Core Insights - Royal Caribbean Cruises Ltd. (RCL) demonstrated strong performance in Q3 2025, with adjusted earnings per share of $5.75, an 11% increase year-over-year, surpassing the Zacks Consensus Estimate of $5.68 [1][9] - Revenue reached $5.14 billion, reflecting a 5% year-over-year increase, although it fell short of the consensus estimate of $5.17 billion [1] Financial Performance - The earnings beat was driven by robust close-in bookings and steady yield growth, with net yields increasing by 2.4% in constant currency [2] - Capacity expanded by 3%, allowing the company to deliver nearly 2.5 million vacations, a 7% increase from the previous year [2] - Onboard spending remained strong, with a record share of purchases made pre-cruise and nearly 90% of transactions completed through digital channels [2] Strategic Initiatives - The company's strategy of investing in new ships and exclusive destinations is yielding positive results, with plans to expand its land-based portfolio, including the new Royal Beach Club in Santorini [3] - The expansion of the destination network from two to eight by 2028 is expected to enhance customer loyalty and drive sustained yield growth [3] Future Outlook - Management raised the full-year earnings guidance to a range of $15.58 to $15.63 per share, indicating a 32% annual increase [4] - Despite minor challenges from weather disruptions, the company anticipates continued yield gains and record booked load factors into 2026 [4] Q4 Expectations - For Q4 2025, the company expects depreciation and amortization expenses between $445 million and $455 million, and net interest expenses to be between $245 million and $255 million [5] - Adjusted EPS is projected to be in the range of $2.74 to $2.79 [5] Yield and Cost Projections - The company expects net yields to increase by 2.6-3.1% on a reported basis and 2.2-2.7% in constant currency year-over-year [6] - Net cruise costs, excluding fuel, per APCD are anticipated to decline by 5.7% to 6.2% on a reported basis [6]