"United Parks & Resorts" Q2 2026 Earnings Call - Real Estate Monetization and Aggressive Buybacks Highlight Deep Undervaluation

Conference Call Operator: Hello, and welcome to the United Parks & Resorts second quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star one on your telephone keypad. If you would like to withdraw your question, simply press star one again. I’ll now turn the conference over to Matthew Stroud in investor relations. Please go ahead.

Matthew Stroud, Vice President, Investor Relations, United Parks & Resorts: Thank you. Good morning, everyone. Welcome to United Parks & Resorts second quarter earnings conference call. Today’s call is being webcast and recorded. A press release was issued this morning and is available on our investor relations website at unitedparks.com/investors. Replay information for this call can be found in the press release and will be available on our website following the call. Joining me this morning are Marc Swanson, Chief Executive Officer, and Jim Forrester, Interim Chief Financial Officer and Treasurer. This morning, we will review our second quarter financial results. Then we will open the call to your questions. Before we begin, I would like to remind everyone that our comments today will contain forward-looking statements within the meaning of the federal securities laws.

These statements are subject to a number of risks and uncertainties that could cause actual results to be materially different from those forward-looking statements, including those identified in the Risk Factors section of our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. These risk factors may be updated from time to time and will be included in our filings with the SEC that are available on our website. We undertake no obligation to update any forward-looking statements. In addition, on the call, we may reference non-GAAP financial measures and other financial metrics such as adjusted EBITDA and free cash flow. More information regarding our forward-looking statements and reconciliations of non-GAAP measures to the most comparable GAAP measure is included in our earnings release available on our website and can also be found in our filings with the SEC.

I’d like to turn the call over to our Chief Executive Officer, Marc Swanson. Marc?

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Thank you, Matthew. Good morning, everyone, and thank you for joining us. We are pleased with the continued progress we are making across certain initiatives. Results in the second quarter were impacted, as expected, by the shift in the timing of Easter. The earlier holiday meant fewer holiday days in Q2 compared to the prior year quarter, and a continued decline in international visitation. Adjusting for these impacts, attendance would have been flat for the quarter. We delivered another quarter of growth in total revenue per capita, driven by continued strong in-park execution. During the quarter, we again grew in-park per capita spending to a record for the quarter. Looking ahead, we continue to see strength in our forward indicators for Discovery Cove and our group business, with advanced bookings revenue for both up double digits versus prior year.

We continued to repurchase shares in the second quarter, buying approximately 3.3 million shares for nearly $125 million. These buybacks emphasize our strong cash flow generation, our long-standing commitment to returning excess cash to our shareholders, and our belief that our shares are materially undervalued. While we faced first half headwinds across international visitation, weather impacts, and holiday shifts, we are fully focused on executing against our strategic priorities and driving growth in revenue, adjusted EBITDA, and total shareholder value. Our exciting summer event lineup continues for the next several weeks as we close out the season with Red, White & BBQ at SeaWorld Orlando and SeaWorld San Antonio, Summer Spectacular at SeaWorld San Diego, and Bier Fest Brews, Barbecue at both Busch Gardens Tampa Bay and Busch Gardens Williamsburg.

In September, we will kick off our award-winning Halloween events, which will run through October, followed by our Christmas celebrations in November and December. These seasonal offerings continue to resonate with our guests, and we are excited to introduce new intellectual property elements to our Howl-O-Scream event, something we have done very little of historically, but believe represents a significant opportunity for the business. This year, we have partnered with Sony Pictures to introduce popular horror films, "I Know What You Did Last Summer" and "Anaconda," to our Howl-O-Scream lineup at our SeaWorld and Busch Gardens parks, respectively. Early forward booking ticket sales for our Howl-O-Scream events are already running ahead of last year’s across our parks. I want to thank all of our ambassadors for their hard work and dedicated efforts to produce these events and deliver memorable guest experiences.

Before I move to some updates on strategic initiatives, let me briefly provide an update on July performance. As you all likely know, the weather in July was pretty tough across the country, including in some of our markets, including wildfires and related air quality issues, excessive heat, untimely and extended rain. We had a little bit of everything. This poor weather, not surprisingly, impacted our attendance in the month. Fortunately, though, we saw good admissions and in-park per capita growth during the month. Our preliminary view has revenue being down approximately 2% in the month of July. We have a little more than half the quarter ahead of ourselves, and amongst other things, are looking forward to hopefully more normalized weather. Now, let me give a brief update on just some of our strategic initiatives.

On real estate, we are happy to have received significant interest from serious parties to acquire some or most of our real estate. We have been actively engaged with these parties over the past months to clarify and negotiate terms that can meet our requirements. While we don’t want to share too much, as we are in current discussions, I can tell you that the valuation being offered for our real estate compares very favorably to the valuation the public equity markets assign to our enterprise. When and if we transact with one or more of these counterparties will be determined by the ultimate terms we negotiate. Our view of the future value of the business as currently situated, general market conditions, and other relevant factors.

A key takeaway from this exercise to date is that multiple, highly credible third parties assign significant value to our real estate that we do not believe is currently reflected in the public market price of our common equity. On sponsorships, based on our current pipeline, we still expect to realize over $15 million in sponsorship revenue in 2026. As previously discussed, we expect this business to be at least a $30 million line of business in the coming years. We are very excited for this opportunity. On international, we have continued discussions with multiple partners, and we expect to be able to share more in the coming quarters. On IP partnerships, we recently announced a partnership with Sony Pictures to bring two of their horror IPs to our Halloween events across our parks.

We are in multiple active discussions to bring additional compelling and well-recognized IP into our parks in innovative and exciting ways. We expect to have more to share related to these opportunities in 2027 and beyond. On marketing, as we’ve previously communicated, we have had less than stellar execution in our marketing activities this year. It’s an area that has been, frankly, quite frustrating. We are evolving our strategy, our partners, and our teams. We are making investments to reach new and incremental audiences, and to provide more compelling visuals and messaging and related awareness. There’s more work to do, but we are confident the changes we are making will help strengthen how we communicate and position us to engage a broader audience more effectively.

On cost, we continue to be on pace to achieve our $50 million gross cost savings target for 2026, and we are actively working on our 2027 objectives. Regarding capital allocation, as we’ve discussed in the past, our strong balance sheet provides us with the flexibility to allocate capital to maximize the long-term value of our enterprise. Our board is focused on maximizing long-term value for shareholders and will act dynamically with that objective as opportunities are presented. Let me briefly comment on our balance sheet. As of June 30th, 2026, we had approximately $658 million of total available liquidity, including approximately $19 million of cash on the balance sheet as we head into the peak of our summer season, where we generate a significant amount of our cash flow.

This strong balance sheet gives us flexibility to continue to invest in and grow our business, and to opportunistically allocate capital with the goal to maximize long-term value for shareholders. During the second quarter, we repurchased 3.3 million shares for an aggregate total of approximately $125 million. I’m excited about the opportunities we see ahead, the significant investments we are making, and the many initiatives we have underway across our business that we expect will improve the guest experience, allow us to generate more revenue, and make us a more efficient and more profitable enterprise. We are building an even stronger and more resilient business that we are confident will deliver improved operational and financial results and increases in value for our stakeholders. With that, Jim will discuss our financial results in more detail. Jim?

Jim Forrester, Interim Chief Financial Officer and Treasurer, United Parks & Resorts: Thank you, Mark. During the second quarter, we generated total revenue of $483.3 million, a decrease of $6.9 million, or 1.4% when compared to the second quarter of 2025. The decrease in total revenue compared to the second quarter of 2025 was primarily a result of a decrease in attendance, partially offset by an increase in total revenue per capita. Attendance for the second quarter of 2026 decreased by approximately 179,000 guests, or 2.9% when compared to the prior year quarter. The decrease in attendance was primarily due to an unfavorable calendar shift, including the timing of the Easter holiday and a decrease in international visitation compared to the same prior year quarter. Adjusting for these impacts, attendance would have been flat for the quarter. In the second quarter of 2026, total revenue per capita increased 1.5%. Admission per capita decreased 1.8%, and in-park per capita spending increased 5.1%.

Admission per capita decreased primarily due to the net impact of the admissions product mix when compared to the same prior year quarter. In-park per capita spending increased primarily due to higher penetration and the impact of pricing initiatives compared to the same prior year quarter. Operating expenses increased $10.9 million, or 5.3%, when compared to the second quarter of 2025. Selling, general, and administrative expenses increased $2.2 million, or 3.4%, compared to the second quarter of 2025. We reported net income of $63.3 million for the second quarter compared to net income of $80.1 million in the second quarter of 2025. We generated adjusted EBITDA of $195.5 million, a decrease of $10.8 million when compared to the second quarter of 2025. Looking at our results for the first half of 2026 compared to 2025, total revenue was $761.6 million, a decrease of $15.5 million or 2%.

Total attendance was 9.3 million guests, a decrease of approximately 350,000 guests or 3.6%. Net income for the period was $29.2 million, a decrease of $34.8 million, and adjusted EBITDA was $253.4 million, a decrease of $20.3 million. Turning to our balance sheet. As of June 30th, 2026, we had approximately $658 million of total available liquidity, including approximately $19 million of cash on the balance sheet. The strong balance sheet gives us flexibility to continue to invest in and grow our business and to opportunistically allocate capital with a goal to maximize long-term value for our shareholders. During the second quarter, we repurchased 3.3 million shares for an aggregate total of approximately $125 million. For the first half of the year, we bought back approximately 5.9 million shares or 12.1% of total shares outstanding for approximately $217.7 million.

Our deferred revenue balance as of the end of June was $211.9 million. Deferred revenue increased approximately 2% when compared to June of 2025. Our deferred revenue balance contains a number of products that include ticketing, vacation packages, annual and seasonal passes, and ancillary products. We also continue to see many pass holders who have been with us for at least a year who transitioned to month-to-month payments at the completion of their initial pass commitment. This month-to-month revenue does not show up as deferred revenue, but demonstrates continued pass holder loyalty. Through June 2026, our paid pass base was down 1% compared to June 2025. We are now starting to launch our pass product for 2027, which will include our best benefits ever.

We have a new dedicated team, a new strategy, an approach to pass that we expect will lead to a meaningful increase in pass base for 2027 and beyond. We have spent approximately $68.6 million on CapEx in the second quarter of 2026, of which approximately $65.3 million was on core CapEx and approximately $3.2 million was on expansion or ROI projects. For 2026, we expect to spend approximately $180 million to $190 million on core CapEx and approximately $75 million to $85 million of CapEx on growth and ROI projects. Let me turn the call back over to Marc, who will share some final thoughts. Marc?

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Thank you, Jim. Before we open the call to your questions, I have some closing comments. In the second quarter of 2026, we came to the aid of 331 animals in need. Over our history, we have helped over 43,000 animals, including bottlenose dolphins, manatees, sea lions, seals, sea turtles, sharks, birds, and more. Just a few weeks ago, our animal care experts from SeaWorld helped lead an important and inspirational international effort to rescue beluga whales from Marineland of Canada. SeaWorld San Antonio received the first of these beluga whales rescued from Marineland of Canada, and they, along with SeaWorld San Diego, are set to receive more whales as part of the ongoing multi-facility collaboration and rescue effort. I am really proud of the team’s hard work and their continued dedication to these important rescue efforts.

Moving forward, our focus remains on building an even more resilient business, driving guest engagement, and delivering meaningful value to our stakeholders. Our growth strategy centers on several key initiatives, including a compelling lineup of new rides and attractions, alongside an updated and evolving events calendar, infrastructure upgrades such as improving and modernizing our food and retail locations to enhance on-site spending, and finally, a tailored marketing program to increase awareness, engagement, and visitation. We operate in a growing industry with a favorable competitive structure. Backed by our irreplaceable brands, strong business model, and well-capitalized assets, we are confident in the substantial opportunities ahead to create long-term shareholder value. With that, we can now take your questions.

Conference Call Operator: Thank you. If you have a question, please press star one on your telephone keypad. If you wish to remove yourself from the queue, simply press star one again. We do ask that you please restrict yourself to one question and one follow-up and queue back up for any additional follow-ups. One moment please for your first question. Your first question comes from the line of Steven Wieczynski of Stifel. Your line is open

Steven Wieczynski, Analyst, Stifel: Yeah. Hey, guys. Good morning. Marc, I guess this is probably going to be kind of the same question I asked you guys three months ago. At this point, I’m probably a little bit surprised you guys think you can still grow EBITDA this year, given what you’ve produced so far in the first half, coupled with your comments around July and how that didn’t turn out to be the way you wanted it to, just due to wildfires and weather and stuff like that. With international visitation still kind of below ideal levels as well, it seems to us like you would need to kind of have really almost perfect weather between now and year-end to beat last year’s EBITDA base. Am I way off on that thinking, or are there other factors we aren’t properly accounting for at this point?

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Yeah. Hey, Steve. I can help you with the question. I think what we were trying to point out is from here going forward, we like to set up to be able to grow the business. Whether that growth will be enough to offset the revenue and the EBITDA decline year to date, we’ll have to see. I wasn’t necessarily saying we’re going to grow this year, like for the full year. I think what we’re saying is we expect to grow the business kind of these next five months going forward, and we’ll have to see where that ends up for the full year. Hopefully, that’s a little bit of a clarification for you.

In general, just to talk about growth for a minute, I think what gives us confidence that we can grow in these next five months, really is the lineup of things we’ve got coming up in the parks with our Halloween and Christmas products. We’re really excited to be introducing the new IP at Howl-O-Scream supported by Sony Pictures with "I Know What You Did Last Summer" and "Anaconda." That’s something we’ve not historically done, and we’re excited potentially the opportunity there to grow that event more. So far when we look at the combined ticket sales for that event, it looks good. It’s still a ways to go, obviously. Then our per cap growth and in-park has been strong, and I expect that’ll continue to be strong going forward.

Our preliminary view on July, it looks like admissions per cap moved into the positive territory, I’m optimistic we can see that in a better place as well. I think we’ve done a reasonably good job of managing our EBITDA cost over the year. Putting all that together, that provides the backdrop to how I think we can achieve some growth here in these next several months. Obviously, if we can get some sort of better weather, that would be great. We’ll have to see. I don’t control the weather, obviously, but that would be helpful as well as you know. Hopefully, that provides you some more color on your question.

Steven Wieczynski, Analyst, Stifel: Yeah. Exactly. To summarize that, you’re basically saying you might not be able to grow off the 2025 EBITDA base, but the back half of the year, you’re kind of expecting growth relative to Q3 and Q4 2025. Is that kind of the right way to think about it?

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Yeah, I think that’s the right way to think about it. I gave you a little bit of color on July with the revenue down. It’s a preliminary number, right? I don’t have an EBITDA number. We have a revenue number that was down about 2%. That may move around a little bit maybe. I think we’re comfortable saying 2%. We’ve got to grow now in August and September, to see if we can offset that, and then we’d have to grow in Q4 as well. I think what I want to stress is the per cap growth is helping to offset, obviously, some of the attendance declines. That’s something we have not had as much lately.

Steven Wieczynski, Analyst, Stifel: Yeah. That was my second question. You kind of touched on it a little bit, Marc, but it sounds like the admission per cap, you said turned positive for July. I guess, as we think about that over the next couple of months, over the next two quarters or so, maybe wondering if you could give a little more color about how you’re kind of thinking that admission per cap line should look, given you start to come off of pretty easy year-over-year comparisons.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: I think a couple of things. One, you’re right. I mean, the comparison going forward should be something that we can manage better against than last year, obviously. Look, we like the pricing environment as far as opportunities to grow price. As you know, we’re always focused on driving total revenue, so there may be times we do things that are at odds with per capita. We like the total revenue play. In general, as we think about the business over a period of time, we like the pricing opportunities. I think that’s strengthened even more so moving into Halloween and Christmas, which are both popular programs with our guests.

Having the new IP in the parks, I think gives you another reason to be able to hopefully drive more pricing for Howl-O-Scream as well, because you have something new to be able to talk about, and people generally are okay paying more for new things that are well done. There’s an element of that as well. The thing I want to point out on the admissions per cap, though, for Q2, is we did have a higher percentage of our attendance was from pass holders than last year. Just as you know from covering the business for so long, if you have a greater mix of pass holders, that generally just naturally puts a little bit of tension on your admissions per cap. Controlling for that could influence things going forward one way or the other.

We’d rather have more pass visits than less, obviously, so.

Steven Wieczynski, Analyst, Stifel: Okay. Thanks, Marc. Really appreciate the color.

Conference Call Operator: Your next question comes from the line of Arpine Kocharyan of UBS. Your line is open.

Arpine Kocharyan, Analyst, UBS: Hi. Good morning. Thanks very much for taking my question. I was hoping you could give a little bit more detail on the cadence of the quarter. It seems like we knew before today that April was obviously down with the calendar shift. I’m calculating that international maybe drove like 1.5% of decline for the quarter. Does that mean that May and June were up in visitation, in attendance? Just one quick follow-up. Did any sponsorship revenue help admissions and revenue per cap this quarter? If so, can you quantify it really quickly? I have a quick follow-up. Thanks.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Yeah. As far as the cadence on attendance, I think you’ve pointed out appropriately that the bulk of the decline was in April. You had, obviously, some additional negative in the two months of May and June combined. The biggest piece was in April. That was mainly, as we noted, the Easter shift. The international drag, if you will, kind of occurs throughout all three months. Hopefully that’s helpful. As far as the sponsorship revenue, if any of that is in admissions per cap, I think.

Jim Forrester, Interim Chief Financial Officer and Treasurer, United Parks & Resorts: Yeah, there’s some. I would say it’s a ramp-up. We’ve entered into some new agreements that will have more impact as the year progresses. There was some in the quarter, but not material.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: I think she’s asking was it in the admissions per cap, right?

Jim Forrester, Interim Chief Financial Officer and Treasurer, United Parks & Resorts: Right. There is some in there, it will grow over time as some of our sponsors purchase some of our tickets for use.

Arpine Kocharyan, Analyst, UBS: Okay. Great. That’s helpful. I’m so sorry for three questions. I just have one quick follow-up. Add backs to EBITDA were quite sizable this quarter, I think three x year-over-year, to be exact. What is in those buckets? It seems like it’s recurring every quarter and not subsiding. Why did it accelerate so much this quarter?

Jim Forrester, Interim Chief Financial Officer and Treasurer, United Parks & Resorts: Yeah. I would say the biggest driver we had, and I think we mentioned this in our last earnings call, was the historic freeze in the Florida markets drove a significant amount of damage to our properties in Orlando, specifically in Tampa. We’ve had to do a lot of replacements of materials, plant materials and equipment, and repairs for that period of time. We’ve also engaged in a number of strategic initiatives that have support, that are one-time in nature. On some of them, we have our continued amortization, non-cash of our SAP implementation from last quarter.

Arpine Kocharyan, Analyst, UBS: Thank you very much.

Conference Call Operator: Your next question comes from the line of Ben Chaiken of Mizuho. Your line is open.

Ben Chaiken, Analyst, Mizuho: Think about deferred revenue. It’s up or the implications of deferred revenue rather, which is up for the first half of the year, for the first time in a few years, juxtaposed against first half revenue that’s down. Does that kind of suggest some type of pent-up revenue you should get in 2H, or is there some timing dynamic I’m missing? Related to this, I guess somewhat, I think I caught you say that you have a new dedicated pass team, and you suggested 27 passes should be up meaningfully. Can you just expand on that or maybe the rationale? Thanks.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Yeah. Your question on deferred revenue, it’s kind of how I think about it as well, what I think you described as if your deferred revenue is up, but your attendance is down, it would kind of imply you got a higher price on things. Keep in mind, our deferred revenue bucket has a lot of things in it. There’s all sorts of things in there, but the fact that it’s positive is a good sign to your point, and will only help with revenue and the admissions per capita on a go-forward basis. As far as the pass question, look, pass is an important part of our business, right? It’s about 40% of our attendance or so across the company comes on some sort of pass. I think we recognized you got to build a really solid team around that.

People that kind of live and breathe pass every day of the week. We’ve beefed that up. We’ve hired some new people that I think are doing a relatively good job. We’re going to be kicking off, as Jim noted, that process for 2027 starts kind of now, and starts to ramp up. The first big milestone is really around Black Friday. We start to sell passes now for next year, but we sell them year-round, and kind of the peak selling season is really spring into summer. We’re launching for next year. We’re excited about the benefits and the attractions we’re going to have to support those and the events and things like that. We’re excited about the opportunity to grow an important part of our business.

Ben Chaiken, Analyst, Mizuho: Okay. Maybe just a quick one on the July results. It sounds like attendance down, but per caps higher with both admissions and in-park higher. I guess, what are you seeing on the per cap side that’s not translating to attendance? I guess simplistically, you would think that if both your admission and in-park is higher, that would lead to attendance being higher as well, directionally. Maybe the answer is just weather and the items you referenced. How do you think about those variables? Thanks.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Yeah. There’s a lot of factors. I don’t know that I can point to any one thing. I think the good news is what you alluded to, that the people that are coming, or at least in July and even before that on in-park, they’re spending money in the park. We’ve been able to grow in-park again here in the second quarter. It’s up in July as well. I like that backdrop, and we’ll continue to try to drive more guests, obviously. Certainly, weather’s an impact. There’s always different factors, but weather was certainly one in July that I think certainly you guys have already kind of telegraphed and written about. We like the setup we’re seeing on the per caps.

Ben Chaiken, Analyst, Mizuho: Appreciate it. Thank you.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Sure.

Conference Call Operator: Your next question comes the line of James Hardiman of Citi. Your line is open.

James Hardiman, Analyst, Citi: Hey, good morning. Thanks for taking my question. I wanted to circle back to sort of the two call-outs, right? Easter and international, I guess pretty flattish ex those impacts. I guess help me understand the Easter shift. I just assumed that it was a shift from 2Q into 1Q, There’s some discussion that it was a negative for the first half of the year. Maybe first help me sort of understand that, then on the international side, I guess thoughts on when you think that piece may ultimately begin to improve. Is that something we should be thinking about your business ex the international business because they’re sort of temporary pressures?

Maybe it might help to think about that, is that sort of a macro U.S. or Orlando issue or more of a sort of SeaWorld issue, you guys aren’t sort of keeping your fair share of the international customers that come to town. Thanks.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Sure. I can try to help you on both those, and Jim can add anything he’d like. On Easter, the way we think about it, typically kind of the nine days before the actual Easter holiday, which was April 5th this year. If you back up to March 28th, that kind of starts like one of the big peak Easter weeks, starts kind of that Saturday. The 28th, 29th, 30th, and 31st were in Q1 this year. Last year with Easter being on, I think it was April 20th, all those days were in Q2. We lost those four days, which are pretty meaningful days, obviously, to lose. That drove kind of the impact for the quarter. As far as, I think your next question on kind of international.

Where we started to see the fall off was really this time last year, kind of more the second half of the year. Others I think have talked about this. Most of our international attendance is in the state of Florida, there’s obviously things I’m sure we can be doing better, but I think there’s obviously a big component that is more macro-related. When that flames, I’m not for certain, but until then, we’ve got to do a better job of filling that gap with other attendance and then when international does rebound, make sure we’re getting our share of it. Just to be clear, I like our setup in Orlando, and I’m confident that when international comes back, we will be in a position to, like we’ve done for over 50 years here, share in any sort of rebound in international.

James Hardiman, Analyst, Citi: Got it. That’s helpful. There were some very specific remarks as part of the prepared remarks on the real estate piece, the idea that there are parties that are interested in acquiring, I think you said some or most of your real estate. I guess I’m curious, I don’t know how much more you can add to that, probably not much, but curious what’s on the table here. Are we talking sort of the sale of unused or undeveloped land, or is the idea of a broader sort of REIT spin-off, prop co-op co actually on the table as you talk to some of these interested parties? Thanks.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Yeah, James. I’ll try to share what I can. I want to be sensitive to just the fact that we’re kind of, as I said in my prepared remarks, we don’t want to share too much, obviously. We did try to give you guys some more color, but I think what you could have there is anything from one property to multiple properties, and we’ve heard from people who like the idea of something along that spectrum. Maybe you sell one to demonstrate the value. Maybe you sell multiple ones if you can get a really strong value. I think the point we are making is there could be multiple ways to think about it, and that’s probably all we can share now.

What I was trying to emphasize in the remarks is that there are people out there, names you would recognize, who recognize the value of our real estate, and that doesn’t seem to translate to the public equity value. The valuation they’re ascribing to our real estate, or how to think about our real estate, it compares very favorably, I guess, to the public market value of our stock. If nothing else, even if we don’t do anything, and who knows if we will do anything, there’s no guarantee, obviously. The good part of this exercise is that there are people who are now recognizing the value of our real estate, but we’d like to see more of that transfer over, obviously, to our stock price.

James Hardiman, Analyst, Citi: That’s helpful. Thank you.

Conference Call Operator: Your next question comes from the line of Patrick Scholes of Truist Securities. Your line is open.

Patrick Scholes, Analyst, Truist Securities: Hi. Good morning. Thank you. First question, unless I missed it, I didn’t hear or see in the press release that 3Q saw continued share repurchases. I know the last couple of quarters you’ve called out that share repurchases continued after the most recent quarter. Question is, have they continued into 3Q? Thank you.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Yeah. I’m not going to comment on the third quarter. If we do anything in the third quarter, it’ll be in the third quarter press release.

Patrick Scholes, Analyst, Truist Securities: Okay. Shifting gears here regarding the comments on international. Do you think you lost some international visitation due to the World Cup? Specifically Orlando not holding World Cup, San Diego not World Cup, Tampa not World Cup. I’d have to just theoretically think if I was from England or Argentina, coming to the U.S., going to a game, or even staying home watching games probably is a priority than visiting theme parks. What are your thoughts on sort of that theory and as it relates to June and July visitation? Thank you.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Yeah. I think it’s great that the U.S. hosted the World Cup, obviously, and did a really good job with that. I don’t think we saw, to your point, more people visiting our parks because of that. To your point, did people decide to spend their money going to the soccer games in other cities instead of Orlando? I’m sure that’s a very good possibility, because we did not see an improvement in international visitation from those people being at soccer games.

Patrick Scholes, Analyst, Truist Securities: Okay. I’m all set. Thank you.

Conference Call Operator: Your next question comes from the line of Jordan Bender of Citizens. Your line is open.

Jordan Bender, Analyst, Citizens: Everyone, morning and thanks for the question. In-park spending continues to be a bright spot. We’ve touched on a few times on the call, but maybe just to kind of opine there a little bit. Are you seeing consumers trading up in higher value offerings? Is it growth being driven by the mix in guest spending? Is it purely just pricing initiatives? Any color there would be helpful. Thank you.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Yeah, Jordan, I can help you. Look, I think it’s a multiple of things that we’re executing well on. Certainly, you got things around pricing, penetration, new facilities. We talk a lot about investing in the business with capital to upgrade parts of our parks, whether it’s retail or culinary locations or other things that people frankly spend money on. I think that is showing through as well. I don’t think there’s one singular thing. We’ve got a good team leading that group, and I think they’re doing a good job of executing on some different things. Probably a lot of things just working well now.

Jim Forrester, Interim Chief Financial Officer and Treasurer, United Parks & Resorts: Yeah, the only thing I might add, Marc, is we continue to, as you mentioned, invest in technology and some of the things that we have delivered, like our self-order kiosks for food and beverage, has shown significant improvement in our operation, as well as our strategies on things like our photo business and our continued drive on our catering events, I think are all coming into play to really improve that in-park per cap.

Jordan Bender, Analyst, Citizens: Great. Thank you. My follow-up maybe actually is related to that. I believe your expansion or ROI CapEx budget for 2026 went up this quarter. Is that a function of timing, like a pull forward from 2027, or is there a kind of incremental spend that you guys just layered in for the year? Thank you.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Let me start, then Jim can add some things. One of the things I think is important to get across is our board, and you obviously know We’re significantly owned by private equity firm Hillpath, and they have three board seats and exercise a lot of involvement in the company, and tremendously involved, obviously. One of the things they and others on the board encourage us to do is when we have high conviction ROI projects, whether it’s revenue generating or cost savings opportunities, to bring those forward for discussion. If they make sense and we can demonstrate the return, we will pull the trigger on those type of things. I think what you’re seeing is the spirit of that, where we have opportunities to return either expense savings or revenue opportunities with additional CapEx.

They’re supportive of that, and that’s what you’re seeing for the most part. Jim can add anything there as well.

Jim Forrester, Interim Chief Financial Officer and Treasurer, United Parks & Resorts: We have a variety of attractions, and sometimes there’s timing of those that we have to have going all the way out to 2029 and beyond, that sometimes we have to think about when we make those investments and deposits. Primarily, as Marc mentioned, our biggest focus, as you saw, was the large increase in ROI capital that the board provided us on. That’s going to take and address things like eliminating many of our lease costs that we have been incurring for equipment we could purchase. The House of Dream IP that Marc mentioned in his remarks, there’s some investment there. Most importantly, the engine to continue to fuel that in-park revenue growth. We’ve got a variety of technology and in-park improvements that will continue to improve our per capita on the in-park side.

Jordan Bender, Analyst, Citizens: Great. Thank you very much.

Conference Call Operator: If you have a question, please press star one on your telephone keypad. Your next question comes from the line of Chris Woronka of Deutsche Bank. Your line is open.

Chris Woronka, Analyst, Deutsche Bank: Hey, good morning, guys. Thanks for the questions. Marc, I know you mentioned back earlier in the prepared comments about marketing mis-execution. I’m curious as to whether you could share with us what steps you’ve taken to remedy that, if you’ve brought in any new partners from that side or whether there’s external third-party consultants, just give a sense for where you are trying to get that turned around.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Yeah. I think, again, as I noted, we’re disappointed with how we’ve done this year. We’ve made a series of changes really around when I step back, like increasing awareness. One of the, I think, neat things about our parks is they have a tremendous amount of things to do. Whether that’s rides or the animal attractions or behind-the-scenes tours of rescue areas, whatever it may be, I think people still don’t know all the things we have, and it gets very frustrating at times. We’re taking steps to increase that awareness, reach new people, make sure they understand what we have. There’s multiple ways you can do that with either creative or storytelling, and how we market on social media, those type of things. Really just revamping that. I know the marketing world kind of changes often, right?

There’s, I think, a lot of people who are learning how to market in this age of AI and other ways people consume media and things like that. Ours is some of the things I just talked about, and I’m confident that going forward, hopefully this will be a better setup for us. If we can get more awareness of our parks and what we offer, I think that’ll be a big step in the right direction for us.

Chris Woronka, Analyst, Deutsche Bank: Okay. Appreciate that, Marc. Then, a follow-up question on the real estate front. Obviously, not want to commit to anything today, use of proceeds, I think we would probably almost assume that if you get anything done, you might look to share repurchase. Is that a fair general directional statement? If it’s not, what else might be on the table that you’d consider? Thanks.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Yeah. Chris, I don’t know that I can really comment other than that would be something clearly we would work with the board on. I think what obviously we would do what we believed was the best return for shareholders. It could be a number of things. I don’t want to commit to any one thing. Obviously, we’ve done buybacks in the past, not to say that we wouldn’t do something different going forward. It would really be a discussion with the board and driven by them.

Chris Woronka, Analyst, Deutsche Bank: Great. Thanks.

Conference Call Operator: Your next question comes from the line of Lizzie Dove of Goldman Sachs. Your line is open.

Lizzie Dove, Analyst, Goldman Sachs: Hi. Good morning. Thanks for taking the question. I just wanted to ask about kind of more specifically on the Orlando market, kind of beyond what we’ve talked about from the international side of things, just given some of the comments we had from Comcast a week or two ago, and how you see the market there, whether it’s more competitive, less competitive, and just how you see things generally. Thanks.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Yeah. We in Orlando. If you look at our performance in Q2, the performance of the three Orlando parks on a combined basis Relative to some of our other locations, we were pleased with. We like the setup in Orlando. We continue, as we’ve said for some time now, believe that more high-quality investment in this market is good for everybody. Having more investment is a good thing. What I like about this market, a couple more things, and we’ve been here for 50 years, but us and others in the area continue to make investments, and they’re high-quality investments. The county supports things around airport expansion and trying to make transportation improvements. There’s an effort, I don’t know if it’ll be successful, there’s an effort around trying to bring a Major League Baseball team to Orlando.

Everyone in this market, I think, kind of rows in the same direction as far as making this a great market to be in. I think of all the places we want to be and have three of our parks, I think Orlando, it’d be hard to find any place better where everybody’s kind of rowing together to support this market. We’ll continue to support it. We have a different product than a lot of the other people in the market. We have a different value proposition, and we’ve been here for over 50 years and have had success over that time. We are definitely still very bullish on Orlando and like the set up and are glad we’re here. I think it’s going to be a great market for years to come.

Lizzie Dove, Analyst, Goldman Sachs: Great. Just on that topic, I guess, is my follow-up. I think you’ve made some comments in the past about Tampa and I think some of the foot traffic data we all look at. It does show that kind of Orlando has actually been more of a bright spot and some of the attendance at the non-Orlando parks has maybe been weaker. Could you maybe talk more about what you think is driving that and what’s the kind of gating factor there of kind of getting back to some more growth?

Marc Swanson, Chief Executive Officer, United Parks & Resorts: Sure. It’s a good question. One of the things, the question that Chris asked around marketing, I think clearly like a park like Busch Gardens Tampa, for example, a lot of people have no idea that park has phenomenal roller coasters and a whole zoo component to it. You can get great rides and animals and shows and all sorts of things. The name naturally doesn’t lend itself to describing what it is, so we have to raise more awareness. It’s a great name, it’s a great equity, but we have to make sure people are aware of what’s at that park. There’s other factors there as well. We have to obviously deliver on a good experience. We have to make sure people are having opportunities to do things and all that. Those are just things that I’m confident we can turn around.

When I look at some of our other parks, you’ve got a mix of different impacts. Some are impacted at times by weather factors, some are impacted by promotions we may or may not run intentionally. We like the setup in the regions we’re in. We like, outside of Florida, the states we’re in and the markets we’re in. Generally are markets where growth is occurring. I think a lot of it comes down to just we’ve got to market ourselves better and make sure people are aware of what’s in our parks and the strong value proposition we offer.

Lizzie Dove, Analyst, Goldman Sachs: Great. Thank you so much.

Conference Call Operator: There are no further questions at this time. I will now turn the call back over to CEO, Marc Swanson for closing remarks.

Marc Swanson, Chief Executive Officer, United Parks & Resorts: All right, thank you. On behalf of Jim and the rest of the management team here at United Parks & Resorts, I want to thank you for joining us this morning. As you heard today, we are confident in our long-term strategy, which we believe will drive improved operating and financial results and long-term value for stakeholders. We invite everyone to join us at our parks this year to experience the energy and excitement we are offering. Thank you, and we look forward to talking to you next quarter.

Conference Call Operator: This concludes today’s conference call. You may now disconnect.