Theme park operator United Parks & Resorts (NYSE:PRKS) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 3.5% year on year to $286.9 million.
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United Parks & Resorts (PRKS) Q1 CY2025 Highlights:
- Revenue: $286.9 million (3.5% year-on-year decline)
- Operating Margin: 5.9%, down from 7.4% in the same quarter last year
- Visitors: 3.39 million, down 59,000 year on year
- Market Capitalization: $2.38 billion
StockStory’s Take
United Parks & Resorts’ first quarter results were shaped by several timing-related factors, with management attributing lower attendance and revenue to the shift of Easter and spring break holidays from Q1 into Q2 this year. CEO Marc Swanson noted that this calendar movement affected both overall visitor numbers and spending patterns, as peak operating days with higher pricing and guest engagement occurred outside the reported quarter. Additionally, CFO James Mikolaichik highlighted that the company incurred over $5 million in expenses earlier than typical, largely related to maintenance and marketing activities repositioned to support the upcoming busy summer season. Despite these headwinds, management pointed to continued growth in in-park per capita spending and emphasized operational discipline in controlling costs.
Looking ahead, United Parks & Resorts is focused on capitalizing on a strong lineup of new rides, attractions, and in-park events across its portfolio to drive attendance and revenue through the remainder of 2025. Management believes that the majority of annual attendance and revenue opportunities remain, with approximately 75% of the year still ahead as of April 30. Swanson expressed confidence in achieving new records for revenue and adjusted EBITDA by leveraging robust bookings for Discovery Cove, group events, and international tickets, all of which are trending ahead of last year. He also cited upcoming sponsorship agreements and ongoing investments in guest experience, technology, and real estate development as key levers for growth, while acknowledging that economic uncertainty and competitive pressures will require continued strategic execution.
Key Insights from Management’s Remarks
Management attributed Q1’s results to calendar-driven attendance declines, early expense recognition, and the continued rollout of new attractions. Strategic initiatives in sponsorship and real estate remain in development, with several growth-oriented projects set to impact future quarters.
- Easter and spring break timing: The primary driver of lower attendance and admissions revenue was the calendar shift of major holidays, which moved high-traffic days to Q2 rather than Q1, reducing peak season activity in the first quarter.
- Early expense recognition: CFO James Mikolaichik explained that over $5 million in costs, primarily maintenance and marketing, were moved into Q1 from later periods to better prepare for summer, impacting the quarter’s operating margin.
- In-park spending resilience: Despite a drop in admissions per capita, in-park per capita spending increased 1.1%, reflecting guest engagement with food, merchandise, and ancillary experiences even as overall traffic softened.
- New attractions and events: Several new rides and immersive experiences launched or were announced across SeaWorld, Busch Gardens, and Sesame Place properties, with large-scale projects such as Expedition Odyssey in Orlando designed to differentiate and attract incremental visitors.
- Expansion of sponsorship and real estate initiatives: Management formalized a third-party partnership to pursue sponsorship deals and is exploring options to unlock value from more than 2,000 acres of owned real estate, including 400 acres of undeveloped land near parks. These efforts are expected to contribute mid- to high-single-digit millions in sponsorship revenue in 2025, with further upside in future years.
Drivers of Future Performance
United Parks & Resorts’ outlook is anchored in new attraction openings, increased group and international bookings, and monetization of assets, but also faces potential headwinds from weather, labor costs, and evolving consumer demand.
- Attraction pipeline and guest experience: Management expects that the opening of new rides and attractions—such as the Expedition Odyssey and immersive water play areas—will drive incremental attendance, especially as these launches coincide with the peak summer season. These assets are designed to appeal to both first-time and returning visitors, supporting higher per capita spending.
- Strategic partnerships and sponsorships: Formalizing sponsorship agreements and pursuing new intellectual property (IP) partnerships with global brands are expected to create high-margin revenue streams. Management anticipates that sponsorship contributions will begin to materialize in the second half of the year, with further growth in subsequent periods.
- Operational risks and cost management: The company is monitoring labor cost inflation, potential weather disruptions, and competitive dynamics—particularly in the Orlando market with new entrants like Universal’s Epic Universe. Management stated that labor and marketing spend have been strategically redeployed to maximize impact, while also maintaining flexibility to adjust operating plans in response to shifting demand.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely watch (1) guest response to new ride and attraction launches during the peak summer period; (2) progress on sponsorship deals and the monetization of real estate assets; and (3) the pace of group and international ticket bookings relative to prior years. Additionally, the company’s ability to manage labor and marketing costs amid heightened competition in core markets like Orlando will be a key indicator of execution.
United Parks & Resorts currently trades at a forward P/E ratio of 8.9×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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