Viad Corp Aktie

Good afternoon. My name is Lisa, and I will be your conference operator today. At this time, I would like to welcome everyone to Pursuit's 2026 First Quarter Earnings Conference Call. [Operator Instructions] I will now hand the call over to Carrie Long. You may now begin the conference.

Good afternoon, and thank you for joining us for our 2026 first quarter earnings conference call. During the call, you'll hear from David Barry, our President and CEO; and Bo Heitz, our Chief Financial Officer. As David and Bo cover our results and outlook, they will be referencing our earnings presentation, which is available on the Investors section of our website. We encourage investors to monitor this section of our website in addition to our press releases, filings submitted with the SEC and any public conference calls or webcast. Today's call will contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Please refer to the disclaimer on Page 2 of our presentation for identification of forward-looking statements and for a discussion of risks and other important factors that could cause results to differ from those expressed in such statements. During the call, we'll also discuss non-GAAP financial measures and definitions of these measures are provided on page 3 and reconciliations to the most directly comparable GAAP financial measures are provided in the appendix of the presentation and in our earnings release.

And with that, I'd like to turn the call over to David, who will start on page 4 of our presentation.

Thanks, Carrie, and thank you all for joining us as we review our record 2026 first quarter results and our forward look to continued significant long-term growth and value creation. We're off to a strong start in 2026. Our strategy is working, and there's real momentum in the business. Let me begin with powerful growth drivers that speak to this. First, we delivered record first quarter results. Revenue grew 37%, and we delivered meaningful margin improvement.

We saw healthy demand across our year-round experiences, strong execution by our teams and continued discipline on costs. Our team stayed focused on what matters most, delivering great guest experiences, and that showed up in yield and profitability. It's exactly how we wanted to start the year. I'll also recognize Tabacon, which delivered strong performance with $10 million of revenue in the quarter. Tabacon experienced very strong demand during the quarter, delivered an exceptional guest experience and made smart operational adjustments to drive volume growth through its thermal river attractions. We couldn't be happier about the quality of our team and leadership in Costa Rica, how well this business is performing following our acquisition in '25 and the strength of its cultural and strategic fit with Pursuit.

Second, looking ahead to 2026, our demand indicators are positive and show continued strength. We're confident in the demand backdrop and our ability to deliver results in line with our prior guidance range for double-digit growth in revenue and adjusted EBITDA at the midpoint, excluding FlyOver. Our outlook reflects continued growth in revenue and profit and the flexibility to keep investing in the best opportunities.

Third, we're making steady progress towards our Vision 2030 targets, continuing to invest in our iconic assets while maintaining strong discipline around capital deployment and long-term value creation. That includes being opportunistic with share repurchases. To date, we've repurchased $40.4 million at an average price of $35.40. And with the recent approval from our Board to increase our authorization by another $50 million, we have approximately $60 million remaining for future repurchases.

We're confident in the long-term value of the business, and we're excited about our strong momentum heading into our peak summer season and beyond. So let's turn to Page 6 and walk through what differentiates Pursuit and why we're built to perform through cycles and keep growing. At our core, we own and operate iconic irreplaceable experiences in some of the world's most beautiful places. Today, our portfolio includes 17 world-class sightseeing attractions and 29 distinctive lodges supported by integrated dining, retail and transportation, allowing us to serve guests across their entire journey.

We operate at scale across 4 countries in true bucket list destinations, including Banff, Jasper, Waterton Lakes, Alberta and Golden BC in the Canadian Rockies, from Whitefish across Glacier National Park in Montana and experiences that stretch from Seward to Denali in Alaska, together with Iceland and Costa Rica. Pursuit comes to life through our 4,600 team members whose passion for hospitality and place turns iconic locations into unforgettable experiences.

Put simply, this is what makes Pursuit special, a portfolio of one-of-a-kind experiences at scale with real staying power and a foundation that gives us confidence as we continue to elevate experiences, grow and create long-term value. Let's turn to page 7 and look at our site-seeing attractions, and this is where our model really stands apart. We own and operate iconic point of interest site-seeing attractions that provide guests of all ages and abilities access to unforgettable views.

These are experiential infrastructure assets that anchor destination visitation and guest experiences. A great example is the Banff Gondola. It's not just a ride. It's one of the defining ways guests experience Banff National Park from the ascent to the dramatic 360-degree summit views and top-rated mountaintop dining. That's what makes it an absolute must-do and a powerful demand driver. This dynamic plays out across our portfolio. That uniqueness drives sustainable yield growth as we continue to elevate experiences and guests are willing to pay for the differentiation.

These attractions are largely fixed cost operations, creating strong operating leverage and attractive flow-through as volume and yield grow. The differentiation carries directly into our lodging business on page 8. Our lodges are distinctive destination-anchored properties in iconic supply-constrained destinations where the destination itself drives demand. Guests aren't just looking for a room. They're staying inside places like Jasper National Park with direct access to the experiences that define the trip.

These markets have highly restricted bed bases, which creates perennial demand and very attractive long-term supply dynamics. Performance here isn't driven by the hotel rate cycle. It's driven by experience, access and authenticity and our integration with our attractions amplifies that advantage. We also benefit from a highly differentiated demand channel with about 40% of our lodging mix coming from global travel trade partners.

These long-standing relationships deliver multi-year foundational demand visibility, support peak and shoulder seasons and drive meaningful revenue beyond the room, which is not the typical hotel company or REIT model. And that brings us to the simple conclusion on page 9. Pursuit is in a category of one, and that's why traditional comparisons don't hold. We're not a theme park company. As the chart on the left shows, our site seeing attractions drive outsized growth in revenue per visitor, fueled by experience quality, scarcity and guest willingness to pay for great experiences.

And we're not a commodity hotel company either. As the chart on the right shows, our lodging portfolio delivers RevPAR growth that meaningfully outperforms the broader U.S. hotel market, driven by access and authenticity, not the rate cycle. Page 10 provides a view into the strong perennial demand for our iconic destinations. Over the past 25 years, our markets have demonstrated resiliency through economic cycles and other external forces.

And as we reflect on the current macro backdrop, we believe our geographies are well positioned to sustain strong demand. Now on page 11, I want to briefly highlight the power of our experience-driven operating model. We're built attractions first. Our sightseeing experiences anchor demand and economics and everything else is intentionally designed around that foundation. By connecting attractions with lodging, food, retail and transportation, we provide a seamless guest journey. And when those pieces come together, value compounds. Guests spend more, demand extends beyond peak periods and the experience just gets better.

At the same time, scale and integration drive strong economics through fixed cost leverage and operating efficiencies. And importantly, this model is repeatable, giving us a clear path to expand within existing destinations, enter new iconic markets and compound growth over time. Stepping back on page 12, what's compelling is Pursuit's positioning relative to global travel trends. Travel today is about experiences over things, and people plan trips around must-do bucket list moments, exactly what we offer.

Growth in outdoor and adventure travel connects directly to our portfolio of iconic natural destinations. As travelers increasingly prioritize wellness and longevity, our natural immersive experiences deliver exactly what they're seeking, mental restoration and physical vitality that support long-term well-being. Demand for curated itineraries and group travel continues to rise, and our experiences remain essential stops for global tour operators.

More flexible work patterns are also extending stays and supporting broader seasonal demand. At the same time, technology amplifies discovery, surfacing the very viewpoints and experiences we specialize in delivering. And now on page 13, the element that ties everything together is our culture. Great assets only create value if you execute well. And at Pursuit, we're guest obsessed. Hospitality excellence is at the core of everything we do. And our focus on people, both our team members and our guests is a real competitive advantage.

We have deeply engaged teams who take pride in delivering exceptional experiences, and it shows in the results, strong guest satisfaction, leading Net Promoter Scores and top TripAdvisor rankings across our portfolio. We also use Medallia to continuously listen, learn and improve in real time. Reviews matter. Great reviews, they lift us up and tough reviews force self-reflection followed by real-time action to improve. The connection to performance is clear. Engaged teams create great experiences. Great guest experiences drive happiness and referrals, which increases demand, higher spend and durable yield growth.

And that translates into strong profitability over time. Let's turn to page 15 and briefly cover our strategy to grow and create long-term value through four proven levers. First, we expect every business within Pursuit to improve performance, which drives continuous year-over-year growth across our iconic experiences through strong demand and a relentless focus on the guest experience. Second, we invest in ourselves through low-risk organic growth projects that elevate our experiences, create additional capacity and generate attractive returns. Third, we grow through strategic acquisitions of experiential infrastructure that strengthen our portfolio. And finally, we remain opportunistic with share repurchases at compelling valuations as part of our disciplined capital allocation.

These levers have proven to create significant value as demonstrated by our track record. As shown on page 16, Pursuit is a powerful growth engine with more than a decade of compounding execution. From 2015 to 2025, we quadrupled revenue at a double-digit CAGR of approximately 15%, while roughly tripling guest volume across attraction visits and lodging room nights sold. We scaled from four attractions to 17 and from 12 lodges to 29, while elevating the guest experience and strengthening the platform. That history matters. It demonstrates our ability to operate, integrate and scale, and it's the foundation for the confidence we have looking forward.

As shown on page 17, we're not changing the playbook. We're driving a consistent strategy and approach to continue executing growth at pace. From 2014 through 2025, we invested approximately $578 million across major growth projects that generated approximately $102 million of adjusted EBITDA in 2025 at an effective multiple of roughly 6x. Looking ahead, our road map to 2030 looks very similar. We have approximately $300 million of organic growth investments in development from 2026 through 2030, with approximately $200 million front-loaded over the next 2 years.

We expect those investments will contribute more than $40 million of incremental adjusted EBITDA by 2030 at an estimated effective multiple of less than 7x with a meaningful adjusted EBITDA inflection beginning in 2028. And that organic growth is complemented by a robust pipeline of strategic acquisition opportunities that fit naturally within our platform. This isn't a new strategy. It's proven execution, repeated at scale with a clear line of sight to the next phase of growth. To make that tangible, I'll highlight a few examples from our $300 million organic growth pipeline.

Starting with attractions on page 18, there are several high-impact growth projects in progress. Investments in the Jasper SkyTram, Banff Gondola and Denali Backcountry Adventure build on already iconic experiences, elevating storytelling, access and engagement to drive incremental demand and higher revenue per guest. In Jasper, we're reimagining the Jasper SkyTram by replacing an aged capacity-constrained trans system with a modern gondola, significantly improving the guest experience, throughput and efficiency and aligning the experience to better meet group demand. With a smoother, more immersive journey from arrival to summit, this multi-year investment will reinforce the SkyTram as a must-do anchor within Jasper National Park.

In Banff, we're continuing to elevate the Banff Gondola, including the expansion of Sky Bistro, where demand consistently exceeds current capacity. I recently visited the renovated space and was incredibly impressed with the improved guest experience. It's a powerful example of what happens when we put guests first, thoughtful design, strong execution and a clear sense of place. This project increases premium guest capacity and revenue per visitor while enhancing one of the most iconic summit dining experiences in the Canadian Rockies.

We're also planning additional growth initiatives to further strengthen the end-to-end guest journey at the gondola. And in Alaska, we're underway to reintroduce the Denali Backcountry Adventure as a premium, high-margin guided experience deep within Denali National Park, designed to deliver rare access and unforgettable moments when road access reopens in 2027.

The goal is simple: reinforce these assets as absolute must-do experiences in their respective markets. We're also investing on the lodging side, as shown on page 19, and growth projects are progressing well. Projects like the Forest Park Hotel Woodland Wing, Grouse Mountain Lodge, and Lobstick Lodge are not typical hotel upgrades. These are strategic repositionings of distinctive lodges in iconic supply-constrained destinations, designed to elevate experiences and long-term earning power.

In Jasper, the Forest Park Woodland Wing provides a compelling example of the returns we can drive from renovations that improve the guest experience. Phase 1, which we completed last year, is already translating into meaningful ADR uplift with renovated rooms yielding a 22% premium over non-renovated rooms. We're excited to complete the next and final phase of the room renovations ahead of this peak summer. In the town of Whitefish, Montana near Glacier National Park, we're repositioning Grouse Mountain Lodge to serve higher-end lodging and year-round event demand with the first phase, including room upgrades, pool enhancements and a new purpose-built event pavilion.

The first phase of room renovations will be complete for this summer season, and our reservation pace points to strong demand and higher ADRs for these rooms. And at Lobstick Lodge in Jasper, we're planning investments to better capture strong year-round demand from both consumer and tour and travel segments in one of Canada's most iconic national parks. These projects position our lodges to deliver incredible guest experiences and in turn, deliver outsized RevPAR growth, attract higher-value guests and generate durable returns, all while being executed through phased renovations during seasonally slower periods to protect occupancy and cash flow during the renovation itself.

Our organic growth projects demonstrate how much opportunity we continue to see within our existing footprint and how we think about driving continued growth through investments in ourselves to elevate experiences, delight our guests and deliver strong shareholder returns. We apply that same investment discipline to acquisitions with Tabacon on page 20 being a great proof point. Tabacon exemplifies exactly what we look for in an acquisition, high-quality, attraction-focused, experiential infrastructure. Located at the base of Costa Rica's Arenal Volcano with unique access to the country's largest naturally flowing hot Springs, it's a truly irreplaceable experience.

Importantly, execution is validating our investment thesis. We're seeing strong attraction visitation, healthy lodging performance and continued high guest satisfaction, driven by a team that's performing incredibly well and fully aligned with our culture. Under prior ownership, Tabacon's premium thermal river experience was largely operated as a hotel amenity for overnight guests with tight restrictions on day use visitors. In a clear demonstration of the growth mindset and guest obsession that we have within Pursuit, Tabacon's leadership is thoughtfully increasing attraction visitors while protecting the premium guest experience through disciplined guest flow management.

Additionally, recent enhancements, including the improved arrival experience in the Hot Springs Pura Vida rebrand are gaining traction, and 2026 rooms revenue on the books is tracking ahead of prior years. Operational improvements alone create a clear path to reduce the effective adjusted EBITDA multiple below 9x by year 3. Beyond that, we see meaningful incremental upside from organic growth opportunities across the 570-acre property.

And over time, the ability to build a broader Costa Rica collection through complementary tuck-in acquisitions. Tabacon is exactly what we said we were looking for and a clear example of the disciplined acquisition with early execution and a long runway to compound value. We're pursuing investment opportunities from a position of financial strength shown on page 21. Pro forma for the pending sale of FlyOver, our March 31 liquidity was approximately $250 million, and our pro forma net leverage was less than 1x, which is well below our 2 to 3.5x target range.

With strong liquidity, low leverage and continued EBITDA growth, we have substantial capacity for disciplined deployment of capital into organic growth projects, strategic acquisitions and opportunistic share repurchases that reinforce our confidence in the long-term value of the business. And all of this brings us to our Vision 2030 on page 22 and why we're so confident about what lies ahead. We're executing a disciplined and proven strategy to compound growth, expand margins and create long-term shareholder value. By 2030, we're targeting more than $265 million in adjusted EBITDA, which is more than double 2025 and margins above 30%.

Vision 2030 isn't aspirational. It's built on a decade of successful execution and a model designed for sustainable double-digit growth at scale, driven primarily by organic expansion across our iconic experiences. With a high-return investment engine, expanding operational leverage and free cash flow generation and continued financial discipline, Vision 2030 reflects exactly what Pursuit is built to do, elevate experiences, grow with discipline, scale with leverage and compound value over the long term.

So with that, I'll turn it over to Bo, who will walk you through our first quarter financial highlights and reaffirm 2026 outlook starting on page 24.

Thanks, David. As highlighted earlier, we are off to a great start in 2026. Our first quarter revenue grew 37% to reach a record level of $51.6 million. This growth was primarily driven by strong performance at Tabacon, which was acquired in July 2025 and is already exceeding our expectations as well as continued strong demand across our broader portfolio of year-round iconic experiences. Our seasonal net loss attributable to Pursuit was $24.9 million as compared to $31.1 million in the prior year. The year-over-year improvement was primarily driven by lower transaction-related costs from the GES sale and stronger revenue. Our adjusted net loss was $26.2 million as compared to $26.9 million in the prior year.

The year-over-year improvement primarily reflects higher adjusted EBITDA, partially offset by a lower amount of seasonal first quarter losses being allocated to noncontrolling interest. Adjusted EBITDA improved by $2.6 million year-over-year to negative $14.9 million during the seasonally slow first quarter, primarily driven by higher revenue with strong margin improvement, supported by the contribution of Tabacon and continued cost discipline.

Now let's look at our attractions performance on page 25. Q1 attraction ticket revenue reached $23 million, reflecting a 22% year-over-year increase, driven by strong performance at Tabacon and increases in same-store effective ticket prices. Same-store constant currency effective ticket price, which excludes Tabacon grew by 5% as compared to 2025. This improvement was enabled by continued demand for our one-of-a-kind sight-seeing attractions and focus on guest experience with strong performance from our year-round Canadian attractions in Banff and from Sky Lagoon in Iceland.

Next, let's turn to our hospitality performance on page 26. Q1 lodging room revenue totaled $13 million, reflecting a 78% year-over-year increase driven by strong performance at Tabacon and improvement in same-store constant currency ADR. As David discussed, our lodges are situated in iconic high-demand destinations, offering guests unparalleled access to extraordinary natural landscapes and seamless proximity to our most sought-after pursuit attractions. Within these destinations, our same-store constant currency RevPAR, which excludes Tabacon, grew 6% as compared to 2025. Turning to our early demand indicators on page 27. Our lodging pacing for 2026 across both Canada and the U.S. continues to support our view for continued strong demand.

Revenue on the books for our Canadian and U.S. lodging properties is pacing ahead of the same time last year. In addition to these confirmed room bookings, we continue to see strong demand from our travel trade partners this year, which is not fully reflected in these numbers. As a reminder, our travel trade partners hold inventory with strict release dates, generally 90 to 120 days out. Unsold touring travel inventory gets released and is immediately available to FIT, consumer direct and OTA channels. As we approach our core operating season, we're keeping a close watch on booking pace and other forward indicators and are ready to adjust if we see any shifts in trends.

Let's turn to our reaffirmed full year 2026 financial outlook on page 28. We continue to expect 2026 to be a pivotal year for execution of large-scale multiyear, high-return growth projects, combined with continued strong profitable growth. Our unchanged adjusted EBITDA guidance range of $123 million to $133 million reflects an increase of approximately 9% at the midpoint from 2025. Adjusting to exclude FlyOver from both years, revenue and adjusted EBITDA are expected to increase double digits at the midpoint from 2025, with adjusted EBITDA margin improvement.

The pending FlyOver sale remains on track and is expected to close in May. Our outlook reflects solid underlying growth drivers, including continued demand for authentic experiential travel and iconic destinations and improvements in guest experience and revenue management that are driving higher effective ticket prices, ADR and visitation. Strong flow-through and disciplined labor and expense management further enhance year-over-year EBITDA growth.

We anticipate investing $70 million to $80 million into growth capital expenditures during 2026, including multi-year growth projects that are expected to have a minimal impact on 2026 results and propel our growth into future years. This growth CapEx guidance range has been reduced relative to our prior guidance due to a shift in the expected timing of cash outlays from 2026 to 2027 as we continue to actively work through approvals and planning.

Project completion time lines remain on track. Finally, as a reminder, the pending sale of FlyOver will shift our income tax position in a favorable direction driven by an expected improvement in our U.S. financial results. As a result, we are anticipating a much lower effective tax rate in 2026 and beyond of approximately 22% to 26% -- and with that, David, I'll turn it back to you.

Thanks, Bo. Across Pursuit, we're gearing up to welcome guests and deliver exceptional experiences as we head into what we expect will be a strong peak summer season. I want to thank our team members and leadership for their dedication, their passion and their hospitality excellence. They show up every single day focused on creating unforgettable memories for our guests. And to our shareholders, thank you for your continued support as we execute our strategy and build long-term value. We have the right assets, the right strategy and the right team, and we're very focused on execution.

With that, let's open up the line for questions.

[Operator Instructions] Your first question comes from Jeff Stantial from Stifel.

Maybe starting off by drilling into more of the demand side, slide 27, showing lodging bookings. David, can you just talk about -- if you drill into the more recent period, have you seen any impact -- any discernible impact so far following the start of the conflict in the Middle East? And then broadly speaking, if you look back historically, can you just remind us what sort of impact or even tailwind that you typically see when gas prices move much higher very quickly during the sort of the peak summer months?

Yes. So let me start with -- I'm just going to check and see if you can hear me.

Loud and clear.

Perfect. Thanks, Jeff. I'll start with the conflict in the Gulf. I think that the challenge there is obviously something that's very impactful for people. It affects the region. We are quite isolated from that in our part of the world. And so we are not feeling impact from the conflict in the Gulf. It's not affecting booking patterns or travel behavior. I think that the security and safety of our destinations is well established. And so if you look at the chart in the investor deck where we show you sort of visitation to our destinations, that's on page 10. You can see that there's a real continuity. And I think that in times of crisis for the world on a global level, that's when, again, I think we get more tailwinds than we get headwinds for our destinations.

That's great. And maybe actually sticking on this subject, but thinking through some of the second order effects. Have you done any work yet or have a sense for potential impact to the project cost and project scope if you do see crude stay here at, call it, north of $100 a barrel. Just how much of an impact would that have on your growth CapEx plans?

Yes. Thanks, Jeff. We're not expecting significant impacts for our business from a fuel cost perspective. I'll speak first to the OpEx side, where clearly, we're not immune to fuel cost increases. We do operate boats, motor coaches, things like that. But fortunately, for us, it's not a major expense line for our business. And so some impacts, but not major on there. And honestly, I think the same is true on the capital side where these are multiyear projects. A lot of it is not overly specific to the fuel impacts on it. So we'll keep monitoring it, but I'm not expecting major impacts from that...

Also, I'd say the pricing … dynamic pricing enables us to flex. And so if you have issues where all of a sudden, you have a change in fuel costs or other things, you can move price dynamically. And I think it just really helps because you're able to price based on demand, you're able to price on exterior factors and so on. So all of those things really important.

Your next question comes from Eric Des Lauriers from Craig-Hallum.

First one to get just a bit of a piggyback on the last one there. So sort of separating the violence in the Middle East, just sticking with overall like fuel costs specifically. Historically, how has that impacted visitation to your locations? I mean, on the one hand, sure road trips to national parks become more expensive, but so do flights. So I don't know whether to think of this overall as more of a headwind or more of a tailwind if consumers' wallets get pinched from fuel costs. Do you have any sort of info historically on how that impacts visitation?

Yes. First, let me start with overall cost of fuel and how that affects travel. So the effect is marginal on our business. People are making decisions and they may be booking a less exotic trip. They're maybe not going to go to the Middle East. They're not going to go to other parts of the world, but they are going to be in their own backyard having fun. And so we see continued momentum.

My line is disconnected or perhaps yours, but I'm not able to hear anything. Operator, are you there? Is my line live?

You are still connected, sir. Can you hear us? [Operator Instructions]

Yes, I can hear you fine now. All right. Great. Sorry about that...

I'm sorry, sir. [Operator Instructions]

Yes, we can hear you.

Okay. Please go ahead, sir.

My apologies for the error there. So just excluding the actual sort of physical threats out of the Middle East, just sticking with fuel prices in general, historically, how has that impacted visitation to your markets? I see on the one hand, road trips to national parks, for example, get more expensive, but so do flights. So I'm just not sure whether conceptually think of this as more of a headwind or a tailwind to your business. I'm just wondering if you have sort of any historical data to help inform us how elevated fuel prices may or may not impact visitation to your markets?

Elevated fuel prices in times of global crisis have had marginal effect, if any, on the business. And so with the mass affluent clientele, you have folks that are deciding, I'm going to perhaps take a less exotic trip somewhere in the world, and I'm going to focus on having fun and creating memories in my own backyard. So our business, and again, I would refer you back to page 10 in the deck that really articulates the visitation.

And that shows you all the way back to 9/11, SARS, the global financial crisis, the impacts of COVID and so on. So the fuel really doesn't have an impact in terms of visitation. We're not seeing a slowdown on the booking side. And guests are planning and organizing their trips for the coming summer season. In the U.S., we're 50% sold through on inventory. In Canada, we're high 40s. And so there's great momentum. Booking pace is strong. ADR and RevPAR lift is strong.

And so we're continuing to perform. And so it's a great newsy thing to talk about, but it's not something that's having a big impact on the business for Pursuit.

That's great to hear. And just my second question here. So you guys have highlighted the sort of friendly competition you have internally to find the most attractive CapEx projects and how that's been a real positive feature of your culture there. And I'm just wondering how share buybacks sort of work into the mix there? And just overall, any comments you have on sort of viewing the trade-off between spending -- spending cash on buybacks versus growth CapEx? Just conceptually how you think about that would be helpful now that buybacks are quite active here.

Yes, I'll give my view, and then I'll cede the floor to my colleagues. So first off, I would say the energy and excitement from the internal team around the projects that they're working on, that's palpable. You can feel it. And so they're excited about growing and improving their businesses and making the right investments and participating in a process that allows them -- I mean it's a true meritocracy. Pursuit is a meritocracy where their great ideas come to the surface and get funded just based on the quality of those ideas.

And so when you think of the four levers of growth, we're expecting each business to improve year-over-year. We're investing in ourselves through our organic refresh. The acquisition side is powerful. And then the final lever is our share repurchase program, which is also a strong belief in investment in ourselves. And so those things go together.

And I would add, Eric, that given where we are from a capital structure perspective, where we expect to be sub 1x net leverage after the sale of FlyOver that we're in a position where we can really pursue all four of those growth levers simultaneously. And so the share repurchase step of that is really about being opportunistic on when there's a disconnect from a valuation perspective, and that's where we're going to aggressively pursue repurchases when we can get a strong return on that.

[Operator Instructions] And we'll go to Alex Fuhrman from Lucid Capital Markets.

David, interested to see, it looks like ADRs are going to be up mid-teens or at least that's how they're tracking right now for you in the Canadian Rockies. You've got a really long history in the region here. Are we looking at kind of record hotel prices in the region in either Canadian dollars or U.S. dollars or both?

Yes, I'm not sure I would describe it in that way. I think what we have is a move to value. I think that guests appreciate experiences that have been improved, that are thoughtful, that have been intentionally designed to create great guest experiences and that they're willing to pay you for those experiences if their needs are being met in a way. And so you measure not just what you might get from a yield and price increase, but you also measure guest satisfaction.

The other thing I would point out is if you take Banff as a microcosm of the Canadian Rockies, a significant hotel investment into Banff by all operators, not just ourselves. And so the quality of hotel product has improved dramatically, and that will continue to improve. And so as experiences get better, prices can change, but they change with, I think, a sense of momentum for guests who are satisfied with the product that's being delivered and find real value there.

I think the only other thing I would add is that, Alex, just on that point, we're -- where we are in the cycle right now, we're about halfway through our percent of rooms available that are sold. And that average ADR that you're referencing, it's a great directional reference for positive trends that we're seeing in the business. And there can definitely be some nuances with various channels and mix of when things are sold year-over-year. That can create some noise in the specific number of it. But I think the directional indication is that we expect some strong ADR growth.

Okay. That's really helpful. And then I wanted to ask about all the work you're doing at the Jasper SkyTram. Obviously, you've got a lot of history operating the Banff gondola to apply there. What's been the biggest bottleneck to growing that? Is it parking or size of the restaurant or the number of cars that can move on the gondola? Just curious what were kind of the biggest pain points there for you?

Well, I think when you go back in time, right, go to 60 years ago when that lift facility was built and travel back in the time machine with me Alex, and you think about what it was like 60 years ago. And that tram car, I think you've been on it. I mean it's one car up, one car down, its capacity itself is constrained. And the lift infrastructure is 60 years old. So I think primarily what you're changing first is you're improving dramatically the lift infrastructure.

And what that does is it provides a much better guest experience, lift smoother, lift is quicker, really beautiful and also accommodates a full group as an example, where the turnaround time with the old Jasper SkyTram was more challenged for our group business because they're on a set itinerary. They're trying to see the world in three days. And so they're moving quickly from one place to another. And so the opportunity there is to really thoughtfully work on the experience design in Jasper. Reminder, Jasper is very different than Banff. And our colleagues and team members that live in Jasper, Jasper is a unique destination, unique in the world. And so the experience will be much more Jasper-esque and something that -- but capacity improving, quality of experience improving. Everything from restrooms to the lift itself will see great improvement. So we're excited about that.

And everyone, at this time, there are no further questions. David Barry, I'll hand the call back to you for any additional or closing remarks.

Well, thanks so much. Thanks, Lisa, for marshaling everything, dealing with some sound in and outs. We appreciate that. Thank you, everyone, for tuning into our Q1 2026 earnings call. We'll be following up with many of you, but just appreciate your attention and interest in the world of Pursuit, and we look forward to seeing you soon in a destination near us. Thank you.

This does conclude today's conference call. You may now disconnect.

Good afternoon. My name is Matt, and I'll be your conference operator today. At this time, I would like to welcome everyone to Pursuit's 2025 Fourth Quarter and Full Year Earnings Conference Call. [Operator Instructions].

Carrie Long, you may begin the conference.

Good afternoon, and thank you for joining us for our 2025 full year earnings conference call. During the call, you will hear from David Barry, President and CEO; and Bo Heitz, our Chief Financial Officer. As David and Bo cover our results and outlook, they will be referencing our earnings presentation, which is available on the Investors section of our website.

We encourage investors to monitor the Investors section of our website in addition to our press releases, filings submitted with the SEC and any public conference calls or webcast. Today's call will contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to the disclaimer on Page 2 of our presentation for identification of forward-looking statements and for a discussion of risks and other important factors that could cause results to differ materially from those expressed in such statements.

During the call, we will also discuss non-GAAP financial measures and definitions of those non-GAAP financial measures are provided on Page 3 and reconciliations to the most directly comparable GAAP financial measures are provided in the appendix of the presentation and in our earnings release.

And now I will turn it over to David, who will start on Page 4 of our earnings presentation.

Thanks, Carrie, and thank you all for joining us as we review our record-breaking 2025 results and unveil our vision for continued significant long-term growth. Today's call will be slightly longer than usual as we have so much to talk about. So let's settle in, get comfortable and off we go.

I'll start by celebrating 4 notable achievements that reflect the incredible momentum we've built and even greater potential ahead. First, we delivered our best results ever in 2025 with significant year-over-year growth, all while continuing to deliver extraordinary experiences for our guests.

Second, we executed a thoughtful set of strategic moves to strengthen long-term shareholder value, including acquiring Tabacón in Costa Rica, entering into an agreement to sell fly over and investing in ourselves through share repurchases.

Third, we're introducing our Vision 2030 long-term financial targets to drive our next phase of accelerated growth, backed by a proven strategy strong balance sheet and meaningful pipeline of high-return investment opportunities. And fourth, we're guiding for continued strong growth in 2026 and are well positioned to benefit from global consumer demand trends for experiential travel to iconic destinations.

So let's review our record 2025 results and exciting achievements on Page 6. During 2025, our team delivered extraordinary experiences to 4.2 million attraction visitors and welcome guests across 439,000 room nights. We drove strong broad-based growth. Revenue reached $452 million, up 23% year-over-year. Adjusted EBITDA surged 52%, and margins expanded to 26%, clearly demonstrating the power and scalability of our model.

Our record results are driven by our incredible team members and leaders who relentlessly focus on elevating the guest experience across our businesses. This focus helped drive a year-over-year increase in our already strong guest experience scores. Our engaged teams, elevated guest experiences and the enduring pull of our destinations continue to propel Pursuit forward with real momentum.

Now let's turn to Pages 7 and 8 and walk through the series of strategic actions we took over the past year to redefine our future. We are executing a disciplined transformation to strengthen our portfolio and unlock long-term shareholder value. Our strategy is simple and focused using refresh, build, buy. We're growing our core site seeing attractions and hospitality experiences in the world's most iconic destinations.

At the end of 2024, after a decade of meaningfully scaling pursuit within Viad, we sold GES, our legacy sister business, retired all of our high-cost Term Loan B debt, strengthened our liquidity and converted our preferred stock into common stock. This reset our balance sheet and sharpened our focus.

In January 2025, we launched Pursuit as a stand-alone pure-play attractions and hospitality company with the financial structure and flexibility to accelerate our proven growth strategy. By July 2025, we expanded into the Costa Rican market with the addition of Tabacón, a one-of-a-kind thermal river attractions and luxury hospitality experience that strategically fit perfectly as a powerful addition to our portfolio.

In September of 2025, we acquired full ownership of our high-performing Glacier Park subsidiary. And in December 2025, we purchased the minority interest in FlyOver Iceland. These intentional transactions simplified our capital structure and eliminated $25 million of noncontrolling interest liabilities. In January of this year, we entered into an agreement to sell our noncore FlyOver business at a premium valuation of approximately 15x 2025 adjusted EBITDA. We expect that sale to close this spring.

Additionally, through our share repurchase program, we've returned $14.5 million to shareholders through opportunistic repurchases, underscoring our confidence in the long-term value of our company. These moves reflect disciplined value-accretive portfolio management and mark the next step in a decade-long growth story as we continue to build a stronger company for the long term.

And now I'll turn it over to Bo to review our 2025 financial results before we dive into our Vision 2030 targets and 2026 expectations.

Thanks, David. I'll start on Page 9. Our full year revenue grew 23% to reach a new record of $452.4 million. This growth was primarily driven by a strong recovery across our Jasper properties that were temporarily closed during the second half of 2024 due to wildfire activity as well as by incremental growth from our new experiences strong yield optimization and visitation across our geographies and continued momentum in overall guest demand for our distinctive existing experiences in iconic places.

Excluding our Jasper properties and new experiences that were not operated by Pursuit for the entirety of 2025 and 2024, our revenue increased $29.7 million or 10%. We delivered revenue growth across all geographies with particular strength across our Canadian operations and at Sky Lagoon, supported by continued global secular trends our differentiated businesses and our passion for delivering incredible experiences for our guests. In addition to broad demand, we experienced minimal impact to our operations from inclement weather and smoke as compared to typical years.

Net income attributable to Pursuit, which is inclusive of discontinued operations was [ $20.7 million ] as compared to $368.5 million in the prior year. The year-over-year change was primarily driven by the sale of GES in 2024. Adjusted net income was $33.5 million as compared to $3.7 million in the prior year. a year-over-year growth of $29.8 million primarily reflects higher adjusted EBITDA.

Adjusted EBITDA increased by $40.1 million year-over-year to $117.1 million, primarily driven by significant revenue growth with strong margin improvement of 500 basis points supported by operating leverage in the business and continued cost discipline.

Now let's look at our attractions performance on Page 10. Attraction ticket revenue reached $201 million reflecting a 24% year-over-year increase driven by substantially higher visitors and effective ticket prices. Visitors increased 12% year-over-year due to a strong Jasper recovery new attractions and overall robust demand for our one-of-a-kind sight-seeing attractions. Same-store constant currency effective ticket pricing, which excludes our Jasper properties temporarily closed in the prior year and new attractions grew by 9% compared to 2024. This improvement was enabled by our focus on guest experience with particular strong performance from our Canadian attractions in Vance and Golden and from Sky Lagoon in Iceland.

Next, let's turn to hospitality performance on Page 11. Lodging room revenue totaled $105 million, reflecting a 28% year-over-year increase driven by a strong Jasper recovery new lodging and improvement in same-store ADR and occupancy. All of our collections delivered growth in room revenue during the year. Same-store constant currency RevPAR, which excludes our Jasper properties temporarily closed in the prior year and new lodging, grew 7% as compared to 2024. Our lodging properties are an iconic high-demand travel destinations, offering guests direct access to some of the most breathtaking natural settings, including a nearby pursuit sitting attractions. These markets also benefit from compression dynamics supporting both strong rates and high occupancy.

And with that, I'll turn it back to David to introduce our Vision 2030 long-term financial targets.

Thanks, Paul. On Page 13, let me start with this. Pursuit is in a category of one. We deliver irreplaceable natural world experiences at scale, and we do it with a model that compounds. From 2015 to 2025, we transform Pursuit into a powerful growth engine. We expanded our network of one-of-a-kind destination assets, we deepened our operating system, and we consistently converted guest demand into durable growing cash flows. That momentum is not episodic. It's structural. We're well positioned relative to strong secular trends, as shown on Page 14.

Global travel demand is strengthening, and our portfolio is exceptionally well positioned to capture this momentum. International tourism is expected to grow again in 2026, supported by higher airline passenger volumes, increased tourism spend and strong traveler intent. Travelers are planning more trips longer leisure stays with larger travel budgets, creating a healthy backdrop for sustained industry growth. We're also benefiting from powerful structural shifts and traveler preferences, wellness, adventure and outdoor experiences continue to trend strongly with more global travelers prioritizing wellness and showing greater interest in nature centric destinations. And this aligns directly with the core strengths of our business.

At the same time, travelers are placing a premium on unique and elevated experiences. The guest behaviors we're seeing show folks planning to splurge on upgraded destination activities and they're booking tours and experiences. The rapid adoption of AI-driven trip planning is further accelerating discovery and booking of curated activities, an advantage for distinctive experiential brands like ours.

So taken together, these durable global travel trends, rising tourism activity, a heightened demand for wellness and adventure and the prioritization of immersive experiences create a favorable environment for our continued growth.

Page 15 explains our differentiated model and strategic positioning. What makes Pursuit different is simple and fundamental. We own and operate forever assets in the world's most iconic destinations. These attractions in lodges are experiential infrastructure that enable our guests to access and experience iconic natural places. They're not replicable, they're long lived and they sit where man shows up year after year.

Our demand is perennial and anchored to the destinations themselves not consumer cycles. Vance, Jasper, Waterton, Denali, [ Keane Yards ] and Glacier National Park as well as Iceland and Costa Rica. These are all bucket-list places. Guests already choose them. and we meet them in destination or prearrival and elevate the journey with authentic natural experiences. That creates durable, visible and predictable demand.

Supply is structurally scarce due to our true one-of-a-kind locations. Protected environments, long-dated concessions, stringent permitting and years of disciplined capital allocation make our assets impossible to replicate. These characteristics create an enduring competitive advantage.

Our culture is our strategic advantage. Guests obsess hospitality experience design-driven, growth-minded and powered by leaders we developed. With endless energy and an owner's mindset, we combine discipline and innovation to deliver sustainable growth to differentiate us Pursuit operates as a connected ecosystem, a vertically integrated operating system for experiences, we orchestrate the full visitor journey across attractions, lodges, food and beverage, retail and transportation.

The network effect is real. Every exceptional moment lift satisfaction, raise the spend and strengthens performance across the platform. The operational complexity, including logistics, safety, hospitality, design and guest flow is a capability we've owned over decades. The result is consistent compounding cash flow. Our revenue is driven by greater guest satisfaction, visitor volume and yield growth, not ADR cycles. And because we largely serve a mass affluent traveler for whom our experiences are a small share of overall trip spend, our guests are generally willing to pay for differentiated experiences.

So when I say Pursuit is a category of one, I mean exactly that, irreplaceable assets and perennial demand destinations operated through a refined vertically integrated system by passionate hospitality team members delivering world-class natural experiences and compounding value over time. And as we think about driving shareholder value, we do that through 4 powerful levers which are highlighted on Page 16.

First, we're focused on always elevating performance across our iconic experiences. Our teams continue to deliver consistent year-over-year growth by leveraging strong perennial demand and maintaining an unwavering focus on the guest experience.

Second, we're driving organic growth through our refresh and build investment strategy. These targeted investments enhance the guest experience, expand capacity and generate attractive returns across our portfolio.

Third, we're accelerating expansion through strategic acquisitions. We maintain a robust and well-developed pipeline of opportunities that complement our existing assets and align with our strategy and values.

And fourth, we're deploying capital through opportunistic share repurchases, investing in our own business at compelling valuations is an important part of our capital allocation strategy. and reflects our conviction in Pursuit's long-term value creation potential. These growth levers are supported by a strong balance sheet and low net leverage. It gives us the flexibility to invest in both growth and opportunistic share repurchases while maintaining financial strength.

So with these levers and our differentiated business model, we're excited to share our long-term view to 2030 with you today, starting with revenue on Page 17. So from 2015 to 2025, our total revenue, excluding FlyOver, grew at a compound annual growth rate of approximately 14%. Looking ahead, we believe we can continue to grow revenue at a double-digit compound annual growth rate through 2030. We're targeting revenue of more than $845 million by 2030 and reflecting our transformational strategy to become the world's leading iconic attractions and hospitality company. Our growth model combines durable organic performance with disciplined inorganic expansion, creating scalable platform capable of delivering sustained top line growth.

Turning to Page 18. The strength of our revenue growth engine, paired with high incremental flow-through and disciplined cost management sets the stage for strong adjusted EBITDA growth. By 2030, we seek to grow adjusted EBITDA by more than 2.3x and with a target of more than $265 million, excluding FlyOver, and we're targeting an adjusted EBITDA margin of more than 30%. Our business model is built to convert top line growth into sustainable earnings and margin expansion. We benefit from high incremental flow-through as revenue growth supported by disciplined price and mix management and a cost structure that scales efficiently is volume.

We have confidence in our ability to drive sustainable yield growth because our experiences are one-of-a-kind, guest-centric and located in iconic capacity-constrained destinations with perennial demand. Our lodging RevPAR and attraction ETP metrics remain resilient and consistently stronger than what we see across the broader hotel and attraction industry, underscoring the strength and differentiation of our platform.

Across our network, we're unlocking additional revenue by filling white space at our attractions using thoughtful guest programming and pricing to extend seasonality and smooth out visitation peaks. We're also strategically allocating room inventory in capacity-constrained markets across channels, optimizing yield while deepening cross-selling into attractions and other experiences.

Additionally, a refresh and build investments enhance the quality of individual assets, expand capacity and generate incremental EBITDA as each project comes online and ramps. We have a powerful refresh and build investment pipeline of more than $300 million from 2026 to 2030 that positions us for accelerated growth with projects in development and additional opportunities in planning that expand capacity and unlock new yield in our highest demand markets. When we enhance the guest experience, we see it directly in greater happiness increased volume, higher rates and higher spend per guest.

A great example is our Golden Skybridge attraction, where we've continued to expand the experience from site suspension bridges into a multi-experience adventure park which includes ziplining, roller coaster ride, Canon edge challenge course, giant Canyon swing and more. By elevating the guest journey and expanding the experience, the team has delivered meaningful growth in total revenue per visitor and sharp improvements in guest experience scores. It's proof that when we elevate the guest experience, yield follows, and we're far from finished. Seems to cross Pursuit, keep inventing new breakthrough ways to wow our guests, staying obsessively focused on continuous improvement that drives growth.

For buy opportunities, our robust acquisition pipeline spans both tuck-ins in existing geographies and forever experiences in new iconic destinations. We enter those with a flagship attraction and then over time, scale into a destination defining collection. We invest with discipline and ambition directing capital to forever one-of-a-kind experiences in iconic locations where demand is perennial and supply is limited.

Every project must clear our 15%-plus IRR hurdle rate and deliver attractive margins, provide exceptional guest satisfaction while operating in business-friendly countries. All of this is supported by a strong balance sheet, which will soon include expected flavor sale proceeds and continued EBITDA growth, giving us substantial investment capacity to execute this pipeline and accelerate our trajectory while also being opportunistic in repurchasing our own stock at compelling valuations. Together, these levers enable us to translate revenue growth into sustained earnings momentum and moved steadily toward our long-term targets.

With that, I'll turn it back to Bo to zoom in on our outlook for 2026.

Thanks, David. As shown on Page 21, we have a favorable demand setup as we head into 2026. Our destinations benefit from the power of perennial demand for iconic places and that demand is only strengthening. In Canada, the government is renewing free admission in national parks through the Canada Strong Pass for Summer 2026, expanding access during the peak travel season. And Vance was recently named the best place in the world to travel in 2026 by National Geographic, another powerful signal of its global appeal.

In the U.S., access to Glacier National Park will improve with the removal of time to entry vehicle reservations, which is expected to support higher visitation in 2026. In Alaska, anchorage air service continues to expand, and the new steward cruise ship docking area opened in 2026, increasing capacity for both independent travelers and cruise guests. In Costa Rica, tourism momentum remains strong. with the market projected to grow at high single digits from 2026 through 2031. Across our portfolio, iconic destinations paired with structural demand tailwinds give us confidence in continued growth ahead.

Turning to our early demand indicators on Page 22. Our lodging pacing for 2026 is off to a solid start across both Canada and the U.S. and supports our view for continued demand. While we are still early in the year, our Canadian U.S. lodging properties are pacing well compared to the same time last year. The charts on this page show our confirmed room bookings. In addition to this, we have strong demand for our travel trade partners this year, which is not fully reflected in these numbers.

As a reminder, our travel trade partners hold inventory with strict release dates, generally 90 to 120 days out, unsold for and travel inventory gets released and is immediately available to FIT, Consumer Direct and OTA channels. We have a proven track record of managing inventory to maximize both capacity and rate in peak season.

On Page 23, you'll see a quick update on Tabacón, our newest acquisition and exactly the kind of high-quality buy opportunity we're targeting. Tabacón premier Thermal River attractions and luxury resort are in one of Costa Rica's most iconic destinations. It delivered strong year-round performance and provides counterseasonal EBITDA that complements our Canadian and U.S. businesses with its peak season underway.

Since joining Pursuit, the team has completed meaningful upgrades including improvements to the arrival experience for our main premium thermal River attraction. We've also rebranded the second thermal River experience from -- Rio Thermal to Hot Springs PuraVita. Creating a clearer, more compelling day use offering. Early booking pace for 2026 is encouraging with strong demand across both the resort and our Thermal River experiences. And our build and buy growth investment evaluations are in full swing, exploring opportunities to enhance the existing experience and expand our presence in Costa Rica.

With robust demand, ample capacity and the continued ramp-up of the Thermal River attractions, we see a clear path to growth. Tabacón is highly aligned with our strategic priorities and will play an important role in advancing long-term value creation.

Let's turn to our 2026 financial outlook on Page 24. We expect 2026 to be a pivotal year for execution of large-scale multiyear high-return growth projects, combined with continued strong profitable growth. Our adjusted EBITDA guidance range of $123 million to $133 million reflects an increase of approximately 9% at the midpoint from 2025. This guidance includes adjusted EBITDA of approximately $500,000 from FlyOver assuming the sale closes this spring.

Excluding FlyOver from both years, revenue and adjusted EBITDA are expected to increase double digits at the midpoint from 2025 with adjusted EBITDA margin improvement. We also expect meaningful incremental adjusted EBITDA from Tabacón of approximately $7 million to $8 million relative to the prior year. Our outlook reflects solid underlying growth drivers, including continued demand for authentic experiential travel in iconic destinations and improvements in guest experience and revenue management that are driving higher effective ticket prices, ADR and visitation. Strong flow-through and disciplined labor and expense management further enhance year-over-year EBITDA growth.

With 2025 being such a standout year of performance, it sets a particularly strong prior year baseline. We are assuming some weather normalization compared to the unusually near perfect conditions we experienced during our peak summer season last year. Our multiyear growth capital expenditures are expected to have a minimal impact on 2026 results impacted by some temporary disruptions during our seasonally slow periods from our phased lodge renovations, but these investments will propel our growth beyond this year.

With the upcoming sales driver, our income tax position will shift in a favorable direction driven by an expected improvement in our U.S. financial results. As a result, we are anticipating a much lower effective tax rate in 2026 and beyond of approximately 22% to 26%. From a macro perspective, our guidance assumes an exchange rate of USD 0.73 for each dollar, which is similar to the 2025 average rate.

Now let's turn to Page 25 and walk through our meaningful pipeline of refresh and build projects planned for 2026. We've built a robust pipeline of growth investments across our well instrumented experiences backed by strong execution capabilities and a track record of delivering returns. Our teams work year-round to surface high-impact ideas and rigorously compete to advance the most compelling projects.

In 2026, we're accelerating our investments in iconic forever assets to fuel our long-term growth. We expect growth capital to increase meaningfully from 2025 and to approximately $88 million to $93 million in 2026. As we move forward with major planned investments that had a total commitment of approximately $200 million and an effective adjusted EBITDA multiple of less than 7x by 2030. We anticipate a large portion of these returns beginning in 2028.

Over the last decade, Pursuit has completed 16 major refresh build and buy growth projects that collectively contributed approximately $102 million of adjusted EBITDA in 2025. A reflecting an effective multiple of approximately 6x, demonstrating a disciplined, repeatable investment approach and supporting expectations for continued attractive returns.

Pending relevant approvals our 2026 growth capital plan includes a number of exciting projects, a few of which we are highlighting today. In Jasper, we plan to refresh the Jasper Sky Trim to replace aged experiential infrastructure with a renewed iconic site seeing experience in Jasper National partners. Additionally, we are in the process of completing the Forest Park Hotel Woodland win renovation to better align the property with mass affluent leisure demand in Jasper National Park.

The first phase was completed ahead of the 2025 peak third quarter and delivered a 22% ADR increase versus non-renovated rooms in the second half of the year. The next phase is well underway and expected to be completed ahead of the 2026 peak season. We also plan to begin a refresh of the lobes lodge to improve and reposition the property to capitalize on high mark demand from both consumer and torn travel segments in Jasper National Park. We're planning investments to refresh the Banff Gondola, making experience enhancements to improve all aspects of the guest journey at this iconic attraction in Vance National Park.

In Montana, we're focused on the phased transformation of the Grouse Mountain Lodge to reposition the property for higher-end lodging demand and create a compelling differentiated offering for Glacier National Park visitors. The first phase, which has commenced includes upgrades to guest rooms and pool area and addition of a new event pavilion with completion expected later this year. And in Alaska, we are in the process of reimagining the Denali Backcountry adventure. This is a premium high-margin guided guest journey experience deep into Denali National Park that has been closed since 2021 when a landside closed road access. We plan to reopen the Denali Backcountry adventure to guests in 2027 to coincide with the planned national park road reopening. These projects are transformational in nature and will accelerate our momentum beyond 2026.

And with that, David, I'll turn it back to you.

Thank you, Paul. I'm pretty lucky I get to work with smart, passionate and guest obsess colleagues every day. And without their cheerful and determined energy, we could not have delivered such strong results. I'd like to close by recognizing our team members for their commitment to success. Their focus on delivering exceptional guest experiences and driving continuous improvement is central to our performance and long-term value creation.

To our shareholders, thank you for your continued support and encouragement. We remain disciplined in our execution, committed to strengthening our portfolio and focused on delivering sustained growth, expanding profitability and creating meaningful long-term shareholder value.

And with that, let's open up the line for questions.

[Operator Instructions]. Your first question comes from the line of Jeff Stantial.

Thanks for all the helpful new disclosures this quarter. maybe starting off on the new long-term targets for 2030 appear quite impressive. I was hoping you could just expand a little bit on one of the 4 categories there, specifically the buy, the M&A category. How much are you assuming for EBITDA contribution from acquisitions in the 2030 target? How confident are you in this materializing just based on the pipeline of discussions you're seeing to that?

Jeff, I'll jump in. It's David and then pass it over to Paul in a second. But I think one of the things to remember, as you well know is that we -- the challenge with taking a particular acquisition in when it's -- actually close is a little bit challenged just given the ribbon and age or M&A. And so what we've done is we tried to view into the future interact -- we expect to have a certain amount of acquisitions occurring over a period to say exactly when the curve.

And there's also some -- it is challenging. And then there's also opportunity. We have -- the balance between our organic refresh growth that we can accelerate and decelerate and given the size of acquisition opportunities that we may find. And so -- if everything were the same size it occurred only basis was [indiscernible] but what we've tried to do is articulate vision is in the future that clearly shows a balance between the 4 levers of growth.

Yes. And Jeff, directionally, you can see that the majority of growth is still expected to come from the organic side, which on the organic side, we are still expecting double-digit CAGR of loan just with that. But faster as you buy all the base, there's acquisitions that are still a key component of that when we think of the overall growth. And if you go back over the last 10-plus years, you see that that's it's really to the case of the other point as well. And so it's really a continuation of the strategy and to get that.

That's great. And then maybe sticking on the targets, the $200 million of committed project spend that kicks off this year, you noted a time or sub 7x expected -- and multiple for that spend. Historically, the average you call out has been closer to 6. Is this just conservatism? Is there anything different in this opportunity set? I recognize it might seem like small variance, but we are getting questions here. So just anything to help reconcile that gap would be helpful.

Yes, I don't really view as a gap, Jeff. I mean, as you said, it's really a sometimes sub-7x full target around that. And what you see historically from us is that we've been able to achieve that. So we incorporate all of our expected returns as we cross all those projects. But the reality is -- all these projects are categorically very similar to the things that we have success deploying capital and getting higher returns in historically. As you think about it as there's the experience infrastructure for these here root ways, which we have a couple of key projects in that category.

You have the lodging refresh type projects that we -- consistently over time now and then Denali Adventure, that's one where we actually already is a business that we've had historically, but it's really reimagining and bringing it back online. So high degree of confidence. I think the sub 7x is appropriate, and that means that we can definitely achieve and hopefully see that.

That's great. And then maybe if I could just squeeze in one quick out keeping item. Slide 18, I mentioned mid-single-digit line growth embedded in the target. Just to be clear, is that revenue growth? Or is that EBITDA growth?

I mean, I think assume both on that category, but the reality is that's really the baseline before you have any growth capital projects layered on top of that. And so as you imagine, in any year, historically, we would have some level of growing capital, we're really talking about accelerating that above and beyond normal over the next few years here. But I think the right way to think about that is organic growth prior to any capital investment on it.

Perfect. And congrats on the strong year, strong guide and some great targets here.

Your next question comes from the line of Tyler Batory with Oppenheimer.

Good afternoon, everyone. I had some technical difficulties here. So hopefully, my questions haven't been answered. Can we go to 2026 first before we go to 2030? And I just want to be clear on the guide you're giving for this year. What's contemplated in terms of organic revenue, organic EBITDA? And then the margin expansion that's implied on an apples-to-apples basis, excluding fly over. Just talk a little bit more about what's contributing to that? And then I don't know if you can touch on what you're expecting in terms of expense line items, things like labor, et cetera.

Sure. Yes, Tyler. So first, from a flyover perspective, as we've disclosed, there's been a little over $5 million in 2025 for that. And we're assuming that, that transaction goes this spring and Q1 is a seasonally low quarter for flyover historically. So there's only about $0.5 million in the guide for flyover from an EBITDA perspective. So when you say that off the table, that's when you're then looking at double-digit revenue and EBITDA growth on that.

There is Tabacón probably the other key thing of note that we acquired in July of 2025. And so you do have the full year run rate coming in on that, which that, combined with continued growth that we expect past Tabacón results in about $7 million to $8 million of incremental EBITDA growth from that business. We haven't given a specific revenue associated with that, but we have noted that was expected to be margin accretive to us from -- in year 1 for that. So it gives you some parameters around that.

So when you take all that, it's still -- yes, quite strong growth that we're expecting over a strong 2025. That growth really supported by variety you have positive secular trends that we noted. As we said, business indicators continue to look strong into 2026 and beyond.

Q1, frankly, spend off to a strong start with that. And yes, I think the thing to remember is that we're investing in once in a lifetime experiential infrastructure. And when you have that, you have some powerful large-scale investment projects that drive -- we're effecting you're going to drive some real meaningful long-term growth. And the reality of more those projects are not coming online in 2026. So not quite the same as you might normally expect in this business as a result of that.

Okay. Great detail. So shifting to the 2030 and apologies if I missed this, but just help us think about how you're expecting to use the balance sheet, leverage, et cetera, I mean to get to that 2030 target. I mean are you assuming a little bit of incremental leverage on the balance sheet from where you are today or hoping to keep things somewhat consistent or at least within the targets that you provided to get to that 265 EBITDA number?

Yes. So today, we're currently sitting at about 1x net leverage on the business. And as we shared, we view long-term leverage start to be more in the 2 to 3.5x range for this business. When we look at our Vision 2030 plan, we talked on the organic side of deploying over $300 million of growth capital into this business, that will have some leverage impacts. But management, we'll start to get the returns from that as those start to come online. But I think even if you just factor in the organic side, that still least a lot of capacity from a leverage perspective. And that's where the acquisition side comes into play.

Your next question comes from the line of Alex Fuhrman with Lucid Capital Markets.

Congratulations on all of your many accomplishments in 2025. David, wanted to ask about ticket pricing and the longer-term potential there. It looks like you guys had a really nice high single-digit increase in attraction pricing. But $50, that's still a really small percentage of what guests spend on lodging and in most cases, airfare for their trips to your region. How do you think that number can go before there's any real meaningful resistance if you're able to keep executing and improving the service levels?

Yes, Alex, thank you for that. I won't speculate on a number other than we believe that there's always opportunity to make things better. So if you start with that mindset and then you apply again, back to the 4 levers of growth, right, where the business performs well on its own year after year, and you're always looking for ways to make the experience better, then you're also looking to fill white space. So it's a balance between what we're doing on, say, increasing guest visitation in the slower periods of the year.

Great example is Sunset Festival at the top of the Banff Gondola, that is used to exist in this -- 5 block is pretty quiet. Nobody was writing out to see Santa. When you progress the programming, then you've got opportunity in the space to have product that then suits the white space, and that drives both experience quality and then it drives yield over time. So back to the 4 growth levers, you've got 4 different ways that we grow the company every day. organic refresh growth is all about investing in the business to drive improvements.

And that connects back to your question on ETP, our year-over-year improvement. And then if we look to tuck-ins and other things, there's always the power of packaging and bringing on more products that people are excited about. So it's really hard to predict the future. And I think every industry has that challenge of trying to pick a number. But I think in the end, it's -- you just put your head down and you make things better and gather excited and they want to come and connect with a place in a meaningful way.

That's great. We'll appreciate that, David. And then along those lines of the improvements you're making, you talked a lot about some of the specific enhancements and upgrades you're going to be making in 2026. The commentary around the Banff Gondola was fairly vague about enhancements across the board. What are some of the specific things you're going to be doing at the Banff Gondola this year?

Early days, but we're working on that planning now together with our partners at Perks Canada and envisioning what it could be. And it's for those that remember and maybe visit to Gondola prior to our investments in 2015, '16, that was a real step-change transformation experience. Together with Parks Canada, we created an amazing interpretive center for people to really enjoy the history of the park and tell the story of Banff National Park. Then we created a really interesting good experiences.

And so now we're 10 years later, and it's time to take a look and say, what can we do to continue to improve that experience and plan that out work with our partners at Marks Canada and the community to envision what that could be and then work to execute upon it. So it's premature at this point to give you more specifics than that, but I can tell you that we're actively focused on that finding. And as that evolves, we'll be able to share more on our point calls.

Your next question comes from the line of Eric Des Lauriers with Craig.

Congrats on another strong quarter here. My first question is just a bit of a clarification that the long-term 2030 targets to assume double-digit organic growth and not just double-digit win, including M&A. So that first clarification there. And then as we look at sort of visitation and same-store metrics for 2025, and we look -- if you look at those as sort of an appropriate base going forward. Is there anything you would call out as a onetime impact in 2025 visitation, ticket price, RevPAR perspective?

Sure. So on the first part, Eric, you are correct in hearing that of what I was articulating there. In reality, when you look at the slide we provided on the EBITDA growth. You'll see that come out to a combined CAGR of closer to 19% from an EBITDA perspective. And the organic side of that does get you into double digits even before you consider the acquisition side what we're expecting.

In terms of 2025, I mean, the reality that I do think that's a good base to build off from a same-store attraction visitor perspective. And it was -- it was a strong year and a couple of nuances that we called out. But overall, we're expecting to continue to momentum of or here.

All right. That's helpful. And then as we look at the refresh and build side of your growth strategy, obviously, several projects that you're working on. Could you sort of help us rank order maybe from an eventual EBITDA contribution perspective or maybe it's a revenue contribution perspective would be easier. But just kind of how to think about those from a overall size or contribution standpoint? Just kind of help us think about which ones might be especially more impactful than others, would they kind of just tuck in modest contribution. Just kind of help us wrap our head around some of these projects a bit more?

Well, without getting into really specific detail, obviously, the work that we're doing at the Jasper Sky train and the refreshing of that. And that's once in a lifetime, experiential infrastructure that takes you to an amazing beautiful place. And it's the only site seeing aerial roadway in Jasper National Park. And so that's something that obviously is for the agent. That's location and an investment that is terrific and produces over the long term at a very high level. We're working on the Banff Gondola as I just mentioned, then you have parity of other opportunities in below that. But I would say that without getting into specifics that our aerial growth rates are always really powerful economic engines and also great guest satisfaction agents. And that's -- people love a beautiful view no matter whether from in the world.

So as we get closer to things, we'll be able to articulate more clearly and -- but generally, every single thing just a reminder that we look at from an organic refresh opportunity within the company. We have a minimum investment threshold of 15% and the vast majority of the things that we do exceed that idle. And we look to invest in parts of the business to reduce friction, make guest experience is better and just create magic for our guests that are visiting. So that's the mindset we take. And we'll share more as we get into it.

Thanks for taking my questions.

Thank you for your question. There are no further questions at this time. [Operator Instructions].

Thanks, everybody. I appreciate you joining us today on the call, and we will talk again soon. Have a great afternoon.

Good afternoon. My name is Makaya, and I will be your conference operator today. At this time, I would like to welcome everyone to Pursuit's 2025 Third Quarter Earnings Conference Call. [Operator Instructions] Thank you.

Carrie Long, you may begin today's conference.

Good afternoon, and thank you for joining us for Pursuit's 2025 Third Quarter Earnings Conference Call. Our earnings presentation, which we will reference during this call, is available on the Investors section of our website. We encourage investors to monitor the Investors section of our website in addition to our press releases, filings submitted with the SEC and any public conference calls or webcast.

During the call, you will hear from David Barry, our President and CEO; and Bo Heitz, our Chief Financial Officer.

Today's call will contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to the disclaimer on Page 2 of our presentation for identification of forward-looking statements and for a discussion of risks and other important factors that could cause results to differ from those expressed in such statements.

During the call, we will also discuss non-GAAP financial measures. Definitions of these non-GAAP financial measures are provided on Page 3, and reconciliations to the most directly comparable GAAP financial measures are provided in the appendix of the presentation as well as in our earnings release.

And now I'd like to turn the call over to David, who will start on Page 4 of our presentation.

Thanks, Carrie, and thank you all for joining us as we review our very strong 2025 third quarter results.

Let us start by highlighting 4 key achievements that really speak to the strength and momentum of our business. First, we delivered a record-breaking third quarter with significant year-over-year growth that exceeded expectations, all while continuing to deliver incredible experiences for our guests.

Second, based on that exceptional performance, we're raising our full year 2025 growth guidance, a reflection of both our year-to-date results and our confidence in what's ahead. Third, we're well positioned to benefit from global consumer demand trends for experiential travel to iconic destinations. That gives us a solid foundation for continued growth in 2026.

And fourth, our Refresh, Build, Buy strategy continues to deliver. It's fueling growth and enhancing our collection of irreplaceable assets, backed by a meaningful pipeline of investment opportunities and a strong balance sheet that gives us flexibility to accelerate.

So let's review our record third quarter results and improved full year 2025 outlook on Page 6. During the quarter, our dedicated team delivered extraordinary experiences to approximately 2 million attraction visitors and welcome lodging guests across nearly 200,000 room nights.

We delivered revenue growth across all geographies, including a strong recovery in Jasper following last year's wildfires. Total revenue for the quarter reached $241 million, which is up 32% year-over-year.

Our adjusted EBITDA margin expanded to 49%, reflecting the scalable nature of our business with strong demand for our incredible attractions and unique lodging properties and our diligent ongoing management of costs.

Our strong team member engagement, our relentless focus on elevating the guest journey and the perennial demand for our iconic experiences and destinations continue to differentiate Pursuit, and that's driving sustained momentum and reinforcing our long-term growth.

With our exceptional third quarter results, we're raising our full year 2025 adjusted EBITDA guidance by $6 million at the midpoint as opposed to our prior guidance range. We now expect full year 2025 adjusted EBITDA to be in the range of $116 million to $122 million.

Now let's dive in on Page 7 with a reminder of what makes Pursuit a powerful and differentiated growth engine. Pursuit's success is anchored in a guest-obsessed experience-driven hospitality-focused culture, that's paired with authentic one-of-a-kind experiences.

Our unique offering of must-do sightseeing attractions for all ages and skill levels and our distinctive lodging and iconic destinations with limited supply and high barriers to entry gives us a strong foundation for enduring success.

Guided by our proven Refresh, Build, Buy strategy, we continue to scale our collections of irreplaceable experiences with growth and the guest experience in mind, anchored by focused capital allocation and discipline.

Since 2015, we've nearly quadrupled revenue expanding across 4 countries. We've grown from 4 world-class attractions to 17 and from 12 lodges to 29. This is a testament to the power of our strategy and the timeless allure of experiential travel, which we believe will continue benefiting us long into the future.

As shown on Page 8, our Refresh, Build, Buy growth strategy is anchored in 2 important growth levers that drive long-term value creation. Our first growth lever is delivering organic growth through refresh and build investments; and the second is to buy one-of-a-kind forever businesses that fit our strategy.

We actively maintain a robust pipeline of opportunities across both levers, backed by our strong financial and operational capacity. With ample liquidity and low leverage, we're able to invest across a spectrum of high-return opportunities.

On the organic growth front, we've identified over $250 million in refresh and build opportunities over the next 6 years, including an expected $38 million to $43 million in 2025. These targeted investments elevate the quality of our existing assets, they enhance the guest and team member experience and they unlock new revenue streams in our iconic destinations.

We view these investments as among our most efficient uses of capital by raising asset quality, elevating the guest experience and improving financial performance, we deliver high returns, and we drive long-term value.

Our buy acquisition strategy complements this by targeting irreplaceable attraction and hospitality businesses in both existing markets and new markets that have perennial demand, limited supply and high barriers to entry.

We focus on businesses that deliver attractive EBITDA margins, operate in countries with strong ease of doing business and exceed the 15% IRR hurdle rate that our growth investments need to deliver. This disciplined approach ensures that we continue to scale with purpose by investing in unforgettable experiences that inspire our guests and deliver sustainable returns.

Page 9 provides some visibility into our significant refresh and build pipeline, which represents a compelling set of organic growth opportunities through 2030. In 2025 and '26, we're advancing 2 large-scale multiyear lodging refresh projects. At our Forest Park Hotel in Jasper National Park, we are in our second phase of a full refresh of the Woodland Wing with upgrades to guest rooms, corridors, the exterior facade, lobby and atrium, conference spaces, food and beverage areas. And this first phase of room renovations was complete for the 2025 peak third quarter and the elevated guest experience captured a 22% increase in ADR compared to the non-renovated rooms.

At our Grouse Mountain Lodge in Whitefish, Montana, near Glacier National Park, we're underway with the first phase of a full refresh of that property. Ahead of the 2026 peak summer season, we plan to have renovated the South Wing guestrooms and pool area. We're also building a new 8,250 square foot wedding and event pavilion to support the group and leisure demand, which will open later in 2026.

These projects will transform and reposition these year-round lodges to better meet the expectations of mass affluent leisure travelers as well as support higher ADRs and attraction visitation.

And our phased approach to renovation with construction taking place primarily during the seasonally slower fourth and first quarters allows us to minimize disruption during our busy summer months.

So as we look further ahead, we have a robust pipeline of potential refresh and build projects presently in the planning stage to drive incremental capacity and yield opportunities in high-demand markets. And key examples include Jasper SkyTram investments to introduce a new lift and reimagine terminal buildings to deliver a more elevated guest experience; a refresh of the Banff Gondola and Banff National Park with a new lift and experiential enhancements to further differentiate this iconic attraction, investments at Apgar Village in Glacier National Park aimed at improving and maximizing lodging capacity to meet growing demand for this very special place.

And then finally, investments in the Denali Backcountry Adventure focused on elevating and reimagining the guided journey deep into Denali National Park when the Denali Park Road reopens in 2027 and a series of additional lodge refreshes focused on transforming and repositioning properties to align with market demand.

These investments reflect our commitment to enhancing the quality and appeal of our experiences, while positioning our portfolio for sustained growth and profitability. We plan to provide more details on our 2026 capital plans in February '26 and expect growth capital investments over the next 2 years at increased levels relative to 2025, primarily driven by planned large-scale refresh and build investments in the new Jasper SkyTram attraction, Forest Park Hotel Woodland Wing and Grouse Mountain Lodge subject to approvals. And while these investments take multiple years to complete, they will help propel our growth beyond 2026.

Now on Page 10, let's revisit our recent acquisition of Tabacon completed at the beginning of the third quarter. which exemplifies the kind of high-quality buy opportunities we're pursuing to drive long-term growth.

Tabacon is a world-class destination resort and attraction in one of Costa Rica's most iconic travel regions. Nestled at the base of the Arenal volcano and adjacent to protected rainforest, Tabacon offers exclusive access to the country's largest network of naturally flowing hot springs.

It is truly unique with 2 distinct thermal river attractions paired with a luxury 105-room resort, renowned spa, signature culinary experiences and 570 acres of beautiful terrain. Tabacon is profitable 10 months of the year with full year hotel occupancy exceeding 80% and provides a positive EBITDA contribution during periods that are seasonally slower for our Canadian and U.S. businesses.

The renowned Tabacon Thermal River attraction offers a premium experience for both hotel guests and day visitors. And in March of '24, Tabacon opened a second Thermal River attraction, Hot Springs Pura Vida, designed to serve more budget-conscious guests. Both attractions are open to day use guests, serving a broad range of visitors and driving incremental revenue.

Through its inclusion in the Small Luxury Hotels of the World portfolio, Tabacon is accessible to Hilton Honors members, which expands its global reach and visibility among high-value travelers. This strategic affiliation enhances the resort's positioning in the luxury market, drives incremental demand from a loyal and affluent customer base and strengthens its competitive advantage within the premium hospitality segment.

Tabacon is led by an exceptional local leadership team with deep roots in Costa Rica and a proven track record, this team has built a reputation for delivering best-in-class hospitality and driving sustained growth.

Culturally, Tabacon is a perfect fit with Pursuit in all aspects, including the team's growth mindset and restless focus on making experiences better. As one small tangible example, the team is underway with rebranding the new Thermal River experience from its initial [ brand ] Choyin to the more compelling brand of Hot Springs Pura Vida based on learnings and feedback across key stakeholders. And we're actively collaborating on exciting future growth opportunities.

We see a clear path to near-term upside through targeted operational enhancements and the full ramp-up of Hot Springs Pura Vida. And also, with strong demand and ample Hot Springs capacity, we expect to drive Tabacon's adjusted EBITDA multiple below 9x by year 3.

Beyond these operational gains, we're actively exploring refresh and build opportunities across the 570 acres of acquired terrain as well as buy opportunities to expand our presence in Costa Rica with additional high-quality attractions and hospitality assets at attractive valuations.

We see the potential to build a world-class collection of nature-based experiences in Costa Rica. Across Pursuit, we're not just focused on the next quarter. We're focused on the next decade, and we're confident that the choices we're making today will drive long-term value for our guests, our teams and our shareholders.

Next, on Page 11, we provide some initial insights into our indicators for next year. We believe we're well positioned for continued growth in 2026, supported by favorable secular trends, sustained demand for our destinations and solid business fundamentals.

Across generations, we continue to see a shift toward experience-driven travel with increasing demand for adventure, wellness and immersive exploration, all areas where we're strongly positioned to capture growth with our differentiated and authentic guest experiences in iconic locations.

Our travel destinations from Banff and Jasper to Costa Rica have perennial demand and continue to attract strong visitation. In Canada, we expect another standout year for travel in 2026, supported by favorable foreign exchange rates, unique geopolitical trends and the recently renewed free admission to Canadian national parks in 2026.

Our global network of tour and travel partners spanning over 80 countries are signaling strong demand for the 2026 itineraries. This early indicator reflects the appeal of our offerings and the strength of our diversified market reach.

And at the heart of our success is a relentless focus on growth and elevating the guest and team member experience. And it's with this mindset that we're confident in our ability to harness these tailwinds and deliver exceptional performance in the years to come.

And now I'll turn it over to Bo to review our 2025 financial results and outlook in more detail.

Thanks, David. I'll start on Page 13 with our third quarter financial highlights. As David mentioned, this was a phenomenal quarter with record results that exceeded our expectations, particularly in August through the remainder of the core summer season as visitation to our markets accelerated. The team managed extremely well to harness this demand, drive the power of flow-through and deliver outsized results.

We delivered revenue of $241 million in the third quarter, which was up approximately $59 million or 32% year-over-year. This growth was primarily driven by a strong recovery across our Jasper properties that were temporarily closed during the 2024 third quarter due to wildfire activity as well as by incremental growth from our new experiences and continued momentum in overall guest demand for our distinctive existing experiences in iconic places.

Excluding our Jasper properties and new experiences that were not operated by Pursuit for the entirety of 2025 and 2024, our third quarter revenue increased $17.7 million or 12% from strong yield optimization and visitation across our geographies.

We delivered revenue growth across all geographies, with particular strength across our Canadian operations and at Sky Lagoon, supported by continued global secular trends, our differentiated businesses and our passion for delivering incredible experiences for our guests.

In addition to broad demand, Mother Nature was also on our side this season with minimal impacts to our operations from inclement weather and smoke as compared to typical years.

Net income attributable to Pursuit, which is inclusive of discontinued operations, was $73.9 million as compared to $48.6 million in the prior year. Our income from continuing operations attributable to Pursuit was $76.7 million, up $33.4 million compared to the prior year.

During the 2025 third quarter, we reported a pretax gain of $4.2 million from business interruption insurance proceeds received related to lost profits in 2024 from the Jasper wildfire. This brings our total insurance proceeds received since the 2024 wildfire to $23.7 million. We continue to work with our insurance carriers on additional potential recoveries.

Our adjusted net income, which excludes results of discontinued operations and other nonrecurring income or expenses, including the business interruption insurance proceeds gain was $75.3 million as compared to $50.7 million in the prior year. The year-over-year growth of $24.6 million primarily reflects higher adjusted EBITDA, partially offset by increases in income tax expense and income attributable to noncontrolling interest.

Adjusted EBITDA increased by $34.4 million or 41.5% year-over-year to $117.4 million, primarily driven by significant revenue growth with strong margin flow-through, supported by operating leverage in the business and continued cost discipline.

Turning to our strong balance sheet highlights on Page 14. Pursuit continues to have ample liquidity and low net leverage to support accelerated growth. As of September 30th, 2025, we had total liquidity of $274.4 million, including $33.8 million in cash and cash equivalents and $240.6 million of available capacity on our revolving credit facility.

In September, we expanded our revolver by $100 million to a total of $300 million. We also added Tabacon as a co-borrower and extended its maturity to September 2030, enhancing our financial flexibility to capitalize on strategic growth opportunities.

Also in September, we acquired the remaining 20% minority interest in Glacier Park, Inc. for $13 million, securing full ownership of this high-performing subsidiary. This move simplified our capital structure, eliminated a $22 million noncontrolling interest liability and reinforces our commitment to growing iconic experiences-driven assets with long-term potential.

At the end of the quarter, our total debt was $129.8 million, and our net leverage ratio stood at 0.7x, comfortably below our target range of 2.5x to 3.5x.

Now let's look at our third quarter attractions performance on Page 15. Attraction ticket revenue reached $100.4 million, reflecting a 33% year-over-year increase driven by substantially higher visitors and effective ticket prices.

Visitors increased 22% year-over-year due to a strong Jasper recovery, new attractions and overall robust demand for our one-of-a-kind sightseeing attractions with a 4% increase in same-store visitors.

Same-store constant currency effective ticket pricing, which excludes our Jasper properties temporarily closed in the prior year and new attractions, grew by 9% compared to '24. This improvement was enabled by our focus on guest experience with particularly strong performance from Sky Lagoon and our Canadian attractions in Banff and Golden. Sky Lagoon continues to deliver strong growth in effective ticket price, primarily fueled by the expansion of the premium ritual experience, which was completed in August 2024.

Next, let's turn to our third quarter hospitality performance on Page 16. Lodging room revenue totaled $59.7 million, reflecting a 42% year-over-year increase driven by a strong Jasper recovery, new lodging and improvement in same-store ADR and occupancy. All of our collections delivered growth in room revenue during the quarter. Same-store constant currency RevPAR, which excludes our Jasper properties temporarily closed in the prior year and new lodging, grew 6% as compared to 2024.

Our lodging properties are located in iconic, high-demand experiential travel destinations, offering guests direct access to some of the most breathtaking natural settings, including at nearby Pursuit sightseeing attractions. These markets benefit from strong compression dynamics supporting both premium pricing and high occupancy.

Let's turn to our 2025 outlook on Page 17. As David mentioned earlier, based on continued demand for our authentic experiences and stronger-than-expected results for the third quarter of 2025, we are raising our full year 2025 guidance. We now expect full year adjusted EBITDA of $116 million to $122 million, which is an increase of $6 million at the midpoint relative to our prior guidance range of $108 million to $118 million. This new guidance range represents substantial adjusted EBITDA growth of $39 million to $45 million relative to 2024. This significant year-over-year growth reflects our strength of execution, continued strong demand and the recovery of leisure travel to Jasper, in addition to contributions from our recent acquisitions.

With the strong rebound in Jasper, our continued relentless focus on delivering exceptional guest experiences and the strength of our balance sheet, we are well positioned to drive sustained growth and strategically invest in high-return refresh, build, buy opportunities.

And with that, I'll turn it back to David.

Thank you, Bo. So just in closing, I'd like to express my sincere appreciation to our team members for their passion, their dedication and their growth mindset. Their restless positive energy and commitment to excellence continue to drive exceptional guest experiences and our overall success. To our shareholders, thank you for your ongoing support of Pursuit. We're energized by the opportunities ahead, and we remain focused on executing our growth strategy to create long-term value.

Let's open up the line for questions.

[Operator Instructions] Your first question comes from the line of Tyler Batory with Oppenheimer.

Congrats on the strong results here. First one for me, maybe more housekeeping on results and guidance. Can you talk about the insurance proceeds in the quarter? Were those contemplated when you provided the original EBITDA guide, that $4.2 million that you cited in the investor presentation? And then can you also talk about FX, please, too? I'm not sure if that was a tailwind or a headwind in the quarter? And just how is foreign exchange movements impacting guidance for the full year?

Yes. Sure, Tyler. Happy to take those. So on the insurance proceeds, just to reiterate, we've now received $24 million in insurance proceeds in totality, $13 million of that was last year and about little under $11 million of that was in 2025.

As you noted, for Q3, there was about $4.2 million of that in the business interruption recoveries bucket of that. Importantly, we're treating that outside of adjusted EBITDA given the nonrecurring nature of it. So it was never in our adjusted EBITDA guidance, and it's not in there today either.

On the FX side of it, it wasn't a big driver for the quarter. And frankly, for the whole year, relative to last year is not a major driver. We did have some movements from where we started the year from an FX perspective, but that really reversed itself heading into Q2 results. So pretty neutral on the whole year. And with only a couple of months to go of not really peak operating period, it's not a huge sensitivity to that for the remainder of the year here.

Okay. I appreciate the clarification on that. And then I wanted to double-click on something that we talked about last quarter in terms of ETP. And I mean, look, the same-store visitation in the mid-single digits has been very strong, but the ETP has been even stronger. And I'm curious if you can just unpack that a little bit more. How much is mix? How much is outright price increases? And when you think about the strong ETP growth you've seen this year, does that create a situation perhaps where there's some difficult comps for you in 2026?

Yes. I think first, I would say, Tyler, that one of the important factors is that any growth in ETP is a combination of several things. Yes, you've got some price increases. You've also got the tenant itself, the impact of the type of visitor, filling white space. There's a whole variety of different factors that help drive the effective ticket price.

And we do have a view to the future in '26, and we have a sense of confidence, meaning that the trends are on our side. We see continued energy around the growth in experiential travel that connects in with iconic locations. We think that Canada and its position is going to continue to be strong as we look at growth coming. We have the strength of the business that prepared itself and adapted quickly.

And just being, I think, alert and anticipating is part of how we were able to drive such a strong increase in effective ticket price. And Bo, jump in if I missed anything there.

Yes. I think that's all true holistically. If I were to point to any particular outliers of strength this quarter, I'd probably put top of list, Sky Lagoon and Golden Skybridge as well as the Banff Gondola. Some of those are areas, where we've had recent investment that helps support the incremental yield and some of that is the continued efforts that David alluded to, all of which I think sets us up as the right baseline to build off of for next year.

Yes. Great example with Sky Lagoon. Remember, one of the choke points at Sky was the way that the ritual experience worked was that originally, we had undersized that when we had created Sky. So the investment that we made in '24 set us up really well for '25. And so we were able to, just as a reminder, take some of the lower-tier products and basically, they disappeared off the price list and everyone is just entering and visiting for the first time, purchasing the full ritual, the skill experience and really enjoying it. And that led to a couple of things: one, growth in ETP, but also growth in guest satisfaction, which is what we're looking for.

Okay. Last one for me, just a couple on the Tabacon acquisition. What was the EBITDA and revenue contribution from that in Q3? And just remind us again in terms of seasonality, how that flows throughout the year? And can you also just touch on integration, bringing that under the fold here and just kind of how that's gone?

I'll take the integration part, then we could talk about some of the other things. So I have a good story for you, Tyler. The team, Andrey Gomez and the team, they are obviously in the geothermal attraction -- water attraction business with 2 geothermal attractions at Tabacon. They recently visited Sky Lagoon. And so you would think where are the parallels there? Why would a team from Costa Rica go to Iceland to visit another geothermal attraction.

We think there's a lot of learning in between those 2 locations. So from an integration standpoint, that was one of the first things we wanted to do. And just on a personal level, I'll share that Andrey Gomez saw snow fall for the very first time in his life and a few snowflakes. On the first day he was visiting, everybody went to sleep, a little jet lag. They woke up the next morning to 30 centimeters. So for those of you that don't speak metric, that's well over a foot of snow.

And they had a fantastic day in Iceland benchmarking Sky Lagoon and having some learning going mutually back and forth between the Sky team and the team at [indiscernible ]. And then at night, the Northern Lights came out. So a pretty fantastic experience. And so integration is going well. They have lots of really interesting growth ideas into the future. There's a high level of occupancy in that property. And so we're working on the planning of some concepts. We have 570 acres of terrain that we can expand upon.

One of the prototypes we're working on is more of a luxury villa product that maybe 2 couples or a larger family would use. And so we're going to be testing those. We're modeling them out in terms of how we might construct them, but those are some of the growth opportunities we're excited for. Integration is going really well. Team is fantastic, a ton of great energy.

Bo, over to you.

Yes. And going back to part of your question on the financial component of this, Tabacon benefits from being much more of a year-round operation for us. It's profitable 10 months out of the year. From a seasonality perspective, I'd say the biggest quarter for them would be in Q1. Q4 is also a pretty strong quarter, but broadly, the rest really spreads out across the year.

What we noted at the -- when we first closed on the acquisition was an expectation for about $3 million of EBITDA impact in the second half of 2025 and about a 10-year full year -- or sorry, $10 million of EBITDA full year impact. So another $7 million coming when you annualize that into next year.

Generally, that's all performing really well for the first couple of months here. We do disclose from a revenue perspective, it's about $6.3 million of revenue in Q3, and we'll continue to break that out as we get into future quarters here.

The next question comes from the line of Alex Fuhrman with Lucid Capital Markets.

Congratulations on a really nice summer season. David, it sounds like you're targeting increased growth CapEx levels for the next couple of years. You mentioned a couple of specific hotel projects. Is it really just those couple of refreshes that are driving it? Would you say there's anything you're seeing that's maybe driving you to see maybe perhaps more than the $200 million of CapEx projects than you've talked about a little while ago?

Yes. You'll noticed in the investor presentation, firstly, as we think of organic and build within our existing businesses, we've increased that amount with our view over the next 6 years that, that amount is closer to $250 million, which are all terrific opportunities within the 4 walls of our existing businesses.

So well-established businesses with really great operating teams, places that we know and we have great confidence. So those investments are among some of our most powerful, and we're able to accelerate those or control those depending on what's happening on the pipeline side.

For 2025, we're investing between $38 million and $43 million into those projects. Our opportunities into the future, we'll be talking about in February of '26. But the ones that we mentioned are all ones that are heavily into planning. Jasper SkyTram is in a public commentary period now. We're working on the Banff Gondola, Apgar Village.

And also, for those that have been around Pursuit over the last decade, you may recall a terrific business called the Denali Backcountry Adventure, which was a wildlife safari that took guests into Denali National Park. And for those unfamiliar with Denali, it's not a park you can drive into. You have to travel with an outfitter.

So that's a terrific business that as the National Park Road comes back online, which they're targeting '26 for the trade and then '27 for the public, that's an example of the kind of investment that we'll be looking at. But we have plans that, again, reflect opportunity across a broad swath of the business, and we're prepared to certainly work hard to take advantage of those.

And then that 9% increase in ticket prices on a same-store basis, that's obviously a really big number. Were there any particular attractions or collections that were driving it? And just ballpark big picture, can you give us a sense of to what extent that's on par with just how much attraction prices were going up with your competitors in your markets?

I'll start first with the team. I think the team globally across Pursuit was well positioned to be anticipatory to -- as demand increased to be ready to adjust to the demand. So that might be managing inventory in terms of providing availability. It might be adjusting a price. or simply adjusting the scale of an operation from, say, a labor standpoint or extending hours or any of those things that help drive overall performance.

I would say everyone across all of the businesses performed really well. Obviously, there are some strong -- really strong performance across the Canadian Rockies, strong performance at Sky Lagoon, good performance in Alaska. And so just overall, everybody performed really well.

As to our competitors, I think that with increased demand comes increased participation from guests from all over the world. And I think everyone benefits. So we tend not to look so much at what our competitors are doing, but we're more focused on what we're doing and how do we make experiences better and then charge more for them.

[Operator Instructions] The next question is from the line of Eric Des Lauriers with Craig-Hallum Capital Group.

Congrats on a very strong Q3 here. Most of my questions here are going to focus around timing. I just kind of want to [Technical Difficulty] expectations and understand how you guys are thinking about it. So [Technical Difficulty] first with Forest Park Hotel and then -- Grouse Mountain Lodge. You called out second phase of Forest Park to be completed in '26, first phase of [ Green] (sic) [ Grouse ] Mountain completed in '26 as well. How many phases are currently anticipated for each of these? And how should we think about potential timing of future phases? And ultimately, when should these 2 projects be completed?

Yes. Great question. So I'll jump in. On -- if you think of Forest Park and the Woodland Wing, remember, we built the Alpine Wing in 2022. We renovated half of the Woodland Wing in 2025. And then we're underway on the renovation of the existing section of the hotel. So those things are happening now. And the goal is obviously to get things completed and ready as soon as we can into '26. And so that will take several months and through the beginning of the year and then with a plan, obviously, to be ready to reopen as soon as we can as close to the summer season.

The same thing applies in terms of Grouse Mountain Lodge, the hotel for those that have been there, it's a beautiful property, really beautiful location. There's 2 sections with front desk and food and beverage facilities in the middle. So we're working on one wing, while we operate one wing and then we'll switch out. And so the benefit there is that we're able to keep the property open and keep hosting guests through this period and just manage these selective closures to be the most efficient with the business.

Okay. So it sounds like at least at Forest Park, excluding the Alpine Wing, just 2 phases. The second one is already underway. And then Grouse Mountain, it sounds like first phase is underway and should just be 2 phases potentially completed in '26. Do I have that roughly correct here?

The Grouse Mountain Lodge, the second phase will start after the summer season, and it will roll into '27. And one of the things I would be remiss in not mentioning is that we're also building a really beautiful event and attraction pavilion. We think we've got a real opportunity that the competition in the wedding space in Northern Montana, we think we've got an opportunity to really differentiate ourselves there for special events and weddings and occasions, and that drives hotel occupancy.

It drives attraction visitation and the location in Whitefish is ideal. So we're building, I think, a really beautiful venue that will be very connected and I think just the best of what's available in Northern Montana. So we're excited about that.

And then maybe just to make sure we're thinking about from a capital outlay perspective, there's also Jasper SkyTram that we've been talking about that is another meaningful multiyear project that we're underway on.

Yes. That was actually my follow-up here was just any commentary. understood this is -- Jasper SkyTram is a multiyear project. Just any sense, could this be completed like this is '27, '28, '29, '30? Just can you just kind of help level set it for everyone on the line here just in terms of timing for Jasper SkyTram? And understood that there's a lot of moving parts here and things can move one way or the other. But at least from my perspective, I'm not sure if this is like '27 or '29. So if you could just help us out with that, I'm sure that would be helpful.

Yes. I appreciate the moving parts comment you made because that's exactly how it feels. We're in a public commentary process now with Parks Canada. Everything is going well. We're working on the planning. So again, we'll be in a better position in February to give you a sense of timing.

And so just at this point, we're still working our way through the preliminary part of the process, but definitely it's something that we're targeting to begin in '26 and go from there. So as to exact timing, stay tuned for February, and we'll be able to fill you in.

Great. I look forward to that. Just last question for me here, kind of high level. So obviously, you have a lot of very significant investment opportunities before you, both organically and M&A. You've cited the financial flexibility you have. You just completed a transformational acquisition with Tabacon. Just wondering if you could comment on capacity to take on more transformational investments or acquisitions from a management bandwidth perspective. Just wondering how full your plate is right now with integrating Tabacon and what kind of internal bandwidth you potentially have to take on another transformational opportunity here?

You bet. Thanks, Eric. I think there's 2 things to consider, and I'll ask Bo to speak to the financial capacity, but I'll start with our own internal capacity from a leadership standpoint. This is a great team. This is a great team with capacity. It's a strong team. It has the ability, the wherewithal and the energy to do more than one thing at the same time.

And also, what's important to know is that our financial systems are already primarily fully integrated with Tabacon. And we're not trying to control and dominate in each location. We're really trying to build with the team that's in place keen to deliver really authentic hospitality, while being part of something that is a powerful network of great hospitality leaders so they can deliver authentic hospitality.

So the team in Costa Rica is going to be leading and helping us grow the collection within the whole Costa Rican environment. The team in Western Canada who -- when you meet them, one of the things you realize right away is there's a tremendous capacity for growth. And I would say the same in Montana, the same in Alaska and across all of Pursuit.

So there's a lot of bandwidth internally. We've got the runway for it from an expertise and time and energy, and I'll let Bo speak to our capacity financially.

Yes. And fortunately, we're in a spot from a financial capacity as well with that to be opportunistic here. I mean, our current net leverage is around 0.7x. What we've talked about is we have a target longer-term range of 2.5x to 3.5x on that.

Within that today, we have almost $275 million of liquidity available. So the flexibility is there from a financial perspective and from an operating perspective, and now it's about being opportunistic with the pipeline as we work through that.

Our next question comes from the line of Jeff Stantial with Stifel.

Congrats on a strong quarter. Maybe starting off, David, apologies if I missed this earlier. Can you just remind us at this point in the year, typically, how far booked you are for 2026? And then as a corollary to that, are you seeing any interesting or discernible trends year-on-year, specifically, we obviously continue to see a bit more delayed behavior elsewhere in leisure. Are you seeing any evidence of that this far out or anything else that's worth calling out?

Yes. What I see, Jeff, and thank you for the question. What I see is positivity and -- but important to remember, it's early days. And so, we have quite strong tour and travel demand coming from our tour and travel partners all over the world. So those indicators show strong demand for 2026 and those itineraries.

Our early booking pace for 2026 is ahead of prior years. We are experiencing what we would describe as this continued tailwind and the drive into adventure, experiential, wellness, leisure travel in our types of activities and destinations. You can see through the national park visitation over this summer that there was strong growth. It came in an interesting wave. And in July, we were running pretty even to the first expectation and then there was an acceleration through August and September, just in overall demand.

Also a reminder, we work and live in powerful, big, beautiful places, where weather can be a factor. So when we think about '26, one of the things to just remind ourselves of is that in 2025, we had very minimal disruptions with weather or -- and you can have a forest fire that's 2,000 miles away, but it blows smoke into a particular geography for a couple of days, and that can affect visitation. So in '25, it was pretty smooth sailing. We always plan though, for disruption and then manage around that.

And then we know that we're going to have some impact from some of the closures on our capital projects, certain wings of hotel shutdown, while we're opening things and rebuilding things. But those are temporal. They go quickly and then we're back in operation.

So positivity for '26, we're still working on our plan. We'll be coming out with guidance in February and be able to articulate, I think, a more clear picture of exactly where we're headed. But yes, we're looking at positivity from this standpoint.

And Bo, jump in if I missed anything.

No, I think that's all the highlights, Jeff. I mean, on your specific question, it's pretty early days on the actual booking pacing. It's certainly relevant enough that we're speaking to it, but there's a lot of time left to go, and we'll have better color on that in February as well as it starts to evolve.

The tour and travel partners piece is always a helpful indicator in the meantime where it's demand for taking allocations of rooms that they're then working to sell from there. But you can get a good sense for how much demand there is in that market from what they're seeing from their extended market.

That's great. And then maybe hanging on one thing you said there with regards to weather. David, could you just update us on some of the progress that's gone on in terms of reopening some of the hotel inventory in Jasper that was unfortunately impacted by the wildfire. And then just as more and more of these rooms come back online, whether that's next year or the following, is your current expectation that this will be net dilutive to your business in the market given the additional competitive supply or actually potentially net accretive just given rising tide, more foot traffic benefiting the broader market, those kind of things?

Yes, the latter. I really do believe that as our friends and neighbors rebuild their businesses and Jasper overall quality of lodging improves, that, that will have a rising tide effect on everything at Jasper. Interesting, Jasper this summer got to the same levels as 2023. And so overall visitation to Jasper National Park quickly recovered, and it happened a little bit later than we originally anticipated, but came on strong in August and September.

In Jasper itself, it's very heartening to see that some of our neighbors have got foundations in the ground. They're beginning the reconstruction of their facilities. I don't expect anything will open in '26. It's more of a late '27 as these are complete rebuilds from the ground up, but encouraged by what's happening.

And I think just all of us should be impressed with the spirit and energy in the community of Jasper, the Mayor and Parks Canada, they've done a terrific job.

That's really great to hear. And then one more question, just -- and apologies for this, it's going to be a really high-level one. But sort of circling back around to the effective ticket price performance this quarter, last quarter and for many years now, maybe we talked a lot about the pricing power. Obviously, a lot of pricing growth is driven more by improvements to the actual experience and guest satisfaction, whether that's from actual CapEx dollars or just more kind of iterative adjustments, more hours, different aspects of the experience, things of that nature.

But I'm curious, strategically, how much do you think about maybe the flip side of this, which is more of that notion of sort of affordability for the guest and the importance of keeping the value proposition for a park visit compelling versus other vacation alternatives maybe it's another way to look at this, like if you look at really the comparable set here, how is that value proposition, how do you see peers, comps, et cetera, pricing relative to your pricing? And how much does that factor into your decision-making? And I realize that was kind of long-winded and maybe a little meandering, but let me know if that makes sense the way I framed it.

No. No, it's a great question. So where we start is we start with experience. And I get asked, I think, every earnings call, are you going to continue to take price and where does that lead? I think the stronger question is, are you going to continue to improve experiences? And the answer is yes.

And so, an example at the Banff Gondola, where you might have argued, well, we're already at capacity and things are going well. One of the things the team did this summer was they revived a sunset program. And if you're familiar with the Bow Valley, if you're in the valley floor, you can't really see the sunset.

So there's a great experience that you travel at the gondola and all of a sudden, the hours of the gondola's vitality are extended because there's programming that encourages you to come and see a sunset. And the views of that sunset from altitude are incredible.

And so, there's an example of you really work on a product, you really work on an experience, you deliver it really well to guests and then that drives a business outcome. And so everywhere we look, we look for opportunities in a time of day, and we price dynamically so that if you are a more budget-conscious traveler, you've got windows in a week that are very transparent that you can pick a more affordable product at a time of day, where we know we have capacity, what we call white space that we're looking to fill and do it that way.

So you try to have a range of product and what you're looking for is a strong Net Promoter Score, strong guest reviews, strong referral from guests that visit us, telling their friends what a great experience that they had. And that to us is a very important part, and it's just as important as price.

There are no further questions at this time. [Operator Instructions].

All right. Well, thank you, operator. This concludes our 2025 third quarter earnings call. Thanks to everyone who joined today. Please feel free to reach out should you have any further questions, and have a great rest of the afternoon.

This concludes today's conference call. You may now disconnect.

Good afternoon. My name is Cameron, and I will be your conference operator today. At this time, I would like to welcome everyone to Pursuit's '25 Second Quarter Earnings Conference Call. [Operator Instructions] Thank you. Carrie Long, you may begin the conference.

Good afternoon, and thank you for joining us for Pursuit' 2025 Second Quarter Earnings Conference Call. Our earnings presentation, which we will reference during the call, is available on the Investors section of our website. We encourage investors to monitor the Investors section of our website in addition to our press releases, filings submitted with the SEC and any public conference calls or webcast. On the call, you will hear from David Barry, our President and CEO; and Bo Heitz, our Chief Financial Officer.

Today's call will contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to the disclaimer on Page 2 of our presentation for identification of forward-looking statements and for a discussion of risks and other important factors that could cause results to differ from those expressed in such statements. During the call, we will also discuss non-GAAP financial measures. Definitions of those measures are provided on Page 3 and reconciliations to the most directly comparable GAAP financial measures are provided in the appendix of the presentation and in our earnings release.

And now I'd like to turn it over to David, who will start on Page 4 of our presentation.

Thanks, Carrie, and thank you all for joining us as we review our strong 2025 second quarter results. 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.

Our Refresh, Build, Buy strategy continues to be a powerful growth engine that generates meaningful returns. With our recent strategic Costa Rica acquisition, which I'll cover in more detail shortly, we continue to strengthen our global footprint and unlock meaningful long-term growth opportunities. We're excited to be in our peak summer season, delivering exceptional guest experiences, and I'm encouraged by our solid first half of '25 results and continued positive demand indicators across our business.

We're pleased to announce that we are raising our full year guidance with stronger double-digit growth expected in both revenue and adjusted EBITDA. All right. So let's begin on Page 6 with a reminder of what drives our success. Pursuit delivers authentic unforgettable experiences in iconic destinations that global travelers are prioritizing. We appeal to a broad range of visitors, no special skills required, just a love for a beautiful view. Our portfolio includes 17 world-class site-seeing attractions and 29 distinctive lodges, all located in some of the most iconic places in the world.

We've built a leadership position in markets with high barriers to entry and perennial demand. We're supported by a team of approximately 4,350 passionate and dedicated individuals who deliver exceptional guest experiences every day. And we have a powerful strategy to deliver significant growth through reinvesting and improving our existing businesses while deploying capital to drive acquisition-focused growth in new opportunities that meet our criteria. As highlighted on Page 7, this disciplined strategy and our strong execution has enabled us to more than triple our revenue over the last decade while delivering strong returns on our investments. The Pursuit team has a growth mindset.

We're driving consistent growth across our existing experiences fueled by strong demand and a relentless focus on guest and team member experience. Through strategic inventory management, targeted guest programming, focused pricing strategies and the value of integrated collections, we're filling white space and maximizing yield. Importantly, we're scaling effectively and efficiently by maintaining cost discipline and unlocking operating leverage, ensuring that our growth is both sustainable and margin accretive. In addition, we continue to pursue compelling growth investment opportunities that complement and accelerate our strategy, both within our existing markets and in new iconic and compelling geographies.

As we show on Slide 8, over the past decade, we have established a strong track record of value creation through our Refresh, Build, Buy strategy. From 2014 to 2023, we completed 13 major growth investments, ranging from refreshing the Banff Gondola, transforming it into a top-rated must-do experience to creating Iceland's world-class Sky Lagoon geothermal attraction to buying numerous irreplaceable, one-of-a-kind attractions and hospitality experiences. These investments represented approximately $460 million in capital deployed, generating a strong return and elevating guest experiences.

We've continued to build on this momentum with 4 additional acquisitions further expanding our portfolio and reinforcing our commitment to disciplined high-impact growth. So whether refreshing existing experiences, building new experiences or buying one-of-a-kind experiences, our strategy continues to deliver meaningful results and position Pursuit for long-term success. Now let's discuss our most recent by growth investment in more detail, starting on Page 9.

On July 1, we completed the acquisition of Tabacon Thermal Resort & Spa, which marks a significant milestone in our growth journey. This iconic year-round destination in Costa Rica's Arenal region combines 2 geothermal hot spring attractions, a luxury hotel, a renowned spa and signature culinary experiences, all set within 570 acres of pristine terrain. It's a rare best of both worlds opportunity, blending high-margin attraction-based experiences with premium hospitality. With its unique location and natural thermal features, Tabacon benefits from strong competitive barriers and strengthens our geographic and seasonal diversification.

Costa Rica is an established global tourism destination with many of the largest hospitality brands in the world drawn to the country's stability, perennial demand and highly educated bilingual workforce. Tabacon serves as an ideal anchor for building a broader Costa Rica collection with meaningful scale, and we see significant long-term upside as we apply Pursuit's proven growth playbook.

Continuing to Page 10, Tabacon represents truly world-class attraction and hospitality experiences in one of Costa Rica's most popular travel destinations. Nestled at the base of the Arenal Volcano and adjacent to over 900 acres of pristine rainforest reserve, Tabacon offers exclusive access to the country's largest network of naturally flowing hot springs through both the Tabacon and Choyin Termal River attractions.

The renowned 5-star luxury full-service resort has 105 rooms and year-end occupancy exceeding 80% with over 30,000 room nights annually. Supported by a proven Costa Rican leadership team with a strong track record of growth and hospitality excellence, the property is well positioned to drive incremental visitation and long-term value, which is highlighted on Page 11. We see a clear path to near-term growth at Tabacon through targeted operational enhancements and the benefit of recent investments, including the launch of the Choyin River Termal attraction in March of 2024.

With strong demand and ample Hot Springs capacity, we'll be actively deploying strategies that we expect will drive Tabacon adjusted EBITDA multiple down below 9x by year 3. Beyond an incremental to these operational gains, we're also evaluating meaningful Refresh and Build investments across the 570 acres of acquired Terrain as well as potential buy investment opportunities for additional attractions and hospitality businesses in Costa Rica at attractive valuations to build a collection that will drive long-term value. Next, switching back to North America on Page 12.

We're excited to announce another new refreshed growth project the makeover of our Growth Mountain Lodge in Whitefish, Montana, which will transform and reposition this property in a high-demand affluent market near Glacier National Park. This investment will significantly elevate the guest experience through a renovation of 73 year-round guest rooms, corridors in the pool area, creating a more compelling upscale offering. We're also constructing a new wedding and events pavilion to grow market share in that segment. These enhancements are designed to increase demand, elevate the guest experience and support higher ADRs. The project is on track for completion in 2026 with additional opportunities for incremental lodge improvements in future phases.

Looking ahead on Page 13, we continue to have a compelling pipeline of both organic growth projects and acquisition opportunities to power our growth into the future. On the organic side, we've identified over $200 million in Refresh and Build investments that we believe can be executed over the next 5 years. These are focused on our existing high-performing experiences and include potential transformational future projects we're exploring like reimagining the Apgar Village properties in Glacier National Park and refreshing the Jasper SkyTram, which is the only aerial sightseeing experience in one of the world's most beautiful and well-visited national parks.

In 2025, we expect to invest between $38 million and $43 million towards organic growth projects, including the Refresh investments at our Forest Park Hotel in Jasper and our Grass Mountain Lodge in Montana. Additionally, we invested in 2 new Ice Odyssey all-terrain vehicles to expand the premium tour experience on the Athabasca Glacier at the Columbia Icefield attraction in Jasper. And these growth projects are all designed to meet the demand from the mass affluent leisure travelers that are visiting our markets.

We view Refresh and Build investments as one of our most efficient uses of capital, making guest experiences better, creating yield opportunities and improving performance across our businesses. Raising quality makes our guests happier, and it drives our business performance. We have the flexibility to pace these investments in alignment with our second growth lever, which is strategic acquisitions of one-of-a-kind forever businesses. Our pipeline remains robust with opportunities in both existing geographies and in new iconic destinations.

So our capital allocation strategy remains anchored in our proven Refresh, Build, Buy framework designed to drive long-term value creation and scale Pursuit in a thoughtful and sustainable way. That said, we also believe it makes sense to use our strong balance sheet to opportunistically buy back our own shares if the market fails to recognize our value. And I'm pleased to say that our Board recently approved a new share repurchase authorization for up to $50 million of Pursuit's common stock, reflecting our confidence in Pursuit's long-term growth trajectory. With a strong balance sheet and ample financial capacity, we're well positioned to pursue investments that enhance our guest offering, expand our footprint and deliver compelling returns.

And now I'll ask Bo to review our financial results and outlook for the balance of 2025.

Thanks, David. I'll start on Page 15 with our second quarter financial highlights. We delivered revenue of $116.7 million in the second quarter, which was up approximately 15% year-over-year. This growth was driven by continued momentum in guest demand and the compelling value of our experiences.

Attractions ticket revenue growth, which I'll cover in more detail shortly, was particularly strong with healthy increases in both visitors and effective ticket prices. Net income attributable to Pursuit was $5.6 million as compared to $29.3 million in the prior year. The year-over-year change was primarily driven by the sale of GES in 2024.

Income from continuing operations attributable to Pursuit was $4.5 million as compared to a loss from continuing operations of $0.4 million in the prior year. During the 2025 second quarter, we completed a legacy pension termination to improve long-term financial flexibility, resulting in a largely noncash pretax charge of approximately $5.4 million. Our adjusted net income, which excludes results of discontinued operations and other nonrecurring expenses, including the legacy pension termination charge, was $10.1 million as compared to $0.2 million in the prior year.

The year-over-year growth primarily reflects higher adjusted EBITDA. 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. Now let's look at our second quarter attractions performance on Page 16.

Attraction ticket revenue reached $53.2 million, reflecting a 22% year-over-year increase driven by higher effective ticket prices and increased visitors. Same-store constant currency effective ticket pricing, which excludes the recently acquired Jasper SkyTram, grew by 11% compared to 2024. We continue to see strong demand for our one-of-a-kind attractions. The Banff Gondola had standout performance during the quarter, and the Sky Lagoon continues to deliver strong growth in effective ticket price, primarily fueled by the expansion of the premium ritual experience, which was completed in August 2024. Next, let's turn to our second quarter hospitality performance on Page 17.

Lodging room revenue totaled $26 million, reflecting a 6% year-over-year increase driven by higher ADRs and occupancy levels. Same-store constant currency RevPAR, which excludes the Forest Park Hotel's Woodland Wing and the recently acquired Apgar Lookout Retreat grew 9% as compared to 2024. Our lodging properties are located in renowned experiential travel destinations with market compression and provide guests access to these beautiful places.

All of our collections delivered growth in room revenue during the quarter. Room revenue was slightly offset by fewer rooms being available at the Forest Park Hotel's Woodland Wing, where large-scale renovations were underway on approximately half of the property's rooms. I am pleased to report that the first phase of these guest room renovations were complete for the start of the third quarter, and the next phase will commence during our off-peak season to minimize disruption during our peak summer season.

Page 18 provides a view of our continued strong room booking pace for 2025. The charts on this page show our room revenue on the books for confirmed reservations as of August 4 across 3 years. Our U.S. lodging properties are pacing approximately 6% ahead of the same time last year, and our Canadian properties are up approximately 25% year-over-year. As a reminder, the 2024 Jasper room revenue on the books includes the impact of the wildfire, which started evacuations in Jasper National Park on July 22, 2024.

Relative to 2023, our Canadian properties are up approximately 18% or 22% when adjusting for the impact of rooms taken offline for renovation at the Forest Park Hotel's Woodland Wing. This pacing supports our expectation that we will see strong perennial demand across our locations this year and a return to more normal levels of revenue across our Jasper properties. Let's turn to our 2025 outlook on Page 19.

Based on continued demand for our authentic experiences, improved exchange rate trends and the recent acquisition of Tabacon, we are raising our 2025 full year guidance. We now expect full year adjusted EBITDA of $108 million to $118 million, an increase of $10 million from our prior guidance range. The $10 million adjusted EBITDA guidance increase includes approximately $7 million from revised exchange rate assumptions and approximately $3 million from the Tabacon acquisition. This new guidance range represents substantial adjusted EBITDA growth of $31 million to $41 million relative to 2024.

We expect the significant year-over-year growth to be primarily driven by continued strong demand and execution across our operations, the recovery of leisure travel to Jasper and contributions from our recent acquisitions. This guidance accounts for certain assumptions, which are set forth in our earnings press release.

With the anticipated rebound in Jasper, our continued focus on delivering exceptional guest experiences and the strength of our balance sheet, we are well positioned to drive sustained growth and strategically invest in high-return Refresh, Build, Buy opportunities.

And with that, I'll turn it back to David.

Thank you, Bo. As we move through what is shaping up to be a strong peak summer season, our teams across Pursuit are fully engaged in delivering exceptional experiences to guests in the iconic places we operate. I want to thank our team members for their passion, dedication and growth mindset. You are amazing. They continue to create unforgettable memories for our guests every day. And to our shareholders, thank you for your continued support as we advance Pursuit's exciting growth journey.

With that, let's open it up for questions.

[Operator Instructions] Your first question comes from the line of Jeff Stantial with Stifel.

Maybe just starting off on the guidance revision. So $10 million raise and Bo, you mentioned the split $7 million for FX and then $3 million contribution from Tabacon. I guess, should we read that to imply that operating trends have more or less been in line with your expectations on a constant currency basis? Or has there been sort of upside year-to-date with maybe a bit more conservatism implied in the back half?

Thanks, Jeff. Yes. No, definitely more of the former on this. If you back up to where we were heading into this year, things were setting up really well for this business and had a lot of tailwinds we were expecting heading into that. There was the FX setup heading in. There was some of the geopolitical dynamics. There was the investments that we've been making in this business and the booking indicators that we were seeing at that point.

When you look at the Q2 results, really, what you're seeing is that, that was coming in, in line with what we were expecting, which is to see really strong growth over that period. And I think that's fair to say that on a constant currency basis is the way to think about that. There was about $2 million of that $7 million FX impact that was realized in the year-to-date period. And then yes, frankly, as we even look a little further, July really was a continuation of that of seeing growth in line broadly with what we were expecting from -- at least from a demand perspective at this point.

So I feel really good about the setup, I feel that we've reflected that in our guidance. And I think that's the right call it, like core guidance outside of those items to expect for the full year as a result of that.

That's great. And then shifting gears a little bit here and turning over to capital allocation. David or whoever wants to take this, could you just maybe add a little bit more color on the Board's decision to authorize a new buyback program? Specifically, how do you see the relative returns for Refresh, Build, Buy versus the implied yield of the current stock price?

And then keeping in mind that this is going to be more of an opportunistic approach. Is there a velocity or an amount that we should think about as sort of a reasonable level, whether that's on a quarterly or an annual basis? And let me know if that sort of makes sense.

Thanks, Jeff. Yes, let me start, and then I'll hand it over to Bo. I think the way to think about the share repurchase is that if it is our view, which it is today that we are undervalued, that the market is undervaluing Pursuit, I think what's important is that the flexibility that a reauthorization provides us is really helpful. It is not a pivot. It's not all of a sudden we're abandoning Refresh, Build, Buy. It's actually the opposite and that our focus is on Refresh, Build, Buy and continuing to do what we do. And so if you look at it just globally first and you think, do we have a robust pipeline? We sure do.

Do we have some terrific targets in markets with things that match our criteria, right, perennial demand, really iconic attractions and places, big barriers to entry, targets that we believe would be very accretive. And so our 2 main levers of growth continue to be organic Refresh investments within our existing businesses and then our growth through acquisitions. What's important, though, is that despite us telling a very compelling story and going out and sharing that with anyone that will listen, if the market continues to undervalue us, I think that there is an opportunistic moment, which is an ability to step in. And this was something that certainly, the leadership team together with the Board, we all came to the same conclusion. And so what we've done is, I think, taking the prudent step to prepare ourselves should we be in that situation.

And Bo, I'm sure you've got some add-ons to that.

Yes. I mean I would largely echo what you said, David, but maybe to make it even a little more clear, definitely, I wouldn't view this as like a programmatic approach. It's very much on the opportunistic angle relative to what David said there. And at its core, we still feel really good about our Refresh, Build, Buy opportunities and have a pretty solid track record for delivering high returns on those investments. And so in any given quarter, we're assessing the repurchases as a lever of that, we're going to be looking at the returns that we'd expect there relative to what we can do with investments in ourselves and Refresh, Build, Buy opportunities.

So I wouldn't guide you to a specific dollar amount within there because it is going to be something that's pretty nuanced relative to other priorities that we're evaluating at the same time.

That's great. And if I could just squeeze in one quick housekeeping question. Bo, could you just remind us on your pro forma run rate effective tax rate? Specifically, we're thinking more cash taxes, but we'll take GAAP as well, if you have it.

Sure. Yes. Happy to give you some color on that, Jeff. So effective tax rate, certainly something that can fluctuate in any given year, partly given on jurisdictions on where we're generating income. But currently, I'd say we're expecting for FY '25 to come in around 31% to 35% from an effective tax rate perspective.

I think the important thing to remember as you think about that, we have a smaller U.S. operational footprint and broader U.S. corporate costs associated with that. So we typically generate a loss in the U.S. And in the U.S., we're also still carrying valuation allowances for our deferred tax assets. So that effectively means that we don't recognize tax benefits on U.S. pretax losses. So other jurisdictions, I'd say we generally are paying typical tax rates more in line with what you'd expect, but that overall structure does result in a blended effective tax rate that's higher than statutory tax rates.

And just to be clear, that's cash that's GAAP or are they both pretty equivalent?

I'm talking more from a GAAP perspective, but I think it's a reasonable proxy than anything else at this point.

Your next question is from the line of Tyler Batory with Oppenheimer.

A question on the results here. I really want to double-click on the ETP growth, which I thought was really quite strong. Did you do anything differently this quarter than in the past to drive that? And what sort of margin benefit could that have if you're able to maintain and even grow further some of that pricing into the future?

Yes. So I would be remiss not to start with this is a relentless focus within this business, right? Delivering strong guest experiences enables opportunity to drive strong yield growth. And I would say that's the overall story that you're seeing I think the biggest outlier within there that's driving outsized growth in that is on the Sky Lagoon side, which I know we've talked about in recent quarters, but we completed the Turf House expansion in late summer, early fall of last year. And as part of that, it was really shifting to only having a real premium option experience that we expanded the offering that enabled that.

And so that's been driving strong ETP growth at that business that's carrying through as we complete our first year of operations after that expansion. So that's definitely an outsized driver there. I think the reality is what you're seeing more holistically in our Q2 results is when we have strong performance in particularly our attraction side of this business, it doesn't cost us much extra for that incremental volume or incremental yield. And so that translates to strong flow-through to an EBITDA and cash perspective. And it's part of the reason that we expect to be able to continue improving margins over time as a result of that.

David, I don't know if you have anything else you want to add on that?

Yes. Tyler, I would add one thing, which is real credit to the team because I think their focus on a growth mindset. And by growth, I don't just mean the financial growth, but growth in guest experience, growth in experience design and the delivery of experience design and making things just fundamentally better across the company has a strong impact. And what that does, obviously, is then you're able to introduce new experiences, you're able to raise a price because you've justified it through quality. And I think you're seeing the impact of that.

Bo's comments on flow-through are very appropriate and connected to the success that we've had. But just want to reinforce that growth mindset is something that when it happens across scale of visitors across 17 attractions, it's quite powerful.

Okay. Good detail there. And then a bigger picture question on the current portfolio, then we can get into the recent acquisition. When I look at leisure travel broadly and really consumer spending, too, I mean, there's been fits and starts in the past few months. I think it's been pretty choppy depending on the industry, depending on what you're looking at. But clearly, your business is doing exceptionally well.

And I really would like you to hit on this, perhaps it's something I think the market is ignoring or maybe just overlooking or missing. Just talk a little bit more and quantify for folks the organic same-store revenue growth in the quarter, zero in a little bit more on the Banff Jasper numbers a little bit in terms of the growth rates year-over-year and just articulate as well how you're able to grow revenue so quickly in the backdrop that I think broadly is pretty mixed out there.

Yes, I'll start, and I am convinced my colleagues will have something to add. But I think fundamentally, if you go back in time, there were many tails of low coming out of the industry. Was travel going to slow down? Were people not going to spend? And there was an awful lot of media speculation, concerns about travel tariffs, all kinds of different things. We performed as expected internally. And all of the measurement systems internally in the business and everything we were looking at were pointing to positivity.

And so one, I think our -- the power of perennial demand, the power of iconic locations, the power of barriers to entry and the constant focus on improving experiences enables us to really perform well when it comes to hosting guests from around the world and then driving performance within the particular businesses. Flow-through on the attraction side obviously had a major contribution to that. And just, I think, a relentless focus on the part of the team. And we feel tailwinds. We feel tailwinds in terms of how people are spending time and energy. We view that the business is well prepared to take advantage of those tailwinds. And we're excited about what's to come in '25, and we're very optimistic about the future.

Yes. I think that's all right, David. And when you peel us back a little bit to your -- some of your questions around that, Tyler. I mean, if you think about our U.S. operations, we've talked about in the past that a lot of that is really that drive to or broader U.S. visitation that comes there. So there is, I think, less sensitivity when you think about the international dynamics around that.

And I think you saw that just in broad industry data when you look at park visitation across Glacier, Denali, [indiscernible] for Q2, it was up high single digits from a visitation perspective. And yes, I think we were able to drive strong results in our business as well with that. On the Canada side, we've been alluding to it, right, when you have the FX setup where history would say that a lot of U.S. individuals would go to Canada for tourism, international or even Canadians staying local around that behavior, the geopolitical piece amplifying that, some of the parks free admission this summer and another piece within there.

And so with all of that setup, also seeing broadly in visitation in our Canadian national parks that we operate in up on a year-over-year basis. And within there, because of what David was describing in terms of how we operate the experiences we're delivering, that really showed quite well in this business. I mean in Banff, really strong season in Q2. Banff Gondola, I would say, was definitely a call out within there of particular strength. But when you look at our lodging portfolio, really the RevPAR gains were pretty broad, widespread across operations. Jasper looked particularly strong on that front. But I'd say it was broad trends that we were seeing throughout geographies.

Okay. Okay. Great. And then a follow-up on the Costa Rica acquisition. You gave some very helpful detail in the prepared remarks. I'm interested if you could speak to perhaps how long this deal was in the pipeline before you got it across the finish line. Talk a little bit more about why Costa Rica overall is so attractive to you in terms of building out another collection. And then when we think about some of the potential opportunities in terms of future acquisitions down there, interested if you could talk about the opportunity set and how it might complement what you just bought.

So Costa Rica for us is a place that truly fits the criteria. And again, thinking back, we've articulated the criteria a lot, but I'll do it again. And it's iconic, unforgettable inspiring. Does it tick that box? Does it have perennial demand? And it does from all over the world. Is it a leader in terms of its guest experience delivery? It is. Does it enjoy in our particular case with the acquisition of Tabacon? Are there barriers to entry, meaning is it something that's hard to replicate? It definitely is.

And so from our perspective, that, combined with counter seasonal, obviously, a very strong add to pursue, and we're really pleased. It also has a terrific management team, and that's one of the things that's quite important as we think about the future because we view it as a foundational acquisition upon which we will build a collection around that.

And if you go back, Tyler, you've been a part of our history, but if you go back to 2016 and you look at what's been done since 2016 as we've tripled the size of the company, founders talk to founders. And if they look at an asset that they spent their whole life creating and then they've sold it to us because maybe they don't have someone in their family that's ready to step in, how we then lead that business and the support that we have for the team, that leads the doors opening across the geography. And that's what's happened to us in Banff. That's what's happened to us in Montana and Alaska.

And we know that the same thing will happen in Costa Rica. So Costa Rica to us is a long-term view. It's -- we're going to be very careful in terms of how we grow, but we are going to grow definitely. And we're going to look to be expanding and building a collection there. into the future. As for how long we worked on it, conversations take time. And sometimes you're in a situation where it takes a little longer to get somewhere. But definitely, we're quite excited to be in a position where in the first 6 months, actually, right to the day, on July 1 that we're able to announce a real game-changing transaction in a new country. This is our fourth country, so the United States, Canada, Iceland and now Costa Rica. So we think there will be great things to come.

Your next question comes from the line of Alex Fuhrman with Lucid Capital Markets.

Congratulations on a strong start to the key season here and on the Tabacon acquisition. I wanted to follow up a little bit more on Tabacon. Can you give us a sense of what is the mix there in terms of lodging versus attractions and retail and dining and other services? And David, I think you alluded to some investments you're going to be making in the near term that are going to help get that effective EBITDA multiple down under 9x. Can you tell us what some of those investments are going to be?

So firstly, let me just articulate where we are. So with the close on July 1 and obviously, in our busy season, our focus right now with the team in Costa Rica is we're listening, we're learning, we're building relationships and focused on beginning to plan out what we think might be the next step. So I really -- I am not in a position to share what would be some of the first investments we would do to grow the business. But I will share that we have a pretty incredible opportunity in terms of growth.

There's 570 acres total. There's ample room to accelerate the attraction business. So there's 2 geothermal river attractions that are quite spectacular. And I would say, historically, they've been viewed more as a hotel amenity and something that we think there's great opportunity to grow a high-quality visitor in those environments.

Secondly, the hotel operation has ample opportunity to expand. And then the property itself is quite beautiful and lends itself to a lot of the very interesting things that we do. And it's not a huge jump to go and think of Golden Skybridge and what you might be able to do in Costa Rica in terms of attraction and other things that connect and create experiences for guests that are more than simply a bed to sleep in and something to do during the day.

And I think, Alex, I would add just on some of the specifics of your question. I think it's important to note that for this getting below 9x from a multiple perspective, that does not require any major growth CapEx investments. I think that was part of the attraction and ability to pay what we paid for this. I'd say there are 2 main operational levers that we're looking at in the near term. One is, as David alluded to, the Tabacon Thermal River experience is more of an amenity to the hotel at this point. And there's a lot of capacity in that experience, particularly in the daytime when hotel guests aren't utilizing it in the same level.

And so that's something that we're -- we'll be continuing to look at with levers that we feel we can pull based on our experiences around that. And the other is this Choyin River experience. I think it's important to note that this is a capital investment that was done and a new attraction that came online in March of 2024.

So it's a little over a year old. It's still very much in the ramp of that business from a volume perspective as word gets out and not a ton of investment in the marketing side at this point, but a lot that will continue to build even if not much is done at that point, but we do feel like that's something that we're partnering with the local team on to figure out how we can accelerate the growth on that further. But I think those are 2 really tangible levers that we looked at in terms of the near-term opportunity without too much incremental investment.

Okay. That's really helpful. And then switching gears to Canada. It strikes me that this is really the first year since 2019 that you're having a full season of the group travel business given the relatively late opening of the Canadian border and the Jasper wildfire last year. How is the group travel business looking compared to 5 years ago when it was last full strength? And I imagine your business with Chinese travelers is probably well below what it was in 2019. Are other countries replacing those visitors? And where might they be coming from?

So what's interesting is if you look at the return to tour and travel visitation, it's really not in the framework of the lights were strong in 2019, they went out and then all of a sudden, they mysteriously come back on in 2025. It's been building. And so if you think of '22 and '23 and '24, each of those years subsequently building. So we have growth across that segment and a return to more normal and tour and travel partners that are performing really well. I think Canada's level of demand is really helpful.

So the Canadian currency exchange situation that we're in, in terms of Canada being on sale to the world, very positive. Canada is perceived very positively internationally. So that also helps, very welcoming as a country to visitors from all over the world. So that adds energy. But we're also seeing strong performance in Alaska, strong performance in Montana. So I would say all the -- back to the naysayers comment earlier on the call, where there was a view that perhaps people would not be out and join themselves this summer.

We saw the opposite from the beginning. This has continued to deliver on what our expectations are, and we have a strong level of performance from our tour and travel business and view that as continuing. Countries themselves go up and down. Sometimes you have a country that's catching up. Example would be China as airlift increases to North America, and there's a variety of other things. But travelers find their way. So our visitation from Japan, our visitation from South Korea and other markets is very strong. And we continue to have, gosh, I think, 80 different countries coming to us from all over the world and view the tour travel market as positive.

The other real benefit, Alex, that's important to remember is that it's not just travel in our peak season, but these are operators that are also booking inventory throughout our shoulder seasons as well. So generally, tours will start sometime in March, carry their way through all the way through the end of October. So it's a solid foundation of business, and it's just a very positive driver for us as we welcome visitors from around the world.

Your next question comes from the line of Eric Des Lauriers with Craig-Hallum.

Congrats on the strong quarter here. First one for me. You cited a favorable mix of attractions revenue as a contributor to the strong EBITDA in the quarter. In terms of overall longer-term strategies to increase margins, as you look at your buy-and-build strategies, is there any goal to increase the mix of attractions? Or does the long-term margin expansion really come from adding scale and depth within markets and not necessarily mix of attractions or lodging or restaurants or what have you?

Fundamentally, Eric, we're attractions first and then with vertically integrating hospitality, retail, food transportation underneath that. And we focus on the opportunity within attractions because we believe in the very compelling economic power of the attractions business. So stuff we've talked about today on the call, flow-through, et cetera.

Okay. Great. And I guess just kind of double-clicking on that. I mean, is there a goal to sort of increase this mix that you have now? Or is it kind of just dependent on market to market and the opportunity that you guys see that's not necessarily baked into that longer-term plan here?

The benefit of having a robust pipeline is that we do have some pretty compelling opportunities. And again, you've got to work a pipeline to see if you can turn those opportunities into something more real. How I tend to think about it going forward is we've got some growth levers. And we've identified 6 really strong growth levers as we go forward. one being, obviously, market tailwinds that guests from around the world are looking for authentic travel experiences, and we think that's going to continue far into the future.

Number two is quality and guest satisfaction. Fundamentally, when you make things better, guests are more satisfied. They tell their friends, they're willing to spend more. They're excited about what they're doing, and that drives the business. Thirdly, then price and volume. So when you have made something more attractive, you're able to charge more for it. And so continuing that focus on filling white space, dynamic pricing, price and volume metrics, then creating sub experiences within an attraction experience for, say, food and beverage or retail, everything from coffee to what you might have for dinner. All of those things are all connected into the delivery when you think of price and volume.

Fourthly, cost discipline, high operating leverage on a fixed cost structure. Attractions are essentially once you reach your point of stability and you've got a view, then everything additional to that really flows very, very directly. And so the flow-through is very strong. And I'll finish with the last 2, and we talk about these all the time, but it's organic growth investments within our existing businesses. And we're so lucky because across the world, 4,350 smart people delivering experiences in Pursuit. We have the leadership team, everyone's got a growth mindset.

And growth might be how do we make this experience a little bit better. And therefore, they've got ideas. They're brainstorming on what to do that we can expand and improve our existing businesses. And those are all well-instrumented existing businesses with little integration risk, markets we know really well, and we selectively make investments that the teams work on great ideas and then we invest in them. And we've listed out some examples in the presentation of exactly those. And then there are things like build investments where we know coming forward, we've articulated on Jasper SkyTram. I mean, Jasper SkyTram is a phenomenal opportunity into the future, where we now own a fantastic aerial ropeway in Jasper National Park.

And obviously, for decades to come, it won't operate the way that it does today, but we'll focus on improving it. We've got a long history of improving things within our businesses. And so our focus then is what can we build in the footprint of the Jasper SkyTram, and we're working closely with Parks Canada and others in terms of the planning of that.

And as we have more news there, we're able to share it. And that's a really important thing because it's again something that's within our view. And the final growth lever is acquisitions. strategic tuck-ins with economies of scale and scope that fit our criteria for acquisitions in new geographies, increasing our total addressable market, greater diversification and economies of scale and scope as we create new collections and build. So yes, it's an exciting time for us.

Great. I appreciate that color there. My last question, kind of a follow-up on your last point there. Just in terms of M&A pipeline, obviously, great to see it continues to be very active. I understand timing is quite uncertain in this space. So I won't ask about that. But just curious about your appetite for larger acquisitions of premier assets in new markets, obviously, Tabacon being a clear example of that versus kind of smaller bolt-on acquisitions to improve scale and depth and perhaps margins in your existing markets.

Just wondering if you have more of an appetite for one or the other or if it's just, hey, you kind of take whatever opportunity is in front of you and it's less about one or the other. Just kind of curious where your appetite or thinking is.

It truly is a balance. And so I wish that things presented themselves in a particular order on a particular day, but they never seem to. So again, we have a very interesting and compelling list of opportunities to invest in, both within the business in our existing business and things we can improve. And we have a robust pipeline of opportunities. So on the acquisition side, there will be smaller things that present themselves. And if we feel that they fit and they are the right decision at the time, then that's something that we'll be able to move forward on.

Bo will speak in a second to our capacity and where we're sitting from a leverage perspective. And on larger acquisitions, again, if we feel confident that this is the right acquisition that will create the greatest amount of shareholder value, and we're well positioned to do that. But I think it's important for Bo to just speak to capacity and our abilities and leverage ratios and so on.

Sure. Yes. So currently, we're pro forma net leverage of 1.5x, which I'd say that with the sense of Q2 leverage plus the addition of Tabacon, which was purchased the day after. And we have a target net leverage of 2.5 to 3.5x roughly. And so within there, there's certainly capacity from a financial perspective on this.

And I think that's important, right? Like to David's point, there's you have a dream scenario probably of how things could fall into place. But when you're this targeted on what makes sense for the business, you have to be ready to be opportunistic when the right things come available. And so we base our approach on our ability to move quickly and action on things that are going to be the right strategic investments for this business.

[Operator Instructions].

Well, thank you, everyone, for participating in our second quarter earnings call. We appreciate your interest and wish you a fantastic afternoon.

This concludes today's conference call. You may now disconnect.