Vail Resorts reported QQ4 2025 revenue of $271.2 million, up 2.2% year-over-year but down 79.1% quarter-over-quarter, underscoring pronounced seasonality and the uneven quarterly cadence within its revenue base. The quarter delivered a robust gross margin of 90.5% on a cost of revenue of $25.8 million, yet the company posted a negative EBITDA of $253.6 million and a net loss of $185.5 million, with earnings per share of -$5.08. The negative profitability is driven by high operating and non-cash charges (notably depreciation and amortization) and elevated interest expense against a levered balance sheet.
Cash flow remained negative in QQ4 2025, with net cash provided by operating activities of -$171.6 million and free cash flow of -$227.5 million. The company held cash and cash equivalents of approximately $440.3 million at period end, and total debt of roughly $3.44 billion (net debt about $2.99 billion). Liquidity appears tight as current liabilities exceed current assets, resulting in a sub-1x working capital posture despite a sizable cash balance. Total assets stand at about $5.78 billion with equity of $424.5 million, reflecting a capital structure that is heavily funded by debt and non-cash balance sheet items like goodwill and intangible assets.
Looking ahead, management guidance is not embedded in the provided data, but the investment thesis hinges on debt refinancing flexibility, potential monetization or optimization of the Real Estate and Lodging assets, and the ability to translate a rebound in travel demand into sustainable cash flow. Near-term investors should monitor liquidity management, debt maturities, and capital allocation decisions (including potential buybacks versus deleveraging). Overall, the QQ4 2025 results suggest a cautious stance given elevated leverage, negative free cash flow, and ongoing profitability headwinds, even as the revenue base shows modest year-over-year resilience.