PRKS Q3 Deep Dive: Attendance Headwinds, Cost Controls, and New Attractions Shape Outlook

Core Insights - United Parks & Resorts missed Wall Street's revenue expectations in Q3 CY2025, with a year-on-year sales decline of 6.2% to $511.9 million and a GAAP profit of $1.61 per share, which was 28.8% below analysts' consensus estimates [1][5] Financial Performance - Revenue: $511.9 million vs analyst estimates of $539.8 million (6.2% year-on-year decline, 5.2% miss) [5] - EPS (GAAP): $1.61 vs analyst expectations of $2.26 (28.8% miss) [5] - Adjusted EBITDA: $216.3 million vs analyst estimates of $252.1 million (42.3% margin, 14.2% miss) [5] - Operating Margin: 29.6%, down from 36.8% in the same quarter last year [5] - Visitors: 6.79 million, down 240,000 year on year [5] - Market Capitalization: $1.93 billion [5] Management Commentary - Management cited several factors for the underperformance, including unfavorable calendar shifts, poor weather during key holidays, a drop in international visitation, and shortfalls in cost execution [3] - CEO Marc Swanson expressed dissatisfaction with the quarterly results and noted that attendance would have been roughly flat after adjusting for event timing and international declines [3] - A rare reversal in international trends was attributed to broader macroeconomic issues and travel-related headwinds [3] Future Outlook - Management is focusing on operational improvements, new guest offerings, and targeted investments to restore growth [4] - Upcoming major attractions scheduled for 2026 include SEAQuest: Legends of the Deep in Orlando and an expanded Lion & Hyena Ridge at Busch Gardens Tampa Bay [4] - The company expects strong forward booking revenue at Discovery Cove and group business, aiming for higher attendance and improved margins through enhanced marketing and passholder programs [4] - Swanson expressed confidence in the company's ability to deliver operational and financial improvements leading to increases in EBITDA, free cash flow, and shareholder value [4]