Lindblad Expeditions Holdings, Inc. Q1 2026 Earnings Call - Record Yields and Booking Momentum Defy Geopolitical Headwinds

Amy, Conference Operator, Conference Services: Thank you for standing by. My name is Amy, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Lindblad Expeditions Holdings, Inc. First Quarter 2026 Earnings Call. All participants have been placed in a listen-only mode. After the speaker’s remarks, we will conduct a question and answer session. If you would like to join the queue to ask a question, simply press star followed by 1 on your telephone keypad. It is now my pleasure to turn the call over to Rick Goldberg, Chief Financial Officer with Lindblad. You may begin.

Rick Goldberg, Chief Financial Officer, Lindblad Expeditions Holdings, Inc.: Thank you, operator. Good morning, everyone, and thank you for joining us for Lindblad’s first quarter 2026 earnings call. With me on today’s call is Natalya Leahy, our Chief Executive Officer. Natalya will begin with some opening comments. I will follow with details on our Q1 results and expectations for the full year before we open the call for Q&A. As always, you can find our latest earnings release in the investor relations section of our website. Before we get to all of that, I’d like to remind everyone that the company’s comments today may include forward-looking statements. Those expectations are subject to risks and uncertainties that may cause actual results and performance to be materially different from these expectations. The company cannot guarantee the accuracy of any forecast or estimates. We undertake no obligation to update any such forward-looking statements.

If you would like more information on the risks involved in forward-looking statements, please see the company’s SEC filings. In addition, our comments may reference non-GAAP financial measures. A reconciliation of the most directly comparable GAAP financial measures and other associated disclosures are contained in the company’s earnings release. With that out of the way, I’ll turn the call over to Natalya.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Thank you, Rick. Here we are again. Good morning, everyone, and welcome to our first quarter earnings call. In a complex macro and geopolitical environment, our team delivered another record quarter. We achieved record first quarter occupancy of 93% on a 6% increase in capacity and increased net yield by 7% to a record of $1,631 per available guest night. For the quarter, revenues increased 16%, with the Lindblad segment growing 16% and the Land Experiences segment growing 14%. We delivered 14% EBITDA growth and generated $6 million in net income available to shareholders compared to a slightly negative net income last year. These results reflect the strength of our strategy and importantly, the discipline of our execution. We remain confident in our ability to drive long-term value as we continue to navigate external dynamics.

We delivered these results in a challenging and complex operating environment, including some of the most difficult weather conditions in Antarctica in over a decade. As a result, we experienced increased cancellations in our Antarctica flight program in addition to several Egyptian river cruises. These cancellations not only impacted revenue from some of our most profitable voyages, but also led to higher land costs as some guests were already in transit or on the ground when disruptions occurred. I’m pleased to share that we delivered a historically strong wave season, maintained booking pace for 2026, and further accelerated bookings momentum for 2027. Let me also address fuel. We’re closely monitoring the rapidly evolving situation. Due to our diversified portfolio, fuel costs have historically averaged around 3%-4% of our total revenues.

We have doubled down on initiatives to reduce fuel consumption while maintaining an exceptional guest experience. As I mentioned during Q&A of our last earnings call, our guidance reflects a range of potential outcomes. We are reforming our full year outlook. This is supported by continued execution across our 3 strategic pillars. Number 1, maximizing revenue generation through occupancy pricing and deployment optimization. Number 2, optimizing financial performance through cost innovation and fixed assets utilization. Number 3, capitalizing on accretive growth opportunities, including expanding our portfolio brands. Starting with our first pillar, maximizing revenue. Our Disney and National Geographic relationships continue to strengthen. In the first quarter, bookings from Disney EarMarked travel agents increased 67% compared to prior year, demonstrating the meaningful value of this partnership in reaching new audiences through new channels.

Building on this momentum, we recently signed our first-ever charter agreement with Club 33, Disney’s most exclusive private membership club, and the voyage literally sold within a couple of hours. We will continue to explore additional opportunities with Club 33 members. Our onboard sales program continues to deliver exceptional results. On vessels with dedicated expedition sales consultants, more than a quarter of our guests are booking their next voyage before disembarking. This conversion rate reflects both the strength of our guest experience and the effectiveness of our approach to driving repeat engagement. Our outbound sales program is also gaining significant traction, increasing 64% versus prior year, supported by a meaningful increase in lead generation. We believe we are still in the early stages of unlocking the full potential of this high-value channel. We continue to see strong momentum in the U.K. market launched last year.

This year, we are also deepening our presence in Australia, one of our key international growth markets. In fact, our Chief Sales Officer, Ketty, and I will be in Australia later this month and very much looking forward for a major market engagement. While our Lindblad segment continues to perform well, our Land Experiences segment is equally positioned for growth. We recently completed highly productive strategic planning session with our land company leaders to develop a long-term plan for accelerated growth. A key element of our success in land acquisitions is our ability to partner closely with founders of these businesses, combining their deep understanding of the guests, passion for the business with the scale and capabilities of our global platform. I’m pleased to share that all of the founders of our land companies have extended their relationships with us, ensuring leadership continuity.

Turning to our second pillar, cost innovation and fixed assets utilization. We continue to build a strong pipeline of cost initiatives across the organization. As mentioned earlier, we have launched comprehensive programmatic fuel consumption efforts. We have also enhanced ship maintenance protocols, including more frequent propeller polishing and hull cleaning, which will support improved fuel efficiency over time. Complementing these operational improvements, our Chief Supply Chain Officer and his team have made significant progress renegotiating key contracts, delivering both immediate and long-term savings across both our cost and capital. We are also reevaluating elements of our operating model to drive greater efficiencies. For example, we have outsourced certain warehouse functions to improve performance and scalability. In addition, we have made meaningful progress in optimizing crew travel through better planning and rotations, with strong results already visible this quarter. Collectively, all these initiatives will deliver long-term structural benefits to our business.

Turning to our third pillar, accretive growth. We recently launched our partnership with Earthwatch Institute, expanding into the citizen science travel segment and reinforcing our commitment to conservation and education. At the same time, we continue to evaluate opportunities across fleet and portfolio expansion. The sustained strength and demand for our products presents compelling opportunities to grow in a disciplined and strategic way. Throughout all of this, we remain grounded in what makes Lindblad unique, our why. Our commitment to responsible exploration is central to who we are and a defining differentiator. For us, it is more than a trip, it is a mission. I will continue to highlight this as it is fundamental to our business and experience that we deliver to our guests. This quarter, I would like to highlight our continued progress in food waste reduction, which delivers positive impact on environment, but also saves costs.

We have made significant strides through a combination of disciplined execution and innovative practices. Our guest dinner sign-up program has reduced prep waste by up to 75%. Local provisioning has reduced excess inventory and associated waste. Our culinary teams continue to adopt zero waste techniques and food preservation methods, particularly in remote environments. We have also begun installing food dehydrators on our ships, which convert food waste into reusable by-products. In addition, we published our 2025 Lindblad Expeditions-National Geographic Fund Traveler Impact Report, detailing our efforts to protect oceans, wildlife, and communities. We are also honored to be named by TIME as one of the 10 most influential travel and tourism companies of 2026. We believe this recognition reflects our pioneering heritage and leadership in purpose-driven expedition travel and strength of our brand and expertise built over nearly 60 years.

Again, our quarterly results reflect the strength of our strategy and disciplined execution. Our focus on our three strategic pillars positions us to drive long-term shareholders’ value. In closing, I want to express my sincere appreciation to our teams across the organization for navigating a complex environment with focus, resilience, and unwavering commitment to our guests, our shareholders, and each other. Thank you for your continued confidence in Lindblad Expeditions. We look forward to updating you on our progress in the quarters ahead.

Rick Goldberg, Chief Financial Officer, Lindblad Expeditions Holdings, Inc.: Thank you, Natalya. Despite a challenging geopolitical backdrop, we delivered another record quarter, reflecting the resilience of both our team and our business. Total company revenues for Q1 2026 were $208 million, an increase of $28.3 million or 15.7% versus Q1 2025. Lindblad segment revenues were $152.5 million, an increase of $21.4 million or 16.3% compared to the prior year. Occupancy increased 4 percentage points from 89% to 93%, the highest first quarter occupancy in company history, despite a 6.4% increase in available guest nights. Net yield per available guest night increased 7.2% to $1,631, marking the highest quarterly net yield in company history.

Land Experiences segment revenues were $55.5 million, an increase of $6.9 million or 14.2% compared to Q1 2025, driven by higher revenue per guest. Turning now to the cost side of the business. Operating expenses before stock-based compensation, transaction-related expenses, depreciation and amortization, interest and taxes increased $23.4 million or 15.7% versus Q1 2025. Specifically, cost of tours increased $13.9 million or 15%, driven by operating additional voyages and trips, as well as higher air expense associated with expanding our Antarctica Direct program. The most notable impact of the war in Iran has been on fuel prices. Fuel costs represented 5.2% of Lindblad segment revenue in Q1. While absolute fuel spend increased year-over-year, it declined by 40 basis points as a percentage of revenue, reflecting stronger top-line performance.

Importantly, our diversified portfolio, including our Land Experiences platform, helps mitigate the impact of fuel price volatility at the overall company level. In the first quarter, fuel costs were 3.9% of total company revenue. As a point of reference, a 10% change in fuel costs would have an impact of just under $2 million for the remainder of the year. Sales and marketing costs increased $7.7 million or 27.2%, primarily due to increased royalties associated with the final royalty rate step up under our National Geographic agreement and investments in demand generation efforts. General and administrative costs, excluding stock-based compensation, transaction-related expenses, and reorganization costs, increased $1.9 million or 6.5% versus a year ago, driven by higher personnel costs.

As a percentage of revenue, G&A was 14.7%, down 120 basis points from the prior year, reflecting our continued focus on cost discipline and efficiencies as we scale the business. Adjusted EBITDA for the quarter was $34.8 million, an increase of $4.8 million or 16.2% versus the prior year. Lindblad segment EBITDA grew $1.6 million or 6.2% in spite of the impact of the Antarctica Direct voyages canceled due to weather and the Egypt voyages canceled due to the war in Iran. Land Experiences EBITDA grew $3.2 million or 88%. This includes an approximately $3 million one-time benefit related to the timing of tour insurance revenue recognized in the quarter.

First quarter net income available to stockholders was $6 million or $0.10 per share, compared to a slight loss a year ago. Turning now to the balance sheet. We ended the quarter with total cash of $321 million, an increase of $31.3 million versus the end of 2025. The increase reflects $49.5 million in cash from operations, due primarily to the strong results of the business and increased bookings for future travel. We used $6.9 million of cash for investing activities, primarily related to maintenance of our own ships. For the quarter, free cash flow increased 21.7% to $42.6 million. Our net leverage declined from 3.1x at the end of the year to 2.7x, highlighting the strength of our balance sheet and disciplined capital management.

This progress was recognized by Moody’s, which recently upgraded our rating. As we’ve shared on recent earnings calls, the company will continue to explore accretive growth opportunities, including expanding our fleet and further diversifying our portfolio of Land Experiences brands to capitalize on continued growth in the demand for adventure travel. Turning now to our full-year outlook, we are maintaining the guidance we shared on our last earnings call. Available guest nights are expected to increase 4.5%-5%. Net yield per available guest night is expected to increase 4%-5%.

We expect total company revenue in the range of $800 million-$850 million, and we expect adjusted EBITDA in the range of $130 million-$140 million. Natalia mentioned, despite a challenging geopolitical backdrop, we have maintained strong booking momentum for 2026 and are seeing accelerating demand for 2027. This reflects the growing demand for experiential travel, the strength of our affluent customer base and continued execution against our commercial initiatives. With that, we thank you for your interest in Lindblad Expeditions. Natalia and I would be happy to answer any questions you may have.

Amy, Conference Operator, Conference Services: Thank you, Mr. Goldberg. The floor is now open for questions. To enter the queue, please press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, again, press star and the number 1. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. We do request for today’s session that you please limit to 2 questions. Again, press star 1 to enter the queue. We’ll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Steven Wieczynski with Stifel. Your line is now open.

Steven Wieczynski, Analyst, Stifel: Yeah, thanks, guys. Good morning. Natalia or Rick, you know, if we think about your yields guidance for the remainder of the year, wondering how we should be thinking about the cadence of yields, you know, over the last 3 quarters. You know, if I remember correctly, I think you guys were thinking, you know, as we kind of talked to you guys back in February, that first half yields were gonna be, you know, let’s say more, you know, a little bit more muted, and then there’d be more upside in yields in the back half of the year. After putting up a, you know, a really solid 7% yield in the first quarter, just wondering, you know, how we should think about yields now over the last 3 quarters of the year.

Rick Goldberg, Chief Financial Officer, Lindblad Expeditions Holdings, Inc.: Thanks so much, Steve, and great to hear from you. What I’d say is our underlying assumptions haven’t changed. We’re expecting significant capacity expansion in the first half of the year, especially in Q2. We saw 6% capacity growth in Q1. We’re expecting double-digit capacity growth in Q2. The rate of capacity growth will then decelerate in the second half of the year, you should expect lower net yield growth in Q2, and stronger net yield growth in the back half of the year.

Steven Wieczynski, Analyst, Stifel: Okay, gotcha. The second question, Rick, you touched on this a little bit in your prepared remarks, but if we want to dig in a little bit more in terms of, you know, maybe what you’re seeing from a forward bookings perspective at this point. I guess what I’m trying to understand is, you know, has the booking environment changed? Has it not changed over the last 2 months? You know, maybe a little bit of color around cancellation rates, if you’ve seen any of that around, you know, the potential war impact. Maybe as we think about 2027, any change around the booking pattern in 2027, I guess just with higher airline prices out there.

Is that, you know, has that been a little bit of a headwind for you guys, or you just haven’t seen that at all yet? Thanks.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Yeah, Steve, hi, this is. Let me take this question. I think first of all, I do want to remind we started the year with a very strong position in 2026, that is an important kind of a backdrop point. We did see a slight uptake in cancellation rates in the last couple months. That’s one of the reasons, as I mentioned, that we increased demand generation spending. I would say that it really re-energized the market environment. We were able to maintain very healthy pacing in 2026, therefore reinforcing very confidently our guidance forward on the revenue side. Twenty-seven, frankly, accelerated pacing. I’m knocking on the wood, but we are very pleased with our performance, based on our commercial initiatives and demand generation and several initiatives that we highlighted in the prepared remarks.

Steven Wieczynski, Analyst, Stifel: Okay, great. Thanks, guys. Appreciate it.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Yep.

Amy, Conference Operator, Conference Services: Thank you. Your next question comes from the line of Eric Des Lauriers with Craig-Hallum. Your line is now open.

Eric Des Lauriers, Analyst, Craig-Hallum: Great, thank you for taking my questions. Congrats on another strong quarter, especially despite some of these cancellations here. One of the things that stuck out to me in your prepared remarks was the impact of the dedicated expedition sales consultants. I think you said over a quarter of guests are now booking their next voyage before disembarking. That’s much higher than I would have expected, so obviously great to see. I’m just wondering how does that sort of compare to your internal expectations or overall industry averages? Just kind of wondering if this was an especially strong quarter or just kind of how to think about that conversion going forward. Thank you.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Yeah, I think, Eric, this is great question. I would say, I’m not gonna comment on an industry average because it’s, I think, very different from company to company. We are very pleased with performance of our onboard cruise program. I will remind you that we have our cruise consultants only on select larger ships. We don’t have onboard cruise consultants on our smaller ships that are below 100 passenger count, so just keep that in mind as you are doing the average. Overall performance is exceptionally strong and frankly stronger than we initially expected, which again is first and above all is illustration of our exceptional guest experience on board, but also a very strong repeat rate and expanding booking course.

Eric Des Lauriers, Analyst, Craig-Hallum: That’s great. I appreciate that color. You’ve touched on how some of the recent geopolitical volatility is impacting overall customer demand. Could you comment on how it may or may not be impacting the sort of M&A dynamics, whether that’s, you know, on sort of adding capacity to your fleet or on the land side of things? Just wondering how this may or may not be impacting any of those conversations. Thanks.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Thanks, Eric. I’d say, we continue to be actively focused on looking to expand capacity in terms of our expedition fleet, as well as looking to add to our portfolio of land-based companies. Those remain important priorities for us as a leadership team, and we’re not seeing any impact of the geopolitical situation on either of those.

Eric Des Lauriers, Analyst, Craig-Hallum: Great to hear. Thanks for taking my question. Congrats again.

Amy, Conference Operator, Conference Services: Thank you. Your next question comes from the line of Erik Wald with Texas Capital. Your line is now open.

Erik Wald, Analyst, Texas Capital: Thanks. Good morning. I guess first question, you mentioned that you’ve been making a lot of efforts operationally to reduce fuel consumption in general, given kind of what’s going on with Iran. Have you also been including any kind of price increase for tours? Not a surcharge, but for expeditions that have not yet been booked. Have you been raising prices to potentially offset lingering fuel prices? If so, how far out in the booking curve are you making these moves?

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Great question, Eric. I think our pricing is driven by demand, which we always continue to take pricing up when the demand comes, and that’s why we’re investing in the demand generation and all commercial initiatives and expanding booking curves and increasing price elasticity, et cetera. I would say we’re very pleased with our 2027 booking pace. We are booked on both Land Experiences and Lindblad segments significantly ahead of prior year and continue to accelerate momentum. With that comes price increases. On some of our more popular destinations like Alaska and Antarctica, we literally are reviewing prices on a weekly basis and adjusting them as needed.

On, in terms of cost innovation, we have launched a number of very detailed reviews, including involving our ship leaders on understanding how we can optimize ship consumption and our live consumption of energy within the ship environment, optimize our speed, maintenance protocols, et cetera.

Erik Wald, Analyst, Texas Capital: Got it. Okay. Then, the second question, you’ve had some great success, seems like in cross-selling the brands. I know looks like the ratio of other tour revenues to ticket revenues continues to increase and made a nice move year-over-year in the quarter for the Land Experiences segment. Maybe update us on kind of those efforts to kind of boost, you know, wallet share of the guests, especially with cross-promoting the Land Experiences kind of before and after the expeditions.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Yeah. Eric, our focus to drive on board revenue and pre and post-trip experience continues to be one of the strategic focus areas. That is separate from our Land Experiences’ cross-sell efforts. Both are an important strategic driver of our performance. We continue to provide more experiences as guests when they travel literally to the ends of the world. They usually want to stay a couple days before and after their trip on board the ship. We expanded our offerings of exceptional experiences before and after the trip, but we also doubled down on communicating to guests and making it easier to book pre and post experiences, including most recently upgrading our web platform to be able to book pre and post experiences very easily as part of a booking flow.

We also continue to partner with our land companies and use our global platform and a guest list to cross-promote our experiences.

Erik Wald, Analyst, Texas Capital: Perfect. Thanks a lot.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Yep. Thank you, Eric.

Amy, Conference Operator, Conference Services: Thank you. Your next question comes from the line of Michael Albanese with StoneX. Your line is now open.

Michael Albanese, Analyst, StoneX: Yeah. Thanks. Good morning, guys.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Good morning.

Michael Albanese, Analyst, StoneX: Thank you. Regarding the 2027 booking curves running ahead of 2026 and then obviously accelerating here, could you just, if possible, either quantify or just add some color in terms of, you know, how much you’re pacing ahead of 2026?

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: We do not give the guidance for 2027, and we usually don’t disclose that. I would say we are very pleased with our booking pace. Our overall occupancy guidance remains to be that we are targeting to be at 90% and above, as we mentioned last year, which is this quarter we delivered the highest in the history of the company of 93.2% occupancy. I would say we are confidently marching to deliver on a goal to stay above 90% both in 2026 and 2027 while driving pricing.

Michael Albanese, Analyst, StoneX: Okay, fair enough. Just regarding the weather impact, is there any way to quantify or add context to that impact? I’m just thinking here, how many days were lost or voyages were lost or a sense of the cancellations. Trying to get a sense of essentially what this may have looked like, if weather was not a factor.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Yeah.

Rick Goldberg, Chief Financial Officer, Lindblad Expeditions Holdings, Inc.: What I’d say there, Mike, is that if you factor in both the cancellations due to weather as well as the cancellations in Egypt due to the geopolitical situation, the impact was multi-million dollars.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Digits

Rick Goldberg, Chief Financial Officer, Lindblad Expeditions Holdings, Inc.: million dollars.

Michael Albanese, Analyst, StoneX: Okay, that’s helpful. Thanks, guys.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Yep. Thank you. Before we continue with questions, if you have not asked your question and you would like to enter the queue, just a reminder, press star and the number one. Your next question comes from the line of Ian Zaffino with Oppenheimer. Your line is now open.

Ian Zaffino, Analyst, Oppenheimer: Hi, great. Thank you very much, and good quarter. You know, have any of you guys seen any benefit from the Middle East hostilities, you know, as far as shifts in booking locations? Maybe travelers staying closer to home and doing Baja or Galapagos or something along those lines, or any other kind of color you could give us there. Thanks.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Thank you, Ian. We are constantly watching for any shifts in demand between our, you know, over 70 locations. I can’t say that we’ve seen any specific patterns, to be honest. Our demand in places like Alaska and Baja, you mentioned, continues to grow, but frankly it started prior to geopolitical situation. Baja have finished a very, very strong quarter, basically 100% booked on cabin basis with very strong demand. Antarctica, Alaska continues to grow demand, Galapagos. We haven’t seen any specific shifts in demand, to be honest, but we are constantly monitoring it.

Ian Zaffino, Analyst, Oppenheimer: Okay, thanks. Then, you know, on the land-based, or Land Experiences, even though it’s very strong, I know there’s a little bit of a benefit, but maybe can you talk to the strength you’re seeing there, and then maybe your appetite to get larger on the Land Experiences side? Thanks.

Natalya Leahy, Chief Executive Officer, Lindblad Expeditions Holdings, Inc.: Well, our Land Experiences have been a growth engine for us over the past few years, as you have seen from our financial statements. As I mentioned in my remarks, we’ve been spending time with our land presidents to really prepare them and invest in the next phase of unlocking growth. They have been growing double digits, very strong growth, and we continue to think how we can accelerate momentum. Those businesses are very capital light, with incredibly well-positioned expertise in various different parts of the world, very differentiated, so we will continue to focus on accelerating growth momentum with them.

Ian Zaffino, Analyst, Oppenheimer: Okay. Thank you very much.

Amy, Conference Operator, Conference Services: You’re welcome. Thank you. There are no further questions at this time. Mr. Goldberg, I turn the call back over to you.

Rick Goldberg, Chief Financial Officer, Lindblad Expeditions Holdings, Inc.: Just wanna thank everyone for their interest and for all the great questions today, and look forward to being back with you next quarter. Thanks again. Bye now.

Amy, Conference Operator, Conference Services: That concludes today’s conference call. You may now disconnect.