Vail Resorts 2026 Q1 Earnings Wider Net Loss Despite 4.1% Revenue Growth

Vail Resorts (MTN) reported mixed Q1 2026 results on Dec 10, 2025, with revenue up 4.1% to $271.03 million but a net loss widening to $196.46 million. The company reaffirmed its 2026 guidance for $842M–$898M EBITDA and $201M–$276M net income, despite challenges in North American pass sales and rising costs.

Revenue

Total Resort net revenue reached $270.95 million, driven by robust performance in mountain operations, which generated $185.24 million in net revenue. Lift ticket sales contributed $49.64 million, while Ski School and Dining added $7.89 million and $19.79 million, respectively. Retail/Rental revenue stood at $30.79 million, and Lodging accounted for $85.71 million. The Real Estate segment reported $80,000 in net revenue.

Earnings/Net Income

The company’s losses deepened to $5.20 per share, reflecting a 12.6% wider loss year-over-year. Net income declined to -$196.46 million, a 8.0% deterioration from the prior year. The prolonged unprofitability, now spanning over 20 years, underscores persistent operational and cost pressures.

Post-Earnings Price Action Review

The strategy of buying Vail Resorts shares after a quarterly revenue drop and holding for 30 days yielded poor performance over the past three years, with a -15.76% CAGR and -39.97% total return versus a 67.96% benchmark. The approach, marked by a Sharpe ratio of -0.52, highlighted a risk-averse but underperforming profile, exacerbated by the stock’s 2.75% decline post-reporting.

CEO Commentary

CEO Rob Katz emphasized progress in marketing and pricing strategies, noting improved engagement from social and influencer channels. He highlighted the launch of Epic Friends tickets and advanced purchase discounts as tools to drive visitation and guest lifetime value. Katz acknowledged challenges in North American markets but expressed confidence in the Resource Efficiency Transformation Plan’s $38 million incremental savings for 2026.

Guidance

Management reiterated 2026 guidance, targeting $842M–$898M in Resort Reported EBITDA and $201M–$276M net income. The outlook balances price increases, ancillary revenue growth, and cost efficiencies against lower pass units and inflationary pressures. Capital spending is projected at $234M–$239M, including European resort upgrades.

Additional News

Vail announced the appointment of Celeste Burgoyne as Chief Revenue Officer, leveraging her 20-year Lululemon experience. The company also confirmed $2.22 per share dividend payments and $234M–$239M in 2026 capital investments, including European resort enhancements. Share repurchases of $25 million in November underscored continued confidence in long-term value.