Experiential tourism company Pursuit Attractions and Hospitality (NYSE: PRSU) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 86.3% year on year to $37.58 million. Its non-GAAP loss of $0.96 per share was 31.5% below analysts’ consensus estimates.
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Pursuit (PRSU) Q1 CY2025 Highlights:
- Revenue: $37.58 million vs analyst estimates of $38.95 million (86.3% year-on-year decline, 3.5% miss)
- Adjusted EPS: -$0.96 vs analyst expectations of -$0.73 (31.5% miss)
- EBITDA guidance for the full year is $103 million at the midpoint, above analyst estimates of $101 million
- Operating Margin: -70.1%, down from -4.7% in the same quarter last year
- Market Capitalization: $825.4 million
StockStory’s Take
Pursuit Attractions and Hospitality reported first quarter revenue of $37.6 million, an increase of approximately 1% year-over-year (4% in constant currency), reflecting management’s emphasis on integrating recent acquisitions and optimizing its core experiential tourism offerings. CEO David Barry highlighted the smooth integration of three new properties in Glacier Park and the Jasper SkyTram in Canada, citing operational synergies and refreshed guest experiences as key strategic outcomes. CFO Bo Heitz noted that ticket revenue growth was driven by higher prices and increased visitation at attractions like FlyOver Chicago and Sky Lagoon, while hospitality revenue was impacted by renovation-related room closures and unfavorable foreign exchange rates. Management acknowledged inflationary pressures and seasonal losses from new businesses, which contributed to an adjusted net loss of $26.9 million for the quarter, compared to $25.4 million in the prior year. Barry pointed to ongoing renovation projects and targeted marketing efforts as foundational to the company’s long-term positioning in high-demand tourism markets.
Looking ahead, management reaffirmed its full-year guidance for double-digit revenue and adjusted EBITDA growth, attributing its optimism to strong booking trends and a robust pipeline of acquisition opportunities. Barry outlined plans to invest between $38 million and $43 million in property refreshes and new projects, with a major renovation at the Forest Park Hotel expected to drive increased demand. The company expects continued recovery in leisure travel to Jasper and further contributions from recent acquisitions, despite continued foreign exchange volatility. CFO Bo Heitz emphasized the flexibility to adjust investment pace depending on acquisition activity and referenced a strong balance sheet as key to supporting growth initiatives. Management also signaled ongoing evaluation of additional acquisition targets, with Barry noting, “We have a very robust pipeline…we’re well positioned.”
Key Insights from Management’s Remarks
Management attributed the quarter’s results to the integration of new properties, ongoing renovation projects, and the impact of inflation and foreign exchange fluctuations on core operations.
- Acquisition integration progress: The company completed integration of three Glacier Park properties and Jasper SkyTram, enhancing operational synergies and expanding offerings in key high-traffic markets. Management expects these assets to support momentum heading into the summer season.
- Focus on property refreshes: Significant investments in renovations, notably at the Forest Park Hotel’s Woodland Wing, temporarily reduced available rooms but are designed to elevate guest experience and drive incremental visitation in future periods.
- Ticket revenue growth drivers: Growth in attraction ticket revenue was supported by increased pricing and visitation, with the FlyOver Chicago launch and Sky Lagoon’s premium experience contributing meaningfully. Same-store pricing, excluding new attractions, rose 10% year over year, indicating strong demand for enhanced experiences.
- Hospitality revenue pressures: Lodging revenue declined due to room closures for renovation and adverse currency translation, though same-store RevPAR (revenue per available room, a key hospitality metric) improved 9% year over year on a constant-currency basis. Management highlighted strong booking trends for the upcoming peak season.
- Inflationary and seasonal cost impact: Adjusted EBITDA declined as a result of inflationary cost increases and operating losses from newly acquired businesses during the off-peak season. Management plans to leverage upcoming peak demand to offset these pressures and maintain investment in growth projects.
Drivers of Future Performance
Management’s outlook is anchored in continued investment in property upgrades, acquisition activity, and recovery in key tourism markets, while monitoring foreign exchange and cost pressures.
- Recovery in Jasper and peak season: The company expects a rebound in leisure travel to Jasper and increased demand during the summer season, with confirmed bookings pacing ahead of last year. Management believes this will drive higher occupancy and support revenue growth in core markets.
- Ongoing acquisition strategy: Pursuit is actively pursuing additional acquisitions in both current and new geographies, with a robust pipeline that management views as critical for long-term growth. The pace of internal investments will be adjusted based on acquisition activity and market conditions.
- Foreign exchange and cost risks: Management flagged continued volatility in currency exchange rates, especially USD/CAD, as a headwind for translated results. Inflationary pressures, particularly for labor and year-round operations, remain an area of focus, with future performance partially dependent on managing these costs.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) progress on major property renovations and their impact on occupancy and guest satisfaction, (2) execution of the acquisition pipeline and integration of new assets, and (3) resilience of demand in core markets during the peak tourism season. We will also track how management navigates foreign exchange volatility and inflationary cost pressures as these factors could materially affect reported results and margin expansion.
Pursuit currently trades at a forward EV-to-EBITDA ratio of 8.1×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it’s free).
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