Q2 2026 United Parks & Resorts Inc Earnings Call Transcript
Key Points
- Record in-park per capita spending growth of 5.1% in Q2, driven by strong execution and pricing initiatives.
- Total revenue per capita increased 1.5% in Q2, with July showing positive admissions per capita growth.
- Advanced bookings for Discovery Cove and group business are up double-digits year-over-year, indicating strong future demand.
- Successful share repurchase program, buying back 5.9 million shares (12.1% of shares outstanding) for $217.7 million in H1 2026.
- Significant interest from credible third parties in acquiring real estate at valuations favorably compared to public equity market, highlighting hidden asset value.
- Sponsorship revenue pipeline on track to exceed $15 million in 2026, with potential to grow to at least $30 million in coming years.
- New IP partnerships with Sony Pictures for Howl O' Scream events, with early ticket sales running ahead of last year.
- On track to achieve $50 million gross cost savings target for 2026.
- Strong balance sheet with $658 million in total liquidity, providing flexibility for capital allocation.
- Deferred revenue increased 2% year-over-year, signaling future revenue growth.
- Q2 attendance decreased 2.9% due to Easter timing shift and continued decline in international visitation.
- July revenue down approximately 2% due to poor weather conditions including wildfires, excessive heat, and rain.
- Admission per capita decreased 1.8% in Q2 due to product mix shift towards pass holders.
- Operating expenses increased 5.3% in Q2, driven by freeze damage repairs and strategic initiatives.
- Adjusted EBITDA decreased $10.8 million in Q2 and $20.3 million in H1 2026.
- Marketing execution has been subpar, requiring strategy and team changes to improve awareness.
- International visitation remains weak, with no clear timeline for recovery.
- Paid pass base down 1% compared to June 2025, though new strategies are being implemented for 2027.
- Full-year EBITDA growth uncertain, with management only expecting growth in the back half of the year.
- Expansion/ROI CapEx budget increased, potentially impacting near-term cash flow.
Hello, and welcome to the United Parks second quarter earnings conference call. (Operator Instructions)
I'll now turn the conference over to Matthew Stroud.
Thank you, and good morning, everyone. Welcome to United Parks and Resorts second quarter earnings conference call. Today's call is being webcast and recorded. A press release was issued this morning and is available on our Investor Relations website at www.unitedparksinvestors.com. Replay information for this call can be found in the press release and will be available on our website following the call.
Joining me this morning are Marc Swanson, Chief Executive Officer; and Jim Forrester, Interim Chief Financial Officer and Treasurer. This morning, we will review our second quarter financial results, and then we will open the call to your questions.
Before we begin, I would like to remind everyone that our comments today will contain
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
