 30, 2025, primarily due to increased cash received from guests for future travel[139](index=139&type=chunk) - Net cash used in investing activities increased to **$44.7 million** for the six months ended June 30, 2025, mainly due to the acquisition of Torcatt Enterprises Limitada, refurbishment of acquired vessels, and higher capital expenditures on existing vessels[140](index=140&type=chunk) - The company had **$635.0 million** in long-term debt obligations as of June 30, 2025, and believes its cash on hand and expected operating cash inflows will be sufficient to fund operations and debt service for at least the next **12** months[138](index=138&type=chunk)[142](index=142&type=chunk)[144](index=144&type=chunk) - As of June 30, 2025, the company had a working capital deficit of **$127.6 million**, an increase from **$114.0 million** as of December 31, 2024, primarily due to a large balance of unearned passenger revenues[147](index=147&type=chunk) [Critical Accounting Policies](index=31&type=section&id=Critical%20Accounting%20Policies) This section confirms that there have been no significant changes to the company's critical accounting policies since the last annual report - There have been no significant changes to the company's critical accounting policies from those disclosed in the 2024 Annual Report[148](index=148&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures about Market Risk](index=31&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there have been no material changes in the company's exposure to market risks compared to the information provided in its 2024 Annual Report - No material changes in market risk exposure from the 2024 Annual Report[149](index=149&type=chunk) [ITEM 4. Controls and Procedures](index=31&type=section&id=ITEM%204.%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures and reports on any changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=31&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as assessed by management - The company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of June 30, 2025, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[150](index=150&type=chunk)[151](index=151&type=chunk) [Changes in Internal Control over Financial Reporting](index=32&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports on any material changes to the company's internal control over financial reporting during the quarter - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect the company's internal control over financial reporting[152](index=152&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information not included in the financial statements, covering legal, equity, and other disclosures [ITEM 1. Legal Proceedings](index=32&type=section&id=ITEM%201.%20Legal%20Proceedings) This section states that the company is involved in various claims, legal actions, and regulatory proceedings in the ordinary course of business, which are expected to be covered by protection and indemnity insurance - The company is involved in various ordinary course legal proceedings, with expected coverage from protection and indemnity insurance[153](index=153&type=chunk) [ITEM 1A. Risk Factors](index=32&type=section&id=ITEM%201A.%20Risk%20Factors) This section refers readers to the 'Risk Factors' discussion in the 2024 Annual Report for important risks and uncertainties affecting the business - Readers are directed to the 'Risk Factors' section in the 2024 Annual Report for a comprehensive discussion of risks and uncertainties[154](index=154&type=chunk) [ITEM 2. Unregistered Sale of Equity Securities and Use of Proceeds](index=32&type=section&id=ITEM%202.%20Unregistered%20Sale%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on unregistered sales of equity securities and details the company's stock repurchase plan and repurchases made for employee tax withholding [Recent Sales by the Company of Unregistered Securities](index=32&type=section&id=Recent%20Sales%20by%20the%20Company%20of%20Unregistered%20Securities) This section confirms whether there were any unregistered sales of equity securities during the reporting period - There were no unregistered sales of equity securities during the quarter ended June 30, 2025[155](index=155&type=chunk) [Stock Repurchase Plan](index=32&type=section&id=Stock%20Repurchase%20Plan) This section provides an update on the company's stock repurchase plan and shares withheld for employee tax obligations - The company's stock and warrant repurchase plan has a remaining balance of **$12.0 million** as of June 30, 2025. No repurchases were made under this plan during the six months ended June 30, 2025[156](index=156&type=chunk) **Shares Withheld for Employee Income Tax Withholding (April 1 - June 30, 2025):** | Period | Total number of shares purchased | Average price paid per share | | :-------------------------- | :------------------------------- | :--------------------------- | | April 1 through April 30, 2025 | 1,879 | $8.15 | | May 1 through May 31, 2025 | 1,855 | $10.50 | | June 1 through June 30, 2025 | 22,616 | $11.24 | | **Total** | **26,350** | - | [ITEM 3. Defaults Upon Senior Securities](index=33&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company for the reporting period - This item is not applicable[158](index=158&type=chunk) [ITEM 4. Mine Safety Disclosures](index=33&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reporting period - This item is not applicable[159](index=159&type=chunk) [ITEM 5. Other Information](index=33&type=section&id=ITEM%205.%20Other%20Information) This section reports that no director or Section 16 officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter - No director or Section 16 officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[160](index=160&type=chunk) [ITEM 6. Exhibits](index=34&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including supplemental indentures, certifications from the CEO and CFO, and XBRL-related documents - Exhibits include First and Second Supplemental Indentures, CEO and CFO certifications (Rule 13a-14(a) and 13a-14(b)), and various Inline XBRL documents[161](index=161&type=chunk) [SIGNATURES](index=35&type=section&id=SIGNATURES) This section contains the required signatures from authorized officers, certifying the accuracy of the report

Core Insights - Lindblad Expeditions reported a quarterly loss of $0.18 per share, better than the Zacks Consensus Estimate of a loss of $0.29, and improved from a loss of $0.48 per share a year ago, resulting in an earnings surprise of +37.93% [1] - The company achieved revenues of $167.95 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 5.27% and up from $136.5 million year-over-year [2] - Lindblad Expeditions has surpassed consensus EPS estimates three times over the last four quarters and 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 $0.23 on revenues of $231.04 million, while for the current fiscal year, the estimate is -$0.36 on revenues of $741.39 million [7] Industry Context - The Leisure and Recreation Services industry, to which Lindblad Expeditions belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Lindblad's stock performance [5][6]

Financial Data and Key Metrics Changes - Total company revenues for Q2 2025 were $167 million, an increase of $31 million or 23% compared to Q2 2024 [21] - Adjusted EBITDA for Q2 2025 was $24.8 million, an increase of $14.5 million or 139% year-over-year [22] - Net loss available to stockholders improved by $16.1 million year-over-year to $9.7 million or $0.18 per diluted share [24] - Adjusted EBITDA margins expanded by 720 basis points year-over-year to 14.8% [22] Business Line Data and Key Metrics Changes - Lindblad segment revenues were $111 million, an increase of $18 million or 19% compared to the prior year [21] - Land Experiences segment revenues were $57 million, an increase of $13 million or 31% compared to Q2 2024 [22] - Occupancy increased from 78% to 86%, an 8 percentage point gain despite a 5% increase in available guest nights [21] Market Data and Key Metrics Changes - Bookings remain strong and are tracking ahead of last year for both 2025 and 2026 [10] - Bookings from Disney's travel advisors increased by 45% [12] - Search volumes from the National Geographic travel campaign increased by 122% [13] Company Strategy and Development Direction - The company is focused on maximizing revenue generation, optimizing financial performance, and exploring growth opportunities [10][18] - Strategic initiatives include enhancing revenue management capabilities and executing partnerships with Disney [6][12] - The company is actively exploring accretive growth opportunities, including fleet expansion and diversifying its portfolio [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the path forward, citing strong performance and strategic initiatives [5] - The company is raising full-year guidance for net yields, revenue, and adjusted EBITDA due to strong first-half performance [19] - Management indicated that 2025 is an investment year, with many investments occurring in this period [32] Other Important Information - The company is preparing its first-ever ESG report to be released next quarter [19] - The acquisition of four safari camps in East Africa was announced, enhancing the company's footprint in the region [18] Q&A Session Summary Question: Concerns about EBITDA guidance for the second half of the year - Management acknowledged that 2025 is an investment year, which may lead to higher costs and less flow-through in the second half compared to the previous year [32][33] Question: Increase in sales and marketing expenses - Management explained that increased sales and marketing costs are due to investments in new sales channels and higher royalties associated with agreements with National Geographic [41] Question: Reduction in non-revenue days - Management clarified that the 38% reduction in non-revenue days is based on optimized scheduling and planning, with steady reductions expected until 2027 [42][44] Question: Customer demographics from Disney partnership - Management noted an increase in multigenerational travel due to the Disney partnership, with a focus on educational programs for younger travelers [50] Question: Future vessel acquisitions - Management indicated that while demand is expanding, growth opportunities may not necessarily require new builds, as they are also exploring chartering options [54][56]

Financial Data and Key Metrics Changes - Total company revenues for Q2 2025 were $167 million, an increase of $31 million or 23% compared to Q2 2024 [22] - Adjusted EBITDA for Q2 2025 was $24.8 million, an increase of $14.5 million or 139% year over year [23] - Net loss available to stockholders improved to $9.7 million or $0.18 per diluted share, reflecting significant operational improvements [25] Business Line Data and Key Metrics Changes - Lindblad segment revenues were $111 million, an increase of $18 million or 19% compared to the prior year [22] - Land Experiences segment revenues were $57 million, an increase of $13 million or 31% driven by increased trips and higher revenue per guest [23] - Occupancy rose to 86%, an 8 percentage point increase from 78% despite a 5% increase in available guest nights [22][10] Market Data and Key Metrics Changes - Bookings remain strong and are tracking ahead of last year for both 2025 and 2026, indicating robust demand for travel experiences [10][29] - The partnership with Disney has led to a 45% increase in bookings from Disney's travel advisors [14] Company Strategy and Development Direction - The company is focused on three long-term strategic pillars: maximizing revenue generation, optimizing financial performance, and exploring growth opportunities [12][18] - The introduction of new strategic revenue management capabilities and partnerships, such as with Disney, is aimed at increasing occupancy and expanding market reach [7][14] - Sustainability remains a central mission, with plans to release the first ESG report highlighting environmental and social impact efforts [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance and strategic initiatives [6][20] - The company is raising full-year guidance for net yields, revenue, and adjusted EBITDA, reflecting strong business performance [20][29] - Management acknowledged that 2025 is an investment year, with higher costs expected in the second half due to ongoing investments [33][34] Other Important Information - The company has implemented over 20 cost innovation initiatives targeting cost optimization and productivity improvements [18] - The acquisition of four safari camps in East Africa is aimed at enhancing the company's footprint in the region [18] Q&A Session Summary Question: Concerns about EBITDA guidance for the second half of the year - Management indicated that while they remain optimistic, 2025 is an investment year, leading to higher costs and lower flow-through in the second half [33][34] Question: Changes in sales and marketing expenses - Management noted increased investments in new sales channels and partnerships, particularly with Disney, which will continue to drive occupancy and net yield growth [41] Question: Reduction in non-revenue days - Management explained that the 38% reduction in non-revenue days is based on optimized scheduling and planning, with steady improvements expected until 2027 [42][44] Question: Demographic profile of customers booking through Disney - Management highlighted an increase in multigenerational travel, with a focus on educational experiences for younger travelers [50][51] Question: Opportunities for acquiring used boats in the market - Management confirmed ongoing demand for their products and noted that growth opportunities could come from acquisitions or chartering rather than solely new builds [54][56]

Second Quarter 2025 Performance Highlights [Key Financial and Operational Highlights](index=1&type=section&id=1.1.%20Key%20Financial%20and%20Operational%20Highlights) Lindblad Expeditions Holdings, Inc. achieved significant financial and operational growth in Q2 2025, with total revenue up 23% year-over-year, Adjusted EBITDA increasing by 139%, and occupancy rising to 86% Key Financial and Operational Metrics for Q2 2025 | Metric | Q2 2025 | Q2 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Revenue (USD Million) | $167.9 | - | $31.4 | 23% | | Net Loss (Attributable to Shareholders) (USD Million) | $9.7 | $25.8 | Improved by $16.1 | - | | Adjusted EBITDA (USD Million) | $24.8 | - | $14.5 | 139% | | Lindblad Segment Net Yield Per Available Guest Night (USD) | $1,241 | - | - | 13% | | Occupancy Rate | 86% | 78% | 8% | - | [CEO Commentary](index=1&type=section&id=1.2.%20CEO%20Commentary) CEO Natalya Leahy commended the team's achievements, highlighting strong momentum in revenue growth, increased occupancy, and substantial Adjusted EBITDA growth, while reaffirming a strategic focus on value creation through sustained revenue and cost innovation - The company achieved **23% revenue growth**, **86% occupancy** (with a 5% increase in capacity), and **139% Adjusted EBITDA growth**[4](index=4&type=chunk) - The company's strategic focus is on sustained revenue growth and rigorous cost innovation to unlock meaningful value[4](index=4&type=chunk) Detailed Financial Results for Q2 2025 [Tour Revenues](index=1&type=section&id=2.1.%20Tour%20Revenues) Total tour revenues for Q2 2025 reached $167.9 million, a 23% year-over-year increase, driven by growth in both the Lindblad and Land Experiences segments Q2 2025 Tour Revenue Overview | Metric | Q2 2025 (USD Million) | Q2 2024 (USD Million) | Change (USD Million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Tour Revenues | 167.9 | 136.5 | 31.4 | 23% | [Lindblad Segment Tour Revenues](index=1&type=section&id=2.1.1.%20Lindblad%20Segment%20Tour%20Revenues) Lindblad segment tour revenues increased by 19% to $111.0 million, primarily due to higher pricing and improved occupancy rates Lindblad Segment Tour Revenues | Metric | Q2 2025 (USD Million) | Q2 2024 (USD Million) | Change (USD Million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Lindblad Tour Revenues | 111.0 | 93.1 | 17.9 | 19% | | Net Yield Per Available Guest Night (USD) | $1,241 | - | - | 13% | | Occupancy Rate | 86% | 78% | - | - | [Land Experiences Segment Tour Revenues](index=1&type=section&id=2.1.2.%20Land%20Experiences%20Segment%20Tour%20Revenues) Land Experiences segment tour revenues grew 31% to $56.9 million, driven by more itineraries, higher pricing, and the contribution from the Wineland-Thomson Adventures acquisition Land Experiences Segment Tour Revenues | Metric | Q2 2025 (USD Million) | Q2 2024 (USD Million) | Change (USD Million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Land Experiences Tour Revenues | 56.9 | 43.4 | 13.5 | 31% | - Growth was primarily driven by operating more itineraries, higher pricing, and the full contribution from Wineland-Thomson Adventures (acquired in Q3 2024)[7](index=7&type=chunk) [Net Income](index=2&type=section&id=2.2.%20Net%20Income) Net loss attributable to shareholders for Q2 2025 significantly narrowed to $9.7 million ($0.18 per share), an improvement of $16.1 million year-over-year, primarily due to improved operating performance, employee retention tax credits, and foreign exchange gains Q2 2025 Net Loss Overview | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Loss (Attributable to Shareholders) (USD Million) | $9.7 | $25.8 | Improved by $16.1 | | Diluted Loss Per Share (USD) | $0.18 | $0.48 | Improved by $0.30 | - The improvement in net loss primarily reflects enhanced operating performance, along with **$3.4 million in employee retention tax credits**, **$0.8 million in foreign exchange gains**, and a reduction in tax expenses from **$4.5 million to $0.5 million** compared to the prior year period[9](index=9&type=chunk) [Adjusted EBITDA](index=2&type=section&id=2.3.%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 reached $24.8 million, a 139% year-over-year increase, primarily driven by strong growth in both the Lindblad and Land Experiences segments Q2 2025 Adjusted EBITDA Overview | Metric | Q2 2025 (USD Million) | Q2 2024 (USD Million) | Change (USD Million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Adjusted EBITDA | 24.8 | 10.4 | 14.5 | 139% | [Lindblad Segment Adjusted EBITDA](index=2&type=section&id=2.3.1.%20Lindblad%20Segment%20Adjusted%20EBITDA) Lindblad segment Adjusted EBITDA increased 150% to $16.3 million, primarily due to higher tour revenues and employee retention tax credits, partially offset by increased royalties, commissions, and marketing expenses Lindblad Segment Adjusted EBITDA | Metric | Q2 2025 (USD Million) | Q2 2024 (USD Million) | Change (USD Million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Lindblad Adjusted EBITDA | 16.3 | 6.5 | 9.8 | 150% | - Growth was primarily attributable to increased tour revenues and employee retention tax credits, partially offset by higher royalties and commissions related to increased revenue, and increased marketing expenses to drive long-term growth initiatives[11](index=11&type=chunk) [Land Experiences Segment Adjusted EBITDA](index=2&type=section&id=2.3.2.%20Land%20Experiences%20Segment%20Adjusted%20EBITDA) Land Experiences segment Adjusted EBITDA grew 121% to $8.5 million, driven by increased tour revenues, the addition of Wineland-Thomson Adventures, and employee retention tax credits Land Experiences Segment Adjusted EBITDA | Metric | Q2 2025 (USD Million) | Q2 2024 (USD Million) | Change (USD Million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Land Experiences Adjusted EBITDA | 8.5 | 3.8 | 4.7 | 121% | - Growth was primarily attributable to increased tour revenues, the addition of Wineland-Thomson Adventures (acquired in Q3 2024), and employee retention tax credits, partially offset by increased operating and personnel costs and higher marketing expenses to drive future growth[12](index=12&type=chunk) Financial Position and Outlook [Balance Sheet and Liquidity](index=2&type=section&id=3.1.%20Balance%20Sheet%20and%20Liquidity) As of June 30, 2025, the company's cash, cash equivalents, and restricted cash totaled $247.3 million, an increase from year-end 2024, primarily due to operating cash flow, with total debt at $635.0 million and compliance with all debt covenants Cash and Debt Status | Metric | June 30, 2025 (USD Million) | Dec 31, 2024 (USD Million) | Change (USD Million) | | :--- | :--- | :--- | :--- | | Cash, Cash Equivalents, and Restricted Cash | 247.3 | 216.1 | 31.2 | | Total Debt | 635.0 | - | - | - The increase in cash primarily reflects **$77.6 million in operating cash flow**, mainly from increased future travel bookings, partially offset by **$44.7 million in cash expenditures** for property and equipment purchases and the addition of National Geographic Delfina and National Geographic Gemini[14](index=14&type=chunk) - The company is in compliance with all applicable debt covenants[15](index=15&type=chunk) [2025 Full Year Outlook](index=3&type=section&id=3.2.%202025%20Full%20Year%20Outlook) The company projects full-year 2025 tour revenues to be between $725 million and $750 million, with Adjusted EBITDA expected to range from $108 million to $115 million 2025 Full Year Financial Guidance | Metric | Full Year 2025 Guidance (USD Million) | | :--- | :--- | | Tour Revenues | $725 - $750 | | Adjusted EBITDA | $108 - $115 | [Stock Repurchase Plan](index=3&type=section&id=3.3.%20Stock%20Repurchase%20Plan) The company is executing a $35.0 million stock repurchase program, having repurchased $23.0 million in stock and warrants as of July 31, 2025, with $12.0 million remaining for repurchases Stock Repurchase Plan Status (as of July 31, 2025) | Metric | Amount/Quantity | | :--- | :--- | | Total Program Amount (USD Million) | $35.0 | | Amount Repurchased (USD Million) | $23.0 | | Shares Repurchased | 875,218 shares | | Warrants Repurchased | 6.0 million warrants | | Remaining Program Amount (USD Million) | $12.0 | | Common Shares Outstanding | 54.8 million shares | Company Information [About Lindblad Expeditions Holdings, Inc.](index=4&type=section&id=4.1.%20About%20Lindblad%20Expeditions%20Holdings%2C%20Inc.) Lindblad Expeditions Holdings, Inc. is a global leader in expedition travel, offering immersive, educational journeys across six brands, focused on connecting travelers with the world's most inspiring natural and cultural landscapes - The company is a global leader in expedition travel, offering immersive, educational journeys across **six brands** and covering **seven continents**[21](index=21&type=chunk) - Key brands include National Geographic-Lindblad Expeditions in partnership with National Geographic, and land-based adventure brands Natural Habitat Adventures, Off the Beaten Path, DuVine Cycling + Adventure Co., Classic Journeys, and Wineland-Thomson Adventures[21](index=21&type=chunk) - The company is committed to responsible exploration, aiming to foster a deep appreciation for the world[21](index=21&type=chunk)[22](index=22&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=4.2.%20Non-GAAP%20Financial%20Measures%20Explanation) The company utilizes non-GAAP financial measures such as Adjusted EBITDA, occupancy, net yield, and net cruise cost to analyze performance and financial condition, believing these provide deeper insights, but emphasizes they are not substitutes for GAAP financial information - The company uses non-GAAP financial measures (such as Adjusted EBITDA, occupancy, net yield, and net cruise cost) to analyze performance and financial condition, considering them the most relevant metrics for measuring performance[17](index=17&type=chunk) - These non-GAAP metrics provide extended insights into revenue and cost performance but are not defined by specific rules or regulations, thus may not be comparable to metrics used by other companies[17](index=17&type=chunk) - The presentation of non-GAAP financial information should not be considered in isolation, as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP[18](index=18&type=chunk) [Forward-Looking Statements and Risk Factors](index=5&type=section&id=4.3.%20Forward-Looking%20Statements%20and%20Risk%20Factors) This press release contains forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from expectations, including economic factors, operational disruptions, cost increases, employee management, acquisition integration, regulatory compliance, debt, litigation, and climate change - Forward-looking statements include the company's financial projections and may contain words such as 'expect', 'believe', 'may', 'estimate', 'anticipate', and similar expressions[23](index=23&type=chunk) - Key risks and uncertainties include adverse macroeconomic factors, voyage cancellations or rescheduling, rising fuel prices, loss of key personnel, operational disruptions, growth management and acquisition integration, relationship with National Geographic, regulatory compliance, significant indebtedness, litigation, adverse weather conditions, and competition[23](index=23&type=chunk) - The company undertakes no obligation to publicly update any forward-looking statements and advises investors to carefully consider these factors[23](index=23&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Balance Sheets](index=6&type=section&id=5.1.%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company reported total assets of $936.5 million, total liabilities of $1,080.6 million, and a shareholder deficit of $263.8 million Condensed Consolidated Balance Sheets (Summary, USD Thousands) | Metric | June 30, 2025 (USD Thousands) | Dec 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | Cash and Cash Equivalents | $200,929 | $183,941 | | Restricted Cash | $46,398 | $32,202 | | Total Assets | $936,523 | $876,905 | | Unearned Passenger Revenues | $381,692 | $318,666 | | Total Liabilities | $1,080,566 | $1,022,440 | | Shareholder Deficit | $(263,809) | $(253,114) | [Condensed Consolidated Statements of Operations](index=7&type=section&id=5.2.%20Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, the company reported tour revenues of $167.9 million, operating income of $4.407 million, a net loss of $6.968 million, a net loss attributable to shareholders of $9.741 million, and a diluted loss per share of $0.18 Condensed Consolidated Statements of Operations (Summary, USD Thousands) | Metric | Q2 2025 (USD Thousands) | Q2 2024 (USD Thousands) | H1 2025 (USD Thousands) | H1 2024 (USD Thousands) | | :--- | :--- | :--- | :--- | :--- | | Tour Revenues | $167,945 | $136,499 | $347,666 | $290,113 | | Operating Income (Loss) | $4,407 | $(8,208) | $15,021 | $(357) | | Net Loss | $(6,968) | $(23,994) | $(5,958) | $(28,203) | | Net Loss Attributable to Lindblad Expeditions Holdings, Inc. | $(8,518) | $(24,667) | $(7,358) | $(28,645) | | Net Loss Attributable to Shareholders | $(9,741) | $(25,817) | $(9,784) | $(30,932) | | Diluted Loss Per Share (USD) | $(0.18) | $(0.48) | $(0.18) | $(0.58) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=5.3.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In the first half of 2025, operating activities provided $77.614 million in cash, investing activities used $44.741 million, and financing activities used $1.401 million, resulting in a net increase of $31.184 million in cash, cash equivalents, and restricted cash Condensed Consolidated Statements of Cash Flows (Summary, USD Thousands) | Metric | H1 2025 (USD Thousands) | H1 2024 (USD Thousands) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $77,614 | $62,566 | | Net Cash Used in Investing Activities | $(44,741) | $(13,893) | | Net Cash Used in Financing Activities | $(1,401) | $(18,357) | | Net Increase in Cash, Cash Equivalents, and Restricted Cash | $31,184 | $30,316 | | End of Period Cash, Cash Equivalents, and Restricted Cash | $247,327 | $217,660 | Supplemental Financial Schedules [Reconciliation of Adjusted EBITDA](index=9&type=section&id=6.1.%20Reconciliation%20of%20Adjusted%20EBITDA) This section provides detailed reconciliations of net loss or operating income to Adjusted EBITDA, covering both the consolidated level and the Lindblad and Land Experiences segments Consolidated Adjusted EBITDA Reconciliation (USD Thousands) | Metric | Q2 2025 (USD Thousands) | Q2 2024 (USD Thousands) | H1 2025 (USD Thousands) | H1 2024 (USD Thousands) | | :--- | :--- | :--- | :--- | :--- | | Net Loss | $(6,968) | $(23,994) | $(5,958) | $(28,203) | | Interest Expense, Net | $11,617 | $11,321 | $23,247 | $22,906 | | Income Tax Expense (Benefit) | $547 | $4,453 | $(939) | $4,697 | | Depreciation and Amortization | $14,674 | $13,637 | $29,969 | $24,954 | | Stock-Based Compensation | $5,392 | $2,718 | $9,119 | $4,833 | | Adjusted EBITDA | $24,841 | $10,384 | $54,823 | $31,990 | Lindblad Segment Adjusted EBITDA Reconciliation (USD Thousands) | Metric | Q2 2025 (USD Thousands) | Q2 2024 (USD Thousands) | H1 2025 (USD Thousands) | H1 2024 (USD Thousands) | | :--- | :--- | :--- | :--- | :--- | | Operating (Loss) Income | $(2,070) | $(9,372) | $6,316 | $(1,589) | | Depreciation and Amortization | $13,252 | $12,749 | $27,312 | $23,231 | | Stock-Based Compensation | $5,135 | $2,541 | $8,862 | $4,656 | | Adjusted EBITDA | $16,330 | $6,541 | $42,649 | $27,013 | Land Experiences Segment Adjusted EBITDA Reconciliation (USD Thousands) | Metric | Q2 2025 (USD Thousands) | Q2 2024 (USD Thousands) | H1 2025 (USD Thousands) | H1 2024 (USD Thousands) | | :--- | :--- | :--- | :--- | :--- | | Operating Income | $6,477 | $1,164 | $8,705 | $1,232 | | Depreciation and Amortization | $1,422 | $888 | $2,657 | $1,723 | | Transaction-Related Costs | $355 | $1,614 | $555 | $1,845 | | Stock-Based Compensation | $257 | $177 | $257 | $177 | | Adjusted EBITDA | $8,511 | $3,843 | $12,174 | $4,977 | [Reconciliation of Free Cash Flow](index=10&type=section&id=6.2.%20Reconciliation%20of%20Free%20Cash%20Flow) For the first half of 2025, the company's free cash flow was $48.455 million, slightly lower than $48.673 million in the prior year period Free Cash Flow Reconciliation (USD Thousands) | Metric | H1 2025 (USD Thousands) | H1 2024 (USD Thousands) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $77,614 | $62,566 | | Less: Purchases of Property and Equipment | $(29,159) | $(13,893) | | Free Cash Flow | $48,455 | $48,673 | [Operational Metrics and Yield Calculation (Lindblad Segment)](index=10&type=section&id=6.3.%20Operational%20Metrics%20and%20Yield%20Calculation%20%28Lindblad%20Segment%29) The Lindblad segment achieved an 86% occupancy rate in Q2 2025, with total yield per available guest night at $1,362 and net yield at $1,241, both showing year-over-year growth Lindblad Segment Operational Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Available Guest Nights | 81,515 | 77,404 | | Sold Guest Nights | 70,198 | 60,174 | | Occupancy Rate | 86% | 78% | | Number of Guests | 9,937 | 7,773 | | Number of Voyages | 153 | 121 | Lindblad Segment Yield Per Available Guest Night Calculation (USD Thousands, except per available guest night yield) | Metric | Q2 2025 (USD Thousands) | Q2 2024 (USD Thousands) | | :--- | :--- | :--- | | Tour Revenues | $111,045 | $93,053 | | Net Yield | $101,177 | $84,642 | | Total Yield Per Available Guest Night (USD) | $1,362 | $1,202 | | Net Yield Per Available Guest Night (USD) | $1,241 | $1,094 | [Cruise Cost Calculation (Lindblad Segment)](index=11&type=section&id=6.4.%20Cruise%20Cost%20Calculation%20%28Lindblad%20Segment%29) The Lindblad segment's Adjusted Net Cruise Cost Excluding Fuel per Available Guest Night was $989 in Q2 2025, an increase from $936 in the prior year period Lindblad Segment Cruise Cost Calculation (USD Thousands, except per available guest night cost) | Metric | Q2 2025 (USD Thousands) | Q2 2024 (USD Thousands) | | :--- | :--- | :--- | | Total Cruise Cost | $99,863 | $89,676 | | Net Cruise Cost | $89,995 | $81,265 | | Net Cruise Cost Excluding Fuel | $85,774 | $75,581 | | Adjusted Net Cruise Cost Excluding Fuel | $80,626 | $72,417 | | Total Cruise Cost Per Available Guest Night (USD) | $1,225 | $1,159 | | Net Cruise Cost Per Available Guest Night (USD) | $1,104 | $1,050 | | Net Cruise Cost Excluding Fuel Per Available Guest Night (USD) | $1,052 | $976 | | Adjusted Net Cruise Cost Excluding Fuel Per Available Guest Night (USD) | $989 | $936 | [Reconciliation of 2025 Adjusted EBITDA Guidance](index=11&type=section&id=6.5.%20Reconciliation%20of%202025%20Adjusted%20EBITDA%20Guidance) The company provided a reconciliation for its full-year 2025 Adjusted EBITDA guidance, projecting a range of $108 million to $115 million, based on factors such as pre-tax loss, depreciation and amortization, interest expense, and stock-based compensation 2025 Full Year Adjusted EBITDA Guidance Reconciliation (USD Million) | Metric | Full Year 2025 Guidance (USD Million) | | :--- | :--- | | Pre-Tax Loss | $(15) to $(5) | | Depreciation and Amortization | $61 to $60 | | Interest Expense, Net | $46 to $46 | | Stock-Based Compensation | $16 to $16 | | Other | $0 to $(2) | | Adjusted EBITDA | $108 to $115 | [Definitions of Operational and Financial Metrics](index=12&type=section&id=6.6.%20Definitions%20of%20Operational%20and%20Financial%20Metrics) This section details the definitions of various non-GAAP operational and financial metrics used by the company to assess performance, including Adjusted EBITDA, occupancy, net yield, and various cruise cost metrics - **Adjusted EBITDA**: Net income (loss) adjusted for depreciation and amortization, net interest expense, other income (expense), income tax (expense) benefit, foreign currency (gain) loss, gain (loss) on asset dispositions, restructuring costs, and other supplemental adjustments (such as stock-based compensation, executive severance, debt refinancing costs, acquisition-related expenses, and other non-recurring expenses)[37](index=37&type=chunk) - **Available Guest Nights**: A measure of capacity available for sale, representing double occupancy per cabin (single occupancy for single cabins) multiplied by the number of cruise days in the period, also including guest nights for limited land programs[39](index=39&type=chunk) - **Occupancy Rate**: Calculated by dividing sold guest nights by available guest nights[46](index=46&type=chunk) - **Net Yield**: Tour revenues less commissions and other direct costs of tour revenues[43](index=43&type=chunk) - **Net Cruise Cost**: Total cruise cost less commissions and certain other direct costs of passenger ticket revenues and other tour revenues[41](index=41&type=chunk)

Core Insights - Lindblad Expeditions Holdings, Inc. reported a 23% increase in revenue for Q2 2025, reaching $167.9 million, driven by strong performance in both the Lindblad and Land Experiences segments [4][13] - The company achieved an 86% occupancy rate, up from 78% in the same quarter last year, alongside a 139% increase in Adjusted EBITDA to $24.8 million [3][8] - The net loss available to stockholders improved to $9.7 million, a $16.1 million reduction compared to Q2 2024 [7][13] Financial Performance - Tour revenues for the Lindblad segment increased by 19% to $111.0 million, attributed to a 13% rise in net yield per available guest night to $1,241 [5][11] - The Land Experiences segment saw a 31% revenue increase to $56.9 million, benefiting from additional trips and higher pricing [6][11] - Adjusted EBITDA for the Lindblad segment rose by 150% to $16.3 million, while the Land Experiences segment's Adjusted EBITDA increased by 121% to $8.5 million [9][10] Balance Sheet and Liquidity - As of June 30, 2025, the company had cash and cash equivalents totaling $247.3 million, up from $216.1 million at the end of 2024 [12] - Total debt stood at $635.0 million, with the company in compliance with all applicable debt covenants [14] 2025 Outlook - The company anticipates full-year tour revenues between $725 million and $750 million, with Adjusted EBITDA projected to be between $108 million and $115 million [22][30] - A stock repurchase plan of $35.0 million is currently in place, with $12.0 million remaining as of July 31, 2025 [15]

INVESTOR PRESENTATION DISCLAIMER Important Notices Not an Offer or Sale: This,presentation is nether to sell nor a solüctation of an offer to buy any securities of Lindblad Expeditions Holdings, Inc. (the "Company") Lindbl This presentation and information contained herein constitutes confidential information and is provided by ou on the condition that yeu willnoldi in strict confidente and wibrout the prior written consent of the Company. In presentation, we have relied upon and assumed, without integenden ...