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PRKS Q2 Deep Dive: Orlando Attendance Resilience and Strategic Cost Controls Shape Outlook

By: StockStory

August 11, 2025 at 09:45 AM EDT

PRKS Cover Image

Theme park operator United Parks & Resorts (NYSE: PRKS) missed Wall Street’s revenue expectations in Q2 CY2025, with sales falling 1.5% year on year to $490.2 million. Its non-GAAP profit of $1.70 per share was 8.6% below analysts’ consensus estimates.

Is now the time to buy PRKS? Find out in our full research report (it’s free).

United Parks & Resorts (PRKS) Q2 CY2025 Highlights:

Revenue: $490.2 million vs analyst estimates of $500.7 million (1.5% year-on-year decline, 2.1% miss)
Adjusted EPS: $1.70 vs analyst expectations of $1.86 (8.6% miss)
Adjusted EBITDA: $206.3 million vs analyst estimates of $217.2 million (42.1% margin, 5% miss)
Operating Margin: 28.7%, down from 33% in the same quarter last year
Visitors: 6.23 million, in line with the same quarter last year
Market Capitalization: $2.68 billion

StockStory’s Take

United Parks & Resorts navigated a challenging second quarter, missing Wall Street’s revenue and profit expectations even as market reaction was positive. Management emphasized that severe weather was a significant headwind, requiring additional promotional activity and higher labor costs to sustain attendance. CEO Marc Swanson highlighted that, despite these obstacles, the company achieved year-over-year attendance growth at its Orlando properties, supported by targeted marketing and events, while non-Orlando locations faced steeper attendance challenges. Swanson acknowledged, “We are a little disappointed and probably could have and should have done a better job of proactively managing some of our park labor and operating expenses in the face of poor weather that impacted demand.”

For the remainder of the year, management is focused on operational improvements and leveraging a strong schedule of fall and winter events to drive both attendance and in-park spending. Swanson pointed to robust forward bookings in group and premium experiences, and early pass sales for 2026 as indicators of potential momentum. He also cited an accelerated cost reduction plan expected to cut up to $15 million in expenses in the second half of the year. Swanson stated, “We are focused, well positioned and confident in the investments we are making, the operational efficiencies we are realizing and the value we are building for stakeholders.”

Key Insights from Management’s Remarks

Management attributed Q2’s performance to Orlando market strength, aggressive promotional strategies amid poor weather, and opportunities for improvement in expense management and underperforming parks.

Orlando attendance outperformance: Despite the launch of a major competitor’s park (Epic Universe), SeaWorld Orlando reported increased attendance, benefiting from targeted marketing and a robust slate of seasonal events.
Promotional activity impacts per-capita metrics: Weather-driven promotions led to lower admissions per guest and slightly reduced in-park spending, as the company prioritized total revenue and attendance over price per customer.
Expense management shortfalls: Higher operating expenses, particularly in labor, reflected delayed cost adjustments in response to volatile demand. Management admitted opportunities were missed to react more quickly to evolving conditions.
Pass base and deferred revenue dynamics: The passholder base declined 3% year-over-year, contributing to a lower deferred revenue balance, though improvements in July and early 2026 pass launches offer some recovery potential.
Non-Orlando park challenges: Attendance at other regional parks, especially Busch Gardens Tampa, remained soft, with management citing limited brand awareness and persistent weather disruptions as ongoing headwinds.

Drivers of Future Performance

United Parks & Resorts’ outlook is centered on driving attendance through seasonal events, improving cost controls, and capitalizing on forward-booking momentum.

Event-driven attendance growth: Management expects Halloween and Christmas events to attract higher visitation and in-park spending, with Howl-O-Scream ticket sales already trending ahead of last year and Discovery Cove on pace for strong attendance.
Cost reduction initiatives: A new cost-saving program aims to reduce second-half expenses by up to $15 million, with management emphasizing more proactive labor and operating cost management in response to demand shifts.
International and real estate opportunities: The company is pursuing international partnerships, with two memoranda of understanding (MOUs) expected by year-end, and exploring hotel ventures and monetization of undeveloped land to diversify revenue.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will closely watch (1) attendance and spending trends during the Halloween and Christmas event seasons, (2) the effectiveness of newly implemented cost control measures, and (3) progress on international partnership agreements and hotel projects. Additionally, we will monitor the passholder base trajectory and the success of new product and event launches as indicators of longer-term growth and margin improvement.

United Parks & Resorts currently trades at $49.41, up from $46.19 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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