Record In‑Park Per Capita Spending
In‑park per capita spending increased 5.3% year‑over‑year to a record $40.62, contributing to a 2.1% increase in total revenue per capita.
United Parks & Resorts
· PRKS
May 11th, 2026
Summary
- Earnings Call Date:
- 2026-05-11
- Change Since:
- +28.31%
- Next Earnings Date:
- 2026-08-12
Earnings Call Sentiment
NeutralThe call presented a mix of constructive forward indicators (record in‑park spend, strong paid pass growth, deferred revenue improvement, active sponsorship and real‑estate processes, continued buybacks, technology and marketing investments) alongside meaningful short‑term headwinds (Q1 revenue decline, wider net loss, lower EBITDA, attendance disruption from weather and international weakness, and certain non‑cash/one‑time expense pressures). Management emphasized confidence in the remainder of 2026 due to an event/attraction lineup, marketing changes, and cost‑savings plans, but near‑term financial results remain challenged and dependent on weather and international tourism recovery.
Company Guidance
Management reiterated guidance that they expect 2026 to deliver growth in revenue and adjusted EBITDA, supported by new rides/shows, a revamped marketing plan and improving forward indicators: paid pass sales were up ~10% in Q1 and ~12% through 4/30/2026, deferred revenue was $203.8M (up ~4.1% YoY), and Discovery Cove and group bookings are outpacing 2025 with Discovery Cove bookings up a double‑digit percentage. Key financial and capital targets include a $50M gross cost‑savings target for 2026, core CapEx guidance of $105M–$200M plus about $50M of growth/ROI CapEx, and continued share repurchases (2.6M shares for ~$92.7M in Q1 and a subsequent 1.8M for ~$64.8M, with ~$198M remaining under the $500M authorization); they also expect to realize >$15M of sponsorship revenue in 2026 (with sponsorships targeted to be a ≥$30M line of business over time). Management noted current Q1 operating metrics—total revenue $278.3M (down $8.7M YoY), adjusted EBITDA $58.0M (down $9.5M), net loss $34.1M, attendance down ~171k (but would be >1% higher adjusted for ~140k weather and ~80k international impacts), and record in‑park per cap of $40.62 (up 5.3%)—said they are comfortable with current leverage and will allocate capital opportunistically to maximize shareholder value.
Strong Pass Sales Momentum
Paid pass sales were up ~10% during the quarter and ~12% through April 30, 2026; paid pass base was up through April versus prior year, supporting forward visitation and deferred revenue.
Deferred Revenue Growth
Deferred revenue balance was $203.8 million as of March, up ~4.1% year‑over‑year, indicating healthier advanced bookings for tickets, passes, group business and ancillary products.
Aggressive Share Repurchases
Repurchased ~2.6 million shares for ~$92.7 million in Q1 and an additional ~1.8 million shares for ~$64.8 million subsequent to quarter end; approximately $198 million of a $500 million authorization remains.
Sponsorship and Partnership Pipeline
Signed two sponsorships in Q1 and expects to realize >$15 million in sponsorship revenue in 2026 with a long‑term target of at least ~$30 million annually; active discussions on international and IP partnerships.
Capital Investment and Technology Initiatives
Q1 CapEx of $69.6 million ($62.7M core, $7.0M expansion/ROI); full‑year core CapEx guidance $105M–$200M plus ~$50M growth/ROI; pursuing tech initiatives (AI cameras, autonomous cleaning robots, digital ordering kiosks, automated turnstiles/parking) to drive revenue and reduce costs.
Operational and Marketing Improvements Planned
Company pursuing $50 million gross cost savings for 2026, launching a national SeaWorld marketing campaign, and preparing a strong 2026 lineup of new rides, shows, events and expanded food/retail to drive visitation and spending.
Brand Recognition and Rescue Efforts
Discovery Cove named Newsweek's #1 best theme park for 2026 (Reader's Choice); the company reported aiding 211 animals in 2026 and over 43,000 animals historically, supporting brand goodwill.
Operator
Thank you for standing by. My name is Gina, and I will be your conference operator today. At this time, I would like to welcome everyone to the United Parks & Resorts Inc. First Quarter 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. To ask a question, simply press star 1 on your telephone keypad. To withdraw your question, press star 1 again.
It is now my pleasure to turn the call over to Matthew Stroud, Investor Relations. Please go ahead.
Matthew Stroud
Thank you, and good morning, everyone. Welcome to the United Parks & Resorts Inc. first quarter earnings conference call. Today's call is being webcast and recorded. A press release was issued this morning and is available on our Investor Relations website at unitedparksinvestors.com. Replay information for this call can be found in the press release and will be available on our website following the call. Joining me this morning are Marc Swanson, Chief Executive Officer, and James Forrester, Interim Chief Financial Officer and Treasurer. This morning, we will review our first quarter financial results, and then we will open the call to your questions.
Before we begin, I would like to remind everyone that our comments today will contain forward-looking statements within the meaning of the federal securities laws. These statements are subject to a number of risks and uncertainties that could cause actual results to be materially different from those forward-looking statements, including those identified in the Risk...
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