[Management View]
Lindblad Expeditions Holdings reported record quarterly results with revenue up 16.6% to $240 million, driven by strong performance in both the Lindblad and Land Experience segments. Key strategic priorities include maximizing revenue through occupancy and pricing optimization, cost innovation, and exploring growth opportunities such as fleet expansion and charter partnerships.

[Outlook]
The company raised its full-year 2025 guidance, expecting net yield per available guest night to rise 12.5%-14% and revenue to reach $745 million-$760 million. Future plans include expanding capacity with new ships and charters, and leveraging partnerships with Disney and National Geographic to drive growth.

[Financial Performance]
Year-over-year, revenue increased by 16.6%, with the Lindblad segment up 13.4% and the Land Experience segment up 21.1%. Adjusted EBITDA grew 25% to $57.3 million, marking the highest quarterly result in company history. Occupancy increased to 88%, and net yield grew 9% to $1,314 per available guest night.

[Q&A Highlights]
Question 1: Could you provide more color on 2026 and 2027 booking trends and the impact of Disney travel partners?
Answer: Bookings for 2026 and 2027 are significantly ahead, with strong demand across itineraries. The Disney partnership is yielding positive results, and we expect continued growth from this channel.

Question 2: How do you view pricing and yield growth for 2026?
Answer: We anticipate normalized yield growth as occupancy increases, maintaining price integrity. While double-digit growth may not continue, we expect stable pricing power.

Question 3: Can you elaborate on maintaining price integrity and potential pricing power for next year?
Answer: We are seeing strong demand, particularly in popular destinations like Alaska and Galapagos, allowing us to maintain pricing power. Our revenue management function will support price growth.

Question 4: Why does Q4 EBITDA guidance imply a decline despite revenue growth?
Answer: The decline is due to increased marketing spend and a higher number of dry/wet docks in Q4 2025 compared to 2024.

Question 5: Are there any macroeconomic headwinds affecting demand?
Answer: While mindful of geopolitical factors, our guests are resilient to economic changes. The only headwind is the expected step-up in royalties in 2026.

Question 6: How do you view your current revenue mix and future growth opportunities?
Answer: We are comfortable with our current mix, with charters providing capital-efficient growth. We are exploring new builds and acquisitions to expand capacity.

Question 7: How are you considering financing for growth opportunities, and what is your leverage comfort zone?
Answer: We are well-positioned to pursue expansion with a strengthened balance sheet. We are evaluating various opportunities, including charters, acquisitions, and new builds, while maintaining a focus on deleveraging.

[Sentiment Analysis]
The tone of the management was optimistic, highlighting strong performance and strategic initiatives. Analysts were focused on future growth prospects and pricing strategies, with a positive reception to the company's guidance and expansion plans.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|-------------------------|---------|---------|------------|
| Revenue | $240M | $206M | +16.6% |
| Lindblad Segment Rev. | $138M | $122M | +13.4% |
| Land Experience Rev. | $103M | $85M | +21.1% |
| Adjusted EBITDA | $57.3M | $45.8M | +25% |
| Occupancy | 88% | 82% | +6 pts |
| Net Yield | $1,314 | $1,205 | +9% |

[Risks and Concerns]
Potential risks include geopolitical factors and economic vulnerabilities, though the customer base is less sensitive to these. The anticipated increase in royalties in 2026 could impact margins.

[Final Takeaway]
Lindblad Expeditions Holdings delivered record results in Q3 2025, driven by strategic initiatives and strong demand across segments. The company is well-positioned for future growth, with expanded capacity and enhanced partnerships. While mindful of potential risks, management remains confident in sustaining momentum and delivering long-term value to shareholders.