United Parks & Resorts began 2025 with results that missed Wall Street’s expectations, as revenue fell short and adjusted profitability lagged consensus. Despite these challenges, the market responded positively, reflecting management’s explanations for the underperformance. Leadership identified the timing of Easter and spring break—shifting key attendance days into the next quarter—as the primary reason for lower admissions and per-guest spending in Q1. CEO Marc Swanson noted, “Despite the negative calendar shift, in-park per capita spending increased 1.1% during the first quarter to a record level and has now grown from 19 of the last 20 quarters.”
Is now the time to buy PRKS? Find out in our full research report (it’s free).
United Parks & Resorts (PRKS) Q1 CY2025 Highlights:
- Revenue: $286.9 million vs analyst estimates of $294.1 million (3.5% year-on-year decline, 2.4% miss)
- Adjusted EBITDA: $67.44 million vs analyst estimates of $72.26 million (23.5% margin, 6.7% miss)
- Operating Margin: 5.9%, down from 7.4% in the same quarter last year
- Visitors: 3.39 million, down 59,000 year on year
- Market Capitalization: $2.59 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 United Parks & Resorts’s Q1 Earnings Call
- Steve Wieczynski (Stifel) asked about management’s confidence in achieving record annual revenue and EBITDA despite a weaker Q1. CEO Marc Swanson pointed to strong April attendance and new attractions as key drivers for the rest of the year.
- Sean Wagner (Citi Group) inquired about attendance and in-park spending trends in April versus Q1, questioning whether improved results were solely due to holiday timing. Swanson clarified that April’s attendance exceeded the benefit from the Easter shift, and in-park spending was up.
- Arpine Kocharyan (UBS) sought details on international ticket sales and group bookings, noting industry softness. Swanson responded that international sales were up low single digits and group bookings remained ahead of last year.
- Brandt Montour (Barclays) questioned weather assumptions for the rest of the year. Swanson said projections assume normalized weather, with last year’s hurricane disruptions not expected to repeat.
- Elizabeth Dove (Goldman Sachs) probed about labor and marketing cost pressures, especially in Orlando amid heightened competition. CFO James Mikolaichik reported effective cost management and strategic marketing allocation to support upcoming peak periods.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will monitor (1) the performance of recently launched and upcoming attractions for their impact on attendance and per-guest spending, (2) the effectiveness of new sponsorship and partnership deals in generating incremental, high-margin revenue, and (3) updates on real estate development or monetization efforts. The trajectory of group and international bookings, along with cost containment in a competitive market, will serve as additional indicators of execution.
United Parks & Resorts currently trades at $47.15, in line with $47.19 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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