Jackson Gibb

Jackson Gibb asked for more details on the potential benefits (cost/revenue, margins) of AI integration, the expected cadence for meaningful impact (H2 2026), and whether current full-year guidance incorporates these AI impacts. He also inquired about current consumer trends, specifically attachment rates, discounting strategies, and any notable differences in spend patterns across brands, geographies, or ship sizes, as well as the company's ability to implement price increases in 2026 compared to 2025.

Answer

Stephen Lazarus, President, CFO, and Chief Operating Officer, confirmed that the H2 2026 cadence for meaningful AI impact remains accurate, initial results are encouraging, and current guidance does not yet include potential AI benefits. Regarding consumer trends, he noted that while no service price increases are assumed in 2026 guidance, the company will evaluate opportunities. He observed that a slight softness in November 2025 did not recur in December, and year-to-date 2026 shows consumers accepting higher net prices, despite some additional discounting.

Jackson Gibb inquired about the potential benefits of AI integration on both cost and revenue sides, its impact on margins, the expected cadence for these initiatives to show meaningful results in the second half of 2026, and whether current full-year guidance incorporates any of this potential impact. He also asked about current consumer trends, specifically attachment rates, discounting strategies, and any notable changes in spend patterns across different brands, geographies, or ship sizes, as well as the company's ability to implement price increases in 2026 compared to 2025.

Answer

Stephen Lazarus, President, CFO, and Chief Operating Officer, stated that the company remains on track to provide more specific details on AI benefits after Q2 results, noting encouragement from initial results and incremental rollout. He confirmed that current guidance does not include potential impacts from these AI initiatives. Regarding consumer trends, Mr. Lazarus mentioned that while there was some softness in November of the prior year, December did not see a reoccurrence, and year-to-date, higher prices are being accepted by consumers, leading to a higher net selling price despite potential slight additional discounting. He also noted that no service price increases are assumed in the 2026 guidance at this point, but the company will evaluate opportunities.

Jackson Gibb asked about Lindblad's 2025 guidance, questioning why EBITDA forecasts were below consensus despite strong revenue targets and what factors were weighing on profit flow-through. He also inquired about the new management team's long-term growth strategy, including organic initiatives like the Disney partnership and external capital deployment opportunities.

Answer

CEO Natalya Leahy explained that while the company delivered strong double-digit EBITDA growth in 2024 and forecasts continued growth, it is also making strategic investments in its sales force and other demand-generation activities that will yield stronger returns in 2026. Regarding long-term strategy, she outlined three pillars: maximizing revenue through organic growth, optimizing financial performance via cost innovations, and exploring accretive growth through fleet expansion and potential acquisitions.