PRSU

Business Context and Reporting Period

Pursuit Attractions & Hospitality, Inc. (PRSU) filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The company operates as a single segment, owning and operating 17 point-of-interest attractions and 29 lodges across the U.S., Canada, Iceland, and Costa Rica. The reporting period reflects the company's transformation from Viad Corp following the sale of its GES Business in late 2024, which is now classified as a discontinued operation. Key strategic developments in 2025 included the acquisition of Tabacón Thermal Resort & Spa in Costa Rica and the announcement of a definitive agreement to sell its Flyover Attractions portfolio.

Key Financial Metrics

Note: Fiscal 2024 Net Income was significantly inflated by a one-time gain from the sale of the GES Business (Discontinued Operations). Fiscal 2025 results reflect a return to profitability from continuing operations.

Material Changes vs. Prior Period

• Revenue Growth: Total revenue increased 23.4% year-over-year. Attractions revenue grew 23.6% and Hospitality revenue grew 26.1%, driven by increased visitor volumes (12.3% increase) and higher revenue per visitor (10.1% increase). The acquisition of Tabacón contributed approximately $20.3 million in combined revenue.
• Profitability Shift: While Net Income dropped significantly due to the absence of the GES sale gain in 2025, Income from Continuing Operations improved from a loss of $51.8 million in 2024 to a profit of $38.5 million in 2025. This turnaround was aided by the absence of $47.6 million in impairment charges recorded in 2024 related to Flyover Las Vegas.
• Debt Structure: The company terminated its previous credit facility in late 2024 and entered a new $300 million Revolving Credit Facility in 2025. Outstanding borrowings under this facility were $87.4 million as of year-end, compared to $15.0 million in total debt in 2024.
• Acquisitions: The company acquired Tabacón Thermal Resort & Spa for $108.6 million in July 2025 and the Jasper SkyTram for approximately $16.5 million in December 2024.

Guidance, Outlook, and Risks

• Subsequent Event (Flyover Sale): On January 21, 2026, Pursuit agreed to sell its Flyover Attractions to Brogent Technologies Inc. for approximately $78.4 million in cash. The transaction is expected to close in spring 2026. Management does not expect to recognize an impairment or classify the sale as a discontinued operation.
• Capital Expenditures: Planned capital expenditures for 2026 are estimated between $121 million and $127 million, with $88–$93 million allocated to growth projects under the "Refresh, Build, Buy" strategy (e.g., Jasper SkyTram upgrades, Banff Gondola enhancements).
• Seasonality: The business remains highly seasonal, with 79% of 2025 revenue earned in the second and third quarters.
• Risks: Key risks include exposure to foreign currency fluctuations (71% of revenue is international), potential for natural disasters (e.g., 2024 Jasper wildfires), and the ability to integrate new acquisitions. The company maintains a valuation allowance on U.S. deferred tax assets due to cumulative losses.

Investor Verification Checklist

• Continuing Operations Profitability: Verify the sustainability of the $38.5 million operating profit excluding the one-time GES sale gain from the prior year.
• Flyover Sale Closing: Monitor the closing of the $78.4 million Flyover sale and confirm the absence of unexpected impairment charges or tax liabilities.
• Debt Covenants: Review compliance with the new 2025 Credit Agreement covenants (Net Leverage Ratio ≤ 3.0x; Fixed-Charge Coverage ≥ 1.25x).
• Tabacón Integration: Assess the financial performance of the Tabacón acquisition post-integration to ensure it meets revenue diversification goals.
• Insurance Recoveries: Track remaining insurance recoveries related to the 2024 Jasper wildfires, as the company is still determining final amounts.