Hospitality company Pursuit Attractions and Hospitality (NYSE:PRSU) announced better-than-expected revenue in Q3 CY2025, but sales fell by 47.1% year on year to $241 million. Its non-GAAP profit of $2.65 per share was 8% above analysts’ consensus estimates.
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Pursuit Attractions and Hospitality (PRSU) Q3 CY2025 Highlights:
- Revenue: $241 million vs analyst estimates of $225 million (47.1% year-on-year decline, 7.1% beat)
- Adjusted EPS: $2.65 vs analyst estimates of $2.45 (8% beat)
- Adjusted EBITDA: $117.4 million vs analyst estimates of $111.4 million (48.7% margin, 5.4% beat)
- EBITDA guidance for the full year is $119 million at the midpoint, above analyst estimates of $114 million
- Operating Margin: 43.6%, up from 18.6% in the same quarter last year
- Market Capitalization: $1.03 billion
StockStory’s Take
Pursuit Attractions and Hospitality’s third quarter results reflected a robust recovery in Jasper following last year’s wildfires, solid demand across its network of attractions and lodges, and disciplined cost management. Management credited the strong quarter to effective yield optimization and increased visitation, particularly at its Canadian properties and Sky Lagoon. CEO David Barry highlighted that the company’s focus on elevating guest experiences and timely capital investments supported both revenue growth and margin improvement. However, it is important to note that while the company reported a 32% year-over-year revenue increase per management, the published results state that revenue fell by 47.1% year over year to $241 million. This apparent contradiction arises from the prior year’s comparison base, which included significant insurance proceeds and discontinued operations. Management provided context for these unusual year-over-year variances on the call.
Looking forward, Pursuit Attractions and Hospitality’s guidance is shaped by ongoing investments in key asset refreshes, the integration of its recent Tabacon acquisition, and persistent demand for experience-driven travel. Management is prioritizing large-scale renovation projects and sees favorable secular trends in adventure and wellness tourism. CEO David Barry noted, “Tour and travel partners are signaling strong demand for 2026 itineraries,” underscoring the company’s confidence in sustained growth and operational momentum.
Key Insights from Management’s Remarks
Management attributed the quarter’s performance to the recovery in Jasper, successful pricing strategies at flagship attractions, and the impact of recent acquisitions, all while maintaining a disciplined approach to cost and investment.
- Jasper recovery drives growth: The reopening of Jasper properties, which were closed last year due to wildfires, delivered significant uplift in both visitation and revenue, helping to restore key market momentum. However, despite this recovery, overall company revenue was down 47.1% year over year, which management explained was due to an unusually high prior-year comparison base.
- Yield optimization at major attractions: Initiatives to improve ticket pricing and guest experience at locations like Sky Lagoon and Banff Gondola led to a notable increase in effective ticket price, with management citing a 9% rise in same-store constant currency effective ticket pricing compared to 2024. The article notes this improvement even as overall revenue fell, a nuance explained by the base-year effect.
- Tabacon acquisition integration: The addition of Tabacon in Costa Rica brought a year-round revenue stream and operational learnings from geothermal attractions, with early results meeting expectations and plans for further expansion on the 570-acre property.
- Large-scale property refreshes underway: Major renovation projects at Forest Park Hotel and Grouse Mountain Lodge are being executed in phases, designed to elevate the guest experience and support higher average daily rates and occupancy.
- Cost discipline and operational leverage: Ongoing management of expenses and scalable business operations contributed to margin expansion, as demonstrated by a significant increase in adjusted EBITDA and operating margin year over year, though overall company revenue was down sharply due to the prior year’s elevated base.
Drivers of Future Performance
Management expects future performance to be steered by continued investment in property upgrades, integration of new assets, and resilient demand for experiential travel.
- Accelerated capital investments: Pursuit plans to invest heavily in refresh and build projects, including Jasper SkyTram and Banff Gondola upgrades, aiming to increase capacity and improve guest experiences. Management discussed these projects as drivers for future growth, but did not provide explicit guidance on margin gains beyond 2026.
- Tabacon growth and Costa Rica expansion: The company is leveraging Tabacon’s strong occupancy and premium market positioning, with further opportunities for development and potential acquisitions in Costa Rica, targeting both luxury and budget-conscious travelers.
- Exposure to macro and environmental factors: While management expresses confidence in tourism trends and early booking indicators for 2026, they acknowledge weather disruptions and competitive supply in key markets could impact visitation and financial results.
Catalysts in Upcoming Quarters
In the quarters ahead, our analyst team will be tracking (1) progress on major renovation projects at Forest Park Hotel, Grouse Mountain Lodge, and Jasper SkyTram, (2) integration milestones and revenue contributions from the Tabacon acquisition, and (3) early booking and visitation trends for 2026 as management continues to monitor market indicators. It should be noted that many properties, especially in Jasper, are not expected to reopen until late 2027 or later, and that 2026 bookings remain in the early stages. Developments around expansion in Costa Rica and management’s ability to navigate external risks will also be important markers.
Pursuit Attractions and Hospitality currently trades at $36.41, in line with $36.61 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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