10-K: United Parks & Resorts Reports 2025 Revenue Decline

United Parks & Resorts Inc. reported a 3.6% decrease in total revenues and a 26.0% drop in net income for the fiscal year ended December 31, 2025, primarily due to lower attendance and admission per capita.

Summary

• Total revenues decreased by $62.7 million (3.6%) to $1,662.6 million in 2025 from $1,725.3 million in 2024.
• Net income decreased by $59.1 million (26.0%) to $168.4 million in 2025 from $227.5 million in 2024.
• Attendance decreased by 0.4 million guests (1.8%) to 21.2 million in 2025, primarily due to a decline in visitation from international markets and reseller tickets, along with changes in operating schedules and less than optimal execution.
• Admission per capita decreased by 4.3% to $41.73 in 2025 compared to $43.61 in 2024, influenced by promotional activities and visitation mix.
• In-park per capita spending increased by 1.0% to $36.81 in 2025 from $36.46 in 2024, driven by pricing and operating initiatives.
• Operating income decreased by $97.9 million (21.1%) to $365.4 million in 2025.
• Operating expenses increased by $16.2 million (2.2%) due to higher labor-related costs.
• Selling, general and administrative expenses increased by $10.9 million (5.0%) due to increased marketing-related costs.
• Depreciation and amortization increased by $11.0 million (6.8%) primarily due to new asset additions.
• Interest expense decreased by $33.6 million (20.0%) to $134.1 million in 2025, mainly due to a lower average interest rate from 2024 refinancing, partially offset by a higher average outstanding debt balance.
• The company recorded an approximately $8.6 million one-time non-cash write-off of certain accounts receivable balances in 2025.
• A $12.6 million arbitration award to Sesame Workshop for 2021 royalties, interest, and fees was paid in the fourth quarter of 2025.
• The company accrued approximately $1.5 million for excise tax related to share repurchases made in 2025 and paid $4.6 million for excise tax related to 2024 share repurchases.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a challenging period for the company, marked by significant declines in key financial metrics like revenue, net income, and attendance, coupled with rising operational costs. While new attractions are planned, the overall performance indicates headwinds.

Positives

• In-park per capita spending increased by 1.0% due to pricing and operating initiatives.
• New attractions opened in 2025, including Jewels of the Sea (SeaWorld San Diego), Expedition Odyssey (SeaWorld Orlando), Rescue Jr. (SeaWorld San Antonio), Wild Oasis (Busch Gardens Tampa Bay), The Big Bad Wolf: The Wolf's Revenge (Busch Gardens Williamsburg), Illuminate (Aquatica Orlando), and High Tide Harbor (Water Country USA).
• Busch Gardens Williamsburg was named the 'World's Most Beautiful Amusement Park' for 35 consecutive years.
• Sesame Place Philadelphia was the first theme park in the world to be designated as a Certified Autism Center (IBCCES, 2018) and in 2025 became the first U.S. theme park to join the Hidden Disabilities Sunflower program.
• SeaWorld Abu Dhabi, the first SeaWorld branded park outside the U.S., opened in May 2023, generating sales-based royalties and other service-based payments.
• The company maintains world-class animal care standards and operates one of the world's largest zoological collections and marine animal rescue programs, having helped over 42,000 wild animals.
• The company's competitive position is enhanced by its strong brands, extensive zoological collection and expertise, and attractive in-park assets on valuable real estate.
• Disciplined capital expenditures, cost management, and working capital management have historically enabled significant annual operating cash flow.
• The company was in compliance with all covenants in its credit agreement governing the Senior Secured Credit Facilities and the indentures governing its Senior Notes as of December 31, 2025.
• Management assessed the effectiveness of the company's internal control over financial reporting as of December 31, 2025, and determined it maintained effective internal control.

Negatives

• Total revenues decreased by 3.6% in 2025 compared to 2024.
• Net income decreased by 26.0% in 2025 compared to 2024.
• Attendance decreased by 1.8% in 2025, primarily due to a decline in international visitation, reseller tickets, changes in operating schedules, and less than optimal execution.
• Admission per capita decreased by 4.3% in 2025 due to promotional activities and visitation mix.
• Operating income decreased by 21.1% in 2025.
• Operating expenses increased by 2.2% due to higher labor-related costs.
• Selling, general and administrative expenses increased by 5.0% due to increased marketing-related costs.
• Depreciation and amortization increased by 6.8%.
• Other expense, net, included an $8.6 million one-time non-cash write-off of certain accounts receivable balances in 2025.
• The company experienced increased union organizing activities in certain units, with two groups impacting approximately 115 employees voting in favor of unionization in 2025.
• A notice was delivered to Sesame Workshop on September 9, 2025, asserting a breach of the License Agreement by Sesame for failing to maximize brand exposure.
• Sesame Workshop delivered a notice on November 25, 2025, alleging the company owes additional royalties and fees.
• The company's stock price performance significantly underperformed the S&P 500, S&P Midcap 400, and S&P 400 Movies & Entertainment Index over the five years ended December 31, 2025, with a cumulative return of 14.90% compared to 96.16%, 54.68%, and 179.71% respectively.

Risks

• Various factors beyond control could adversely affect attendance and guest spending patterns at theme parks, including bad weather, natural disasters (e.g., Hurricanes Milton and Debby in 2024), labor shortages, inflationary pressures, supply chain delays or shortages, foreign exchange rates, consumer confidence, potential spread of travel-related health concerns (pandemics/epidemics), economic uncertainty, geopolitical events, and governmental actions.
• Failure to retain and/or hire employees, including specialized animal care staff, could adversely affect business, operations, and guest experience, leading to wage pressures and suboptimal staffing levels.
• A decline in discretionary consumer spending or consumer confidence, including any unfavorable impacts from Federal Reserve interest rate actions and inflation, may influence discretionary spending, unemployment, or the overall economy.
• Hill Path Capital LP and its affiliates, owning approximately 53.2% of total outstanding common stock as of December 31, 2025, could significantly influence decisions, and their interests may conflict with other shareholders.
• Increased labor costs, including minimum wage increases (e.g., San Diego to $19.00 per hour by July 1, 2026, reaching $25.00 per hour by July 1, 2030; Florida to $15.00 per hour by September 30, 2026; Virginia adjusted annually for inflation), and employee health and welfare benefit costs may negatively impact operations and margins.
• The company is subject to complex federal and state regulations governing the treatment of animals, which can change, and to claims and lawsuits by activist groups before government regulators and in the courts.
• Scrutiny by activist and other third-party groups and/or media can pressure governmental agencies, vendors, partners, guests, and/or regulators, bring action in the courts, or create negative publicity about the company.
• Incidents or adverse publicity concerning theme parks, the theme park industry, and/or zoological facilities generally could harm brands or reputation, as well as negatively impact revenues and profitability.
• A significant portion of revenues (approximately 59% in Florida, 16% in California, and 13% in Virginia in 2025) are historically generated in specific states, making the company materially adversely affected by risks impacting those markets.
• Technology interruptions or failures that impair access to websites and/or information technology systems could adversely affect business or operations.
• Cybersecurity risks and the failure to maintain the integrity of internal or guest data could result in damages to reputation, disruption of operations, and/or subject the company to costs, fines, or lawsuits.
• Implementation challenges with a new enterprise resource planning (ERP) system may have an adverse effect on business, financial condition, and results of operations.
• Inability to compete effectively in the highly competitive theme park industry could harm revenues, profits, or market share.
• Featuring animals at theme parks involves risks, including potential injuries or death, and animal exposure to infectious diseases.
• The high fixed cost structure of theme park operations can result in significantly lower margins if revenues decline or the company is unable to offset price increases.
• Operating results are subject to seasonal fluctuations, with approximately two-thirds of attendance and revenues historically generated in the second and third quarters.
• Changes in consumer tastes and preferences for entertainment and consumer products could reduce demand for entertainment offerings and products.
• Adverse litigation judgments or settlements resulting from legal proceedings could reduce profits or limit the ability to operate the business.
• The company's growth strategy may not achieve anticipated results, and it may not be able to fund theme park capital expenditures and investment in future attractions and projects.
• The company may not realize the benefits of developments, restructurings, acquisitions, or other strategic initiatives, and may incur significant costs associated with such activities, including international partnerships like SeaWorld Abu Dhabi.
• Financial condition and results of operations have been previously, and may in the future be, adversely affected by public health events.
• Unionization activities or labor disputes may disrupt operations and affect profitability.
• Inability to protect intellectual property rights or claims for infringing the intellectual property rights of others could be costly and result in the loss of significant intellectual property rights.
• Loss of licenses and permits required to exhibit animals and/or violation of laws and regulations will adversely affect the business.
• Inability to maintain certain commercial licenses, such as those with Sesame Workshop and Anheuser-Busch, could adversely affect business, reputation, and brand.
• Existing debt agreements contain, and future debt agreements may contain, restrictions that may limit flexibility in operating the business.
• Failure to maintain current credit ratings could adversely affect the cost of funds, related margins, liquidity, and access to capital markets.
• High leverage (approximately $2.248 billion total indebtedness as of December 31, 2025) could adversely affect the ability to raise additional capital, limit reaction to economic/industry changes, expose to interest rate risk, and prevent meeting debt obligations.
• Insurance coverage may not be adequate to cover all possible losses, and insurance costs may increase.
• Inability to purchase or contract with third-party manufacturers for theme park rides and attractions, or construction and/or supply chain delays may occur and impact attraction openings.
• Tariffs or other trade restrictions could adversely impact business, financial condition, and results of operations.
• Operations and property ownership subject the company to environmental requirements, expenditures, and liabilities.
• Delays, restrictions, or inability to obtain or maintain permits for capital investments could impair the business.
• If the company fails to maintain effective internal controls, it may conclude that its internal control over financial reporting is not effective, which could adversely affect its ability to report results accurately and timely.
• Financial distress experienced by strategic partners or other counterparties could have an adverse impact.
• Actions of activist stockholders could adversely impact the value of securities.
• Policies of the U.S. President and their administration or any changes to tax laws may result in a material adverse effect on business, cash flow, results of operations, or financial condition and may impact the ability to use net operating loss carryforwards.
• Stock price may change significantly, and investors may not be able to sell shares at or above the price paid, or at all, potentially losing all or part of their investment.
• The company cannot guarantee that its allocation of capital to various alternatives will enhance long-term stockholder value, and share repurchase programs could increase stock price volatility.
• Future sales, or the perception of future sales, by the company or existing stockholders in the public market could cause the market price for common stock to decline.
• Indebtedness could limit the ability to make restricted payments such as share repurchases and/or pay dividends on common stock in the future.
• Anti-takeover provisions in organizational documents could delay or prevent a change of control.
• The concentration of ownership of capital stock (55.1% by executive officers, directors, and affiliated entities as of December 31, 2025) limits other shareholders' ability to influence corporate matters.
• Non-U.S. holders who own or owned more than a certain ownership threshold may be subject to United States federal income tax on gains realized on the disposition of common stock.

Future Outlook

The company expects an outstanding line-up of new rides and attractions, popular events, and new and improved in-park venues and offerings across its parks for 2026. New attractions anticipated for 2026 include SEAQuest: Legends of the Deep (SeaWorld Orlando), a Shark Encounter refresh (SeaWorld San Diego), Barracuda Strike (SeaWorld San Antonio), Lion & Hyena Ridge (Busch Gardens Tampa Bay), and Verbolten Forbidden Turn (Busch Gardens Williamsburg). The company believes that existing cash and cash equivalents, cash flow from operations, and available borrowings under its revolving credit facility will be adequate to meet capital expenditures, debt service obligations, and working capital requirements for at least the next 12 months. Minimum wage increases are expected in San Diego (to $19.00/hour by July 2026, reaching $25.00/hour by July 2030), Florida (to $15.00/hour by September 2026), and Virginia (adjusted annually for inflation starting January 1, 2025).

Management Comments

• Our Board has formed a number of committees and holds certain meetings and operational review sessions on a frequent basis designed to provide further assistance from Board members with expertise in certain areas by providing enhanced oversight over the operations of the Company.
• In the current operating environment, certain members of our Board, including our Chairman of the Board, are actively involved in overseeing certain key operating activities and decisions.
• Despite the staffing challenges we have encountered, which at times have included maintenance, security and/or animal care personnel, we have not and will not compromise the safety of our guests, ambassadors or animals.
• We believe that working for our Company is more than a job – it is a commitment to the protection of animals and the wild wonders of our world, while also providing a fun and meaningful experience for our guests that will be remembered long after they leave our parks. We create memories that matter.
• Our human capital programs, policies, and initiatives will continue to reinforce this belief in the years ahead.
• We continuously monitor factors impacting our attendance, making strategic operations, marketing and sales adjustments as necessary.
• We have spent significant time reviewing our operations and have identified meaningful cost savings opportunities, including technology initiatives, which we believe will further strengthen our business and, in some instances, improve guest experiences.
• Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025, and determined that the Company maintained effective internal control over financial reporting as of December 31, 2025.

Industry Context

StockSavvy.ai notes that United Parks & Resorts operates in a highly competitive theme park industry, competing with major players like The Walt Disney Company, Universal Parks and Resorts, Six Flags Entertainment Corporation, Cedar Fair Entertainment Company, and Merlin Entertainments Group Ltd. The reported decline in attendance and revenue, coupled with increased operating and marketing costs, suggests the company is facing significant headwinds in attracting and retaining guests amidst intense competition and broader economic pressures. The focus on new attractions for 2026 is a common industry strategy to drive attendance, but the effectiveness will depend on market reception and competitive responses. The company's unique zoological collection and conservation efforts provide a differentiated value proposition, which is a key competitive strength in the leisure, recreation, and entertainment sector.

Comparison to Industry Standards

• The company's theme parks are consistently recognized among the top in the world, including three of the top 20 theme parks and five of the top 20 water parks in North America, as measured by attendance (TEA/AECOM 2024 Report).
• SeaWorld Orlando and SeaWorld San Diego were ranked among the top 20 theme parks in North America (TEA/AECOM 2024 Report).
• Busch Gardens Tampa Bay was ranked among the top 20 theme parks in North America (TEA/AECOM 2024 Report).
• Aquatica Orlando was ranked #3 most attended water park in North America (TEA/AECOM 2024 Report).
• Aquatica San Antonio was ranked #7 most attended water park in North America (TEA/AECOM 2024 Report).
• Discovery Cove was ranked #18 most attended water park in North America (TEA/AECOM 2024 Report).
• Water Country USA was ranked #6 most attended water park in North America (TEA/AECOM 2024 Report).
• Adventure Island was ranked #8 most attended water park in North America (TEA/AECOM 2024 Report).
• Busch Gardens Williamsburg was named the 'World's Most Beautiful Amusement Park' for 35 consecutive years (National Amusement Park Historical Association, 2025).
• The company's stock price performance significantly underperformed the S&P 500 Index, S&P Midcap 400 Index, and S&P 400 Movies & Entertainment Index over the five years ended December 31, 2025.

Management Changes

Corporate Governance

Legal Proceedings

• Sesame Workshop Arbitration: Sesame Workshop initiated arbitration on June 27, 2022, asserting the company failed to pay an additional royalty payment for 2021. An arbitration award of approximately $12.6 million (royalties, interest, fees) was made to Sesame Workshop on May 22, 2023. The U.S. District Court for the Middle District of Florida confirmed the award on August 27, 2024, with final judgment entered on September 30, 2024. The full award was paid in Q4 2025.
• License Agreement Dispute with Sesame: The company delivered a notice to Sesame on September 9, 2025, asserting a breach of the License Agreement by Sesame for failing to maximize brand exposure. Sesame responded on November 25, 2025, alleging the company owes additional royalties and fees. Mediation is scheduled for March 12, 2026.
• Regulatory Scrutiny: The company is subject to ongoing audits, inspections, and investigations by various federal and state regulatory agencies, including APHIS, OSHA, Cal-OSHA, FWC, EEOC, IRS, DOJ, and SEC. Management does not expect these other matters to have a material adverse effect on the company's consolidated financial position, results of operations, or cash flows.

Related Party Transactions

• Hill Path Capital LP and its affiliates owned approximately 53.2% of the company's total outstanding common stock as of December 31, 2025, and have significant influence over management, business plans, and policies, including the appointment and removal of officers and director nominees.
• Scott Ross, founder of Hill Path, serves as Chairman of the Board and Chairman of the Compensation Committee, and also serves on the Nominating and Corporate Governance Committee and the Revenue Committee.
• James Chambers, a Partner at Hill Path, serves as Chairman of the Nominating and Corporate Governance Committee and also serves on the Compensation Committee and the Revenue Committee.
• Aayushi Dalal, a Managing Director at Hill Path, serves on the Board, with a one-time waiver granted to allow more than two Hill Path Designees to be affiliated with Hill Path.

Stakeholder Impact

• Shareholders: Decreased net income and stock price underperformance compared to market indices could negatively impact shareholder value. Hill Path Capital LP's significant ownership limits other shareholders' influence on corporate matters.
• Employees: Increased labor costs and unionization activities could impact compensation and working conditions. Staffing challenges and turnover could affect employee morale and workload.
• Customers/Guests: Decreased attendance and admission per capita suggest a potential decline in customer satisfaction or value perception. New attractions planned for 2026 aim to improve guest experience, but longer wait times due to staffing shortages could negatively impact satisfaction.
• Suppliers/Vendors: Supply chain delays and inflationary pressures could affect relationships and costs, particularly for merchandise and ride manufacturers.
• Creditors: The company's high leverage and compliance with debt covenants are critical for creditors. Any failure to meet obligations could impair liquidity.
• Regulatory Bodies: Ongoing scrutiny regarding animal welfare, labor laws, and cybersecurity necessitates significant compliance costs and attention.

Next Steps

• Opening of SEAQuest: Legends of the Deep at SeaWorld Orlando in 2026.
• Shark Encounter refresh at SeaWorld San Diego in 2026.
• Opening of Barracuda Strike at SeaWorld San Antonio in 2026.
• Opening of Lion & Hyena Ridge at Busch Gardens Tampa Bay in 2026.
• Opening of Verbolten Forbidden Turn at Busch Gardens Williamsburg in spring 2026.
• Mediation with Sesame Workshop scheduled for March 12, 2026, regarding alleged breach of License Agreement and royalty disputes.
• San Diego minimum wage for theme park employees to increase to $19.00 per hour on July 1, 2026, and further to $25.00 per hour by July 1, 2030.
• Florida minimum wage to increase to $15.00 per hour on September 30, 2026.
• Virginia state minimum wage to be adjusted annually for inflation starting January 1, 2025.
• Continued evaluation and assessment of other international development opportunities.
• Ongoing efforts to identify cost reductions and efficiency opportunities.
• Continued investment in cybersecurity and the resiliency of networks and enhancement of internal controls and processes.

Key Dates

Recommendation

The company faces significant headwinds with declining revenue, net income, and attendance, alongside rising operating costs and ongoing labor and regulatory challenges. While new attractions are planned for 2026 and in-park spending per capita showed a slight improvement, the overall financial performance for 2025 was weak. The substantial debt load and the underperformance of the stock relative to industry benchmarks suggest caution. However, the company's strong brand portfolio, zoological expertise, and commitment to capital investments for future growth provide a basis for holding, awaiting clearer signs of a turnaround in attendance and profitability. The concentration of ownership by Hill Path Capital LP also adds a layer of stability in governance but limits external influence.

Keywords

Theme Park, Entertainment, Resorts, SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, Animal Welfare, Zoological, Rides, Attractions, Financial Performance, Revenue, Net Income, Attendance, Capital Expenditures, Share Repurchase, Debt, SEC Filing, 10-K, United Parks & Resorts