United Parks & Resorts Inc. Q2 FY2026 earnings call

Q2 and July Operational Performance

• Q2 results were impacted by an earlier Easter shift (fewer holiday days in Q2 2026 vs 2025) and continued declining international visitation; adjusted for these factors, attendance was flat.
• In-park per capita spending reached a new Q2 record, driven by strong in-park execution, higher penetration and pricing initiatives.
• Preliminary July 2026 results show revenue down ~2% YoY, driven by widespread poor weather (excessive heat, wildfire air quality issues, extended rain) that suppressed attendance; however, admissions and in-park per capita growth remained positive.
• Advanced bookings revenue for Discovery Cove and group business is up double digits YoY, and early ticket sales for the upcoming Halloween Holoscream events are ahead of 2025 levels.

Strategic Initiatives

• Real estate: Multiple credible, serious parties have expressed interest in acquiring some or most of the company's real estate, with offered valuations comparing very favorably to the company's current public market enterprise valuation. Any transaction will depend on final negotiated terms, market conditions, and the company's assessment of future business value.
• Sponsorships: The company still expects to generate over $15 million in annual sponsorship revenue by 2026, and projects this will grow to at least $30 million annually in coming years.
• International expansion: Discussions with multiple potential partners are ongoing, with more details expected to be shared in future quarters.
• IP partnerships: A new partnership with Sony Pictures was announced to bring two Sony horror IPs to Holoscream events; additional active discussions are underway for more high-profile IP partnerships, with more announcements expected in 2027 and beyond.
• Marketing: 2026 marketing execution has underperformed expectations. The company is evolving its strategy, teams, and partners, investing to reach new incremental audiences, with the goal of improving messaging, awareness, and audience engagement.
• Cost reduction: The company remains on track to hit its $50 million gross annual cost savings target by 2026, and is already working on 2027 cost reduction objectives.
• Annual passes: A new dedicated team and revised strategy for 2027 pass products, which will include the company's strongest ever benefits, is expected to deliver meaningful growth in the pass base starting in 2027.

Capital Allocation and Shareholder Returns

• The company repurchased 3.3 million shares for ~$125 million in Q2 2026; for the first half of 2026, total repurchases are 5.9 million shares (12.1% of total outstanding shares) for ~$217.7 million, reflecting management's view that shares are materially undervalued and commitment to returning excess cash to shareholders.
• The strong balance sheet provides flexibility to invest in growth, pursue strategic opportunities, and allocate capital opportunistically to maximize long-term shareholder value.

United Parks & Resorts reports consolidated results only, no separate product segment financial performance is provided in the transcript. Consolidated Q2 2026 results: total revenue of $483.3 million, a 1.4% decrease from Q2 2025. Attendance fell 2.9% (179,000 guests) YoY, primarily due to the Easter calendar shift and lower international visitation; adjusting for these impacts, attendance was flat YoY. Total revenue per capita increased 1.5% YoY, with in-park per capita spending up 5.1% and admission per capita down 1.8%, driven by a higher mix of pass holders. Net income was $63.3 million, down from $80.1 million in Q2 2025. Adjusted EBITDA was $195.5 million, a $10.8 million decrease YoY. First half 2026 consolidated results: total revenue of $761.6 million, a 2% decrease YoY; attendance of 9.3 million guests, a 3.6% decrease YoY; net income of $29.2 million, down $34.8 million YoY; adjusted EBITDA of $253.4 million, a $20.3 million decrease YoY. As of June 30, 2026, total available liquidity was $658 million, including $19 million cash on hand. Deferred revenue was $211.9 million, a 2% increase YoY; paid pass base was down 1% YoY. CAPEX in Q2 2026 was $68.6 million, with $65.3 million for core CAPEX and $3.2 million for expansion/ROI projects.

• Sponsorship revenue is projected to exceed $15 million in 2026, and grow to at least $30 million annually in future years, maintained from prior guidance.
• Full-year 2026 CAPEX guidance is maintained at $180 million to $190 million for core CAPEX, and $75 million to $85 million for growth/ROI projects, with incremental CAPEX added for high-conviction return-generating opportunities supported by the board.
• Management expects to grow revenue and EBITDA in the second half of 2026 (August through December) relative to the second half of 2025, but does not guarantee full-year 2026 EBITDA growth over 2025, as first half headwinds and July weather impacts may offset back half growth.
• The company is on track to meet its $50 million gross cost savings target for 2026, maintained from prior guidance.
• Management expects meaningful growth in the annual pass base starting in 2027, following the launch of a revised pass product strategy and new dedicated team.

• Unpredictable weather (excessive heat, wildfires, rain, historic freezes) can negatively impact attendance and revenue, and create unexpected repair costs, as seen in July 2026 and the Q1 2026 Florida freeze.
• Continued declines in international visitation, concentrated in the company's Florida parks, create ongoing headwinds to overall attendance, driven by macroeconomic factors outside of the company's control.
• Marketing execution has underperformed expectations in 2026, limiting audience awareness and visitation growth, requiring strategic and team changes to resolve.
• Any potential real estate transaction is uncertain; there is no guarantee that a transaction will be completed, even after ongoing negotiations with interested parties.
• A higher mix of pass holders creates natural downward pressure on admission per capita, even as pass visits remain positive for overall business performance.

Q: Given first half headwinds, July weather impacts, and continued low international visitation, can the company still grow full-year 2026 EBITDA over 2025? / A: Management confirms they expect to grow revenue and EBITDA in the back half (final five months) of 2026 compared to the back half of 2025, supported by strong early sales for the new IP-enhanced Holoscream Halloween event, continued strong in-park per capita growth, positive July admissions per capita growth, and disciplined cost management. However, management does not guarantee full-year 2026 EBITDA will exceed 2025 levels, as first half declines and July's 2% revenue drop may not be fully offset by back half growth, even if weather improves for the remainder of the year.

Q: Could you explain the Easter calendar shift impact on full first half results, and when do you expect international visitation to begin improving? / A: This year, Easter fell on April 5, so the key 4-day peak Easter travel window fell in Q1 2026; last year, Easter fell later in April, so all peak Easter days were in Q2 2025, creating the Q2 attendance drag and a small first half impact. Most of the company's international visitation is to Florida parks, and the current decline is driven primarily by macroeconomic factors rather than lost market share. Management cannot predict when international visitation will rebound, but is focused on filling the gap with domestic attendance in the interim, and is positioned to capture share when international travel recovers.

Q: What types of real estate transactions are under discussion with interested parties – just undeveloped land, or a broader property spin/separation? / A: Management notes that interest spans the full spectrum: from single property sales to multiple property transactions. The key takeaway is that well-known credible third parties assign significant value to the company's real estate that is not reflected in the current public share price. There is no guarantee any transaction will close, and no further details on structure can be shared while negotiations are ongoing.

Q: In-park spending has been a consistent bright spot – what is driving this growth? Is it pricing, trading up, mix, or improved execution? / A: Growth in in-park per capita spending comes from multiple factors, including intentional pricing initiatives, higher penetration of high-margin offerings, and capital investments that upgraded culinary, retail, and guest facilities across parks. Technology investments like self-order food kiosks have also improved operations, and growth in premium offerings like catering events and photo packages has further contributed to the positive trend, driven by strong execution from the in-park team.

Q: The Orlando market has seen increased investment from competitors recently – how is the competitive landscape shifting, and how do you see non-Orlando parks performance? / A: Management remains bullish on Orlando: high quality investment from all market participants benefits every operator, and local public and private stakeholders are all aligned on growing the market as a top travel destination. United Parks has a distinct value proposition in Orlando and has seen solid combined performance from its three Orlando parks in Q2 2026. For non-Orlando parks like Busch Gardens Tampa, underperformance is primarily driven by low consumer awareness of the full range of attractions available; improved marketing focused on highlighting park offerings is expected to drive future growth.