United Parks & Resorts, the parent company of SeaWorld and Busch Gardens, reported a decline in both attendance and revenue for the third quarter of 2025. The theme park operator saw 6.8 million guests during the three-month period ending September 30, a drop of 3.4% compared to the same period last year.
Financially, the company's total revenue fell by 6.2% to $511.9 million. The steeper decline in revenue compared to attendance suggests that guests who did visit the parks were spending less money on average.
Key Takeaways
- Third-quarter attendance at United Parks properties dropped by 3.4% to 6.8 million guests.
- Total revenue for the quarter decreased by 6.2%, settling at $511.9 million.
- CEO Marc Swanson attributed the downturn to poor weather, a calendar shift, and a reduction in international visitors.
- Despite the declines, the company is actively buying back its own shares and is exploring the sale of its extensive real estate holdings.
- Year-to-date attendance is down 1.5%, though SeaWorld Orlando is reportedly an exception with positive growth.
A Challenging Summer Season
United Parks & Resorts faced significant headwinds during its crucial summer months. The reported drop in visitors and earnings paints a picture of a difficult quarter for the entertainment giant. For the year to date, overall attendance across all parks is down 1.5%, reaching 16.4 million guests.
During a call discussing the results, CEO Marc Swanson expressed his dissatisfaction. "We are obviously not happy with the results we delivered in the quarter," he stated. Swanson pointed to several external factors that he believes contributed to the weaker performance.
"Performance during the quarter was negatively impacted by an unfavorable calendar shift, poor weather during peak holiday periods, a decline in in-international visitation and less than optimal execution," Swanson explained.
He also noted that the general consumer environment in the United States appears to be inconsistent, a sentiment echoed by other businesses in the leisure and hospitality sectors. Despite these challenges, Swanson affirmed a commitment to improvement, stating, "Nonetheless, we can and expect to do better."
Bright Spots in a Difficult Quarter
While the overall figures were down, the company highlighted a few positive developments. In-park per capita spending saw a slight increase, which can be linked to higher pricing on food, merchandise, and other experiences. This indicates that guests who did spend were willing to pay more for certain items.
Additionally, the company's popular Halloween event, Howl-O-Scream, performed exceptionally well. According to Swanson, the events in Orlando and San Diego achieved record attendance this year. However, a significant portion of the revenue and attendance from these events will be reflected in the fourth-quarter financial report, not the current one.
By The Numbers: Q3 2025 Performance
- Total Guests: 6.8 million (down 3.4%)
- Total Revenue: $511.9 million (down 6.2%)
- Year-to-Date Guests: 16.4 million (down 1.5%)
- Share Buyback (Q3): $32.2 million for 635,000 shares
Strategic Shifts Amid Financial Pressure
In response to the financial results and market conditions, United Parks is pursuing several strategic initiatives. One of the most significant is the continued effort to buy back its own shares to support its stock price. From the start of the third quarter through November 4, the company spent approximately $32.2 million to repurchase 635,000 shares.
Perhaps more notable is the company's active exploration of its real estate assets. Swanson revealed that United Parks is considering options for the vast amount of land it owns, some of which is undeveloped and adjacent to its existing parks.
Exploring Real Estate Opportunities
United Parks & Resorts owns over 2,000 acres of land in what are considered desirable locations. This includes approximately 400 acres of undeveloped land right next to its theme parks, with a significant portion located in the competitive Orlando market. The company is evaluating proposals from potential partners to monetize these assets.
"On real estate, we continue to discuss alternatives with potential partners, and have recently received specific proposals that we are actively evaluating," Swanson confirmed. He suggested that the market has not fully recognized the value of these land holdings.
"We do not believe that public markets have or are giving credit and valuable, 100%-owned real estate assets," he added. This move could signal a major shift in the company's long-term strategy, potentially leading to the development of hotels, retail spaces, or even the sale of entire land parcels.
Looking Ahead for United Parks
The third-quarter results place pressure on United Parks to demonstrate a clear path toward recovery and growth. While management points to external factors like weather and a tough consumer economy, the steeper drop in revenue relative to attendance raises questions about the company's pricing strategy and value proposition.
The success of specialized events like Howl-O-Scream suggests a strong demand for unique, seasonal experiences. However, the company must also address performance during its core operating seasons. Recent announcements, such as a new lion and hyena exhibit at Busch Gardens Tampa, indicate a continued investment in animal habitats as a way to draw guests.
The company's focus on share buybacks and potential real estate deals will be closely watched by investors. While these financial maneuvers can create shareholder value, the long-term health of the company will ultimately depend on its ability to attract more visitors to its parks and encourage them to spend more during their visit.
