Pursuit Attractions & Hospitality: Balancing Growth and Challenges in Experiential Travel

Pursuit Attractions and Hospitality (NASDAQ: PRSU) reported its Q1 2025 results, revealing a Non-GAAP EPS of -$0.96 and revenue of $37.6 million. While the quarter showed marginal revenue growth and ongoing operational headwinds, management remains confident in its ability to capitalize on the experiential travel boom. This article examines the company’s financial performance, strategic priorities, and risks, providing investors with a roadmap to evaluate its investment potential.

Q1 2025: A Mixed Start

Pursuit’s revenue grew a modest 0.9% year-over-year, driven by higher ticket prices (+9%) and new assets like the Jasper SkyTram and Montana acquisitions. However, the weaker Canadian dollar shaved $1.3 million off revenue, highlighting currency risks. The net loss widened to $31.1 million, primarily due to the reclassification of the GES business as a discontinued operation in 2024.

On a non-GAAP basis, the adjusted net loss of $26.9 million reflected rising costs, including 25.3% higher SG&A expenses, tied to transaction costs from the GES sale and restructuring. Operating expenses fell 4.8% due to foreign exchange gains, but inflation and new business ramp-up costs constrained profitability.

Strategic Momentum: The “Refresh, Build, Buy” Playbook

Pursuit’s growth hinges on its “Refresh, Build, Buy” strategy, which is already yielding results:
1. Refresh: The ongoing $38–$43 million renovation of the Forest Park Hotel’s Woodland Wing aims to boost pricing power and guest experience in Jasper National Park.
2. Build: The Flyover Chicago (opened March 2024) and Jasper SkyTram (opened March 2025) are positioned to capture peak-season demand.
3. Buy: Tuck-in acquisitions in Montana (e.g., Eddie’s Cafe & Mercantile) expand regional market share and enhance lodging offerings.

Management emphasized strong advance bookings and a low-double-digit revenue growth target for 2025, supported by a $98–$108 million Adjusted EBITDA goal—up $21–$31 million from 2024.

Key Risks and Challenges

Despite its growth trajectory, Pursuit faces significant hurdles:
- Currency Headwinds: A ~$7 million EBITDA drag from the weaker Canadian dollar (assumed CAD/USD rate of 0.69) threatens margins.
- Cost Pressures: Inflation and labor shortages could strain SG&A and operational costs.
- Seasonality: Over 80% of revenue comes from the summer peak season, creating volatility.

The company’s $212 million liquidity (cash + undrawn credit facility) offers a buffer, but its debt load remains a concern. While net leverage is below 1x, capital-intensive projects like the Forest Park Hotel renovation require steady cash flow.

Investor Takeaways

Pursuit’s Q1 results are a reminder of the challenges in its highly seasonal, geographically concentrated business. However, its strategic investments in premium attractions and lodging—coupled with strong advance bookings—suggest a path to profitability in 2025. Key catalysts include:
- The full summer season performance of the Jasper SkyTram and Montana properties.
- Margin improvements from pricing power and cost controls.
- Currency stabilization or a stronger Canadian dollar.

Conclusion

Pursuit Attractions & Hospitality is navigating a tightrope between growth and risk. While its Q1 results were lackluster, the company’s long-term strategy—rooted in experiential travel and asset optimization—aligns with a secular trend favoring outdoor and premium hospitality experiences.

Investors should focus on execution in 2025: If the company meets its low-double-digit revenue growth and $108 million EBITDA targets, its stock could rebound. However, currency swings and operational execution remain critical variables. With $38–$43 million in growth CapEx planned for 2025, the next 12 months will test whether Pursuit can turn its attractions into engines of sustainable profit.

For now, the jury is out—but the view from the Jasper SkyTram is worth watching.