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United Parks & Resorts (PRKS) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 4, 2026

Source: earnings call transcript

Executive summary

United Parks & Resorts Q2 FY26 — Per Capita Spending and Share Buybacks Strong Amidst Attendance Headwinds

United Parks & Resorts navigated a challenging Q2 FY26 marked by calendar shifts and declining international visitation, resulting in a revenue and attendance dip. Despite these headwinds, the company demonstrated strong in-park per capita spending and continued its robust share repurchase program. Management is focused on strategic initiatives, including real estate monetization and marketing improvements, while anticipating growth in the latter half of the year, driven by seasonal events and new IP partnerships.

Highlights

5

  • Total revenue per capita grew, with in-park per capita spending reaching a record for the quarter, up 5.1% YoY.

  • Advanced bookings revenue for Discovery Cove and group business are up double digits versus prior year.

  • Repurchased 3.3 million shares for approximately $125 million in Q2, and 5.9 million shares for $217.7 million in H1, representing 12.1% of total shares outstanding.

  • Deferred revenue balance increased approximately 2% YoY to $211.9 million as of June 30, 2026.

  • On pace to achieve $50 million gross cost savings target for 2026.

Concerns

5

  • Total revenue decreased by $6.9 million or 1.4% in Q2 to $483.3 million.

  • Attendance decreased by approximately 179,000 guests or 2.9% in Q2, primarily due to Easter timing and international visitation decline.

  • Net income for Q2 was $63.3 million, a decrease from $80.1 million in Q2 2025.

  • Adjusted EBITDA decreased by $10.8 million or 5.2% in Q2 to $195.5 million.

  • Preliminary July revenue was down approximately 2% due to widespread poor weather conditions across key markets.

Guidance & targets

CategoryTargetConfidence
Sponsorship revenue
over $15 million
medium materiality
High
Sponsorship revenue
at least a $30 million line of business
medium materiality
High
Gross cost savings
$50 million
medium materiality
High
Core CapEx
$180 million to $190 million
medium materiality
High
Growth and ROI CapEx
$75 million to $85 million
medium materiality
High

Orderbook & backlog

Advanced bookings revenue for Discovery Cove and group business up double digits Q2 FY26

vs prior year

Early forward booking ticket sales for Howl-O-Scream events running ahead Q2 FY26

vs last year's

Deferred revenue balance $211.9 million June 30, 2026

up approximately 2% YoY

Product announcements

ProductTypeDetails
Howl-O-Scream eventsupdate
2027 Pass Productlaunch
New Rides and Attractionsroadmap

Deals & partnerships

Multiple highly credible third parties Discussions to acquire some or most of the company's real estate assets.

The company is engaged in clarifying and negotiating terms, exploring options from single property sales to multiple properties, or a broader portfolio transaction. No guarantee of a transaction.

Multiple partners Continued discussions regarding international expansion.

Expect to share more in the coming quarters regarding these international partnerships.

Sony Pictures Partnership to bring horror intellectual property to Howl-O-Scream events.

Introduced 'I Know What You Did Last Summer' and 'Anaconda' IPs to Howl-O-Scream at SeaWorld and Busch Gardens parks.

Risks & headwinds

Shift in timing of Easter holiday Q2 FY26

Fewer holiday days in Q2 compared to prior year quarter, impacting attendance.

Mitigation:Adjusting for this impact, attendance would have been flat for the quarter.

Continued decline in international visitation Q2 FY26 and H1 FY26

Impacted Q2 results and H1 attendance. Mainly affects Florida parks.

Mitigation:Focus on filling the gap with other attendances and ensuring readiness for when international travel rebounds. Believe it is macro-related.

Poor weather conditions in July July

Preliminary July revenue down approximately 2%, impacted attendance.

Mitigation:Hoping for more normalized weather in the remainder of the quarter. Per cap growth is helping to offset attendance decline.

Less than stellar marketing execution This year (FY26)

Described as 'frustrating' and impacting awareness.

Mitigation:Evolving strategy, partners, and teams; making investments to reach new audiences and provide more compelling visuals/messaging to strengthen communication and engagement.

Significant EBITDA add-backs Q2 FY26

Driven by historic freeze damage in Florida, strategic initiatives, and SAP amortization.

Mitigation:These are one-time in nature or related to ongoing strategic investments.

Higher percentage of pass holders impacting admissions per capita Q2 FY26

Greater mix of pass holders in Q2 than last year naturally puts tension on admissions per cap.

Mitigation:Company prefers more pass visits and is focused on driving total revenue, while also working to improve admissions per cap through pricing and new offerings.

World Cup potentially diverting international visitation June, July

Implied impact on international visitation, as people may have prioritized soccer games over theme park visits.

Mitigation:Acknowledged as a possibility; no specific mitigation mentioned beyond general efforts to attract visitors.

What to watch in Q3 FY26

H2 FY26 EBITDA growth

next quarter (Q3 FY26)
Current H1 FY26 Adjusted EBITDA down $20.3M YoY
Target Growth in H2 FY26 to offset H1 declines

Why it matters

Management expects growth in the next five months, but it's critical to see if this translates to full-year recovery given H1 performance and July's preliminary results.

I wasn't necessarily saying we're going to grow this year for the full year. I think what we're saying is we expect to grow the business kind of these next five months going forward, and we'll have to see where that ends up for the full year.

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Q&A highlights

Given H1 performance and July's weather impacts, how can the company still expect full-year EBITDA growth, or is the expectation for H2 growth only?

Marc Swanson clarified that the expectation is for business growth in the next five months (H2), not necessarily for the full fiscal year to offset H1 declines. He cited strong per cap growth, upcoming Halloween/Christmas events with new IP, and improved admissions per cap in July as drivers for H2 optimism, contingent on better weather.

“I wasn't necessarily saying we're going to grow this year for the full year. I think what we're saying is we expect to grow the business kind of these next five months going forward, and we'll have to see where that ends up for the full year.”

asked by Steven Wieczynski · answered by Marc Swanson

2 min read 5 chapters

Detailed narrative

Real Estate Monetization Strategy

United Parks & Resorts is actively engaged in discussions with multiple credible third parties interested in acquiring some or most of its real estate. Management notes that the valuation being offered for their real estate compares very favorably to the public equity market valuation of the enterprise, suggesting significant unrecognized value. The company is exploring various options, from selling individual properties to broader portfolio transactions, with no guarantee of a deal but a clear intent to maximize shareholder value.

Strategic IP Partnerships and Event Enhancements

The company is leveraging intellectual property (IP) to enhance its seasonal events, notably partnering with Sony Pictures to introduce horror films like 'I Know What You Did Last Summer' and 'Anaconda' to its Howl-O-Scream lineup. This marks a new approach for the events, with early forward booking ticket sales already ahead of last year. Discussions are ongoing for additional IP partnerships for 2027 and beyond, aiming to innovate and excite guests.

Marketing Strategy Evolution

Management acknowledged 'less than stellar execution' in marketing activities this year, describing it as frustrating. In response, the company is revamping its strategy, partners, and teams. Investments are being made to reach new audiences, improve visuals and messaging, and increase overall awareness of the diverse offerings within their parks, from rides to animal attractions and behind-the-scenes tours.

Orlando Market Performance and Outlook

Despite broader attendance challenges, the combined performance of the three Orlando parks in Q2 was satisfactory relative to other locations. Management remains bullish on the Orlando market, citing ongoing high-quality investments by the company and others, airport expansion, and community-wide efforts to enhance the region. They emphasize their distinct product and value proposition, confident in their ability to capture market share when international visitation rebounds.

Animal Rescue and Conservation Efforts

In Q2, United Parks & Resorts aided 331 animals in need, contributing to a historical total of over 43,000 animals rescued. A recent notable effort involved SeaWorld San Antonio receiving beluga whales rescued from Marineland of Canada, as part of an ongoing multi-facility collaboration. These efforts highlight the company's continued dedication to animal care and conservation.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.