| 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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
Net income (loss) |
|
$ |
222,553 |
|
$ |
29,992 |
|
$ |
327,219 |
|
$ |
(10,303) |
Effect of dilutive securities - exchangeable notes |
|
|
624 |
|
|
— |
|
|
1,576 |
|
|
— |
Net income (loss) and assumed conversion of exchangeable notes - Diluted EPS |
|
$ |
223,177 |
|
$ |
29,992 |
|
$ |
328,795 |
|
$ |
(10,303) |
Basic weighted-average shares outstanding |
|
|
459,133,954 |
|
|
446,586,784 |
|
|
457,901,116 |
|
|
443,882,011 |
Dilutive effect of share awards |
|
|
719,333 |
|
|
1,446,354 |
|
|
2,254,619 |
|
|
— |
Dilutive effect of exchangeable notes |
|
|
4,079,154 |
|
|
— |
|
|
5,233,192 |
|
|
— |
Diluted weighted-average shares outstanding |
|
|
463,932,441 |
|
|
448,033,138 |
|
|
465,388,927 |
|
|
443,882,011 |
Basic EPS |
|
$ |
0.48 |
|
$ |
0.07 |
|
$ |
0.71 |
|
$ |
(0.02) |
Diluted EPS |
|
$ |
0.48 |
|
$ |
0.07 |
|
$ |
0.71 |
|
$ |
(0.02) |
|
| 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 |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
Total revenue |
|
$ |
2,640,544 |
|
$ |
2,517,497 |
|
$ |
4,971,765 |
|
$ |
4,645,050 |
Cruise operating expense |
|
|
|
|
|
|
|
|
|
|
|
|
Commissions, transportation and other |
|
|
484,668 |
|
|
487,835 |
|
|
882,273 |
|
|
883,178 |
Onboard and other |
|
|
191,446 |
|
|
187,684 |
|
|
343,314 |
|
|
326,542 |
Adjusted payroll and related (1) |
|
|
388,374 |
|
|
340,173 |
|
|
762,753 |
|
|
669,300 |
Fuel |
|
|
219,384 |
|
|
157,377 |
|
|
388,310 |
|
|
332,391 |
Food |
|
|
87,322 |
|
|
81,323 |
|
|
168,004 |
|
|
156,911 |
Other |
|
|
209,415 |
|
|
196,495 |
|
|
407,999 |
|
|
381,126 |
Adjusted total cruise operating expense |
|
|
1,580,609 |
|
|
1,450,887 |
|
|
2,952,653 |
|
|
2,749,448 |
Other operating expense |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted marketing, general and administrative (2) |
|
|
394,420 |
|
|
372,563 |
|
|
820,700 |
|
|
748,482 |
Depreciation and amortization |
|
|
271,205 |
|
|
243,760 |
|
|
531,921 |
|
|
475,057 |
Adjusted total other operating expense |
|
|
665,625 |
|
|
616,323 |
|
|
1,352,621 |
|
|
1,223,539 |
Adjusted operating income |
|
$ |
394,310 |
|
$ |
450,287 |
|
$ |
666,491 |
|
$ |
672,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
|
$ |
394,310 |
|
$ |
450,287 |
|
$ |
666,491 |
|
$ |
672,063 |
Non-cash compensation, severance and professional advisory fees (3) |
|
|
(30,983) |
|
|
(26,451) |
|
|
(70,221) |
|
|
(47,285) |
Interest expense, net |
|
|
(170,887) |
|
|
(236,782) |
|
|
(336,874) |
|
|
(454,654) |
Other income (expense), net |
|
|
33,517 |
|
|
(156,425) |
|
|
74,220 |
|
|
(180,930) |
Net income (loss) before income taxes |
|
$ |
225,957 |
|
$ |
30,629 |
|
$ |
333,616 |
|
$ |
(10,806) |
| (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 Shipboard Retirement Plan as follows (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
Service cost |
|
$ |
614 |
|
$ |
552 |
|
$ |
1,228 |
|
$ |
1,105 |
| (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 |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
Professional advisory fees |
|
$ |
175 |
|
$ |
— |
|
$ |
5,242 |
|
$ |
— |
Severance costs and other fees |
|
|
7,460 |
|
|
— |
|
|
17,652 |
|
|
— |
| (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 |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
North America |
|
$ |
1,552,908 |
|
$ |
1,290,919 |
|
$ |
3,319,159 |
|
$ |
2,737,647 |
Europe |
|
|
815,032 |
|
|
963,830 |
|
|
846,973 |
|
|
1,037,080 |
Asia-Pacific |
|
|
209,056 |
|
|
232,944 |
|
|
575,793 |
|
|
638,733 |
Other |
|
|
63,548 |
|
|
29,804 |
|
|
229,840 |
|
|
231,590 |
Total revenue |
|
$ |
2,640,544 |
|
$ |
2,517,497 |
|
$ |
4,971,765 |
|
$ |
4,645,050 |
|