Lindblad Expeditions (NASDAQ:LIND) released first-quarter financial results and hosted an earnings call on Tuesday. Read the complete transcript below.

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Summary

Lindblad Expeditions reported a strong Q1 2026 with a 15.7% increase in revenue to $208 million, driven by a record 93% occupancy and a 7% increase in net yield per guest night.

The company is focused on three strategic pillars: maximizing revenue through partnerships and onboard sales, optimizing financial performance via cost innovation, and pursuing accretive growth opportunities including fleet expansion.

Despite geopolitical challenges, Lindblad Expeditions maintained strong booking momentum for 2026 and is seeing accelerated demand for 2027, with investments in demand generation and partnerships like Disney and National Geographic contributing to growth.

Operational highlights include a significant reduction in food waste and enhancements in ship maintenance and fuel consumption, alongside strategic expansion in key markets like Australia and the UK.

Management expressed confidence in their strategic direction and emphasized a commitment to responsible exploration and conservation, as evidenced by recognition from Time as a leading travel company.

Full Transcript

Amy (Conference Operator)

Thank you for standing by. My name is Amy and I will be your conference operator for today. At this time I would like to welcome everyone to the Lindblad Expeditions Holdings Inc. First Quarter 2026 Earnings Call. All participants have been placed in a listen only mode. After the speaker's remarks, we will conduct a question and answer session. If you would like to join the queue. To ask a question, simply press Star followed by the number one on your telephone keypad. It is now my pleasure to turn the call over to Rick Goldberg, Chief Financial Officer with Lindblad. You may begin.

Rick Goldberg (Chief Financial Officer)

Thank you, Operator. Good morning everyone and thank you for joining us for Lindblad's first quarter 2026 earnings call. With me on today's call is Natalia Leahy, our Chief Executive Officer. Natalia will begin with some opening comments and I will follow with details on our Q1 results and expectations for the full year before we open the call for Q and A. As always, you can find our latest earnings release in the investor Relations section of our website. But before we get to all of that, I'd like to remind everyone that the Company's comments today may include forward looking statements. Those expectations are subject to risks and and uncertainties that may cause actual results and performance to be materially different from these expectations. The Company cannot guarantee the accuracy of any forecast or estimates and we undertake no obligation to update any such forward looking statements. If you would like more information on the risks involved in forward looking statements, please see the Company's SEC filings. In addition, our comments may reference non GAAP financial measures. A reconciliation of the most directly comparable GAAP financial measures and other associated disclosures are contained in the Company's earnings release. With that out of the way, I'll turn the call over to Natalia.

Natalia Leahy (Chief Executive Officer)

Thank you Rick. And here we are again. Good morning everyone and welcome to our first quarter earnings call. In a complex macro and geopolitical environment, our team delivered another record quarter. We achieved record first quarter occupancy of 93% on a 6% increase in capacity and increased net yield by 7% to a record of 1,631 per guest night. For the quarter, revenues increased 16% with the Lindblad segment growing 16% and the Land segment growing 14%. We delivered 14% EBITDA growth and generated 6 million in net income available to shareholders compared to a slightly negative net income last year. These results reflect the strength of our strategy and importantly the discipline of our execution. We remain confident in our ability to drive long term value as we continue to navigate external dynamics. We delivered these results in a challenging and complex operating environment, including some of the most difficult weather conditions in Antarctica in over a decade. As a result, we experienced increased cancellations in our Antarctica flight program in addition to several Egyptian river cruises. These cancellations not only impacted revenue from some of our most profitable voyages, but also led to higher land costs as some guests were already in transit on the ground when disruptions occurred. We increased demand generation spending to mitigate the risks of volatile external environment and I am pleased to share that we delivered a historically strong wave season, maintained booking pace for 2026 and further accelerated bookings momentum for 2027. Let me also address fuel we are closely monitoring the rapidly evolving situation due to our diversified portfolio. Fuel costs have historically averaged around 3.3-4% of our total revenues. We have doubled down on initiatives to reduce fuel consumption while maintaining an exceptional guest experience. As I mentioned during Q and A of our last earnings call, our guidance reflects a range of potential outcomes and we are reforming our full year outlook. This is supported by continued execution across our three strategic pillars. 1. Maximizing revenue generation through occupancy, pricing and deployment optimization. 2. Optimizing financial performance through cost innovation and fixed assets utilization. 3. Capitalizing on accretive growth opportunities including expanding our portfolio brands. Starting with our first pillar maximizing revenue, our Disney and National Geographic relationships continue to strengthen. In the first quarter, bookings from Disney earmarked travel agents increased 67% compared to prior year, demonstrating the meaningful value of this partnership in reaching new audiences through new channels. Building on this momentum, we recently signed our first ever charter agreement with Club 33, Disney's most exclusive private membership club and the voyage literally sold within a couple of hours. We will continue to explore additional opportunities with Club 33 members. Our onboard sales program continues to deliver exceptional results on vessels with dedicated expedition sales consultants. More than a quarter of our guests are booking their next voyage before disembarking. This conversion rate reflects both the strength of our guest experience and the effectiveness of our approach to driving repeat engagement. Our outbound sales program is also gaining significant traction, increasing 64% versus prior year, supported by a meaningful increase in lead generation. We believe we are still in the early stages of unlocking the full potential of this high value channel. We continue to see strong momentum in the UK market launched last year. This year we are also deepening our presence in Australia, one of our key international growth markets. In fact, our Chief Sales Officer Kathy and I will be in Australia later this month and very much looking forward for a major market engagement While our expedition segment continues to perform well, our land experiences segment is equally positioned for growth. We recently completed highly productive strategic planning session with our land company leaders to develop a long term plan for accelerated growth. A key element of our success in land acquisitions is our ability to partner closely with founders of this business businesses combining their deep understanding of the guest passion for the business with the scale and capabilities of our global platform. I am pleased to share that all of the founders of our land companies have extended their relationships with us, ensuring leadership continuity. Turning to our second pillar, cost Innovation and fixed assets utilization, we continue to build a strong pipeline of cost initiatives across the organization. As mentioned earlier, we have launched comprehensive programmatic fuel consumption efforts. We have also enhanced ship maintenance protocols including more frequent propeller polishing and hull cleaning which will support improved fuel efficiency over time. Complementing these operational improvements, our Chief Supply Chain Officer and his team have made significant progress renegotiating key contracts, delivering both immediate and long term savings across both our cost and capital. We are also re evaluating elements of our operating model to drive greater efficiencies. For example, we have outsourced certain warehouse functions to improve performance and scalability. In addition, we have made meaningful progress in optimizing crude travel through better planning and rotations with strong results already visible this quarter. Collectively, all these initiatives will deliver long term structural benefits to our business. Turning to our third pillar, accretive growth, we recently launched our partnership with Earthwatch, expanding into the citizen science travel segment and reinforcing our commitment to conservation and education. At the same time, we continue to evaluate opportunities across fleet and portfolio expansion. The sustained strength and demand for our product presents compelling opportunities to grow in a disciplined and strategic way. Throughout all of this, we remain grounded in what makes Leanblood unique. Our why our commitment to responsible exploration is central to who we are and a defining differentiator. For us. It is more than a trip, it is a mission and I will continue to highlight this as it is fundamental to our business and experience that we deliver to our guests this quarter. I would like to highlight our continued progress in food waste reduction which delivers positive impact on environment but also saves costs. We have made significant strides through a combination of disciplined execution and innovative practices. Our guest dinner signup program has reduced prep waste by up to 75%. Local provisioning has reduced excess inventory and associated waste. Our culinary teams continue to adopt zero waste techniques and food preservation methods, particularly in remote environments. We have also begun installing food dehydrators on our ships which convert food waste into reusable byproducts in addition, we published our 2025 Lindblot Expedition on National Geographic Fund Traveler Impact Report detailing our efforts to protect oceans, wildlife and communities. We are also honored to be named by Time as one of the 10 most influential travel and tourism companies of 2026. We believe this recognition reflects our pioneering heritage and leadership in in purpose driven expedition travel and strength of our brand and expertise built over nearly 60 years. Again, our quarterly results reflect the strength of our strategy and disciplined execution. Our focus on our three strategic pillars positions us to drive long term shareholders value. In closing, I want to express my sincere appreciation to our teams across the organization for navigating a complex environment with focus, resilience and unwavering commitment to our guests, our shareholders and each other. Thank you for your continued confidence in Lindblot Expeditions. We look forward to updating you on our progress and in the quarters ahead.

Rick Goldberg (Chief Financial Officer)

Thank you, Natalia Despite a challenging geopolitical backdrop, we delivered another record quarter reflecting the resilience of both our team and our business. Total company revenues for Q1 2026 were $208 million, an increase of 28.3 million or 15.7% versus Q1 2025. Lindblad segment revenues were 152.5 million, an increase of 21.4 million or 16.3% compared to the prior. Year occupancy increased 4 percentage points from 89% to 93%, the highest first quarter occupancy in company history, despite a 6.4% increase in available guest nights and net yield per available guest night increased 7.2% to $1,631, marking the highest quarterly net yield in company history. Land Experience Segment revenues were 55.5 million, an increase of 6.9 million or 14.2% compared to Q1 2025 driven by higher revenue per guest. Turning now to the cost side of the business, operating expenses before stock based compensation, transaction related expenses, depreciation and amortization, interest and taxes increased 23.4 million or 15.7% versus Q1 2025. Specifically, cost of tours increased 13.9 million or 15% driven by operating additional voyages and trips as well as higher air expense associated with expanding our Flying Antarctica program. The most notable impact of the war in Iran has been on fuel prices. Fuel costs represented 5.2% of Lindblad segment revenue in Q1, while absolute fuel spend increased year over year, it declined by 40 basis points as a percentage of revenue, reflecting stronger top line performance. Importantly, our diversified portfolio, including our land experiences platform helps mitigate the impact of fuel price volatility at the overall company level. In the first quarter, fuel costs were 3.9% of total company revenue and as a point of reference, a 10% change in fuel costs would have an impact of just under $2 million for the remainder of the year. Sales and marketing costs increased 7.7 million or 27.2%, primarily due to increased royalties associated with the final royalty rate step up under our National Geographic Agreement and investments in demand generation efforts. General and administrative costs excluding stock based compensation, transaction related expenses and reorganization costs increased 1.9 million or 6.5% versus a year ago, driven by higher personnel costs. As a percentage of revenue, G and A was 14.7%, down 120 basis points from the prior year, reflecting our continued focus on cost discipline and efficiencies as we scale the business guested EBITDA for the quarter was 34.8 million, an increase of 4.8 million or 16.2% versus the prior year. Lindblad segment EBITDA grew 1.6 million or 6.2% in spite of the impact of the fly Antarctica voyages canceled due to weather and the Egypt voyages canceled due to the war in Iran land experiences. EBITDA grew 3.2 million or 88%. This includes an approximately $3 million one time benefit related to the timing of TOR insurance revenue recognized in the quarter. First quarter net income available to stockholders was $6 million or $0.10 per share, compared to a slight loss a year ago. Turning now to the balance sheet, we ended the quarter with total cash of $321 million, an increase of 31.3 million versus the end of 2025. The increase reflects 49.5 million in cash from operations due primarily to the strong results of the business and increased bookings for future travel. We used 6.9 million of cash for investing activities primarily related to maintenance of our own ships. For the quarter, free cash flow increased 21.7% to 42.6 million. Our net leverage declined from 3.1 times at the end of the year to 2.7 times, highlighting the strength of our balance sheet and disciplined capital management. This progress was recognized by Moody's which recently upgraded our rating as we've shared on recent earnings calls. The company will continue to explore accretive growth opportunities, including expanding our fleet and further diversifying our portfolio of Land Experience brands to capitalize on continued growth in the demand for adventure travel. Turning now to our full year outlook, we are maintaining the guidance we shared on Our last earnings call. Available guest nights are expected to increase 4.5 to 5%. Net yield per unavailable. Guest night is expected to increase 4% to 5%. We expect total company revenue in the range of $800 million to $850 million, and we expect guested EBITDA in the range of $130 million to $140 million. As Natalia mentioned, despite a challenging geopolitical backdrop, we have maintained strong booking momentum for 2026 and are seeing accelerating demand for 2027. This reflects the growing demand for experiential travel, the strength of our affluent customer base, and continued execution against our commercial initiatives. With that, we thank you for your interest in Lindblad Expeditions. Natalia and I would be happy to answer any questions you may have.

OPERATOR

Thank you, Mr. Goldberg. The floor is now open for questions. To enter the queue, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star and the number one. If you are called upon to ask your question and are listening via a loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. We do request for today's session that you Please limit to two questions. Again, press star 1 to enter the queue. We'll pause for just a moment to compile the Q and A roster. Your first question comes from the line of Steve Wojczynski with Stifle. Your line is now open.

Steve Wojczynski (Equity Analyst)

Yeah, thanks, guys. Good morning. So, Natalia, Rick, you know, if we think about your yield guidance for the remainder of the year, wondering how we should be thinking about the cadence of yields over the last three quarters, because if I remember correctly, I think you guys were thinking, as we kind of talked to you guys back in February, that first half yields were going to be, let's say, more. A little bit more muted, and then there'd be more upside in yields in the back half of the year. But after putting up a really solid 7% yield in the first quarter, just wondering how we should think about yields now over the last three quarters of the year.

Natalia Leahy (Chief Executive Officer)

Thanks so much, Steve, and great to hear from you. So what I say is our underlying assumptions haven't changed. We're expecting significant capacity expansion expansion in the first half of the year, especially in Q2. So we saw 6% capacity growth in Q1. We're expecting double digit capacity growth in Q2. The rate of capacity growth will then decelerate in the second half of the year. So you should expect lower net yield growth in Q2 and stronger net yield growth in the back half of the year.

Steve Wojczynski (Equity Analyst)

Okay, gotcha. And then the second question, Rick, you touched on this a little bit in your prepared remarks. But if we want to dig in a little bit more in terms of maybe what you're seeing from a forward bookings perspective at this point, I guess what I'm trying to understand is has the booking environment changed, has it not changed over the last two months? And maybe a little bit of color around cancellation rates. Have you seen any of that around the potential war impact? And then maybe as we think about 2027, any change around the booking pattern in 27? I guess just with higher airline prices out there, is that, you know, has that been a little bit of a headwind for you guys or you just, you just haven't seen that at all yet? Thanks.

Rick Goldberg (Chief Financial Officer)

Yes, Steve, hi, this is, let me take this question. I think first of all, I do want to remind we started the year with a very strong position in 26. And so that that is an important kind of a backdrop point. We did see a slight uptake in cancellation rates in the last couple months. That's one of the reasons, as I mentioned, that we increased demand generation spending. I would say that it really re energized the market environment. We were able to maintain very healthy pacing in 2026, therefore reinforcing very confidently our guidance forward on the revenue side and 2027, frankly, accelerated pacing. I'm knocking on the wood. But we are very pleased with our performance based on our commercial initiatives and demand generation and several initiatives that we highlighted in the prepared remarks.

Steve Wojczynski (Equity Analyst)

Okay, great. Thanks guys. Appreciate it.

OPERATOR

Thank you. Your next question comes from the line of Eric Delorias with Greg Hallam. Your line is now open.

Eric Delorias

Great. Thank you for taking my questions. And congrats on another strong quarter, especially despite some of these cancellations here. So one of the things that stuck out to me in your prepared remarks was the impact of the dedicated expedition sales consultants. I think you said over a quarter of guests are now booking their next voyage before disembarking. It's much higher than I would have expected. So obviously great to see. I'm just wondering how does that sort of compare to your internal expectations or overall industry averages? And it's kind of wondering if this was an especially strong quarter or just kind of how to think about that conversion going forward. Thank you.

Natalia Leahy (Chief Executive Officer)

Yeah, I think, Eric, this is a great question. I would say I'm not going to comment on an industry average because it's I think very different from company to company. We are very pleased with performance of our onboard sales program. I will remind you that we have our sales consultants only on select larger ships. We don't have onboard sales consultants on our smaller ships that are below 100 passenger count. So just keep that in mind as you are doing average but overall performance is exceptionally strong and frankly stronger than we initially expected. Which again is first and above all is illustration of our exceptional guest experience on board, but also a very strong repeat rate and expanding booking curves.

Eric Delorias

That's great. I appreciate that color. And then you've touched on how some of the recent geopolitical volatility is impacting overall customer demand. Could you comment on how it may or may not be impacting sort of M and A dynamics, whether that's, you know, on sort of adding capacity to your fleet or on the land side of things. I'm just wondering how this may or may not be impacting any of those conversations. Thanks.

Rick Goldberg (Chief Financial Officer)

Thanks, Eric. So I'd say, you know, we continue to be actively focused on looking to expand capacity in terms of our expedition fleet as well as looking to add to our portfolio of land based companies. Those remain important priorities for us as a leadership team and we're not seeing any impact of the geopolitical situation on either of those. Great to hear.

Eric Delorias

Thanks for taking my questions and congrats again.

OPERATOR

Thank you. Your next question comes from the line of Eric Wald with Texas Capital. Your line is now open.

Eric Wald

Thanks. Good morning. First question. You mentioned that you've been making a lot of efforts operationally to reduce fuel consumption in general given what's going on with Iran. Have you also been including any kind of price increase for tours? Not, not, not a surcharge, but for, for, for expeditions that have not yet been booked. Have you been raising prices to potentially offset lingering fuel prices and if so, how far out in the booking curve are you making these moves?

Rick Goldberg (Chief Financial Officer)

Great question, Eric. I think our pricing is driven by demand, which we always continue to take pricing up when the demand comes. And that's why we're investing in the demand generation and all commercial initiatives and expanding booking curves and increasing price elasticity, etc. I would say we are very pleased with our 27 booking pace. We are booked on both land and expedition segments significantly ahead of prior year and continue to accelerate momentum. With that comes price increases on some of our more popular destinations like Alaska and Antarctica. We literally are reviewing prices on a weekly basis and adjusting them as needed. In terms of cost innovation, we have launched a number of very detailed reviews including involving our ship leaders on understanding how we can optimize ship consumption, analyze consumption of energy within the ship environment, optimize our speed maintenance protocols, et cetera.

Eric Wald

Got it. Okay. And then the second question. You've had some great success, seems like in cross selling the brands.

Rick Goldberg (Chief Financial Officer)

I know. Looks like the ratio of other tour revenues to ticket revenues continues to increase and made a nice move year over year in the quarter for the Lindblin segment. Maybe update us on kind of those efforts to kind of boost your wallet's share of the guests. Especially with cross promoting the land experiences. Kind of you before and after the expeditions.

Natalia Leahy (Chief Executive Officer)

Yeah. So Eric, our focus to drive on board revenue and pre and post trip experience continues to be one of the strategic focus areas that is separate from our land companies cross sell efforts. Both are an important strategic driver of our performance. We continue to provide more experiences as guests. When they travel literally to the ends of the world, they usually want to stay a couple days before and after their trip on board the ship. And we expanded our offerings of exceptional experiences before and after the trip. But we also doubled down on communicating to guests and making it easier to book pre and post experiences, including more recently upgrading our web platform to be able to book pre and post experiences very easily as part of a booking flow. We also continue to partner with our land companies and use our global platform and a guest list to cross promote our experiences.

Rick Goldberg (Chief Financial Officer)

Perfect. Thanks to. Yep. Thank you, Eric.

OPERATOR

Thank you. Your next question comes from the line of Mike Albanese with Stonex. Your line is now open.

Mike Albanese

Yeah, thanks. Good morning, Gus. Good morning. Thank you. Regarding the 2027 booking curves running ahead of 26 and then obviously accelerating here, could you just, if possible either quantify or just add some color in terms of, you know, how much you're pacing ahead of 2026?

Rick Goldberg (Chief Financial Officer)

Well, we do not give the guidance for 2027 years and we usually don't disclose that. I would say we are very pleased with our booking pace. Our overall occupancy guidance remains to be that we are targeting to be at 90% and above, as we mentioned last year, which is this, this quarter we delivered the highest in the history of the company of 93.2% occupancy. And I would say we are confidently marching to deliver on our goals to stay above 90% both in 26 and 27 while driving pricing.

Mike Albanese

Okay, fair enough. And then just regarding the weather impact, I mean, is there any way to quantify or add context to to that impact? You know, I'm just thinking here, how many Days were lost or voyages were lost or a sense of the cancellations. Trying to get a sense of essentially what this may have looked like, you know, if weather was not a factor. Yeah, so what I'd say there, Mike, is that if you factor in both the cancellations due to weather as well as the cancellations in Egypt due to the geopolitical situation, the impact was multi million dollars. So multi single digit million dollars. Okay, that's helpful. Thanks, guys.

OPERATOR

Yep, thank you. Before we continue with questions, if you have not asked your question and you would like to enter the queue, just a reminder, press star and the number one, your next question comes from the line of Ian Zaffino with Oppenheimer. Your line is now open.

Ian Zaffino

Hi, great. Thank you very much and good quarter. You know, have you guys seen any benefit from the Middle east hostilities, you know, as far as shifts in booking locations? So maybe travelers staying closer to home and doing Baja or Galapagos or something along those lines or any other kind of caller you could give us there. Thanks.

Natalia Leahy (Chief Executive Officer)

Thank you, Ian. We are constantly watching for any shifts in demand between our, you know, over 70 locations. I can't say that we've seen any specific patterns, to be honest. Our demand in places like Alaska and Baja you mentioned continues to grow, but frankly, it started prior to geopolitical situation. Baka had finished a very, very strong quarter, basically hundred percent booked on cabin basis with very strong demand. Antarctica, Alaska continues to grow, demand. Galapagos. So we haven't seen any specific shifts in demand, to be honest, but we are constantly monitoring it. Okay, thanks.

Ian Zaffino

And then, you know, on the land based land experiences, even though it's very strong, I know there's a little bit of a benefit, but maybe can you talk to the strength you're seeing there and then maybe your appetite to get larger on the land experience side.

Natalia Leahy (Chief Executive Officer)

Thanks. Well, our land experiences have been a gross engine for us over the past few years, as you have seen from our financial statements. So as I mentioned in my remarks, we've been spending time with our land presidents to really prepare them and invest in the next phase of unlocking growth. They had been growing double digits, very strong growth. And we continue to think how we can accelerate momentum. Those businesses are very capital light with incredibly well positioned expertise in various different parts of the world, very differentiated. So we will continue to focus on accelerating growth momentum with them.

Ian Zaffino

Thank you very much.

Rick Goldberg (Chief Financial Officer)

Welcome, welcome. Thank you. There are no further questions at this time. Mr. Goldberg, I turn the call back over to you.

OPERATOR

Just want to thank everyone for their interest and for all the great questions today. And look forward to being back with you next quarter. Thanks again. Bye now.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.