United Parks & Resorts Inc. (PRKS)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 revenue was $286.9M and diluted EPS was -$0.29; revenue missed Wall Street ($293.9M*) while EPS was a modest beat (-$0.23* est. vs -$0.29 actual, less negative than expected) . Values retrieved from S&P Global.
• Adjusted EBITDA fell 14.8% year over year to $67.4M; management cited Easter/Spring Break timing and >$5M of expense timing shifts into Q1 as primary headwinds .
• KPIs: attendance declined 1.7% to 3.391M; admission per capita fell 4.2% to $46.04, while in-park per capita rose 1.1% to a record $38.58 .
• Management reiterated expectation for 2025 records in revenue and Adjusted EBITDA, supported by April attendance up 8.1% and strong Discovery Cove, group, and international bookings .
• Catalysts: new attractions (e.g., Expedition Odyssey opening in Orlando), sponsorship revenue ramp (mid- to high single digits in 2025, >$20M longer-term), potential share buyback developments .

What Went Well and What Went Wrong

What Went Well

• In-park per capita spending increased 1.1% to a record $38.58; management emphasized 19 of last 20 quarters of growth and April in-park per cap positive .
• April attendance up 8.1% YoY, with day-to-day attendance up >3% year-to-date through April; management views this as evidence of demand normalization post holiday shift .
• Strategic initiatives progressing: sponsorships expected to deliver mid- to high single-digit revenue in 2025 and >$20M overtime; strong Discovery Cove, group, and international bookings running ahead of 2024 .

Quote: “With approximately 75% of our historical attendance and revenue opportunity still ahead of us… we continue to expect new records in revenue and Adjusted EBITDA in 2025.”

What Went Wrong

• Revenue declined 3.5% YoY to $286.9M, driven by lower admissions per capita and attendance given Easter/Spring Break shift to Q2; Adjusted EBITDA decreased 14.8% .
• Expense timing: >$5M of costs recorded in Q1 that impacted future periods last year (maintenance pulled forward, marketing prep), pressuring profitability .
• Pass base down ~2% as of March; deferred revenue down ~6.7% YoY to $195.9M, putting near-term pressure on admissions per capita mix .

Financial Results

Quarterly financials vs prior periods

KPIs (attendance and per capita)

Performance vs Wall Street consensus (S&P Global)

Values retrieved from S&P Global.

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “April 2025 attendance was up 8.1%… With approximately 75% of our historical attendance and revenue opportunity still ahead… we continue to expect new records in revenue and adjusted EBITDA in 2025.” — Marc Swanson, CEO
• “First quarter results were… impacted by certain timing-related impacts that resulted in over $5 million more of certain expenses being recorded in the first quarter of 2025 compared to the first quarter of 2024.” — Marc Swanson, CEO
• “We expect [sponsorship] opportunities will exceed $20 million over time in high-margin revenue, of which we expect to realize mid- to high single digits in 2025.” — Marc Swanson, CEO
• “Net total leverage ratio is 3.1x… ~$764M of total available liquidity, including ~$76M of cash.” — Management remarks

Q&A Highlights

• Bridging to record 2025: Management pointed to April strength (attendance up >8%), upcoming attractions/events, improving admissions per cap strategies, sponsorship revenue ramp, and cost management as drivers .
• April detail: In-park per cap positive; admissions per caps better than Q1 but not necessarily positive; April performance exceeded the pure Easter shift effect .
• International and groups: International ticket sales up low single digits; group category healthy and expected to grow .
• Hotel/real estate optionality: Multiple structures under evaluation to maximize shareholder value from substantial owned land; hotel discussions continue .
• Labor/marketing around Epic: Some wage pressures anticipated, but labor matched to forecasts; marketing redeployed strategically and largely flat overall .

Estimates Context

• Q1 2025 revenue missed consensus ($286.9M actual vs $293.9M*), while EPS was slightly worse than consensus (-$0.29 actual vs -$0.23*) and EBITDA below expectations ($58.6M* vs $72.3M*) . Values retrieved from S&P Global.
• Q4 2024 topped revenue/EPS consensus ($384.4M vs $381.2M*; $0.93* EPS actual vs $0.64* est.), illustrating volatility around weather/calendar effects heading into Q1 . Values retrieved from S&P Global.
• Looking forward, FY 2025 EPS consensus stands at $3.27*, implying revisions may drift lower near term given Q1/Q2 underperformance, unless second-half attendance/mix improves as management anticipates. Values retrieved from S&P Global.

Key Takeaways for Investors

• Near-term: Q1 softness reflects calendar and timing; watch Q2/Q3 execution on admissions per cap, pass base rebuild, and weather normalization to validate 2025 record guidance .
• Mix dynamics: In-park per cap remains a structural strength; admissions pricing/mix needs careful management amid competitive Orlando backdrop .
• Growth vectors: New attractions (e.g., Expedition Odyssey) and sponsorships present incremental high-margin revenue opportunities not fully reflected in Q1 .
• Capital allocation: Liquidity and leverage are manageable; expect potential buyback updates (Board engagement ongoing) as peak cash season begins .
• KPIs to monitor: Deferred revenue and pass base trends, international/group bookings trajectory, and April/early Q2 attendance as indicators of demand recovery .
• Medium term: Real estate/Hotel optionality and IP collaborations could enhance brand monetization and asset value over time .
• Risk radar: Weather remains a material variable; management assumes normalized conditions in guidance—track hurricane season impacts closely .

Values retrieved from S&P Global where noted with an asterisk (*).