It has been about a month since the last earnings report for Royal Caribbean (RCL Quick QuoteRCL - Free Report) . Shares have lost about 5.1% in that time frame, underperforming the S&P 500.

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

Royal Caribbean Q3 Earnings Beat Estimates, Revenues Miss

Royal Caribbean reported mixed third-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 Q3 Earnings & Revenues

For the third quarter, the company reported adjusted earnings per share (EPS) of $5.75, which beat the Zacks Consensus Estimate of $5.68. In the prior-year quarter, RCL recorded an adjusted EPS of $5.20.

Quarterly revenues of $5.14 billion missed the consensus estimate of $5.17 billion. However, the reported value was up 5.2% year over year from $4.88 billion.

Royal Caribbean’s Quarterly Highlights

In the third quarter of 2025, Passenger ticket revenues amounted to $3.64 billion, up from $3.47 billion in the prior-year quarter. Our estimate for Passenger ticket revenues was $3.65 billion.

Onboard and other revenues increased to $1.5 billion from $1.41 billion reported in the year-ago quarter. Our estimate for the metric was $1.5 billion.

Total cruise operating expenses amounted to $2.48 billion, up 3.7% year over year. Our estimate for the metric was $2.35 billion.

Net yields rose 2.4% on a constant currency basis (cc) and 2.8% on a reported basis compared with the third-quarter 2024 level. Net cruise costs, excluding fuel, per Available Passenger Cruise Day (“APCD”) increased 4.8% on a reported basis and 4.3% at cc from last year's quarter figure.

Other Financial Information of RCL

As of Sept. 30, 2025, Royal Caribbean reported cash and cash equivalents of $432 million compared with $388 million in 2024-end. As of the end of the third quarter of 2025, long-term debt decreased to $17.2 billion from the $18.47 billion reported in 2024-end. The current portion of long-term debt at the end of the quarter was $3 billion, up from $1.6 billion recorded in 2024-end.

Booking Update of Royal Caribbean

Royal Caribbean is witnessing strong booking momentum, with load factors for 2025 and 2026 tracking at record levels and within historical ranges. The company reported accelerated bookings across both new and existing ships, led by robust demand for close-in sailings. It noted that 2026 bookings are trending well above prior-year levels, reflecting rate growth at the high end of historical norms. Onboard spending and pre-cruise purchases remain well ahead of previous years, supported by greater guest engagement and higher pricing. During the third quarter, roughly half of onboard revenues were booked pre-cruise, with nearly 90% of those transactions made through digital channels.

Looking ahead, Royal Caribbean sees strong momentum across its portfolio as consumers continue to prioritize vacation experiences. Bookings for upcoming launches — including Star of the Seas and Celebrity Xcel — are demonstrating exceptional traction, while early demand for Royal Beach Club Paradise Island has been robust. The company also highlighted the overwhelming response to Celebrity River, whose initial deployment sold out almost immediately. These strategic additions underscore Royal Caribbean’s ongoing efforts to enhance guest experiences and expand its integrated vacation ecosystem.

RCL’s Q4 Outlook

For the fourth quarter of 2025, Royal Caribbean expects depreciation and amortization expenses to be in the range of $445-$455 million. Net interest expenses (excluding loss on extinguishment of debt) are projected to be between $245 million and $255 million. Management estimates adjusted EPS to be in the band of $2.74-$2.79.

The company expects net yields to increase in the band of 2.6-3.1% on a reported basis and 2.2-2.7% at cc year over year. Net cruise costs, excluding fuel, per APCD are expected to decline between 5.7% and 6.2% on a reported basis and in the range of 6.1-6.6% 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 $945 million and $955 million. Adjusted EPS is anticipated to be between $15.58 and $15.63 compared with the previous expectation of $15.41 and $15.55.

The company expects net yields to increase in the band of 3.5-4% both on a reported and cc basis, 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 average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. 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.