Quarterly report [Sections 13 or 15(d)]

Summary of Significant Accounting Policies (Tables)

v3.26.1
Summary of Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Schedule of reconciliation between basic and diluted EPS

A reconciliation between basic and diluted earnings per share was as follows (in thousands, except share and per share data):

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

Net income (loss)

​

$

104,666

​

$

(40,295)

Effect of dilutive securities - exchangeable notes

​

​

771

​

​

—

Net income (loss) and assumed conversion of exchangeable notes - Diluted EPS

​

$

105,437

​

$

(40,295)

Basic weighted-average shares outstanding

​

 

456,654,579

​

 

441,147,186

Dilutive effect of share awards

​

 

3,789,904

​

 

—

Dilutive effect of exchangeable notes

​

​

5,700,618

​

​

—

Diluted weighted-average shares outstanding

​

 

466,145,101

​

 

441,147,186

Basic EPS

​

$

0.23

​

$

(0.09)

Diluted EPS

​

$

0.23

​

$

(0.09)

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 (loss) before income taxes (in thousands):

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

Total revenue

​

$

2,331,221

​

$

2,127,553

Cruise operating expense

​

​

​

​

​

​

Commissions, transportation and other

​

​

397,605

​

​

395,343

Onboard and other

​

​

151,868

​

​

138,858

Adjusted payroll and related (1)

​

​

374,379

​

​

329,127

Fuel

​

​

168,926

​

​

175,014

Food

​

​

80,682

​

​

75,588

Other

​

​

198,584

​

​

184,631

Adjusted total cruise operating expense

​

​

1,372,044

​

​

1,298,561

Other operating expense

​

​

​

​

​

​

Adjusted marketing, general and administrative (2)

​

​

426,280

​

​

375,919

Depreciation and amortization

​

​

260,716

​

​

231,297

Adjusted total other operating expense

​

​

686,996

​

​

607,216

Adjusted operating income

​

$

272,181

​

$

221,776

​

​

​

​

​

​

​

Adjusted operating income

​

$

272,181

​

$

221,776

Non-cash compensation, severance and professional advisory fees (3)

​

​

(39,238)

​

​

(20,834)

Interest expense, net

​

​

(165,987)

​

​

(217,872)

Other income (expense), net

​

​

40,703

​

​

(24,505)

Net income (loss) before income taxes

​

$

107,659

​

$

(41,435)

(1) Excludes non-cash share-based compensation expenses related to equity awards for shipboard officers (see Note 9 – “Employee Benefits and Share-Based Compensation”) and non-cash deferred compensation expenses related to the crew pension plan as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

Service cost

​

$

614

​

$

553

​

(2) Excludes non-cash share-based compensation expenses related to equity awards for corporate employees (see Note 9 – “Employee Benefits and Share-Based Compensation”), professional advisory fees incurred related to activist investors and the cash portion of our restructuring costs related to certain employee terminations as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

Professional advisory fees

​

$

5,067

​

$

—

Severance payments and other fees

​

​

10,192

​

​

—

​

(3) Includes, in aggregate, the adjustments noted above.
Schedule of revenues by destination

Revenue and cash flows are affected by economic factors in various geographical regions. Revenues by destination were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

North America

​

$

1,766,251

​

$

1,446,728

Europe

​

 

31,941

​

 

73,250

Asia-Pacific

​

 

366,737

​

 

405,789

Other

​

​

166,292

​

​

201,786

Total revenue

​

$

2,331,221

​

$

2,127,553