| Schedule of reconciliation between basic and diluted EPS |
A reconciliation between basic and diluted EPS was as follows (in thousands, except share and per share data):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2025 |
|
2024 |
|
2023 |
Net income |
|
$ |
423,246 |
|
$ |
910,257 |
|
$ |
166,178 |
Effect of dilutive securities - exchangeable notes |
|
|
13,923 |
|
|
63,308 |
|
|
— |
Net income and assumed conversion of exchangeable notes - Diluted EPS |
|
$ |
437,169 |
|
$ |
973,565 |
|
$ |
166,178 |
Basic weighted-average shares outstanding |
|
|
448,542,442 |
|
|
435,278,605 |
|
|
424,424,962 |
Dilutive effect of share awards |
|
|
3,788,033 |
|
|
4,039,709 |
|
|
2,975,887 |
Dilutive effect of exchangeable notes |
|
|
25,411,836 |
|
|
75,712,234 |
|
|
— |
Diluted weighted-average shares outstanding |
|
|
477,742,311 |
|
|
515,030,548 |
|
|
427,400,849 |
Basic EPS |
|
$ |
0.94 |
|
$ |
2.09 |
|
$ |
0.39 |
Diluted EPS |
|
$ |
0.92 |
|
$ |
1.89 |
|
$ |
0.39 |
|
| Schedule of reconciliation of adjusted operating income to net income before income taxes |
The below table includes our calculation of adjusted operating income, our significant segment expenses therein, and a reconciliation of adjusted operating income to net income before income taxes (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2025 |
|
2024 |
|
2023 |
Total revenue |
|
$ |
9,827,592 |
|
$ |
9,479,651 |
|
$ |
8,549,924 |
Cruise operating expense |
|
|
|
|
|
|
|
|
|
Commissions, transportation and other |
|
|
1,782,004 |
|
|
1,917,443 |
|
|
1,883,279 |
Onboard and other |
|
|
688,724 |
|
|
661,553 |
|
|
599,904 |
Adjusted payroll and related (1) |
|
|
1,379,864 |
|
|
1,322,465 |
|
|
1,241,243 |
Fuel |
|
|
675,887 |
|
|
698,050 |
|
|
716,833 |
Food |
|
|
315,460 |
|
|
312,992 |
|
|
358,310 |
Other |
|
|
774,032 |
|
|
753,940 |
|
|
648,142 |
Adjusted total cruise operating expense |
|
|
5,615,971 |
|
|
5,666,443 |
|
|
5,447,711 |
Other operating expense |
|
|
|
|
|
|
|
|
|
Adjusted marketing, general and administrative (2) |
|
|
1,481,395 |
|
|
1,362,404 |
|
|
1,241,482 |
Adjusted depreciation and amortization (3) |
|
|
983,654 |
|
|
890,242 |
|
|
808,568 |
Adjusted total other operating expense |
|
|
2,465,049 |
|
|
2,252,646 |
|
|
2,050,050 |
Adjusted operating income |
|
$ |
1,746,572 |
|
$ |
1,560,562 |
|
$ |
1,052,163 |
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
|
$ |
1,746,572 |
|
$ |
1,560,562 |
|
$ |
1,052,163 |
Non-cash compensation and write-off (4) |
|
|
(185,704) |
|
|
(94,656) |
|
|
(121,252) |
Interest expense, net |
|
|
(953,506) |
|
|
(747,223) |
|
|
(727,531) |
Other income (expense), net |
|
|
(178,641) |
|
|
54,224 |
|
|
(40,204) |
Net income before income taxes |
|
$ |
428,721 |
|
$ |
772,907 |
|
$ |
163,176 |
| (1) |
Excludes non-cash deferred compensation expenses related to the crew pension plan and non-cash share-based compensation expenses related to equity awards for shipboard officers. We refer you to Note 11 – “Employee Benefits and Share-Based Compensation.” |
| (2) |
Excludes non-cash share-based compensation expenses related to equity awards for corporate employees. We refer you to Note 11 – “Employee Benefits and Share-Based Compensation.” |
| (3) |
Excludes losses related to the write-off of an internal use-software project. We refer you to Note 8 – “Property and Equipment, Net.” |
| (4) |
Includes non-cash deferred compensation expenses related to the crew pension plan and non-cash share-based compensation expenses related to equity awards, which are included in payroll and related expense and marketing, general and administrative expense, and the write-off of an internal use-software project included in depreciation and amortization expense. |
|
| Schedule of revenues by destination |
Revenues by destination consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2025 |
|
2024 |
|
2023 |
North America |
|
$ |
5,649,039 |
|
$ |
5,318,676 |
|
$ |
5,002,796 |
Europe |
|
|
2,898,886 |
|
|
3,035,406 |
|
|
2,754,160 |
Asia-Pacific |
|
|
996,748 |
|
|
779,484 |
|
|
533,484 |
Other |
|
|
282,919 |
|
|
346,085 |
|
|
259,484 |
Total revenue |
|
$ |
9,827,592 |
|
$ |
9,479,651 |
|
$ |
8,549,924 |
|