A month has gone by since the last earnings report for Royal Caribbean (RCL Quick QuoteRCL - Free Report) . Shares have added about 8.4% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Royal Caribbean due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Royal Caribbean Q2 Earnings Surpass Estimates, Revenues Miss

Royal Caribbean 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.

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’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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

Currently, Royal Caribbean has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Royal Caribbean has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.