Vail Resorts 2026 Q1 Earnings Widening Losses Amid Revenue Growth

Vail Resorts (MTN) reported mixed results for Q1 2026, with revenue rising 4.1% year-over-year but losses expanding. The company reaffirmed its full-year guidance despite underperforming pass sales in key markets.

Revenue

Total revenue for Q1 2026 climbed to $271.03 million, driven by a 4% year-over-year increase in resort net revenue. The Mountain segment led with $185.24 million in net revenue, supported by $49.64 million in lift ticket sales and $30.79 million in retail/rental. Dining and ski school contributed $19.79 million and $7.89 million, respectively, while lodging added $85.71 million. Real estate revenue remained minimal at $80,000. The diversified revenue streams underscored improved visitation, particularly in Australia, but North American pass sales lagged in core markets like Colorado and Tahoe.

Earnings/Net Income

The company’s losses deepened to $5.20 per share in Q1 2026, a 12.6% wider loss compared to $4.62 per share in Q1 2025. Net loss expanded to $196.46 million, up 8.0% from $181.96 million in the prior year. This marks the 21st consecutive quarterly loss in the same period, highlighting persistent operational challenges. The EPS decline reflects elevated marketing and transformation costs, despite higher pricing and ancillary revenue capture.

Post-Earnings Price Action Review

The strategy of buying Vail Resorts shares after a quarterly revenue drop on the financial report release date and holding for 30 days resulted in poor performance over the past three years. The strategy’s CAGR was -15.76%, with a total return of -39.97% compared to a benchmark return of 67.96%. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of -0.52, indicating a risk-averse but poorly performing strategy.

CEO Commentary

CEO Rob Katz acknowledged Q1 2026 challenges, including a $5.20 non-GAAP loss per share and $271.03 million in total revenue. He emphasized marketing shifts to social and influencer channels, new ticketing initiatives like Epic Friends discounts, and dynamic pricing strategies to boost off-peak visitation. Katz highlighted progress in Australia and the appointment of Celeste Burgoyne as Chief Revenue Officer, signaling long-term growth focus.

Guidance

Vail Resorts reiterated its FY2026 guidance, projecting net income of $201 million to $276 million and Resort Reported EBITDA of $842 million to $898 million. The outlook assumes $38 million in incremental savings from its Resource Efficiency Transformation plan, offset by lower pass units and inflation. Capital spending is expected to reach $234 million to $239 million, including European resort investments and infrastructure upgrades.

Additional News

1. C-Level Changes: Vail Resorts announced Celeste Burgoyne, former Lululemon executive, as Chief Revenue Officer, effective Q1 2026. Her expertise in consumer engagement is expected to bolster marketing and ticketing strategies.

2. Dividend/Buyback: The company declared a $2.22 per share quarterly dividend and repurchased $25 million worth of shares in November, signaling confidence in long-term value despite short-term losses.

3. Capital Plan: Vail unveiled a $215 million to $220 million core capital investment plan for 2026, targeting lift upgrades, dining enhancements, and the new luxury Kindred hotel project at Keystone.