Vail Resorts, Inc. Q1 FY2026 earnings call

• Marketing: Shifted to increase paid media, social/influencer channels, focused on top of funnel, modernized approach with brand-building content.
• Lift ticket strategies: Launched Epic Friends tickets, 30% advanced discount, dynamic pricing for off-peak, integrated approach for lift access.
• Resource Transformation Plan: Expected $75M cumulative efficiencies, $38M incremental savings vs 2025.
• Capital plan: $215-220M core, $12M European growth, $5M resource efficiency, $2M real estate; total ~$234-239M. Investments in guest experience (gondolas, lifts, dining), technology (My Epic app, marketing/e-commerce), avalanche control, Blitzen Lift upgrade.

Resort net revenue was up 4% year over year. Resort reported EBITDA was flat, reflecting Australia weather favorability and resource efficiency plan benefits offset by inflation, marketing spend, and one-time costs. North American pass product selling period for 2025-2026 season had units down 2% but sales dollars up 3%, with improvements from paid media and higher mix of unlimited pass products. Approximately 2.3 million guests committed to resorts in nonrefundable products generating ~$1 billion of revenue, accounting for ~74% of skier visits excluding complimentary visits. Pass units have grown 55% over five years.

Reiterating guidance range of $201M to $276M in net income and Resort reported EBITDA of $842M to $898M for fiscal year 2026. Assumes growth from price increases, ancillary capture, and $38M efficiencies, offset by lower pass units and cost inflation. Guidance reiterated despite early season slow start and weather.

• Weather and snowfall patterns impacting visitation.
• Early season conditions affecting local pass sales.

Q: Shaun Kelley asked about quantifying the Epic Friends and advanced ticket initiatives, how they play out in price and volume.

A: Rob Katz explained it's about catching booking and comparing phases, creating time sensitivity, and getting mini advance commitment.

Q: Shaun Kelley followed up on weather and past trajectory.

A: Rob Katz said not to comment on guidance hypothetical, but over-delivered on passes, muted by late weather, and guidance assumes normal Christmas experience.

Q: Ben Chaiken asked about past benefits and third-party benefits.

A: Rob Katz said third-party benefits are marginally impactful, Epic Friends tickets important for Spring Pass purchasers.

Q: David Katz asked about technology investments and returns.

A: Rob Katz said technology improves guest experience and conversion, app traffic growth and mobile commerce potential.

Q: Arpine Kocharyan asked about visitation trends and regional vs destination resorts.

A: Rob Katz said too early to assess, focused on own trends.

Q: Patrick Scholes asked about ICON reserve pass and Telluride strike.

A: Rob Katz said everything is a consideration, Telluride relationship doesn't contribute to earnings.

Q: Chris Woronka asked about lodging booking behavior and ancillary spend.

A: Rob Katz said too early to assess, but destination guests' spend similar.

Q: Jeffrey Stantial asked about lift ticket discounts and AI.

A: Rob Katz said unique for now, AI helps with data synthesis.

Q: Brandt Montour asked about incremental revenue from pricing initiatives.

A: Rob Katz said multiple factors contribute, not just price.

Q: Megan Clapp asked about dining enhancements and past sales mix.

A: Rob Katz said dining investments driven by post-COVID recovery, marketing helped mix, focus on unlimited products going forward.