Carnival Corporation plc reported QQ1 2025 revenue of $5.81 billion, up 7.45% year-over-year but down 2.16% quarter-over-quarter, reflecting ongoing demand recovery tempered by seasonal headwinds. Gross profit rose 20.09% YoY to $2.044 billion with a gross margin of 35.18%, while operating income expanded 96.74% YoY to $543 million, yielding an operating margin of 9.35%. Despite these improvements, the company posted a net loss of $78 million for the quarter (EPS -$0.0596), as heavy interest expense and a sizeable negative contribution from total other income/expenses weighed on bottom-line results. EBITDA was $957 million with an EBITDAR margin of 16.47%. The cash flow story is more constructive: operating cash flow of $925 million and free cash flow of $318 million supported by disciplined capital expenditure of $607 million, resulting in a cash balance of $856 million at period end. Net debt stood at approximately $27.56 billion on total debt of $28.39 billion, underscoring the substantial leverage that remains a key investor concern. Management commentary points to a gradual return to higher yields and occupancy, but the earnings trajectory remains sensitive to interest costs, fuel pricing, and macro volatility. The near-term thesis hinges on deleveraging progress, sustained capacity discipline, and improving pricing power as the cruise cycle normalizes. Investors should monitor liquidity, debt maturity profiles, and yield optimization initiatives as the company works toward sustainable profitability.