| 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 |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
Net income |
|
$ |
491,465 |
|
$ |
419,295 |
|
$ |
818,684 |
|
$ |
408,992 |
Effect of dilutive securities - exchangeable notes |
|
|
— |
|
|
7,287 |
|
|
1,576 |
|
|
32,056 |
Net income and assumed conversion of exchangeable notes - Diluted EPS |
|
$ |
491,465 |
|
$ |
426,582 |
|
$ |
820,260 |
|
$ |
441,048 |
Basic weighted-average shares outstanding |
|
|
459,221,105 |
|
|
450,996,955 |
|
|
458,345,947 |
|
|
446,279,721 |
Dilutive effect of share awards |
|
|
1,202,221 |
|
|
4,230,422 |
|
|
1,903,819 |
|
|
3,630,304 |
Dilutive effect of exchangeable notes |
|
|
— |
|
|
40,500,001 |
|
|
3,469,625 |
|
|
55,407,417 |
Diluted weighted-average shares outstanding |
|
|
460,423,326 |
|
|
495,727,378 |
|
|
463,719,391 |
|
|
505,317,442 |
Basic EPS |
|
$ |
1.07 |
|
$ |
0.93 |
|
$ |
1.79 |
|
$ |
0.92 |
Diluted EPS |
|
$ |
1.07 |
|
$ |
0.86 |
|
$ |
1.77 |
|
$ |
0.87 |
|
| 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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
Total revenue |
|
$ |
2,946,763 |
|
$ |
2,938,142 |
|
$ |
7,918,528 |
|
$ |
7,583,192 |
Cruise operating expense |
|
|
|
|
|
|
|
|
|
|
|
|
Commissions, transportation and other |
|
|
547,675 |
|
|
521,981 |
|
|
1,429,948 |
|
|
1,405,159 |
Onboard and other |
|
|
236,180 |
|
|
222,002 |
|
|
579,494 |
|
|
548,544 |
Adjusted payroll and related (1) |
|
|
383,914 |
|
|
349,355 |
|
|
1,146,667 |
|
|
1,018,655 |
Fuel |
|
|
195,733 |
|
|
175,913 |
|
|
584,043 |
|
|
508,304 |
Food |
|
|
92,043 |
|
|
81,866 |
|
|
260,047 |
|
|
238,777 |
Other |
|
|
205,722 |
|
|
197,701 |
|
|
613,721 |
|
|
578,827 |
Adjusted total cruise operating expense |
|
|
1,661,267 |
|
|
1,548,818 |
|
|
4,613,920 |
|
|
4,298,266 |
Other operating expense |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted marketing, general and administrative (2) |
|
|
348,724 |
|
|
370,072 |
|
|
1,169,424 |
|
|
1,118,554 |
Adjusted depreciation and amortization (3) |
|
|
270,878 |
|
|
250,832 |
|
|
802,799 |
|
|
725,889 |
Adjusted total other operating expense |
|
|
619,602 |
|
|
620,904 |
|
|
1,972,223 |
|
|
1,844,443 |
Adjusted operating income |
|
$ |
665,894 |
|
$ |
768,420 |
|
$ |
1,332,385 |
|
$ |
1,440,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
|
$ |
665,894 |
|
$ |
768,420 |
|
$ |
1,332,385 |
|
$ |
1,440,483 |
Non-cash compensation, severance, professional advisory fees and loss on ship disposal (4) |
|
|
(41,620) |
|
|
(18,971) |
|
|
(111,841) |
|
|
(66,256) |
Interest expense, net |
|
|
(170,544) |
|
|
(328,816) |
|
|
(507,418) |
|
|
(783,470) |
Other income (expense), net |
|
|
30,901 |
|
|
13,003 |
|
|
105,121 |
|
|
(167,927) |
Net income before income taxes |
|
$ |
484,631 |
|
$ |
433,636 |
|
$ |
818,247 |
|
$ |
422,830 |
| (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 |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
Service cost |
|
$ |
614 |
|
$ |
553 |
|
$ |
1,842 |
|
$ |
1,658 |
| (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 investor activities and the cash portion of our restructuring costs related to certain employee terminations as follows (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
Professional advisory fees |
|
$ |
150 |
|
$ |
— |
|
$ |
5,392 |
|
$ |
— |
Severance costs and other fees |
|
|
2,710 |
|
|
— |
|
|
20,362 |
|
|
— |
| (3) |
Excludes the loss related to the disposal of Oceania Sirena as follows (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
Loss on ship disposal |
|
$ |
16,825 |
|
$ |
— |
|
$ |
16,825 |
|
$ |
— |
| (4) |
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 |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
North America |
|
$ |
1,672,551 |
|
$ |
1,463,030 |
|
$ |
4,991,710 |
|
$ |
4,200,677 |
Europe |
|
|
1,257,946 |
|
|
1,349,391 |
|
|
2,104,919 |
|
|
2,386,471 |
Asia-Pacific |
|
|
12,442 |
|
|
124,830 |
|
|
588,235 |
|
|
763,563 |
Other |
|
|
3,824 |
|
|
891 |
|
|
233,664 |
|
|
232,481 |
Total revenue |
|
$ |
2,946,763 |
|
$ |
2,938,142 |
|
$ |
7,918,528 |
|
$ |
7,583,192 |
|