United Parks & Resorts (PRKS -0.28%), the operator of SeaWorld, Busch Gardens, and related attractions, released its results for Q2 FY2025 on August 7, 2025. The headline: both GAAP earnings per share and revenue missed analysts’ forecasts. Earnings per diluted share (GAAP) landed at $1.45, short of the $1.80 GAAP consensus. Total revenue (GAAP) was $490.2 million, just under the $498.8 million GAAP estimate and down from $497.6 million (GAAP) in Q2 FY2024. Despite a modest increase in attendance of 0.8%, Per guest (in-park per capita) spending decreased 0.4%, and net income (GAAP) shrank. Free cash flow (non-GAAP) saw a large jump. Overall, the quarter showed areas of operational resilience, but the business faced clear pressure on margins and pricing power.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS, Diluted (GAAP) | $1.45 | $1.80 | $1.46 | (-0.7 %) |
| Revenue (GAAP) | $490.2 million | $498.8 million | $497.6 million | -1.5 % |
| Adjusted EBITDA | $206.3 million | $218.2 million | (5.5 %) | |
| Net Income | $80.1 million | $91.1 million | (12.1%) | |
| Free Cash Flow | $127.6 million | $93.7 million | 36.2% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About the Business and Recent Priorities
United Parks & Resorts owns and operates 12 theme parks in the United States and licenses a SeaWorld-branded park in the United Arab Emirates. Its portfolio includes family entertainment parks as well as thrill-ride destinations, such as SeaWorld, Busch Gardens, Aquatica, and Sesame Place. These parks feature over 800 attractions, including animal habitats and a variety of rides.
The company’s strategy relies on its diversified geographic footprint, strong brand portfolio, and commitment to animal welfare. Recent business priorities have focused on balancing attendance growth with yield—meaning how much each visitor spends. Key success factors include leveraging strategic alliances and intellectual property, supporting animal conservation, and careful management of costs and capital expenditures in a changing environment.
This Quarter: Attendance Up, Spending Down, Costs Tighten
Total attendance nudged up by about 0.8%, helped by favorable shifts in the timing of school holidays like Easter and Spring Break. Orlando parks, including SeaWorld Orlando, Aquatica Orlando, and Discovery Cove, posted higher visitor numbers. Both group and international attendance were also stronger, the latter still making up a small part of overall traffic. Despite these gains, per guest spending metrics told a different story. Admission per guest fell 3.9%. This reflected a slight decline in the pass base and the impact of pricing adjustments. Overall revenue per guest slid 2.2%.
Revenue (GAAP) dipped 1.5% year over year. Net income (GAAP) contracted by 12.1%, reflecting not just softer sales but also less flexibility in managing operating costs. Adjusted EBITDA—a measure of profit before interest, taxes, depreciation, and certain other expenses—fell 5.4%. Margin pressure became clear as the drop in net income (GAAP) outpaced the overall revenue decline. Operating expenses, including labor and marketing, rose 7.7%, despite management’s statements that these were effectively controlled. Marketing spend held steady but shifted toward strategic markets and timing. The company also cited harsh weather as a major reason for the miss on top-line numbers, calling the period “amongst the worst weather we have ever experienced in a second quarter.” This impacted attendance, including during peak visitation periods.
Notably, free cash flow jumped 36.2% year over year. This improvement reflected a sharp 33.8% reduction in capital expenditures, especially on expansion and return-on-investment projects, for the first six months of 2025. Cash and equivalents on the balance sheet rose to $193.9 million as of June 30, 2025, up from $115.9 million as of December 31, 2024. The board authorized a new $500 million share repurchase, subject to shareholder approval, pointing to ongoing confidence in the company’s value and liquidity in the face of earnings volatility.
United Parks & Resorts also highlighted its continued animal rescue and conservation leadership, supporting its brand. 500 animals were aided, bringing its all-time total to over 42,000. This reinforces the company’s position as a leader in animal welfare within the theme park sector, as well as aligning with consumer values that can support attendance and reputation.
Product Types and Segment Commentary
The company’s core business includes family-focused parks (SeaWorld, Sesame Place, and Aquatica) and thrill destinations (Busch Gardens and select thrill coasters). Key product areas are daily admission tickets, annual passes, and in-park experiences such as food, merchandise, and special animal encounters. Premium events—including seasonal Halloween and Christmas programs—continue to grow in popularity. Forward bookings for events like Howl O’ Scream are ahead of the prior year’s pace. The company did not open new parks this quarter but continues to leverage its blend of attractions and ongoing property enhancements across its network.
Attendance mix shifted, with more group visitors and a modest increase in international guests. Per capita revenue was pressured by increased visits from existing pass holders and changes in product mix. an important metric for theme parks because it reflects both pricing power and product mix. Management noted that changing admission packages and competitive market conditions, particularly in Orlando where other major new attractions opened, likely influenced guest behavior and ticket choices.
Outlook: No Guidance, Focus on Forward Bookings and Shareholder Returns
Management did not provide explicit forward financial guidance for revenue or profit. In Q1 FY2025, management stated they 'continue to expect new records in revenue and Adjusted EBITDA in 2025,' but did not issue specific quantitative guidance. Instead, leadership expressed optimism about the rest of the year, pointing to strong booking trends at the Discovery Cove property and group events. Early forward booking ticket sales for Howl O’ Scream events across the parks are running ahead of the prior year. These factors could help offset pressure in per guest spending if event demand holds up. However, management’s language in the release struck a more cautious tone compared to earlier in the year.
The company’s board has recommended a $500 million share repurchase authorization, subject to shareholder approval, which could reduce the share count further and support per-share financial metrics. Looking ahead, investors will want to watch for any reversal in per guest spending trends, progress on planned capital projects, and updates on strategic alliances or new attractions that could boost visitation and spending in future quarters.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
