United Parks & Resorts faced a significant setback in Q3 as results came in well below Wall Street expectations, prompting a sharp market reaction. Management cited several factors behind the underperformance, including unfavorable calendar shifts, poor weather during key holidays, a pronounced drop in international visitation, and shortfalls in cost execution. CEO Marc Swanson was candid about the challenges, stating, "We're obviously not happy with the results we delivered in the quarter." He explained that, after adjusting for event timing and international declines, attendance would have been roughly flat, but the overall environment remained inconsistent, especially among U.S. consumers. Swanson also noted a rare reversal in international trends, attributing the decline to broader macroeconomic issues and travel-related headwinds.
Is now the time to buy PRKS? Find out in our full research report (it’s free for active Edge members).
United Parks & Resorts (PRKS) Q3 CY2025 Highlights:
- Revenue: $511.9 million vs analyst estimates of $539.8 million (6.2% year-on-year decline, 5.2% miss)
- Adjusted EPS: $1.61 vs analyst expectations of $2.45 (34.2% miss)
- Adjusted EBITDA: $216.3 million vs analyst estimates of $252.1 million (42.3% margin, 14.2% miss)
- Operating Margin: 29.6%, down from 36.8% in the same quarter last year
- Visitors: 6.79 million, down 240,000 year on year
- Market Capitalization: $1.83 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From United Parks & Resorts’s Q3 Earnings Call
- Steven Wieczynski (Stifel) asked about the drivers of attendance declines after early August. CEO Marc Swanson pointed to weaker weather recovery, increased international headwinds, and a negative calendar shift at quarter-end as key factors.
- Arpine Kocharyan (UBS) questioned the reasons behind the reversal in international visitation. Swanson attributed it to macroeconomic challenges, visa issues, and broader travel slowdowns affecting inbound U.S. tourism.
- Thomas Yeh (Morgan Stanley) sought clarity on regional trends and October attendance. Swanson explained that while Orlando performed relatively well, other parks underperformed due to weather and continued international declines.
- Chris Woronka (Deutsche Bank) inquired if a pivot in marketing or product strategy was needed. Swanson emphasized continued investment in attractions and events, but admitted execution and marketing require improvement.
- Elizabeth Dove (Goldman Sachs) raised concerns about long-term attendance growth and margin confidence. Swanson stressed the need for better marketing and passholder engagement, and acknowledged further efficiency gains are necessary to sustain strong margins.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be watching (1) the impact of new ride and event launches on both attendance and in-park spending, (2) progress in stabilizing and expanding the passholder base through the new 2026 program, and (3) whether cost management initiatives lead to visible improvements in operating and adjusted EBITDA margins. We will also track international travel trends and sponsorship pipeline developments as additional sources of upside or risk.
United Parks & Resorts currently trades at $33.63, down from $46.23 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
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