United Parks & Resorts Balances Setbacks With Growth

United Parks & Resorts Inc. ((PRKS)) has held its Q1 earnings call. Read on for the main highlights of the call.

United Parks & Resorts Inc. delivered a cautious but hopeful tone on its latest earnings call, as record in‑park spending and strong pass sales clashed with weaker first‑quarter results. Management acknowledged weather‑driven attendance losses, softer international demand and a wider net loss, yet emphasized pipeline investments, cost savings and marketing changes as reasons to stay optimistic about the rest of 2026.

Record In‑Park Per Capita Spending

In‑park per capita spending climbed 5.3% year over year to a record $40.62, underscoring the company’s ability to monetize each guest more effectively. That performance helped push total revenue per capita up 2.1%, partially offsetting lower attendance and signaling pricing power and stronger ancillary sales.

Strong Pass Sales Momentum

Paid pass sales rose about 10% during the quarter and roughly 12% through April 30, 2026, giving the company a solid base of committed visitors. Management noted that the paid pass base was higher than a year ago through April, a positive indicator for future park traffic and recurring revenue.

Deferred Revenue Growth Signals Future Demand

Deferred revenue reached $203.8 million as of March, up approximately 4.1% from the prior year, reflecting healthier advance bookings. The balance includes tickets, passes, group business and ancillary products, suggesting a firm foundation of future visits and spending already locked in.

Aggressive Share Repurchases Continue

The company repurchased about 2.6 million shares for roughly $92.7 million in the first quarter and another 1.8 million shares for about $64.8 million after quarter end. Roughly $198 million remains under the $500 million authorization, indicating continued willingness to return capital to shareholders even amid near‑term volatility.

Growing Sponsorship and Partnership Pipeline

United Parks signed two sponsorship deals in the quarter and expects to generate more than $15 million in sponsorship revenue in 2026. Management is targeting at least about $30 million annually over time and is in active talks around international and intellectual‑property partnerships, aiming to diversify revenue beyond gate and in‑park spend.

Capital Investment and Technology Push

First‑quarter capital expenditures totaled $69.6 million, with $62.7 million in core spending and $7.0 million earmarked for expansion and return‑focused projects. For the full year, the company guided to $105 million–$200 million in core CapEx plus around $50 million for growth initiatives, including AI cameras, autonomous cleaning robots, digital kiosks and automated access systems to boost efficiency.

Operational and Marketing Improvements Planned

Management is pursuing a $50 million gross cost‑savings program for 2026 while launching a national SeaWorld marketing campaign. A robust slate of new rides, shows, events and expanded food and retail offerings is planned to reignite visitation and drive higher guest spending across the portfolio.

Brand Recognition and Rescue Efforts Boost Goodwill

Discovery Cove was named Newsweek’s number one best theme park for 2026 in its Reader’s Choice rankings, adding prestige to the company’s flagship assets. The firm also highlighted its animal rescue work, noting aid to 211 animals so far this year and more than 43,000 historically, reinforcing its brand narrative around conservation and care.

Revenue Decline in the First Quarter

Total revenue for the first quarter came in at $278.3 million, down $8.7 million compared with 2025, reflecting softer top‑line performance. Despite record per‑capita spending, reduced attendance weighed on the quarter’s results and highlighted the sensitivity of the business to volume swings.

Attendance Hit by Weather and International Weakness

Reported attendance fell by about 171,000 guests year over year, with roughly 140,000 attributed to unfavorable weather and around 80,000 to weaker international visitation. Management said attendance would have grown by more than 1% if not for these headwinds, suggesting underlying demand remains intact.

Wider Net Loss Highlights Pressure

The company’s net loss widened to $34.1 million in the first quarter, compared with a $16.1 million loss a year earlier, underscoring profit pressure. The larger loss reflects the combination of lower revenue, cost increases and some non‑cash items, raising the stakes for planned cost controls and marketing initiatives.

Adjusted EBITDA Decline and Expense Growth

Adjusted EBITDA fell to $58.0 million, a $9.5 million decline from 2025, as modestly higher expenses compounded softer revenue. Operating expenses rose by about $10.0 million, including a roughly $3.7 million non‑cash self‑insurance adjustment and about $3.3 million of one‑time consulting and other costs.

Higher SG&A and ERP Amortization

Selling, general and administrative expenses increased by approximately $3.9 million year over year, driven mainly by around $3.1 million in non‑cash ERP amortization. These investments in systems and infrastructure are expected to support future efficiency, but they added to near‑term margin pressure.

Seasonality, Cash Position and Liquidity Headroom

Management reminded investors that the first quarter is seasonally weak for cash generation, and the cash balance sat near $29 million at quarter end. That relatively thin cushion, paired with ongoing share buybacks, leaves limited near‑term liquidity headroom even as cash flows are expected to recover in busier quarters.

Operational Disruptions and Lost Operating Days

Unfavorable weather and cold conditions led to closures and lost operating days, particularly at water parks in Florida and a California park that did not open from January through March. These disruptions reduced visitation and revenue, highlighting how weather risk can materially affect performance for a seasonal park operator.

Guidance and Forward Outlook

Management reiterated expectations for growth in both revenue and adjusted EBITDA in 2026, pointing to new rides and shows, a revamped marketing plan and improving leading indicators. With paid pass sales up double digits, deferred revenue higher, Discovery Cove and group bookings running ahead of last year and a $50 million cost‑savings target, the company plans to keep investing in growth CapEx, sponsorships and buybacks while staying comfortable with leverage.

United Parks & Resorts’ latest earnings call painted a picture of a business wrestling with near‑term weather and tourism setbacks yet benefiting from strong guest spending and loyal pass holders. Investors will watch closely to see if the planned attractions, marketing push and cost cuts are enough to turn those encouraging signals into sustained earnings growth through the rest of 2026.