We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Royal Caribbean Q2 Earnings Beat Estimates, Revenues Miss, Stock Down
Read MoreHide Full Article
Key Takeaways
RCL posted Q2 EPS of $4.38, beating estimates and up from $3.21 in the prior-year quarter.
Quarterly revenues rose 10.4% year over year to $4.54B but missed the consensus mark.
Strong booking trends, higher onboard spend and robust demand are driving the growth outlook.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported mixed second-quarter 2025 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis. Post the results, the cruise stock declined 5.4% in the pre-market trading session.
RCL’s Q2 Earnings & Revenues
In the second quarter, the company reported adjusted earnings per share (EPS) of $4.38, which beat the Zacks Consensus Estimate of $4.10. In the prior-year quarter, RCL recorded an adjusted EPS of $3.21.
Quarterly revenues of $4,538 million missed the consensus estimate of $4,550 million. However, the reported value was up 10.4% year over year from $4.11 billion.
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
Passenger ticket revenues amounted to $3.2 billion, up from $2.9 billion in the prior-year quarter. Our estimate for Passenger ticket revenues was $3.2 billion.
Onboard and other revenues increased to $1.34 billion from $1.22 billion reported in the year-ago quarter. Our estimate for the metric was $1.3 billion.
Total cruise operating expenses amounted to $2.28 billion, up 6.1% year over year. Our estimate for the metric was $2.28 billion.
Net yields rose 5.2% on a constant currency basis (cc) and 5.3% on a reported basis compared with the second-quarter 2024 level. Net cruise costs, excluding fuel, per Available Passenger Cruise Day (“APCD”) increased 2.5% on a reported basis and 2.1% at cc from last year's quarter figure.
Other Financial Information of RCL
As of June 30, 2025, Royal Caribbean reported cash and cash equivalents of $735 million compared with $388 million in 2024-end. As of the end of the second quarter of 2025, long-term debt decreased to $17.61 billion from $18.47 billion reported in 2024-end. The current portion of long-term debt at the end of the quarter was $1.4 billion, down from $1.6 billion recorded in 2024-end.
Booking Update of Royal Caribbean
Royal Caribbean is experiencing strong booking momentum, with load factors for 2025 and 2026 tracking ahead of previous years and at higher pricing levels. The company noted an acceleration in bookings since its last earnings update, especially for close-in sailings, which contributed to second-quarter outperformance. Demand remains healthy across all product categories and source markets, supported by strong performance through digital and commercial channels. Both onboard spending and pre-cruise purchases continue to outpace prior-year levels, as guests engage more and spend at elevated price points.
Bookings for upcoming ship launches, including Star of the Seas and Celebrity Xcel, are also seeing exceptional traction, building on the popularity of their respective ship classes. Additionally, early sales for the newly announced Royal Beach Club on Paradise Island have been met with robust interest. According to CEO Jason Liberty, consumer travel preferences are shifting toward shorter booking windows and more experience-driven vacations. Royal Caribbean is positioning its offerings to meet these evolving trends, supporting the goal to gain share in the expanding global vacation market.
RCL’s Q3 Outlook
In the third quarter of 2025, Royal Caribbean expects depreciation and amortization expenses to be in the range of $425-$435 million. Net interest expenses (excluding loss on extinguishment of debt) are projected to be between $235 million and $245 million. Management estimates adjusted EPS to be in the band of $5.55-$5.65.
The company expects net yields to increase in the band of 2.3-2.8% on a reported basis and 2-2.5% at cc year over year. Net cruise costs, excluding fuel, per APCD are expected to increase between 6.4% and 6.9% on a reported basis and in the range of 6-6.5% at cc.
2025 View by RCL
For 2025, the company expects depreciation and amortization expenses to be in the range of $1.70-$1.71 billion. Net interest expenses (excluding loss on extinguishment of debt) are expected to be between $930 million and $940 million. Adjusted EPS is anticipated to be between $15.41 and $15.55 compared with the previous expectation of $14.55-$15.55.
The company expects net yields to increase in the band of 3.5-4% on a reported basis and 3.5-4% at cc year over year.
RCL’s Zacks Rank
Royal Caribbean currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Carnival Corporation & plc (CCL - Free Report) , Monarch Casino & Resort, Inc. (MCRI - Free Report) and Planet Fitness, Inc. (PLNT - Free Report) .
Carnival delivered a trailing four-quarter earnings surprise of 169.9%, on average. The stock has gained 19.3% in the year-to-date period. The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS implies growth of 5.8% and 40.9%, respectively, from the year-ago levels.
Monarch Casino presently flaunts a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 11.1%, on average. The stock has rallied 32.3% in the year-to-date period.
The Zacks Consensus Estimate for Monarch Casino’s 2025 sales and EPS indicates an increase of 4.5% and 9.9%, respectively, from the year-ago levels.
Planet Fitness currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.9%, on average. The stock has gained 12.5% in the year-to-date period.
The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.4% and 12.4%, respectively, from the year-ago period’s levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Royal Caribbean Q2 Earnings Beat Estimates, Revenues Miss, Stock Down
Key Takeaways
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported mixed second-quarter 2025 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis. Post the results, the cruise stock declined 5.4% in the pre-market trading session.
RCL’s Q2 Earnings & Revenues
In the second quarter, the company reported adjusted earnings per share (EPS) of $4.38, which beat the Zacks Consensus Estimate of $4.10. In the prior-year quarter, RCL recorded an adjusted EPS of $3.21.
Quarterly revenues of $4,538 million missed the consensus estimate of $4,550 million. However, the reported value was up 10.4% year over year from $4.11 billion.
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
Royal Caribbean Cruises Ltd. price-consensus-eps-surprise-chart | Royal Caribbean Cruises Ltd. Quote
Royal Caribbean’s Quarterly Highlights
Passenger ticket revenues amounted to $3.2 billion, up from $2.9 billion in the prior-year quarter. Our estimate for Passenger ticket revenues was $3.2 billion.
Onboard and other revenues increased to $1.34 billion from $1.22 billion reported in the year-ago quarter. Our estimate for the metric was $1.3 billion.
Total cruise operating expenses amounted to $2.28 billion, up 6.1% year over year. Our estimate for the metric was $2.28 billion.
Net yields rose 5.2% on a constant currency basis (cc) and 5.3% on a reported basis compared with the second-quarter 2024 level. Net cruise costs, excluding fuel, per Available Passenger Cruise Day (“APCD”) increased 2.5% on a reported basis and 2.1% at cc from last year's quarter figure.
Other Financial Information of RCL
As of June 30, 2025, Royal Caribbean reported cash and cash equivalents of $735 million compared with $388 million in 2024-end. As of the end of the second quarter of 2025, long-term debt decreased to $17.61 billion from $18.47 billion reported in 2024-end. The current portion of long-term debt at the end of the quarter was $1.4 billion, down from $1.6 billion recorded in 2024-end.
Booking Update of Royal Caribbean
Royal Caribbean is experiencing strong booking momentum, with load factors for 2025 and 2026 tracking ahead of previous years and at higher pricing levels. The company noted an acceleration in bookings since its last earnings update, especially for close-in sailings, which contributed to second-quarter outperformance. Demand remains healthy across all product categories and source markets, supported by strong performance through digital and commercial channels. Both onboard spending and pre-cruise purchases continue to outpace prior-year levels, as guests engage more and spend at elevated price points.
Bookings for upcoming ship launches, including Star of the Seas and Celebrity Xcel, are also seeing exceptional traction, building on the popularity of their respective ship classes. Additionally, early sales for the newly announced Royal Beach Club on Paradise Island have been met with robust interest. According to CEO Jason Liberty, consumer travel preferences are shifting toward shorter booking windows and more experience-driven vacations. Royal Caribbean is positioning its offerings to meet these evolving trends, supporting the goal to gain share in the expanding global vacation market.
RCL’s Q3 Outlook
In the third quarter of 2025, Royal Caribbean expects depreciation and amortization expenses to be in the range of $425-$435 million. Net interest expenses (excluding loss on extinguishment of debt) are projected to be between $235 million and $245 million. Management estimates adjusted EPS to be in the band of $5.55-$5.65.
The company expects net yields to increase in the band of 2.3-2.8% on a reported basis and 2-2.5% at cc year over year. Net cruise costs, excluding fuel, per APCD are expected to increase between 6.4% and 6.9% on a reported basis and in the range of 6-6.5% at cc.
2025 View by RCL
For 2025, the company expects depreciation and amortization expenses to be in the range of $1.70-$1.71 billion. Net interest expenses (excluding loss on extinguishment of debt) are expected to be between $930 million and $940 million. Adjusted EPS is anticipated to be between $15.41 and $15.55 compared with the previous expectation of $14.55-$15.55.
The company expects net yields to increase in the band of 3.5-4% on a reported basis and 3.5-4% at cc year over year.
RCL’s Zacks Rank
Royal Caribbean currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Carnival Corporation & plc (CCL - Free Report) , Monarch Casino & Resort, Inc. (MCRI - Free Report) and Planet Fitness, Inc. (PLNT - Free Report) .
Carnival presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carnival delivered a trailing four-quarter earnings surprise of 169.9%, on average. The stock has gained 19.3% in the year-to-date period. The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS implies growth of 5.8% and 40.9%, respectively, from the year-ago levels.
Monarch Casino presently flaunts a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 11.1%, on average. The stock has rallied 32.3% in the year-to-date period.
The Zacks Consensus Estimate for Monarch Casino’s 2025 sales and EPS indicates an increase of 4.5% and 9.9%, respectively, from the year-ago levels.
Planet Fitness currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.9%, on average. The stock has gained 12.5% in the year-to-date period.
The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.4% and 12.4%, respectively, from the year-ago period’s levels.