Vail Resorts, Inc. — Fiscal 2026 Form 10-K
Reporting period: Year ended July 31, 2026. Vail Resorts operates 42 destination and regional mountain resorts, plus lodging and real estate businesses. Mountain, Lodging and Real Estate generated approximately 88%, 12% and 0% of net revenue, respectively.
Financial and operating performance
| Metric | Fiscal 2026 | Fiscal 2025 | Change |
|---|---|---|---|
| Total net revenue | $2.838 billion | $2.964 billion | -4.3% |
| Income from operations | $420.5 million | $560.0 million | -24.9% |
| Net income attributable to Vail Resorts | $147.5 million | $280.0 million | -47.3% |
| Diluted EPS | $4.12 | $7.53 | -45.3% |
| Resort Reported EBITDA* | $745.7 million | $844.1 million | -11.7% |
| Total Reported EBITDA* | $753.0 million | $862.8 million | -12.7% |
| Net cash from operating activities | $479.6 million | $554.9 million | -13.6% |
*Non-GAAP measures as defined by the company; not substitutes for GAAP results. Net margin was approximately 5.2%, versus 9.4% in Fiscal 2025; operating margin was approximately 14.8%, versus 18.9%.
- Mountain: Revenue was $2.503 billion, down 4.8%; Reported EBITDA was $729.4 million, down 11.2%. Total skier visits fell 13.4% to 15.3 million. Lift revenue declined 3.5%; ski school, dining and retail/rental revenue fell 10.3%, 7.6% and 6.5%, respectively. Pass revenue increased $38.8 million and represented approximately 70% of lift revenue, up from 65%.
- Lodging: Revenue, excluding payroll reimbursements, was $310.4 million, down 2.9%; Reported EBITDA was $16.3 million, down 28.4%. Combined owned-hotel and managed-condominium RevPAR declined 6.3% to $123.25.
- Real Estate: Reported EBITDA was $7.4 million, down from $18.6 million, reflecting lower gains on property sales. Fiscal 2026 included a $13.1 million gain tied to a Breckenridge parcel and other property-sale results.
- Cash and liquidity: Cash and cash equivalents were $231.3 million, with $37.1 million in short-term certificates of deposit. The Vail Holdings revolver had $337.4 million available; the Whistler facility had $175.9 million available. Current assets of $876.5 million were below current liabilities of $1.097 billion.
- Debt: Total debt was $3.184 billion; net debt was $2.918 billion, up from $2.754 billion. Approximately $1.5 billion of debt was variable-rate; a 100-basis-point rate increase would raise annual interest expense by about $14.7 million. Net interest expense rose 19.8% to $205.6 million.
- Capital returns and investment: The company paid $8.88 per share in Fiscal 2026 dividends, or $317.1 million, and repurchased $45.0 million of shares. The Board subsequently declared a $2.22-per-share dividend payable October 27, 2026. Calendar 2026 capital spending is estimated at $229–$234 million, including European growth, RET and real-estate planning projects.
Material changes and management commentary
- Management attributed the deterioration primarily to record-low snowfall and historically warm temperatures in the western U.S., which reduced terrain availability, shortened operations and weakened visitation and ancillary spending. Australian resorts also experienced challenging early-season weather.
- Management reported $45 million of RET savings in Fiscal 2026 before one-time costs. Fiscal 2026 included $11 million of RET costs. The company expects $110 million of annualized efficiencies in Fiscal 2027 and approximately $25 million more in Fiscal 2028; these targets are not assured.
- Pass sales for the 2026/2027 North American season through September 18, 2026 were down approximately 12% in units, 10% in days and 6% in sales dollars versus the comparable prior-year period. Management cautioned that the trend may change.
- The company launched its multi-year Epic Experience initiative, including expanded digital purchasing and lesson features, rental enhancements and planned AI-supported trip planning. Management also reported record guest-satisfaction scores for the 2025/2026 North American season.
Outlook, risks and unusual items
- No consolidated earnings or EBITDA guidance is provided in the supplied filing text. Management says operating cash flow, cash balances and available credit are expected to meet near-term liquidity needs, subject to operating performance.
- Weather and climate are material risks: the filing says summer activities and other seasonal operations do not fully offset off-season losses. Other key exposures include discretionary travel demand, inflation and labor costs, travel disruptions, water availability, high fixed costs, cyber and privacy risks, AI implementation, foreign exchange and dependence on government permits and leases.
- Epic Coverage refunds could reduce pass revenue if qualifying claims increase. Pass revenue is recognized over the ski season, and the estimate of refunds involves uncertainty.
- GTLC was selected for a new 15-year Grand Teton concession expected to begin January 1, 2027, subject to review and execution. The franchise fee is changing from 8.01% to a tiered 14%–22% of most sales, and the agreement calls for significant property, employee-housing and fire-protection upgrades.
- A $97.8 million Park City contingent-consideration liability is based on fair-value estimates and was identified by the auditor as a critical audit matter. The company recorded $19.2 million of expense from remeasurement in Fiscal 2026.
- The company disclosed an immaterial classification error in interim 2026 statements: certain certificates of deposit were classified as cash rather than short-term investments, and related investing cash outflows were understated. The company plans to revise the presentation in future interim filings.
- The company reported two activist nominations totaling five director candidates for the 2026 annual meeting. It was in compliance with debt covenants at year-end and expects to remain compliant over the next 12 months, while noting there is no assurance.
- Management and PwC concluded internal control over financial reporting was effective as of July 31, 2026. PwC issued an unqualified opinion on the financial statements and internal controls.
Important facts for investors to verify
- Whether 2026/2027 pass-sales declines continue and how they affect advance cash receipts, lift revenue and visitation.
- Resort snowfall, opening dates and visitation trends, particularly in the Rockies and Tahoe, and the resulting effect on margins given the fixed-cost base.
- Progress toward RET savings targets, including implementation costs and effects on staffing, service quality and operations.
- Liquidity, variable-rate borrowing exposure, debt maturities and covenant headroom; also assess the effect of dividends and capital spending on available cash.
- The final GTLC concession terms, fee impact and required investment, as well as the resolution and financial sensitivity of the Park City contingent consideration.
- Correction of the interim certificate-of-deposit classification in the next applicable Form 10-Q and any subsequent changes to estimates, risks or guidance.