Pursuit Attractions And Hospitality (NYSE:PRSU), an operator of destination-driven tourism attractions and lodging, posted its Q2 2025 results on August 6, 2025. The company announced GAAP revenue of $116.7 million for Q2 2025, clearly beating analyst expectations of $109.2 million (GAAP). Non-GAAP earnings per share came in at $0.36 for Q2 2025, well above the $0.2575 anticipated (analysts' estimate, non-GAAP). These results reflect both strong demand and effective margin management. On the whole, the quarter delivered improved performance across key metrics, encouraged by contributions from new acquisitions and continued expansion into diverse markets.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.36 | $0.26 | $(0.06) | n/m |
| Revenue | $116.7 million | $109.18 million | $101.2 million | 15.4% |
| Net Income Attributable to Pursuit | $5.6 million | $29.3 million | (80.9%) | |
| Adjusted EBITDA | $29.7 million | $19.9 million | 49.2% | |
| Adjusted Net Income | $10.1 million | $0.2 million | 4950% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Key Success Factors
The company runs a portfolio of travel attractions and lodging properties in the United States, Canada, Iceland, and Costa Rica. It focuses on delivering memorable experiences at scenic or iconic places, such as adventure tours, premium sightseeing, and hospitality services that combine lodging, dining, and retail.
The company has recently made geographic diversification a priority, with recent moves into Costa Rica and Iceland boosting its seasonal breadth. Growth is driven by investments in unique destinations, facility upgrades, and bolt-on acquisitions in popular tourist locations. Key factors for its continued performance include effective cost management, enhancing brand recognition following its rebranding, and the ongoing introduction of compelling new experiences and properties.
Quarter Highlights and Financial Developments
The quarter showed substantial top-line growth, with GAAP revenue improving 15.4% year-over-year. This strong performance came primarily from increased attraction ticket sales and higher lodging revenue, both benefiting from effective pricing and positive visitor trends. Attraction ticket prices rose by 11% on a same-store constant-currency basis in Q2 2025, and lodging revenue per available room -- referred to by the industry as RevPAR -- increased 9% on a comparable basis.
Demand continued at a healthy pace, supported by the introduction of premium products and recent acquisitions. Tickets, rooms, transportation, and related service revenues (GAAP) increased 15.8% in Q2 2025. Food and beverage, as well as retail sales, also grew by 14% in Q2 2025. These gains contributed to a near 50% jump in adjusted EBITDA (non-GAAP), rising from $19.9 million in Q2 2024 to $29.7 million in Q2 2025. The adjusted EBITDA margin increased to 25.4%, up from 19.7% for Q2 2024 (non-GAAP), mostly due to a favorable shift toward higher-margin offerings and careful management of operating costs.
The company's operational costs remained in check, although selling, general, and administrative expenses (SG&A) climbed 14.9% to $15.7 million for Q2 2025. Much of this increase was linked to recent acquisitions, integration costs, and transaction-related expenses associated with its transformation into a standalone hospitality group. A notable event was the acquisition of Tabacón Thermal Resort & Spa in Costa Rica, broadening its global reach and supporting further seasonal stability.
Pension settlement charges and transaction expenses had a non-recurring effect on profits, with a $5.4 million non-cash charge recorded in Q2 2025. The sharp decline in net income (GAAP), from $29.3 million down to $5.6 million in Q2 2025, was primarily driven by discontinued operations. On the balance sheet, liquidity remained strong at $208.6 million as of June 30, 2025, before the Tabacón purchase, with pro forma liquidity of approximately $98 million after completion of the Tabacón acquisition as of July 1, 2025. Net leverage was reported at 1.5 times on a pro forma basis for the acquisition of Tabacón as of Q2 2025, leaving room for future investment or acquisitions. The company also authorized a new $50 million share repurchase program, replacing a prior one that had been suspended.
Business Model, Segments, and Recent Product Moves
Pursuit splits its business into attractions and hospitality. Attractions include point-of-interest sightseeing and adventure outings, such as immersive tours in natural destinations and city attractions like the FlyOver rides -- a motion ride featuring aerial imagery and special effects. The hospitality segment covers boutique hotels, lodges, premium dining, and retail experiences situated at or near key attractions.
During the quarter, the Refresh, Build, Buy investment strategy guided resource allocation. "Refresh" projects upgraded existing facilities, such as the ongoing overhaul of the Jasper Forest Park Hotel and improvements at Grouse Mountain Lodge. New premium Ice Odyssey tours were rolled out in Canada. The "Buy" element was highlighted by the Tabacón acquisition, signaling the company's aim to add high-impact assets in world-class locations. These projects are designed to improve operational synergies, guest experiences, and long-term revenue stability while minimizing disruption during busy travel seasons.
On the attractions side, the company saw elevated pricing power and steady demand, especially at its unique points of interest. Same-store comparisons revealed higher effective ticket prices and robust visitor counts.
A major vector for growth remains international and cross-seasonal diversification. The recent expansion into Costa Rica -- with its year-round tropical climate -- now mitigates exposure to North American seasonality.
Outlook and Investor Considerations
Management raised its full-year 2025 guidance for adjusted EBITDA to between $108 million and $118 million, up from the earlier range of $98 million to $108 million. This reflects improved operating momentum, benefits from a more favorable U.S.–Canadian dollar exchange rate, and expected contributions from the new Tabacón asset. Revenue (GAAP) for FY2025 is projected to rise by about 20%, a step up from $366.5 million in GAAP revenue for FY2024. Maintenance capital expenditure is now set at $30 million to $35 million for FY2025, with incremental growth investment planned at $38 million to $43 million for FY2025.
Guidance changes were largely driven by the stronger Canadian dollar and successful integration of new properties, which together contribute an extra $10 million to adjusted EBITDA for FY2025, according to management. Investors may want to pay close attention to how recent acquisitions are absorbed into the overall platform, the trajectory of ticket pricing and visitation, and whether higher SG&A from transformation and deal costs level out. There was no mention of any change to the company’s dividend policy.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
