Quarterly report [Sections 13 or 15(d)]

Summary of Significant Accounting Policies (Tables)

v3.26.1
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
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