Royal Caribbean Reports 5.2% Revenue Growth in Q3 2025, Net Income Rises to $1.575 Billion

Royal Caribbean Cruises Ltd. reported a significant increase in financial performance for the third quarter and the first nine months of 2025, as detailed in its latest 10-Q filing. For the quarter ended September 30, 2025, the company generated total revenues of $5.139 billion, up from $4.886 billion in the same period of 2024, marking a 5.2% increase. Passenger ticket revenues rose to $3.637 billion, a 4.8% increase from $3.471 billion, while onboard and other revenues increased by 6.2% to $1.502 billion. Net income attributable to Royal Caribbean Cruises Ltd. reached $1.575 billion, compared to $1.111 billion in the prior year, resulting in earnings per share of $5.79, up from $4.22.

For the nine months ending September 30, 2025, total revenues increased to $13.676 billion from $12.724 billion, driven by a 7.6% rise in passenger ticket revenues to $9.579 billion and a 7.1% increase in onboard and other revenues to $4.097 billion. The net income for this period was $3.514 billion, compared to $2.325 billion in 2024, with diluted earnings per share rising to $12.83 from $8.91. The growth in revenues and profitability was attributed to increased capacity, higher ticket prices, and enhanced onboard spending.

Operationally, Royal Caribbean carried 2.466 million passengers in the third quarter of 2025, an increase from 2.310 million in the same quarter of 2024. The company reported a load factor of 112.1%, up from 111.0% in the previous year, indicating improved occupancy rates. The total passenger cruise days also increased to 15.356 million from 14.786 million. The company’s capacity growth was bolstered by the addition of new ships, including Star of the Seas, which began revenue sailings in August 2025.

Strategically, Royal Caribbean made significant moves, including the acquisition of the Port of Costa Maya for $294 million, which is expected to enhance its destination offerings. The company also amended its revolving credit facilities, increasing its capacity to $6.4 billion and extending the maturity of one facility to October 2030. Additionally, the company completed a privately negotiated exchange of convertible notes, which reduced interest expenses significantly compared to the previous year.

Looking ahead, Royal Caribbean anticipates continued growth, supported by its ongoing investments in new ships and destinations. The company expects to maintain compliance with its debt covenants and has sufficient liquidity, with $6.8 billion available, including cash and undrawn credit facilities. The outlook remains positive, with management projecting further increases in capacity and profitability as the cruise industry continues to recover and expand.