United Parks 2025 Q2 Earnings Net Income Drops 12.1% Amid Revenue Decline

United Parks (PRKS) reported mixed results for its fiscal 2025 second quarter, with revenue declining slightly and net income falling sharply. The results reflect ongoing financial pressures, with no significant improvement in profitability year-over-year.

Revenue
Total revenue for the second quarter of 2025 fell by 1.5% to $490.21 million, compared to $497.59 million in the same period in 2024. Admissions revenue amounted to $255.74 million, while food, merchandise, and other revenue totaled $234.47 million, combining to meet the overall revenue figure.

Earnings/Net Income
Earnings per share (EPS) dipped marginally to $1.46 in 2025 Q2, a 0.7% decrease from $1.47 in 2024 Q2. However, net income saw a more pronounced decline, dropping 12.1% to $80.11 million from $91.12 million a year ago. This marked the 14th consecutive year of losses in the corresponding quarter, underscoring continued financial headwinds for the company.

Price Action
Following the earnings report, PRKS shares gained momentum, rising 10.10% during the latest trading day. Over the past week, the stock climbed 4.99%, and it edged up 1.22% month-to-date, showing short-term investor optimism despite the earnings challenges.

Post-Earnings Price Action Review
A post-earnings strategy of purchasing United Parks shares following a quarterly revenue increase and holding for 30 days yielded a compound annual growth rate (CAGR) of 8.71%, but it underperformed the broader market by 35.94%. The strategy exhibited a maximum drawdown of 0.00% and a Sharpe ratio of 0.22, indicating low volatility but modest returns.

CEO Commentary
Marc Swanson, CEO of United Parks & Resorts Inc., noted a 0.8% increase in second-quarter attendance, despite severe weather challenges. He highlighted stronger performance in international and group visits and expressed optimism about forward booking trends, particularly in the group business and Discovery Cove. Swanson also pointed to early ticket sales for “Howl O’ Scream” being ahead of previous years and emphasized the role of employees and special events in driving performance.

Guidance
The company expects stronger results in the second half of 2025, following a difficult first half. Forward booking trends for the remainder of the year and into 2026 suggest mid to high single-digit growth in group business and Discovery Cove. Swanson highlighted the potential for robust performance through seasonal events such as Halloween and Christmas celebrations, though no specific quantitative guidance was provided.

Additional News
Nigeria’s Punch Newspapers reported several key developments in the week following United Parks’ earnings. A notable story included the repatriation of former Zambian President Michael Sata’s body against his family’s wishes, as ruled by a court. In business news, Stanbic IBTC Bank announced that 148 customers had won a combined N23 million in its savings promotion. Additionally, the Nigerian Correctional Service conducted a major sweep, sacking 15 officers and demoting 59 in a move to address misconduct. Political developments included ex-Abia Deputy Governor Ude Oko-Chukwu resigning from the People’s Democratic Party (PDP), signaling potential shifts in party dynamics ahead of upcoming elections.