Executive Summary

Q3 FY2025 delivered resilient profitability amid softer visitation: total net revenue $1.296B (+1% YoY), diluted EPS $10.54 (+10% YoY), and Resort Reported EBITDA $647.7M (-1% YoY) as pass revenue and ETP offset lower lift-ticket traffic .
Guidance was lowered: FY2025 net income $264–$298M (from $257–$309M) and Resort Reported EBITDA $831–$851M (from $841–$877M), reflecting weaker lift-ticket visitation in spring, CEO transition one-time costs, and FX headwinds; implied Resort EBITDA margin mid-point ~28.4% (29.2% before one-time costs) .
Season pass indicators mixed: North America units -1% YoY and sales dollars +2% through May 27, supported by a 7% price increase and Epic Day Pass mix; Epic Australia pass units +20% and sales dollars +8% .
Capital returns and balance sheet remain solid: dividend $2.22/share (payable July 9), $30M buybacks in Q3 (authorization increased by 1.5M shares), liquidity ~$1.6B, net debt/TTM EBITDA 2.6x .

What Went Well and What Went Wrong

What Went Well

Pricing and pass strategy stabilized revenue despite lower visitation: lift revenue +3.3% with pass product revenue +5.5% and non-pass ETP +6.6% ex-Crans-Montana; total ETP +7.3% YoY in Q3 .
Ancillary spending per destination guest remained strong, supporting ski school and dining performance; management emphasized strong cost discipline and progress on the two-year resource efficiency plan .
Transformation plan execution: now expects ~$35M efficiencies in FY2025 (incl. $8M pulled forward) toward $100M annualized by FY2026, with accelerated AI capabilities in My Epic Assistant and tech investments across ancillary businesses .

Direct quote: “Results in the quarter reflect the stability provided by our season pass program… Ancillary spend per destination guest visit was strong… while overall revenue in our ancillary businesses was impacted by the lower visitation.” — Rob Katz, CEO .

What Went Wrong

Uncommitted lift-ticket visitation underperformed expectations in March/April, driving softness in non-pass visitation and retail/rental revenue (-7.8%) despite higher ETP .
Lodging under pressure: net revenue -4.3% and Lodging Reported EBITDA -22.1% YoY, with lower managed condo inventory and decreased destination demand affecting RevPAR .
Guidance trimmed on spring lift-ticket weakness, CEO transition one-time costs (~$9M), and FX (-$7M impact vs original guidance) .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Total Net Revenue ($USD Millions)	$1,283.3	$1,137.2	$1,295.6
Diluted EPS ($)	$9.54	$6.56	$10.54
Resort Reported EBITDA ($USD Millions)	$654.4	$459.7	$647.7
EBITDA Margin %	50.82%*	40.21%*	49.83%*
Net Income Margin %	28.21%*	21.59%*	30.32%*

Estimates and margin values marked with * retrieved from S&P Global.

Actual vs S&P Global consensus (Q3 2025):

Metric	Actual	Consensus	Surprise
Total Net Revenue ($USD Millions)	$1,295.6	$1,301.4*	-$5.8 (-0.4%) — slight miss
Diluted EPS ($)	$10.54	$10.06*	+$0.48 (+4.8%) — bold beat
EBITDA ($USD Millions)	$654.1 (Total Reported)	$644.2*	+$9.9 (+1.5%) — beat

Note: S&P Global “EBITDA” definitions may differ from company “Total Reported EBITDA” and “Resort Reported EBITDA”.

Segment breakdown (Q3 2025 vs Q3 2024):

Mountain Net Revenue ($USD Millions)	Q3 2024	Q3 2025	YoY
Lift	$745.7	$770.3	+3.3%
Ski School	$161.2	$160.2	-0.6%
Dining	$109.5	$111.0	+1.4%
Retail/Rental	$123.3	$113.7	-7.8%
Other	$56.4	$57.4	+1.8%
Total Mountain Net Revenue	$1,196.1	$1,212.5	+1.4%

Lodging KPIs (combined)	Q3 2024	Q3 2025
ADR ($)	$475.96	$472.36
RevPAR ($)	$204.56	$197.16
Lodging Reported EBITDA ($USD Millions)	$15.8	$12.3

KPIs:

KPI	Q3 2024	Q3 2025
Total Skier Visits (000s)	8,943	8,609
ETP ($)	$83.38	$89.47
North America Pass Sales (Units YoY)	—	-1%
North America Pass Sales (Sales $ YoY)	—	+2%
Epic Australia Pass (Units YoY)	—	+20%
Epic Australia Pass (Sales $ YoY)	—	+8%

Guidance Changes

Metric	Period	Previous Guidance (Mar 10)	Current Guidance (Jun 5)	Change
Net Income attributable to Vail Resorts, Inc. ($M)	FY2025	$257–$309	$264–$298	Narrowed, midpoint slightly lowered
Resort Reported EBITDA ($M)	FY2025	$841–$877	$831–$851	Lowered
Resort EBITDA Margin (mid-point)	FY2025	~28.8%	~28.4% (29.2% before one-time costs)	Lowered
One-time costs (Transformation)	FY2025	~$15M	~$15M	Maintained
One-time costs (CEO Transition)	FY2025	—	~$9M	Added
FX headwind vs original	FY2025	~$7M	~$7M	Maintained
Tax Provision ($M)	FY2025	$96–$112	$99–$109	Narrowed
Mountain Reported EBITDA ($M)	FY2025	$821–$855	$809–$827	Lowered
Lodging Reported EBITDA ($M)	FY2025	$19–$23	$21–$23	Raised low end
Dividend per Quarter ($)	Calendar 2025	$2.22 (declared Apr 10)	$2.22 (payable Jul 9)	Maintained
Share Repurchase Authorization	—	1.5M shares remaining	+1.5M added; ~2.8M total available	Increased

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
AI/Technology initiatives	My Epic App mobile pass; planned more advanced AI for My Epic Assistant in CY2025	Reiterated investment in My Epic App, “more advanced AI capabilities” for My Epic Assistant; tech across ancillary businesses	Scaling up AI and guest personalization
Supply/demand and visitation mix	Shift of destination visitation to later season; normalization post-COVID; local strength	Uncommitted lift-ticket visitation below expectations; destination passholder visitation improved in March/April	Destination recovery, lift-ticket softness persists
Tariffs/Macro	FX volatility noted in guidance	Limited direct tariff exposure; watch macro impacts on consumer demand	Monitoring macro/tariffs; demand sensitivity
Pricing/product strategy	Pass price +7%; Epic Day Pass mix growth	Exploring product portfolio tweaks, marketing modernization; maintain advance commitment thesis	Optimize mix; target less-committed skiers
Regional performance	Eastern U.S. strength; Western destination below prior year	Western North America decline; Midwest small share; Europe partnerships growing	Mixed geography; selective network expansion
Labor/Workforce	High retention; transformation plan efficiencies	Emphasis on employee experience; union processes; no “grand reset” needed	Stable labor strategy; operational efficiencies
Competitive landscape	Ikon recognized; network value proposition	Healthy competition acknowledged; aim to improve marketing and differentiation	Competitively constructive; focus on execution
Europe strategy	Added partners; growth capex Andermatt-Sedrun; Crans-Montana integration	Preference to own/operate; open to partnerships; European pass product would differ from U.S. approach	Disciplined expansion; tailored product design

Management Commentary

Strategy and focus: “Advanced commitment remains central… We need a more consistent guest and employee experience… and do a better job communicating with our guests.” — Rob Katz, CEO .
Marketing modernization: “There’s an opportunity for us to… bring [marketing] to be a little bit more current… connecting with guests in a way that’s most impactful given the changing environment.” — Rob Katz .
Product/pricing evolution: “Opportunities… to look at our product portfolio and see… gaps we could fill… while driving lift ticket sales particularly in off-peak periods.” — Rob Katz .
Cost efficiencies: “On track to deliver ~$35M efficiencies in FY2025… targeting $100M annualized by end of FY2026.” — Management .
Capital allocation discipline: “Balance between share repurchases and dividends… any future dividend growth dependent on material increase in future cash flows.” — Rob Katz .

Q&A Highlights

Revenue growth levers: prioritize guest experience consistency and modernize marketing; adjust product/pricing without undermining pass value; aim to convert less-committed skiers .
Lift-ticket softness: viewed as reversible with operational/marketing changes; maintain advance commitment strategy .
Labor strategy: focus on employee experience, stable union relations; no grand reset; leverage technology/AI for efficiencies .
Competition and Europe: welcome Ikon competition; disciplined ownership preference; consider tailored European pass approach; selective M&A .
Macro/tariffs: limited direct tariff exposure; monitor consumer impacts; FX remains a variable in guidance .

Estimates Context

EPS beat: $10.54 vs $10.06 consensus (+4.8%); bold positive surprise driven by pricing, ETP, cost discipline despite lower lift-ticket visitation *.
Revenue slight miss: $1,295.6M vs $1,301.4M consensus (-0.4%); lift-ticket visitation shortfall weighed on ancillary and retail/rental *.
EBITDA beat: $654.1M vs $644.2M consensus (+1.5%); note definitional differences between S&P Global “EBITDA” and company “Reported EBITDA” *.

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Narrative shift to execution: expect focus on marketing modernization and product portfolio tweaks to re-engage less-committed skiers; watch for specific actions ahead of the next selling windows .
Near-term setup: lowered FY guide and spring visitation softness could cap near-term sentiment; dividend/buybacks and liquidity (~$1.6B) provide support .
Pricing power intact: ETP +7.3% YoY and pass sales dollars +2% suggest pricing resilience; monitor retail/rental (-7.8%) and lodging RevPAR (-3.6%) for demand normalization .
Cost program is a counterweight: ~$35M FY2025 efficiencies and $100M by FY2026 should support margins amid macro/FX variability .
FX sensitivity and one-time costs: updated guidance embeds ~$7M FX impact and ~$24M aggregate one-time costs (transformation + CEO transition); track FX and transition updates .
Pass momentum outside NA: Epic Australia strength (units +20%, sales +8%) highlights network value; monitor European partnerships and potential regional pass developments .
Watch catalysts: concrete marketing/product changes, Park City project updates, and September pass update will be key stock reaction drivers .

Additional Source Notes

Q3 results press release and 8-K furnishing the release (Item 2.02) .
Q3 earnings call transcript (full) .
April 24 season metrics update .
Q2 FY2025 press release and guidance (for trend comparison) .
Q1 FY2025 press release (season pass context and capital plan) .

VAIL RESORTS INC (MTN)·Q3 2025 Earnings Summary