PRKS Plunges 24.77% as Q3 Earnings Miss and Operational Inefficiencies Weigh

The share price dropped to a record low so far this month, with an intraday decline of 24.77%.

United Parks & Resorts (PRKS) posted a Q3 2025 earnings miss, with revenue falling 6.2% year-over-year to $511.9 million, missing estimates by $27.9 million. Attendance declined by 240,000 visitors, driven by unfavorable calendar shifts, poor weather during peak seasons, and reduced international travel. Management acknowledged operational inefficiencies and guest dissatisfaction, including high fees and inconsistent park maintenance, as contributing factors. The company’s adjusted EBITDA of $216.3 million underperformed by 14.2%, while operating margins contracted to 29.6% from 36.8% in the prior year.

The stock’s sharp decline reflects broader sector risks, including sensitivity to global trade tensions and shifting consumer spending. Despite a 23.8% five-year CAGR, the company has seen annualized revenue declines of 1.6% in the past two years. Recent strategic moves, including $32.2 million in share repurchases and potential real estate sales, aim to address liquidity but risk long-term growth. Analysts remain divided, with some viewing the 37.6% year-to-date drop as an overreaction, while critics highlight structural challenges in capital allocation and guest experience. The sector’s exposure to macroeconomic uncertainty underscores the need for proactive management to restore investor confidence.