What were the main drivers of revenue growth in the third quarter of 2025?

Revenue growth was primarily driven by a 2.9% increase in capacity due to the addition of the Star of the Seas and Utopia of the Seas, combined with yield growth resulting from higher load factors and increased pricing. Onboard and other revenues also saw a notable increase, contributing to the overall revenue uplift.

How did interest expenses change, and what was the impact on profitability?

Interest expense, net of interest capitalized, decreased significantly by $355 million for the quarter and $599 million for the nine months. This reduction was largely due to a substantial decrease in loss on extinguishment of debt and inducement expense compared to the prior year, which positively impacted net income and earnings per share.

What is the company's outlook regarding its ship orders and capital expenditures?

RCL has a robust pipeline of new ship orders, with an aggregate expected cost of $9.7 billion for ships on order as of September 30, 2025. The company anticipates overall capital expenditures of approximately $5 billion for 2025, primarily for new ships and destination initiatives. Committed financing of $8.8 billion is in place for these orders.

How is the company managing its debt obligations and financial covenants?

As of September 30, 2025, RCL was in compliance with its debt covenants, including the fixed charge coverage ratio and net debt-to-capital ratio requirements. The company has a significant portion of its debt at fixed rates and utilizes interest rate swaps to manage interest rate exposure. They have sufficient liquidity and cash flow to meet their obligations, including debt service and capital expenditures, for at least the next twelve months.

RCL 10-Q Quarterly Report Q3 FY2025 — Revenue, Net Income, EPS

Summary

Royal Caribbean Cruises Ltd. (RCL) reported strong financial performance for the quarter and nine months ending September 30, 2025. Total revenues saw a significant increase, driven by higher passenger ticket revenues and onboard spending, reflecting robust demand and effective pricing strategies. The company benefited from capacity growth with the addition of new ships, contributing to both revenue enhancement and increased operating expenses, though the latter grew at a slower pace than revenues. Profitability improved substantially, with Net Income attributable to Royal Caribbean Cruises Ltd. reaching $1.575 billion for the quarter and $3.514 billion for the nine months. This growth was supported by a substantial reduction in interest expense, largely due to fewer debt extinguishment and inducement charges compared to the prior year, and increased equity investment income. The company also made progress on its fleet expansion and strategic investments, including the acquisition of Port of Costa Maya and continued development of new vessels, while maintaining a strong balance sheet and liquidity position.

Financial Highlights

47 data points

Beta

Revenue

$5.14B

0.5% Gross Margin

Net Income

$1.57B

0.3% Net Margin

EPS (Diluted)

$5.74

Total Assets

$40.11B

Cash & Equivalents

$432.00M

Free Cash Flow

-$989.00M

Financial Statements

Beta

Revenue	$5.14B
Cost of Revenue	$2.48B
Gross Profit	$2.66B
SG&A Expenses	$522.00M
Operating Income	$1.70B
Net Income	$1.57B
EPS (Basic)	$5.79
EPS (Diluted)	$5.74
Shares Outstanding (Basic)	272.00M
Shares Outstanding (Diluted)	274.00M

Key Highlights

1Total revenues increased to $5.14 billion for the quarter and $13.68 billion for the nine months ended September 30, 2025, up from $4.89 billion and $12.72 billion in the prior year periods, respectively.
2Net Income attributable to Royal Caribbean Cruises Ltd. surged to $1.575 billion for the quarter and $3.514 billion for the nine months, significantly outperforming the prior year's $1.111 billion and $2.325 billion.
3Diluted Earnings Per Share (EPS) showed strong growth, reaching $5.74 for the quarter and $12.83 for the nine months, compared to $4.21 and $8.91 in the respective prior year periods.
4The company took delivery of the Star of the Seas in July 2025, contributing to capacity growth and revenue generation.
5Interest expense, net of interest capitalized, decreased significantly due to a reduction in debt extinguishment and inducement expenses compared to the prior year.
6The company's liquidity remains strong, with $432 million in cash and cash equivalents and $6.4 billion in undrawn revolving credit facility capacity as of September 30, 2025.
7RCL made a strategic acquisition of the Port of Costa Maya in July 2025, enhancing its destination offerings.

ROYAL CARIBBEAN CRUISES LTD Quarterly Report for Q3 Ended Sep 30, 2025

Summary

Financial Highlights

Key Highlights

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