| 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 |
|