A month has gone by since the last earnings report for Norwegian Cruise Line (NCLH Quick QuoteNCLH - Free Report) . Shares have lost about 12.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Norwegian Cruise Line due for a breakout? 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.

Norwegian Cruise Q4 Earnings Meet Estimates, Revenues Lag

Norwegian Cruise reported fourth-quarter 2025 results, with earnings meeting the Zacks Consensus Estimate, and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

NCLH’s Q4 Earnings & Revenues

Norwegian Cruise reported an adjusted earnings per share (EPS) of 28 cents, in line with the Zacks Consensus Estimate. In the prior-year quarter, the company reported an adjusted EPS of 19 cents.

Quarterly revenues of $2.24 billion missed the consensus mark of $2.35 billion. The metric increased 6.4% year over year.

Passenger ticket revenues were $1.51 billion compared with $1.4 billion reported in the prior-year quarter. Our model anticipated passenger ticket revenues to be $1.66 billion.

Onboard and other revenues increased to $734.4 million from $700.6 million reported in the prior-year quarter. We expected onboard and other revenues to be $674.8 million.

NCLH’s Expenses & Operating Results

Total cruise operating expenses in the fourth quarter increased 1.2% year over year to $1.32 billion. Our model anticipated total cruise operating expenses to be $1.41 billion.

During the fourth quarter, gross cruise costs per Capacity Day were $272 compared with $286 reported in the prior-year period. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $159, up 0.9% year over year on a reported basis.

Net interest expenses were $170 million, down from $175.4 million reported in the year-ago quarter.

NCLH’s Balance Sheet

As of Dec. 31, 2025, the company had cash and cash equivalents of $209.9 million, down from $190.8 million at the end of 2024. Long-term debt was $13.7 billion compared with $11.8 billion as of 2024-end.

2025 Highlights

Total revenues in 2025 came in at $9.83 billion compared with $9.48 billion reported in 2024.

Adjusted EBITDA in 2025 came in at $2.73 billion compared with $2.45 million reported in 2024.

In 2025, adjusted earnings per share came in at $2.11 compared with $1.77 reported in the previous year.

Booking Update of NCLH

The company heads into 2026 facing a somewhat pressured environment, with bookings trending slightly below its optimal range following execution gaps in aligning commercial strategy with deployment plans. Fourth-quarter results reflect the impact of a meaningful capacity increase in the Caribbean, even as longer-term demand fundamentals remain supportive. Deployment adjustments are beginning to yield results, driving improved load factors. Fourth-quarter occupancy reached 101.8%, up 100 basis points year over year.

Demand has been especially resilient across the company’s luxury portfolio, supported by longer booking curves. Notably, Oceania Cruises achieved record bookings upon opening sales for its newest ship, Oceania Sonata, scheduled to debut in August 2027. Meanwhile, Regent Seven Seas Cruises posted the strongest booking month in its history in January, underscoring continued momentum in the high-end segment.

Q1 & 2026 Guidance by NCLH

For first-quarter 2026, NCLH anticipates occupancy to be approximately 104.2% and Capacity Days to be about 6.39 million. For the quarter, interest expenses are expected to be approximately $170 million, while depreciation and amortization are anticipated to be about $260 million. Adjusted EBITDA is expected to be about $515 million. Adjusted EPS is predicted to be 16 cents.

For 2026, the company anticipates occupancy to be approximately 105.7% and Capacity Days to be about 26.25 million. During the year, interest expenses are expected to be approximately $708 million. Depreciation and amortization are anticipated at nearly $1.09 billion. Adjusted EBITDA during the year is expected to be nearly $2.95 billion. For 2026, NCLH expects adjusted EPS of $2.38.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -10.16% due to these changes.

VGM Scores

Currently, Norwegian Cruise Line has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

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, Norwegian Cruise Line has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Norwegian Cruise Line belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Caesars Entertainment (CZR Quick QuoteCZR - Free Report) , has gained 5.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Caesars Entertainment reported revenues of $2.92 billion in the last reported quarter, representing a year-over-year change of +4.2%. EPS of -$0.33 for the same period compares with $0.05 a year ago.

Caesars Entertainment is expected to post a loss of $0.19 per share for the current quarter, representing a year-over-year change of +64.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -7%.

Caesars Entertainment has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.