Vail Resorts Inc (0LK3.L) Q2 2025 Earnings Report

Vail Resorts reported QQ2 2025 revenue of 1.137 billion USD, up 5.5% year-over-year and a sharp sequential rise of 336.97% driven by seasonality in the Mountain segment. The quarter delivered a solid gross margin of 50.28%, operating margin of 33.81%, and net margin of 21.60%, supported by controlled operating expenses and favorable product mix. Net income of 245.55 million USD translated to diluted EPS of 6.56 USD, reflecting a 13.32% year-over-year increase and a 242% QoQ surge driven by the seasonally strong quarter. Cash flow remained robust, with operating cash flow of 326.26 million USD and free cash flow of 251.25 million USD. Free cash flow per share stood at 6.72 USD, while operating cash flow per share was 8.73 USD. The company ended QQ2 with 504.56 million USD in cash and cash equivalents and a total net debt position of approximately 2.48 billion USD. The liquidity metrics show a cautious stance on near-term balance sheet liquidity, with current and quick ratios of 0.465 and 0.391 respectively, underscoring debt-heavy capital structure in a capital-intensive hospitality model. Management commentary is not included in the provided transcript dataset, limiting qualitative attribution to specific quotes. Nonetheless, the results point to a seasonality-driven recovery with meaningful operating leverage, balanced by a high leverage profile and ongoing capital allocation in the form of dividends and modest share repurchases. Investors should monitor weather/seasonality effects, guest demand trends, and the company’s ability to fund ongoing capex and debt repayment while sustaining a healthy free cash flow trajectory.