PRSU Q2 Deep Dive: Acquisition-Fueled Growth, Margin Gains, and Strategic Expansion

Experiential tourism company Pursuit Attractions and Hospitality (NYSE:PRSU) beat Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 69.2% year on year to $116.7 million. Its non-GAAP profit of $0.36 per share was 38.5% above analysts’ consensus estimates.

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StockStory’s Take

Pursuit’s second quarter results were well received by the market, driven by better-than-expected revenue and non-GAAP earnings. Management credited the quarter’s outperformance to sustained demand for its iconic attractions and lodging, increased pricing power, and operational discipline. CEO David Barry highlighted, “We delivered double-digit year-over-year growth across revenue, income from continuing operations and adjusted EBITDA,” citing strong visitor numbers and higher spend per guest, especially at destinations like the Banff Gondola and Sky Lagoon.

Looking ahead, management expects continued growth from expanding its portfolio through acquisitions and targeted investments in existing properties. The recent addition of Tabacon Thermal Resort & Spa in Costa Rica is central to this strategy, providing both geographic and seasonal diversification. CFO Bo Heitz stated, “We now expect full year adjusted EBITDA of $108 million to $118 million,” attributing higher guidance to ongoing demand, currency tailwinds, and contributions from new properties. Management plans to balance organic upgrades with further acquisitions, focusing on high-return projects and leveraging its strong balance sheet.

Key Insights from Management’s Remarks

Management attributed Q2 performance to strong demand, improved pricing, and the success of its Refresh, Build, Buy strategy, while recent acquisitions further diversified the business.

• Attraction Ticket Pricing Power: Pursuit achieved significant growth in effective ticket pricing, especially at the Sky Lagoon, where the addition of a premium experience drove up average prices and margins with minimal extra costs.
• Lodging Revenue Growth: All lodging collections posted higher room revenue, with RevPAR (revenue per available room) gains widespread across geographies. Recent renovations at properties like Forest Park Hotel contributed to increased occupancy and average daily rates.
• Costa Rica Acquisition: The purchase of Tabacon Thermal Resort & Spa marks Pursuit’s entry into Costa Rica, blending high-margin attractions with luxury hospitality. Management views this as a foundation for building a broader presence in a market known for perennial demand and barriers to entry.
• Operational Efficiency and Margin Expansion: Higher-margin attractions and disciplined cost management improved operating leverage, enabling adjusted EBITDA margin gains. Management emphasized that scaling existing experiences is highly margin-accretive due to the fixed cost nature of attractions.
• New Share Repurchase Authorization: The board approved a $50 million share repurchase program, intended to be used opportunistically if the market undervalues the business, while maintaining a primary focus on reinvestment and acquisitions.

Drivers of Future Performance

Pursuit’s outlook is underpinned by continued demand for unique experiences, strategic investment in property upgrades, and expansion into new markets.

• Acquisition Integration and Expansion: Management will focus on integrating Tabacon Thermal Resort and evaluating additional investment opportunities in Costa Rica. The goal is to scale attractions and hospitality offerings to unlock incremental revenue and margin improvement.
• Organic Growth Projects: Over the next five years, more than $200 million in Refresh and Build investments are planned, targeting upgrades and expansions at existing high-performing sites, including upcoming renovations at Jasper SkyTram and Apgar Village.
• Operational Risks and Industry Trends: While demand remains strong, management acknowledged potential headwinds from geopolitical dynamics, currency fluctuations, and leisure travel variability. The company’s diversified footprint and focus on high-barrier markets are intended to mitigate these risks.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will track (1) the pace and profitability of integrating the Tabacon acquisition in Costa Rica, (2) progress on major organic growth projects like renovations at Jasper SkyTram and Forest Park Hotel, and (3) sustained demand for premium guest experiences at core attractions. Execution on additional M&A and the impact of the new share repurchase program will also be closely monitored.

Pursuit currently trades at $34.51, up from $30.03 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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