Lindblad Expeditions Reports Strong Q2 Growth Amid Investment Year

Lindblad Expeditions Holdings ((LIND)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call for Lindblad Expeditions Holdings presented a predominantly positive outlook, underscored by robust revenue growth, enhanced strategic partnerships, and successful cost innovation initiatives. Despite these achievements, there were concerns about increased sales and marketing costs and the impact of being an investment year on the financial performance in the latter half of the year.

Record Revenue Growth

Lindblad Expeditions reported record revenue growth for the second quarter of 2025, with total company revenues reaching $167 million. This marks a significant increase of $31 million or 23% compared to the same period in 2024. The Lindblad segment saw a 19% rise in revenues, while the Land segment experienced an impressive 31% growth.

Improved Occupancy and Net Yields

The company achieved an 86% occupancy rate, an 11-point gain despite a 5% increase in capacity. Net yields also reached a historic high for the second quarter, growing by 13% to $1,241, reflecting the company’s strong market position and operational efficiency.

Significant EBITDA Growth

Lindblad Expeditions reported a remarkable 139% increase in adjusted EBITDA, with margins expanding by 720 basis points to 14.8%. This substantial growth underscores the company’s effective cost management and operational strategies.

Successful Strategic Partnerships

A strategic partnership with Disney has proven fruitful, leading to a 45% increase in bookings from Disney’s travel advisers. Additionally, Disney Vacation Club members can now redeem points for expedition cruises, further enhancing the company’s customer base and market reach.

Accretive Growth Strategies

The acquisition of four safari camps in East Africa and the launch of a European river cruise program have been pivotal in Lindblad’s growth strategy. The European river cruise program, with 2026 departures already over 50% booked, highlights the company’s proactive approach to expanding its offerings.

Cost Innovation Initiatives

Lindblad Expeditions has implemented over 20 cost innovation initiatives, focusing on areas such as port cost optimization and procurement planning. These initiatives are designed to enhance operational efficiency and reduce costs.

Strong Future Booking Trends

The company reported strong future booking trends, with bookings tracking ahead of the previous year for both 2025 and 2026. Some voyages are already sold out, indicating robust demand and customer interest.

Increased Sales and Marketing Costs

Sales and marketing costs rose by $8.1 million or 44.4%, primarily due to higher royalties, commission expenses, and investments in demand generation efforts. While these costs are significant, they are part of the company’s strategy to drive future growth.

Investment Year Impact on Second Half Guidance

Lindblad Expeditions described 2025 as an investment year, with many investments occurring in the second half. This implies that the EBITDA for the latter half of the year may be lower than in the previous year, reflecting the company’s focus on long-term growth.

Forward-Looking Guidance

During the earnings call, Lindblad Expeditions raised its full-year guidance for net yields, revenue, and adjusted EBITDA. The company now expects revenues between $725 million and $750 million and adjusted EBITDA between $108 million and $115 million. This optimistic outlook is supported by strategic initiatives and strong performance metrics.

In summary, the earnings call for Lindblad Expeditions Holdings highlighted a positive sentiment with strong revenue growth and strategic partnerships. While there are concerns about increased costs and the impact of being an investment year, the company’s forward-looking guidance remains optimistic, with expectations for continued growth and profitability.