United Parks & Resorts Inc. (NYSE:PRKS) shares traded higher Thursday after the theme park and entertainment company reported third-quarter 2026 results.
The company reported diluted EPS of $1.74, missing the $1.93 analyst estimate, while sales of $506.455 million fell short of the $511.737 million estimate.
Attendance and net income declined, but higher per-capita spending, pass sales and 2027 forward bookings pointed to improving underlying trends.
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Attendance Falls, Per-Capita Spending Rises
Net income declined 10.5% to $80 million, while adjusted EBITDA fell 5.1% to $205.1 million.
Attendance decreased 4.7% to 6.47 million guests. Management attributed the decline to unfavorable weather, calendar impacts, weaker international visitation and a planned reduction in promotional admissions products.
The company said unusual weather, calendar and international headwinds accounted for about 325,000 visits, while reduced promotional admissions products affected more than 100,000 visits.
Total revenue per capita increased 3.8% to $78.29. Admission per capita rose 3.4% to $40.90, while in-park per capita spending increased 4.4% to a record $37.39.
Admissions revenue fell 1.5% to $264.6 million, while food, merchandise and other revenue declined 0.6% to $241.8 million.
Selling, general and administrative expenses rose 13.1% to $68.6 million. The company said lower revenue and higher SG&A expenses weighed on adjusted EBITDA.
Cash Flow and Leverage
Operating cash flow declined 1.7% to $93.2 million, while free cash flow fell 38.3% to $23.5 million.
Capital expenditures increased 22.9% to $69.7 million. United Parks ended the quarter with $26.3 million in cash and cash equivalents and $2.28 billion in total long-term debt, including current maturities.
“We are pleased with the underlying performance of our business, despite significantly unfavorable weather, calendar impacts and international headwinds during the quarter,” said CEO Marc Swanson.
2027 Pass Sales and Bookings Strengthen
Third-quarter pass sales rose almost 8%, while the company’s 2027-specific pass product base was up more than 15% as of Oct. 31.
United Parks also said 2027 forward bookings revenue for Discovery Cove and its group business were each running up double-digit percentages versus the prior year.
Swanson said the company sees a path to “significantly higher attendance, revenue, Adjusted EBITDA and free cash flow” in 2027 and beyond.
PRKS Price Action: United Parks & Resorts shares were up 4.77% at $35.79 at the time of publication on Thursday, according to Benzinga Pro data.
Photo: Busch Gardens, Tampa, Courtesy United Parks & Resorts
