ROYAL CARIBBEAN CRUISES recently released its 10-Q report. Royal Caribbean Cruises Ltd. operates a global cruise business under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, offering a range of itineraries. As of December 31, 2025, it operated 69 ships. The company was founded in 1968 and is headquartered in Miami, Florida.
In Item 2, Management’s Discussion and Analysis, the company says its quarterly review is organized around its financial presentation, results for the quarter ended March 31, 2026 versus the same period in 2025, and liquidity and capital resources. It also emphasizes that its discussion includes forward-looking statements, which it says are subject to risks and uncertainties that could cause actual results to differ materially from expectations.
Royal Caribbean says its revenues are seasonal, with demand historically strongest in the Northern Hemisphere summer months and during holidays. To offset winter weather in the Northern Hemisphere and capture Southern Hemisphere summer demand, its brands have historically focused deployment in the Caribbean, Asia, and Australia during that period.
For the first quarter of 2026, net income attributable to Royal Caribbean Cruises Ltd. was $941 million, up from $730 million a year earlier. Adjusted net income was $975 million, compared with $744 million in the first quarter of 2025.
Total revenue rose to $4.452 billion from $3.999 billion, an increase of $453 million. Passenger ticket revenue increased to $3.021 billion from $2.744 billion, while onboard and other revenue climbed to $1.431 billion from $1.255 billion.
Cruise operating expenses increased to $2.247 billion from $2.079 billion. Within that total, commissions, transportation and other expenses were $564 million, onboard and other expenses were $212 million, payroll and related expenses were $400 million, food expenses were $264 million, fuel expenses were $265 million, and other operating expenses were $542 million.
Marketing, selling and administrative expenses were $582 million, up from $562 million. Depreciation and amortization expense rose to $461 million from $412 million.
Operating income increased to $1.162 billion from $945 million. Income before income taxes was $976 million, compared with $751 million in the prior-year quarter.
Below operating income, interest expense, net of interest capitalized, was $278 million, versus $249 million a year earlier. Equity investment income was $84 million, up from $48 million. Interest income was $5 million, compared with $2 million.
The company said the increase in total revenue was driven primarily by higher capacity and yield growth from higher pricing in 2026. It said the increase in cruise operating expenses was mainly due to higher capacity.
In February 2026, Royal Caribbean issued $1.25 billion of senior notes due in 2033 and another $1.25 billion due in 2038, generating net proceeds of approximately $2.5 billion. As a result of these announcements, the company's shares have moved 2.08% on the market, and are now trading at a price of $265.84. For more information, read the company's full 10-Q submission here.
