Pursuit (PRSU) Q2 2025: Attractions Revenue Jumps 22%, Fueling Guidance Raise and M&A Expansion
Pursuit’s Q2 saw attractions revenue surge 22% year over year, as premium pricing and visitor growth drove a significant margin lift and a robust guidance raise. Strategic capital deployment—highlighted by the Tabacon acquisition in Costa Rica—signals a deepening global footprint and a commitment to high-return, experiential assets. With a fresh $50 million buyback authorization and an active M&A pipeline, Pursuit is leveraging operational momentum to reinforce its leadership in iconic destination experiences.
Summary
- Attractions-First Model Accelerates: Premium ticketing and visitor gains drive high-margin growth across core assets.
- Strategic M&A and Capital Deployment: Tabacon acquisition in Costa Rica anchors geographic and seasonal diversification.
- Guidance Raised on Sustained Demand: Upgraded outlook reflects strong summer pacing and robust booking trends.
Performance Analysis
Pursuit delivered a 15% year-over-year revenue increase in Q2, with adjusted EBITDA up nearly 50%. This performance was powered by a 22% jump in attractions ticket revenue, reflecting both higher effective ticket prices (ETP, average realized price per ticket) and increased visitation. The Banff Gondola and Iceland’s Sky Lagoon were cited as standout performers, with the latter benefiting from a strategic shift to premium-only experiences following a turf house expansion.
Hospitality (lodging) room revenue rose 6% year over year, driven by higher average daily rates (ADR, hotel revenue per occupied room) and occupancy, though growth was partially offset by ongoing renovations at the Forest Park Hotel. Same-store RevPAR (revenue per available room) grew 9% excluding renovation-impacted properties. Room bookings for the remainder of 2025 are pacing ahead: US properties up 6% and Canadian properties up 25% year over year, supporting management’s view of strong perennial demand and a return to normalcy in Jasper post-wildfire.
- Margin Expansion via Attractions Mix: Higher-margin attractions revenue outpaced lodging, supporting adjusted EBITDA leverage.
- Strong Pricing Power: 11% same-store ETP growth underscores Pursuit’s ability to monetize guest experience enhancements.
- Continued Cost Discipline: Margin flow-through benefited from operating leverage and focused expense management.
Legacy pension termination and discontinued operations (GES sale) impacted GAAP net income, but underlying results reflected robust core business momentum. The quarter’s results set up Pursuit for sustained double-digit growth in the second half.
Executive Commentary
"We delivered double-digit year-over-year growth across revenue, income from continuing operations, and adjusted EBITDA. This growth included significant increases in both visitors and revenue per visitor, reflecting continued healthy demand for our differentiated and authentic guest experiences and helped drive strong flow through to adjusted EBITDA."
David Berry, President and CEO
"Adjusted EBITDA increased by $9.8 million to $29.7 million, up nearly 50% year over year, primarily driven by significant revenue growth with strong margin flow through, supported by a favorable mix of higher margin attraction revenue and continued cost discipline."
Bo Heights, Chief Financial Officer
Strategic Positioning
1. Attractions-Led Growth Engine
Pursuit’s business model is centered on high-margin, destination attractions, supplemented by vertically integrated hospitality, retail, and food services. The company’s focus on refreshing, building, and buying unique experiences in iconic locations has enabled it to triple revenue over the last decade. Management highlighted the “relentless focus” on guest experience, pricing, and operational efficiency as core drivers of yield and margin expansion.
2. Disciplined Capital Allocation and M&A
The recently closed Tabacon Thermal Resort and Spa acquisition in Costa Rica marks a strategic entry into a fourth country, expanding both geographic and seasonal diversification. Tabacon’s blend of luxury lodging and high-capacity geothermal attractions presents immediate operational levers—especially reorienting thermal river attractions from hotel amenities to standalone visitor draws. Management plans to deploy Pursuit’s “refresh, build, buy” playbook to drive further upside, with near-term EBITDA multiple compression below 9x targeted via operational enhancements, not heavy capex.
3. Robust Organic Investment Pipeline
Pursuit has identified over $200 million in organic growth opportunities across its portfolio, including major refreshes at Forest Park Hotel and Jasper SkyTram. The company expects $38 to $43 million in organic investments for 2025, with flexibility to pace spending based on opportunity and market conditions. These projects are designed to improve guest experience, increase yield, and enhance property value in high-demand leisure markets.
4. Opportunistic Share Repurchases
A new $50 million buyback authorization provides flexibility to return capital when market valuation is deemed unattractive relative to internal investment opportunities. Management was explicit that repurchases are opportunistic, not programmatic, and will be weighed against the robust pipeline of high-return organic and acquisition opportunities.
5. Financial Flexibility and M&A Capacity
Pro forma net leverage stands at 1.5x, with a stated target of 2.5x to 3.5x, leaving substantial headroom for further strategic investments. The company’s strong balance sheet supports both larger platform acquisitions and smaller bolt-on deals, with management emphasizing readiness to act opportunistically as opportunities arise.
Key Considerations
This quarter underscored Pursuit’s ability to monetize experiential travel tailwinds while maintaining disciplined capital allocation and operational execution. The company’s strategic priorities remain tightly focused on attraction-led growth, guest experience, and high-return investment.
Key Considerations:
- Attractions Margin Leverage: High-margin attractions segment is the primary engine for both revenue and EBITDA expansion, with premium pricing and volume tailwinds.
- Geographic and Seasonal Diversification: Costa Rica entry reduces North American seasonality and opens a new growth vector in a stable, global tourism market.
- Organic vs. Acquisitive Growth Balance: Management’s pipeline includes both large platform deals and incremental property refreshes, with capital allocation decisions guided by return thresholds.
- Shareholder Returns Flexibility: Buyback authorization signals confidence in intrinsic value and provides a tactical lever against market undervaluation.
- Booking Pace and Demand Indicators: Forward booking data supports sustained demand, especially in Canadian properties rebounding from prior-year disruptions.
Risks
Pursuit faces risks from macroeconomic volatility, shifting travel trends, and potential geopolitical disruptions that could impact global visitation patterns. Renovation-related room outages and execution risk on new acquisitions (especially in unfamiliar geographies like Costa Rica) could affect near-term results. Currency fluctuations remain a material variable, as evidenced by this quarter’s significant FX-driven guidance lift.
Forward Outlook
For Q3 2025, Pursuit expects continued strong demand across both attractions and lodging, with peak season pacing ahead of last year in key markets.
- Adjusted EBITDA guidance raised to $108 million to $118 million for full-year 2025
- Incremental $10 million lift comprised of $7 million FX benefit and $3 million Tabacon contribution
Management cited booking momentum, improved Jasper performance, and operational leverage as drivers of the upgraded outlook. Focus remains on executing organic investments and integrating Tabacon, while maintaining capital deployment flexibility.
- Organic growth investments in the $38 to $43 million range for 2025
- Active evaluation of additional acquisitions and share repurchases
Takeaways
Pursuit’s Q2 results reinforce its attractions-first strategy and highlight the effectiveness of its capital allocation discipline in a mixed travel environment.
- Attractions Margin Power: Premium pricing and visitor growth at attractions drove disproportionate EBITDA leverage, validating Pursuit’s experiential focus.
- Strategic Expansion: The Tabacon acquisition and robust organic pipeline position Pursuit for multi-year growth, with diversification across geographies and seasons.
- Watch for Further Capital Deployment: Investors should monitor the pace of M&A, the impact of organic investments, and opportunistic buybacks as key levers for future value creation.
Conclusion
Pursuit’s Q2 showcased the compounding impact of its attractions-led strategy and disciplined capital allocation, driving guidance upgrades and expanded global reach. With strong demand signals, ample financial flexibility, and a proven investment playbook, Pursuit is well-positioned to sustain double-digit growth and deliver shareholder value through both organic and acquisitive means.
Industry Read-Through
Pursuit’s results highlight the enduring appeal and pricing power of differentiated, experience-driven travel assets—even as broader leisure demand remains volatile. The company’s ability to leverage premium offerings and operational enhancements in iconic destinations offers a blueprint for margin expansion in the sector. The Tabacon acquisition signals that global tourism platforms are seeking both diversification and scale, suggesting continued consolidation and investment in high-barrier, high-yield experiential assets. Competitors with undifferentiated or commoditized offerings may face margin compression as consumer preferences shift toward unique, memorable experiences.