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Posted by Defense World Staff on Apr 27th, 2026

AiRWA (NASDAQ:YYAI – Get Free Report) and United Parks & Resorts (NYSE:PRKS – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Institutional & Insider Ownership 4.0% of AiRWA shares are owned by institutional investors. 13.8% of AiRWA shares are owned by company insiders. Comparatively, 1.2% of United Parks & Resorts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings This is a summary of recent recommendations for AiRWA and United Parks & Resorts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score AiRWA 1 0 0 0 1.00 United Parks & Resorts 3 5 4 0 2.08 United Parks & Resorts has a consensus price target of $47.50, indicating a potential upside of 40.38%. Given United Parks & Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe United Parks & Resorts is more favorable than AiRWA.

Profitability This table compares AiRWA and United Parks & Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets AiRWA -6.12% -0.40% -0.37% United Parks & Resorts 10.13% -41.63% 6.32% Valuation & Earnings This table compares AiRWA and United Parks & Resorts”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio AiRWA $12.82 million 2.69 $3.49 million $2.90 0.28 United Parks & Resorts $1.66 billion 0.99 $168.35 million $3.05 11.09 United Parks & Resorts has higher revenue and earnings than AiRWA. AiRWA is trading at a lower price-to-earnings ratio than United Parks & Resorts, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk AiRWA has a beta of -1.74, meaning that its share price is 274% less volatile than the S&P 500. Comparatively, United Parks & Resorts has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Summary United Parks & Resorts beats AiRWA on 10 of the 14 factors compared between the two stocks.

About AiRWA (Get Free Report)

Connexa Sports Technologies Inc. engages in the sports equipment and technology business in the United States. The company offers Slinger Launcher, a portable padel tennis ball launcher and pickleball launcher; and Slinger Bag Launcher, a ball launcher built into transport wheeled trolley bag. It also provides Gameface, AI technology and performance analytics for sports. Connexa Sports Technologies Inc. is based in Windsor Mill, Maryland.

About United Parks & Resorts (Get Free Report)

United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.

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 Active-Duty U.S. Military and Families Can Also Enjoy a Complimentary Visit to Busch Gardens

, /PRNewswire/ -- This Military Appreciation Month, Busch Gardens proudly opens its gates to honor the service and sacrifice of our veterans, inviting them and their families to enjoy a well-deserved day of fun and adventure. Busch Gardens' two parks in Tampa and Williamsburg, VA, are celebrating Military Appreciation Month with free one-day admission for U.S. military veterans and up to three guests. Veterans can register for this offer now through May 10 and have until June 30 to visit with their complimentary admission. Veterans can also receive 50% off a single-day ticket for up to 6 guests.

Through its Waves of Honor program that offers special U.S. military pricing and promotions throughout the year, active-duty military and their guests continue to enjoy one-day complimentary park admission all year long. In addition, active military receive 50% off a single-day ticket for up to six guests.

"Busch Gardens is extending its heartfelt gratitude to the brave men and women who have served in the U.S. military," said Marc Swanson, CEO of United Parks & Resorts, Busch Gardens' parent company. "The Waves of Honor program extends a small token of our appreciation to those who are serving or who have served. We look forward to welcoming military service members, veterans and their families for a fun-filled day in one of our parks."

For more than 25 years, the company has been proud to provide complimentary park access to members of the United States military, and as a result, more than 10 million guests – active-duty military members, veterans and their families – have enjoyed free admission through the Waves of Honor program. Whether it's educational animal experiences or thrilling attractions, military families are invited to the parks for a day of family fun.

Eligible U.S military veterans can register for complimentary single-day ticket(s) for themselves and up to three dependents by May 10 at www.WavesofHonor.com. After registering, all tickets must be redeemed by June 30. Service members and their direct dependents must have a valid active military ID to participate.

Any U.S. active-duty military member, including activated reservists or National Guard members, can also take advantage of one complimentary admission for themselves and up to three dependents per year to Busch Gardens. Additional discounts and offers are available for active military and veterans through MWR and ITT offices on U.S. military bases and online at www.WavesofHonor.com. These offers are available year-round and may differ by park.

For those veterans and active military who want to visit the park multiple times throughout the year, a new Military Silver Annual Pass is available at Busch Gardens Tampa and a Military Membership at Busch Gardens Williamsburg. Each offers unlimited admission with no block-out dates for 12 months, free admission to popular events, three free guest tickets, up to 20% off in-park discounts and more.

For more information on the parks, visit Busch Gardens Tampa Bay or Busch Gardens Williamsburg.

About Busch Gardens Tampa Bay
Busch Gardens® Tampa Bay is the ultimate family adventure, offering 300 acres of fascinating attractions based on exotic explorations around the world. Busch Gardens is a unique blend of thrilling rides, an AZA accredited zoo with over 16,000 animals representing more than 200 species, and exciting seasonal events all year providing unrivaled experiences for guests of every age. For more information, visit BuschGardensTampa.com. Busch Gardens is owned by United Parks & Resorts, Inc. (NYSE: PRKS), a leading theme park and entertainment company providing experiences that matter and inspiring guests to protect animals and the wild wonders of our world.

About Busch Gardens Williamsburg
Busch Gardens® Williamsburg is an action-packed European-themed adventure park with 17th-century charm and 21st-century technology, boasting more than 100 acres of family fun. Home to top-rated roller coasters, more than 50 rides and attractions, award-winning entertainment, and signature events throughout the year. Busch Gardens is part of the United Parks & Resorts Inc. (NYSE:PRKS) portfolio of theme park brands. For more information, visit UnitedParks.com.

Media Contact:
[email protected]

SOURCE United Parks and Resorts Inc.

The upcoming report from United Parks & Resorts (PRKS - Free Report) is expected to reveal quarterly loss of -$0.36 per share, indicating a decline of 24.1% compared to the year-ago period. Analysts forecast revenues of $277.41 million, representing a decline of 3.3% year over year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 8.9% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

In light of this perspective, let's dive into the average estimates of certain United Parks & Resorts metrics that are commonly tracked and forecasted by Wall Street analysts.

It is projected by analysts that the 'Net revenues- Food, merchandise and other' will reach $128.46 million. The estimate indicates a change of -1.8% from the prior-year quarter.

The average prediction of analysts places 'Net revenues- Admissions' at $150.99 million. The estimate indicates a year-over-year change of -3.3%.

The consensus among analysts is that 'Admissions per capita' will reach $46.04 . Compared to the current estimate, the company reported $46.04 in the same quarter of the previous year.

Analysts predict that the 'Attendance' will reach 3,279 . Compared to the current estimate, the company reported 3,391 in the same quarter of the previous year.

The consensus estimate for 'Total revenue per capita' stands at $85.20 . The estimate compares to the year-ago value of $84.62 .

According to the collective judgment of analysts, 'In-Park per capita spending' should come in at $39.16 . The estimate compares to the year-ago value of $38.58 .

View all Key Company Metrics for United Parks & Resorts here>>>

Shares of United Parks & Resorts have demonstrated returns of +1.5% over the past month compared to the Zacks S&P 500 composite's +11.4% change. With a Zacks Rank #5 (Strong Sell), PRKS is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

, /PRNewswire/ -- United Parks & Resorts Inc. (NYSE: PRKS), a leading theme park and entertainment company, today reported its financial results for the first quarter of 2026.

First Quarter 2026 Highlights

Attendance was 3.2 million guests, a decrease of approximately 171,000 guests from the first quarter of 2025. Total revenue was $278.3 million, a decrease of $8.7 million from the first quarter of 2025. Net loss was $34.1 million, a decrease of $17.9 million from the first quarter of 2025. Adjusted EBITDA[1] was $58.0 million, a decrease of $9.5 million from the first quarter of 2025. Total revenue per capita[2] increased 2.1% to $86.43 from the first quarter of 2025. Admission per capita[2] decreased 0.5% to $45.81 while in-park per capita spending[2] increased 5.3% to a record $40.62 from the first quarter of 2025. Other Highlights

In the first quarter, the Company repurchased approximately 2.6 million shares for an aggregate total of approximately $92.7 million. Subsequent to the end of the quarter through May 8, 2026, the Company has repurchased an additional approximately 1.8 million shares for an aggregate total of approximately $64.8 million. During the first quarter of 2026, the Company came to the aid of 211 animals in need in the wild.  The total number of animals the Company has helped over its history is more than 43,000. "First quarter results fell short of our expectations primarily due to unfavorable weather (including unfavorable weather in San Diego and Florida in January and February, and again in Florida and Texas during their peak Spring Break periods) and a decline in international attendance. Attendance in the first quarter was negatively impacted by approximately 140,000 guests due to weather and approximately 80,000 guests due to declines in international visitation.  Adjusting for these impacts, attendance would have increased more than 1% for the quarter," said Marc Swanson, Chief Executive Officer of United Parks & Resorts Inc. 

"We delivered another quarter of strong in park execution, growing our in-park per capita and producing another quarter of record results. We also saw strong pass sales performance during the quarter with paid pass sales up approximately 10% during the quarter and up approximately 12% through April 30, 2026.  Looking ahead, our advanced bookings revenue for Discovery Cove and our group business both currently outpacing 2025 levels with Discovery Cove up a double-digit percentage." 

"We continue to strongly believe our stock is materially undervalued and, as such, continued to repurchase shares in the first quarter buying approximately 2.6 million shares for nearly $93 million.  This action emphasizes the strong cash flow generation of this company, our long-standing commitment to returning excess cash to our shareholders and our belief that our shares are materially undervalued."

"As a reminder, for 2026, we have a truly great lineup of new rides, shows and attractions, an updated events calendar, an expanded concert lineup, and new and upgraded food and retail locations.  All of this is supported by a revamped and enhanced marketing plan and strategy.  We are confident these planned investments will drive attendance and guest spending across our parks."

"Despite the headwinds in the first quarter, we are encouraged by our forward indicators and remain committed to delivering strong financial performance and growth in revenue and Adjusted EBITDA in 2026.  I want to thank our ambassadors, whose preparation and hard work are vital as we soon enter the busy summer period," concluded Swanson.

For 2026, the Company has something new and exciting across its parks. The Company's new rides and attractions include the following:  

SeaWorld San Antonio opened Barracuda Strike, Texas' First Inverted Family Coaster in March. This one-of-a-kind attraction invites guests of all ages to dive into the deep and experience the ocean's most agile predator like never before. With every twist, drop, and tight turn, Barracuda Strike will deliver a rush of excitement that's bold enough for thrill-seekers, yet built for the whole family. SeaWorld San Diego will debut an all new Shark Encounter this May. Guests will encounter mesmerizing new shark species alongside a vibrant array of marine life—including additional sharks and colorful fish—as the expanded exhibit transforms into a dynamic underwater adventure. Busch Gardens Tampa Bay will soon open the all-new Lion & Hyena Ridge, an extraordinary new addition to the park's award-winning animal population and the most ambitious new habitat in more than a decade. This reimagined area of the park expands the existing space to more than double its previous size, creating nearly 35,000 square feet of dynamic savanna terrain where a pride of five young male lions and a pair of playful hyenas will live and thrive. Busch Gardens Williamsburg will soon open Verbolten - Forbidden Turn a re-imagined indoor/outdoor multi-launch roller coaster with new immersive storytelling and special effects. This family-friendly roller coaster delivers surprises at every turn as it transports visitors through the Black Forest, soon discovering all is not what it seems. SeaWorld Orlando will soon open a completely revamped and upgraded Expedition Odyssey, with an all new themed experience where guests will soar through an immersive exploration of Fire & Ice.    [1]

This earnings release includes Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow which are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the U.S. ("GAAP"). See "Statement Regarding Non-GAAP Financial Measures and Key Performance Metrics" section and the financial statement tables for the definitions of Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow and the reconciliation of these measures for historical periods to their respective most comparable financial measures calculated in accordance with GAAP.

[2]

This earnings release includes key performance metrics such as total revenue per capita, admissions per capita and in-park per capita spending. See "Statement Regarding Non-GAAP Financial Measures and Key Performance Metrics" section for definitions and further details.

First Quarter 2026 Results

In the first quarter of 2026, the Company hosted approximately 3.2 million guests, generated total revenues of $278.3 million, net loss of $34.1 million and Adjusted EBITDA of $58.0 million. Attendance for the first quarter of 2026 decreased by approximately 171,000 guests when compared to the prior year quarter. The decrease in attendance was due to unfavorable weather conditions across most of the Company's markets and a decline in visitation from international markets compared with the prior-year quarter.

The decrease in total revenue of $8.7 million compared to the first quarter of 2025 was primarily a result of a decrease in attendance, partially offset by an increase in total revenue per capita. Admission per capita decreased primarily due to lower realized pricing on certain admission products and the net impact of the admissions product mix when compared to the prior year quarter. In park per capita spending improved primarily an increase in demand across many in-park offerings when compared to the first quarter of 2025. Adjusted EBITDA was negatively impacted by a decrease in total revenue.

For the Three Months Ended March 31,

Change

2026

2025

%

(Unaudited, in millions, except per share and per capita amounts)

Total revenues

$

278.3

$

286.9

(3.0)

%

Net loss

$

(34.1)

$

(16.1)

(111.2)

%

Net loss per share, diluted

$

(0.69)

$

(0.29)

(137.9)

%

Adjusted EBITDA

$

58.0

$

67.4

(14.1)

%

Net cash provided by operating activities

$

66.8

$

25.7

159.8

%

Attendance

3.22

3.39

(5.0)

%

Total revenue per capita

$

86.43

$

84.62

2.1

%

Admission per capita

$

45.81

$

46.04

(0.5)

%

In-Park per capita spending

$

40.62

$

38.58

5.3

%

Share Repurchases

In the first quarter, the Company repurchased approximately 2.6 million shares for an aggregate total of approximately $92.7 million.  Subsequent to the end of the quarter through May 8, 2026, the Company has repurchased an additional approximately 1.8 million shares for an aggregate total of approximately $64.8 million.

Rescue Efforts

In the first quarter of 2026, United Parks' rescue teams aided 211 animals in need across the country. To date, the Company has helped more than 43,000 animals in its decades-long commitment to wildlife welfare.

United Parks & Resorts is recognized as a leader in animal rescue, working in close partnership with local, state, and federal agencies. Its expert teams are on call 24/7, 365 days a year, ready to mobilize at a moment's notice -- often traveling hundreds of miles to provide urgent care to sick, injured, orphaned, or stranded wildlife. The goal: rehabilitate and return animals to their natural habitats whenever possible, in line with United Parks' mission to protect animals and the ecosystems they call home.

Conference Call

The Company will hold a conference call today, Monday, May 11, 2026, at 9 a.m. Eastern Time to discuss its first quarter 2026 financial results. The conference call will be broadcast live on the Internet and the earnings release and conference call can be accessed via the Company's website at www.UnitedParksInvestors.com.  For those unable to participate in the live webcast, a replay will be available beginning at approximately 12 p.m. Eastern Time on May 11, 2026, under the "Events & Presentations" tab of www.UnitedParksInvestors.com. A replay of the call can also be accessed telephonically from 12 p.m. Eastern Time on May 11, 2026, through 11:59 p.m. Eastern Time on May 18, 2026, by dialing (800) 770-2030 from anywhere in the U.S. or Canada, or (609) 800-9909 from other international locations and entering the conference code 5823876.

Statement Regarding Non-GAAP Financial Measures

This earnings release and accompanying financial statement tables include several non-GAAP financial measures, including Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow. Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow are not recognized terms under GAAP, should not be considered in isolation or as a substitute for a measure of financial performance or liquidity prepared in accordance with GAAP and are not indicative of net income or loss or net cash provided by operating activities as determined under GAAP.

Adjusted EBITDA, Covenant Adjusted EBITDA, Free Cash Flow and other non-GAAP financial measures have limitations that should be considered before using these measures to evaluate a company's financial performance or liquidity. Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow as presented, may not be comparable to similarly titled measures of other companies due to varying methods of calculation.

Management believes the presentation of Adjusted EBITDA is appropriate as it eliminates the effect of certain non-cash and other items not necessarily indicative of the Company's underlying operating performance. Management uses Adjusted EBITDA in connection with certain components of its executive compensation program. In addition, investors, lenders, financial analysts and rating agencies have historically used EBITDA-related measures in the Company's industry, along with other measures, to estimate the value of a company, to make informed investment decisions and to evaluate companies in the industry.

Management believes the presentation of Covenant Adjusted EBITDA for the last twelve months is appropriate as it provides additional information to investors about the calculation of, and compliance with, certain financial covenants in the Company's credit agreement governing its Senior Secured Credit Facilities and the indentures governing its Senior Notes and First-Priority Senior Secured Notes (collectively, the "Debt Agreements"). Covenant Adjusted EBITDA is a material component of these covenants.

Management believes that Free Cash Flow is useful to investors, equity analysts and rating agencies as a liquidity measure. The Company uses Free Cash Flow to evaluate its ability to generate cash flow from business operations. Free Cash Flow does not represent the residual cash flow available for discretionary expenditures, as it excludes certain expenditures such as mandatory debt service requirements, which are significant. Free Cash Flow is not defined by GAAP and should not be considered in isolation or as an alternative to net cash provided by (used in) operating, investing and financing activities or other financial data prepared in accordance with GAAP. Free Cash Flow as defined above may differ from similarly titled measures presented by other companies.

This earnings release includes several key performance metrics including total revenue per capita (defined as total revenue divided by attendance), admission per capita (defined as admissions revenue divided by attendance) and in-park per capita spending (defined as food, merchandise and other revenue divided by attendance). These performance metrics are used by management to assess the operating performance of its parks on a per attendee basis and to make strategic operating decisions. Management believes the presentation of these performance metrics is useful and relevant for investors as it provides investors the ability to review financial performance in the same manner as management and provides investors with a consistent methodology to analyze revenue between periods on a per attendee basis. In addition, investors, lenders, financial analysts and rating agencies have historically used similar per-capita related performance metrics to evaluate companies in the industry.

About United Parks & Resorts Inc.

United Parks & Resorts Inc. (NYSE: PRKS) is a global theme park and entertainment company that owns or licenses a diverse portfolio of award-winning park brands and experiences, including SeaWorld®, Busch Gardens®, Discovery Cove, Sesame Place®, Water Country USA, Adventure Island, and Aquatica®. The Company's seven world-class brands span 13 parks in seven markets across the United States and Abu Dhabi, offering experiences that matter with exhilarating thrill and family-friendly rides, coasters, and experiences, inspiring up-close and educational presentations with wildlife, and other various special events throughout the year. In addition, the Company collectively cares for one of the largest zoological collections in the world, is a global leader in animal welfare, training, and veterinary care, and is one of the leading marine animal rescue organizations in the world with a legacy of rescuing and caring for animals that spans nearly 60 years, including coming to the aid of over 42,000 animals in need. To learn more, visit www.UnitedParks.com. 

Copies of this and other news releases as well as additional information about United Parks & Resorts Inc. can be obtained online at www.unitedparks.com. Shareholders and prospective investors can also register to automatically receive the Company's press releases, SEC filings and other notices by e-mail by registering at that website.

Forward-Looking Statements

In addition to historical information, this press release contains statements relating to future results (including certain projections and business trends) that are "forward-looking statements" within the meaning of the federal securities laws. The Company generally uses the words such as "might," "will," "may," "should," "estimates," "expects," "continues," "contemplates," "anticipates," "projects," "plans," "potential," "predicts," "intends," "believes," "forecasts," "future," "guidance," "targeted," "goal" and variations of such words or similar expressions in this press release and any attachment to identify forward-looking statements. All statements, other than statements of historical facts included in this press release, including statements concerning plans, objectives, goals, expectations, beliefs, business strategies, future events, business conditions, results of operations, financial position, business outlook, earnings guidance, business trends and other information are forward-looking statements. The forward-looking statements are not historical facts, and are based upon current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control. All expectations, beliefs, estimates and projections are expressed in good faith and the Company believes there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, estimates and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond management's control, that could cause actual results to differ materially from the forward-looking statements contained in this press release, including among others: various factors beyond the Company's control adversely affecting attendance and guest spending at the Company's theme parks, including, but not limited to, weather, natural disasters, labor shortages, inflationary pressures, supply chain delays or shortages, foreign exchange rates, consumer confidence, the potential spread of travel-related health concerns including pandemics and epidemics, travel related concerns, adverse general economic related factors including increasing interest rates, economic uncertainty, and recent geopolitical events outside of the United States, and governmental actions; failure to retain and/or hire employees; a decline in discretionary consumer spending or consumer confidence, including any unfavorable impacts from Federal Reserve interest rate actions and inflation which may influence discretionary spending, unemployment or the overall economy; the ability of Hill Path Capital LP and its affiliates to significantly influence the Company's decisions and their interests may conflict with ours or yours in the future; increased labor costs, including minimum wage increases, and employee health and welfare benefit costs; complex federal and state regulations governing the treatment of animals, which can change, and claims and lawsuits by activist groups before government regulators and in the courts; activist and other third-party groups and/or media can pressure governmental agencies, vendors, partners, guests and/or regulators, bring action in the courts or create negative publicity about us; incidents or adverse publicity concerning the Company's theme parks, the theme park industry and/or zoological facilities; a significant portion of the Company's revenues have historically been generated in the States of Florida, California and Virginia, and any risks affecting such markets, such as natural disasters, closures due to pandemics, severe weather and travel-related disruptions or incidents; technology interruptions or failures that impair access to the Company's websites and/or information technology systems; cyber security risks to us or the Company's third-party service providers, failure to maintain or protect the integrity of internal, employee or guest data, and/or failure to abide by the evolving cyber security regulatory environment; inability to compete effectively in the highly competitive theme park industry; interactions between animals and the Company's employees and the Company's guests at attractions at the Company's theme parks; animal exposure to infectious disease; high fixed cost structure of theme park operations; seasonal fluctuations in operating results; changing consumer tastes and preferences; inability to grow the Company's business or fund theme park capital expenditures; inability to realize the benefits of developments, restructurings, acquisitions or other strategic initiatives, and the impact of the costs associated with such activities; the effects of public health events on the Company's business and the economy in general; adverse litigation judgments or settlements; inability to protect the Company's intellectual property or the infringement on intellectual property rights of others; the loss of licenses and permits required to exhibit animals or the violation of laws and regulations; unionization activities and/or labor disputes; inability to maintain certain commercial licenses; restrictions in the Company's debt agreements limiting flexibility in operating the Company's business; inability to retain the Company's current credit ratings; the Company's leverage and interest rate risk; inadequate insurance coverage; inability to purchase or contract with third party manufacturers for rides and attractions, construction delays or impacts of supply chain disruptions on existing or new rides and attractions; environmental regulations, expenditures and liabilities; suspension or termination of any of the Company's business licenses, including by legislation at federal, state or local levels; delays, restrictions or inability to obtain or maintain permits; inability to remediate an identified material weakness; financial distress of strategic partners or other counterparties; tariffs or other trade restrictions; actions of activist stockholders; the policies of the U.S. President and his administration or any changes to tax laws; changes or declines in the Company's stock price, as well as the risk that securities analysts could downgrade the Company's stock or the Company's sector; risks associated with the Company's capital allocation plans and share repurchases, including the risk that the Company's share repurchase program could increase volatility and fail to enhance stockholder value, uncertainties and factors set forth in the section entitled "Risk Factors" in the Company's most recently available Annual Report on Form 10-K, as such risks, uncertainties and factors may be updated in the Company's periodic filings with the Securities and Exchange Commission ("SEC"). Although the Company believes that these statements are based upon reasonable assumptions, it cannot guarantee future results and readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this press release. There can be no assurance that (i) the Company has correctly measured or identified all of the factors affecting its business or the extent of these factors' likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such analysis is correct or (iv) the Company's strategy, which is based in part on this analysis, will be successful. Except as required by law, the Company undertakes no obligation to update or revise forward-looking statements to reflect new information or events or circumstances that occur after the date of this press release or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company's filings with the SEC (which are available from the SEC's EDGAR database at www.sec.gov and via the Company's website at www.unitedparksinvestors.com).

CONTACT:

Investor Relations:
Matthew Stroud
United Parks & Resorts Inc.
888-410-1812
[email protected] 

Media:
AnneMarie Iturrizaga
United Parks & Resorts Inc.
[email protected] 

UNITED PARKS & RESORTS INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

For the Three Months Ended March 31,

Change

2026

2025

#

%

Net revenues:

Admissions

$

147,503

$

156,115

$

(8,612)

(5.5)

%

Food, merchandise and other

130,791

130,834

(43)

(0.0)

%

Total revenues

278,294

286,949

(8,655)

(3.0)

%

Costs and expenses:

Cost of food, merchandise and other revenues

21,647

22,959

(1,312)

(5.7)

%

Operating expenses (exclusive of depreciation and amortization

shown separately below)

171,242

161,270

9,972

6.2

%

Selling, general and administrative expenses

48,068

44,137

3,931

8.9

%

Severance and other separation costs(a)

763

—

763

NM

Depreciation and amortization

45,067

41,695

3,372

8.1

%

Total costs and expenses

286,787

270,061

16,726

6.2

%

Operating income

(8,493)

16,888

(25,381)

(150.3)

%

Other (income) expense, net

(234)

(23)

(211)

(917.4)

%

Interest expense

31,735

34,107

(2,372)

(7.0)

%

Loss before income taxes

(39,994)

(17,196)

(22,798)

(132.6)

%

Benefit from income taxes

(5,926)

(1,063)

(4,863)

(457.5)

%

Net loss

$

(34,068)

$

(16,133)

$

(17,935)

(111.2)

%

Loss per share:

Net loss per share, basic

$

(0.69)

$

(0.29)

Net loss per share, diluted

$

(0.69)

$

(0.29)

Weighted average common shares outstanding:

Basic

49,418

55,017

Diluted (b)

49,418

55,017

UNITED PARKS & RESORTS INC. AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(In thousands)

For the Three Months Ended March 31,

Change

Last Twelve

Months

Ended

March 31,

2026

2025

#

%

2026

Net (loss) income

$

(34,068)

$

(16,133)

$

(17,935)

(111.2)

%

$

150,418

(Benefit from) provision for income taxes

(5,926)

(1,063)

(4,863)

(457.5)

%

53,321

Interest expense

31,735

34,107

(2,372)

(7.0)

%

131,768

Depreciation and amortization

45,067

41,695

3,372

8.1

%

177,846

Equity-based compensation expense (c)

5,418

4,333

1,085

25.0

%

18,850

Loss on impairment or disposal of assets and certain non-

cash expenses(d)

5,664

1,091

4,573

419.2

%

33,580

Business optimization, development and strategic initiative

costs (e)

6,747

1,264

5,483

433.8

%

20,601

Certain investment costs and other taxes

52

3

49

1633.3

%

1,975

Other adjusting items (f)

3,261

2,143

1,118

52.2

%

7,293

Adjusted EBITDA (g)

$

57,950

$

67,440

$

(9,490)

(14.1)

%

$

595,652

Items added back to Covenant Adjusted EBITDA as defined

in the Debt Agreements:

Estimated cost savings (h)

30,000

Other adjustments as defined in the Debt Agreements (i)

11,977

Covenant Adjusted EBITDA (j)

$

637,629

For the Three Months Ended March 31,

Change

2026

2025

#

%

Net cash provided by operating activities

$

66,798

$

25,715

$

41,083

159.8

%

Capital expenditures

69,632

56,903

12,729

22.4

%

Free Cash Flow (k)

$

(2,834)

$

(31,188)

$

28,354

90.9

%

UNITED PARKS & RESORTS INC. AND SUBSIDIARIES

UNAUDITED BALANCE SHEET DATA

(In thousands)

As of March 31, 2026

As of December 31,

2025

Cash and cash equivalents

$

28,942

$

99,762

Total assets

$

2,607,502

$

2,616,274

Deferred revenue

$

203,818

$

143,325

Long-term debt, including current maturities:

Term B-3 Loans

$

1,519,163

$

1,523,019

Revolving Credit Facility

30,000

—

Senior Notes

725,000

725,000

Total long-term debt, including current maturities

$

2,274,163

$

2,248,019

Total stockholders' deficit

$

(557,229)

$

(435,806)

UNITED PARKS & RESORTS INC. AND SUBSIDIARIES

UNAUDITED CAPITAL EXPENDITURES DATA

(In thousands)

For the Three Months Ended

March 31,

Change

2026

2025

#

%

Capital Expenditures:

Core(l)

62,662

49,851

12,811

25.7

%

Expansion/ROI projects(m)

6,970

7,052

(82)

(1.2)

%

Capital expenditures, total

$

69,632

$

56,903

$

12,729

22.4

%

UNITED PARKS & RESORTS INC. AND SUBSIDIARIES

UNAUDITED OTHER DATA

(In thousands, except per capita amounts)

For the Three Months Ended

March 31,

Change

2026

2025

#

%

Attendance

3,220

3,391

(171)

(5.0)

%

Total revenue per capita (n)

$

86.43

$

84.62

$

1.81

2.1

%

Admission per capita (o)

$

45.81

$

46.04

$

(0.23)

(0.5)

%

In-Park per capita spending (p)

$

40.62

$

38.58

$

2.04

5.3

%

NM-Not meaningful.

(a) Reflects restructuring and other separation costs and/or adjustments. 

(b)  There were approximately 1.9 million and 1.3 million  potentially dilutive shares excluded from the computation of diluted loss per share during the three months ended March 31, 2026 and 2025, respectively, as their effect would have been anti-dilutive due to the Company's net loss in those periods.

(c) Reflects non-cash equity compensation expenses and related payroll taxes associated with the grants of equity-based compensation. 

(d) For the three months ended March 31, 2026 and 2025 and for the twelve months ended March 31, 2026, includes non-cash expenses related to asset write-offs and costs related to certain rides and equipment which were removed from service. Also includes approximately $3.7 million and $21.2 million related to non-cash self-insurance reserve adjustments for the three months ended March 31, 2026 and twelve months ended March 31, 2026, respectively.

(e) For the three months ended March 31, 2026, reflects business optimization, development and other strategic initiative costs primarily related to: (i) $3.5 million related to the implementation of a new enterprise resource planning system; (ii) $2.1 million of other business optimization costs and strategic initiative costs and (iii) $0.8 million of severance and other separation costs. For the three months ended March 31, 2025, reflects business optimization, development and other strategic initiative costs primarily related to $1.2 million of other business optimization costs and strategic initiative costs. For the twelve months ended March 31, 2026, reflects business optimization, development and other strategic initiative costs primarily related to: (i) $10.3 million related to the implementation of a new enterprise resource planning system; (ii) $6.2 million of other business optimization costs and strategic initiative costs; (iii) $2.5 million of severance and other separation costs and (iv) $1.6 million of third-party consulting costs.

(f) Reflects the impact of expenses, net of insurance recoveries and adjustments, incurred primarily related to certain matters, which we are permitted to exclude under the credit agreement governing our Senior Secured Credit Facilities due to the unusual nature of the items. Certain amounts relating to prior period results were reclassified to conform to current period presentation. These reclassifications have not changed the results of operations of the prior period.  

(g)Adjusted EBITDA is defined as net (loss) income before income tax expense, interest expense, depreciation and amortization, as further adjusted to exclude certain non-cash, and other items as described above. 

(h) The Company's Debt Agreements permit the calculation of certain covenants to be based on Covenant Adjusted EBITDA, as defined above, for the last twelve month period further adjusted for net annualized estimated savings the Company expects to realize over the following 24 month period related to certain specified actions, including restructurings and cost savings initiatives.  These estimated savings are calculated net of the amount of actual benefits realized during such period. These estimated savings are a non-GAAP Adjusted EBITDA add-back item only as defined in the Debt Agreements and does not impact the Company's reported GAAP net (loss) income. 

(i)  The Debt Agreements permit the Company's calculation of certain covenants to be based on Covenant Adjusted EBITDA as defined above, for the last twelve-month period further adjusted for certain costs as permitted by the Debt Agreements including recruiting and retention expenses, public company compliance costs and litigation and arbitration costs, if any. 

(j) Covenant Adjusted EBITDA is defined in the Debt Agreements as Adjusted EBITDA for the last twelve-month period further adjusted for net annualized estimated savings among other adjustments as described in footnote (h) and (i) above.

(k) Free Cash Flow is defined as net cash provided by operating activities less capital expenditures.

(l) Reflects capital expenditures during the respective period for park rides, attractions and maintenance activities. Certain amounts relating to prior period results were reclassified to conform to current period presentation. These reclassifications have not changed the results of operations of the prior period.   

(m) Reflects capital expenditures during the respective period for park expansion, new properties, revenue and/or expense return on investment ("ROI") projects. Certain amounts relating to prior period results were reclassified to conform to current period presentation. These reclassifications have not changed the results of operations of the prior period.  

(n) Calculated as total revenues divided by attendance.

(o) Calculated as admissions revenue divided by attendance.

(p) Calculated as food, merchandise and other revenue divided by attendance.

SOURCE United Parks and Resorts Inc.

United Parks & Resorts (PRKS - Free Report) reported $278.29 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 3%. EPS of -$0.69 for the same period compares to -$0.29 a year ago.

The reported revenue represents a surprise of +0.32% over the Zacks Consensus Estimate of $277.41 million. With the consensus EPS estimate being -$0.36, the EPS surprise was -89.98%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how United Parks & Resorts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Admissions per capita: $45.81 versus $46.04 estimated by two analysts on average.Attendance: 3,220 versus 3,279 estimated by two analysts on average.Total revenue per capita: $86.43 versus $85.20 estimated by two analysts on average.In-Park per capita spending: $40.62 versus the two-analyst average estimate of $39.16.Net revenues- Food, merchandise and other: $130.79 million compared to the $128.46 million average estimate based on two analysts. The reported number represents a change of 0% year over year.Net revenues- Admissions: $147.5 million versus the two-analyst average estimate of $150.99 million. The reported number represents a year-over-year change of -5.5%.View all Key Company Metrics for United Parks & Resorts here>>>

Shares of United Parks & Resorts have returned +5.1% over the past month versus the Zacks S&P 500 composite's +9.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Management said underlying demand trends remained healthy despite the softer quarter. Shares traded lower following the earnings release.

• United Parks & Resorts stock is taking a hit today. What’s behind PRKS decline?

Earnings and Attendance PressureThe company reported a net loss of 69 cents per diluted share, compared with a loss of 29 cents a year earlier, missing estimates for a 30-cent loss.

Revenue fell 3% year over year to $278.3 million, below the $279.951 million analyst estimate. Adjusted EBITDA declined 14.1% to $58 million from $67.4 million.

Attendance dropped 5% to 3.22 million guests from 3.39 million, hurt by weather and lower international visitation.

Revenue per capita increased 2.1% to $86.43, driven by a record 5.3% rise in in-park spending to $40.62, while admission per capita slipped 0.5% to $45.81.

CEO Commentary"First quarter results fell short of our expectations primarily due to unfavorable weather (including unfavorable weather in San Diego and Florida in January and February, and again in Florida and Texas during their peak Spring Break periods) and a decline in international attendance,” CEO Marc Swanson said.

He added that attendance would have increased by more than 1% even without those impacts.

“Looking ahead, our advanced bookings revenue for Discovery Cove and our group business both currently outpacing 2025 levels with Discovery Cove up a double-digit percentage.” 

Cost Structure and Cash FlowAdmissions revenue fell 5.5% to $147.5 million, while food, merchandise, and other revenue remained flat at $130.8 million. Operating expenses increased 6.2% to $171.2 million, and SG&A expenses rose 8.9% to $48.1 million.

Operating cash flow climbed to $66.8 million from $25.7 million a year earlier, while free cash flow improved to negative $2.8 million from negative $31.2 million.

Capital expenditures increased 22.4% to $69.6 million. Cash and equivalents totaled $28.9 million, with long-term debt at $2.27 billion. Deferred revenue rose to $203.8 million from $143.3 million at year-end 2025.

Share Repurchases and OutlookUnited Parks repurchased about 2.6 million shares for $92.7 million during the quarter and another 1.8 million shares for $64.8 million through May 8.

Paid pass sales increased about 10% during the quarter and were up about 12% through April 30, while Discovery Cove bookings and group business trends exceeded 2025 levels.

Management said it expects revenue and adjusted EBITDA growth in 2026, supported by new rides, attractions, and expanded entertainment offerings, while citing risks including tariffs, inflationary pressures, and macroeconomic uncertainty.

PRKS Price Action: United Parks & Resorts shares were trading 7.64% lower at $36.20 at the time of publication on Monday.

Photo: Busch Gardens, Tampa, Courtesy United Parks & Resorts

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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United Parks & Resorts Inc. (NYSE:PRKS) on Monday reported downbeat first-quarter 2026 results.

The company reported a net loss of 69 cents per diluted share, compared with a loss of 29 cents a year earlier, missing estimates for a 30-cent loss.

Revenue fell 3% year over year to $278.3 million, below the $279.951 million analyst estimate. Adjusted EBITDA declined 14.1% to $58 million from $67.4 million.

“First quarter results fell short of our expectations primarily due to unfavorable weather (including unfavorable weather in San Diego and Florida in January and February, and again in Florida and Texas during their peak Spring Break periods) and a decline in international attendance," CEO Marc Swanson said.

United Parks & Resorts shares fell 2% to trade at $35.80 on Tuesday.

These analysts made changes to their price targets on United Parks & Resorts following earnings announcement.

Stifel analyst Steven Wieczynski downgraded United Parks & Resorts from Buy to Hold and lowered the price target from $43 to $40. Mizuho analyst Ben Chaiken maintained the stock with an Outperform rating and raised the price target from $47 to $48. Considering buying PRKS stock? Here’s what analysts think:

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Orphaned California Sea Lion Pup Rescued in Carlsbad, Calif. Represents the 43,000th Animal Rescued

CLICK HERE FOR MEDIA ASSETS 

, /PRNewswire/ -- SeaWorld through its SeaWorld Rescue team has surpassed the milestone of rescuing 43,000 injured, sick and orphaned animals, underscoring the continuing need to help animals in the wild. Early in May, SeaWorld Rescue in San Diego rescued six birds, along with a young, orphaned California sea lion pup that was found on the back stairs of a beach house in Carlsbad, Calif.

Upon assessment and intake at the SeaWorld Rescue Center, the almost one-year old female pup was emaciated and dehydrated.  The sea lion pup is being provided fluids and formula as she's learning to eat fish on her own.  The team continues to monitor her and she has been placed with other sea lion pups. To watch a video of SeaWorld's rescue milestone, click here.

SeaWorld rescue teams, located in Orlando, San Diego and San Antonio, are on call 24x7, 365 days a year. The more than 43,000 animals rescued span diverse species such as aquatic birds, pinnipeds, turtles, manatees, whales, dolphins, otters and a wide range of other mammals and fish. Each and every rescue is done in coordination with the appropriate local, state and national officials, including the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration (NOAA).

In the first few months of 2026, SeaWorld Rescue teams in Florida provided medical assistance and rehabilitation to 21 manatees and a baby dolphin, along with nearly 40 turtles/reptiles and several birds. SeaWorld Orlando has the largest manatee rescue operation in the U.S., and one of only five critical care centers in the U.S. Its five-acre rescue center can care for up to 60 manatees at a time. One of those success stories from earlier this year was Melby, the manatee rescued from a storm drain in Melbourne Beach, Fla.  Melby was rehabilitated at SeaWorld Orlando and released back to his natural habitat on April 7 after gaining more than 100 pounds.

At SeaWorld San Diego, in the first five months of the year, the team has rescued more than 40 pinnipeds (seals and sea lions), a dolphin and nearly 150 birds.

"Our rescue teams, like all of our zoological professionals, are made up of compassionate and skilled animal care specialists who devote countless hours to helping animals in need," said Dr. Chris Dold, Chief Zoological Officer at United Parks & Resorts, SeaWorld's parent company. "Rescue and rehabilitation can save the lives of individual animals, and in some cases supports the preservation of endangered and threatened species, like the Florida manatee.  That is why we do this work, and why it is so important for accredited zoos and aquariums like ours to continue efforts to help animals that cannot survive on their own."

SeaWorld has passionately dedicated time, energy, and resources to help a wide range of animal species since its first rescue of a beached Dall's porpoise in 1965. SeaWorld is a professionally accredited zoo and one of the largest marine animal rescue organizations in the world. A portion of proceeds from SeaWorld tickets and in park purchases goes toward funding rescue and rehabilitation.

Providing Long Term Care to Rescued Animals that Cannot Survive on their Own

SeaWorld's goal is always to return rescued animals to their natural environments. However, certain health conditions can make survival without human care unlikely or impossible. In those instances, wildlife authorities determine whether an animal can be returned and if not, zoos and aquariums like SeaWorld provide long-term care and permanent homes.

For example, each SeaWorld park has a sea turtle habitat that includes rescued sea turtles, each deemed non-releasable by wildlife authorities. SeaWorld San Diego is also a forever home to five southern sea otters initially stranded and rescued as part of the Monterey Bay Aquarium's Sea Otter Research and Conservation program and deemed by wildlife authorities to be non-returnable. Providing long-term care to non-returnable animals enables guests in the parks to learn more about the specific challenges they faced in the wild.

It Takes a Community and Often Involves Threatened and Endangered Species

Many types of animals helped by SeaWorld are threatened or endangered such as six of the seven kinds of sea turtles, many species of coral, Florida manatees, California sea otters, and Guadalupe fur seals. Rescue and rehabilitation efforts can help mitigate species extinction. 

Marine animal rescue is a community effort. SeaWorld is part of a large network that includes state and federal wildlife agencies (NOAA, USFWS), non-government animal rescue organizations, and other zoos and aquariums that work together to protect marine animals and their habitats.

For more information, visit SeaWorld. Follow SeaWorld on Facebook and Instagram for the latest summer details and information.

About SeaWorld
SeaWorld is a leading marine life theme park and accredited zoo and aquarium that provides experiences that matter while educating and inspiring guests of all ages to care about marine life. Welcoming millions of guests every year, the parks offer fun and enriching experiences ranging from up-close animal encounters and year-round educational programs to award-winning marine-life-themed rides, special events, and live entertainment. For more than 60 years, SeaWorld has advanced marine conservation through science, education, and exceptional animal care. SeaWorld is one of the largest marine animal rescue organizations in the world, having helped more than 43,000 animals to date. SeaWorld parks are in Orlando, San Antonio, San Diego, and Abu Dhabi, United Arab Emirates (UAE). SeaWorld is part of the United Parks & Resorts Inc. (NYSE: PRKS) portfolio of theme park brands. For more information, visit SeaWorld.com.

Media Contact
[email protected]

SOURCE United Parks and Resorts Inc.

The AMD TradeNotably, Ark had sold 13,148 shares of AMD on Friday. Wood has been offloading millions worth of AMD stock in May.

The Bullish TradeBullish stock fell recently despite strong first-quarter results, as analysts flagged weaker second-quarter trading volumes and uncertainty around the timing of tokenization adoption and regulatory approvals tied to its Equiniti acquisition.

The Nvidia TradeThe timing matters because Nvidia has remained under heavy investor scrutiny ahead of its earnings and valuation debate. Benzinga recently noted the "burden of perfection" around the stock, which reflects how much optimism is already built into the name.

The Tesla TradeTesla has also been in the spotlight because of its Optimus robotics ambitions. A recent Benzinga piece argued that Elon Musk's long-term Optimus upside could give Tesla investors a major artificial-intelligence-related bonus beyond the car business.

The Amazon TradeArk bought Amazon.com Inc. (NASDAQ:AMZN) in ARKX, adding 6,959 shares. The trade was valued at $1.8 million as the stock of the Jeff Bezos-founded company closed at $264.86.

The TSMC TradeTaiwan Semiconductor Manufacturing Company remained in focus after its Japan unit returned to profitability and its Arizona operations posted sharply higher earnings, as surging AI-driven chip demand fueled global expansion plans and advanced packaging investments.

The Archer TradeArk added Archer Aviation Inc. (NYSE:ACHR) stock to ARKX, buying 281,199 shares. The trade was valued at $1.7 million, as Archer ended Monday at $5.92.

Shares of Archer Aviation fell last week despite better-than-expected first-quarter results, as investors focused on continued heavy cash burn and broader risk-off sentiment across speculative growth stocks.

The Joby TradeArk also bought Joby Aviation Inc. (NYSE:JOBY) stock in ARKX, adding 118,699 shares. The transaction was estimated to be worth $1.2 million, based on the stock’s closing price of $10.35.

Shares of Joby Aviation declined Friday as broader weakness in high-growth stocks outweighed optimism around the company's 2026 commercial launch timeline and better-than-expected first-quarter results.

Other Key Trades Ark bought Honeywell International Inc. (HON) in ARKX Purchased DoorDash Inc. (DASH) stock in ARKX. Ark sold Roku Inc. (ROKU) across ARKF, ARKK and ARKW. Ark sold Rocket Lab Corp. (RKLB) from ARKX. Benzinga Edge Stock Rankings indicate Nvidia stock has a Momentum score in the 85th percentile and a Value score in the 4th percentile.

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Archer Aviation (ACHR) is upgraded to Buy with a $8–$10 price target, reflecting accelerated FAA certification progress and multiple new revenue catalysts. ACHR became the first eVTOL company to enter Phase 4 of FAA certification, significantly reducing regulatory risk and pulling forward the commercialization timeline. Three 2026 revenue streams—UAE commercial ops, US eVTOL Integration Pilot Program, and defense contracts—are now credible, with $30–$60M projected revenue and $1.2B year-end liquidity.

Flying cars are one step closer to reality, and Archer Aviation (ACHR +5.05%) is one company leading the charge. The company has made significant progress toward obtaining certification from the Federal Aviation Administration (FAA) -- a crucial step in making urban air travel a reality. But does the recent breakthrough make Archer Aviation stock a buy today?

Let's dive into the business and what's next to find out.

Image source: Archer Aviation.

Archer Aviation is now three-quarters of the way through its certification process Electric vertical take-off and landing (eVTOL) aircraft, also known as flying taxis, can take off vertically and fly like airplanes while operating with much less noise than helicopters. These features are enabled by modern battery technology and could change transportation as we know it.

However, getting eVTOL aircraft operationally ready for commercial use is a whole other thing. A big part of this process is obtaining FAA certification that an aircraft meets all requirements and is safe to fly. The certification Archer is seeking is called Type Certification, which comprises four phases of approval.

Earlier this month, Archer made headlines as the first eVTOL manufacturer to close out the third phase of the four-part process. With this, the FAA has agreed to all Means of Compliance (MoC) and specific test plans developed by Archer. This includes how Archer intends to demonstrate that its multi-engine redundancy, fly-by-wire flight control software, and lithium-ion thermal runaway mitigations meet safety thresholds.

Completing this phase is a big step forward for Archer and could provide it with a first-mover advantage over fellow eVTOL developer Joby Aviation. As one of the more advanced eVTOL manufacturers, Archer has been selected by the White House's eVTOL Integration Pilot Program (eIPP). This program enables eVTOL operators to work with state and local governments to test real-world operations, jump-starting this new form of transportation and speeding through the traditional approval processes.

Today's Change

(

5.05

%) $

0.26

Current Price

$

5.30

What's next for Archer Aviation Next up for Archer is the final phase of the Type Certification process. In this final phase, the company must demonstrate that its Midnight aircraft complies with FAA airworthiness requirements through formal testing and analysis.

After this, the FAA will grant Type Inspection Authorization (TIA). This allows official government test pilots to climb into the cockpit of Archer's Midnight aircraft and test real-world handling and safety. The FAA will issue the Type Certification if these tests go well.

In the meantime, the company will launch limited early flights through the eIPP program to help test its technology in action. This program allows Archer to begin operating initial, non-commercial, or highly supervised flights as early as this year.

Archer Aviation is an early stage, cash-burning company with full Type Certification expected in 2027 or 2028. This certification will be a huge step forward, enabling it to operate on a larger commercial scale, and would certainly be a major reason for investors to buy the stock.

But for now, the company has a long road ahead. If you do decide to buy Archer Aviation stock today, you'll need to be patient and maintain a long-term outlook as this process unfolds.

Archer Aviation trades near multi-year lows despite a booming opportunity in building air taxi services and moving into defense aircraft. ACHR faces delays from aircraft design issues, particularly with VTOL flight transition tests on the new Midnight model, raising investor concerns. The company has advanced defense and air taxi initiatives, including partnerships with Anduril and selection for the White House's eVTOL program.

watch now

Air taxi makers have hyped science fiction-like flying cars for years. But as that dream inches closer to reality, legal squabbles are clouding that momentum.

Last year, Joby Aviation sued Archer, accusing the rival air taxi maker of "corporate espionage" and using stolen information to interfere with a real estate developer deal.

Weeks later, Archer clapped back, alleging that Joby hid ties to China and embarked on a "calculated, years-long scheme" to defraud the U.S. government. The plan, Archer claimed, included classifying China aircraft parts as consumer goods such as "hair clips" and "socks."

Simultaneously, another battle was brewing.

Archer hit Vertical Aerospace with a patent infringement suit, claiming the British air taxi maker ripped off its Midnight aircraft. Vertical called the lawsuit "without merit" and said it "will defend those claims vigorously" in a statement to CNBC.

Both cases are working their way through the courts.

"Investors are going to look at things going awry, the resources that are being spent on those lawsuits, and they're going to turn away from the sector," Beta Technologies CEO Kyle Clark told CNBC in an interview. "If Joby, Archer, Vertical and Eve go down, we're going to go down with them."

So far this year, investors seem less than impressed with the makers of electric vertical take-off and landing aircraft, known as eVTOLs for short.

Archer is down 9% and has lost more than a third of its value over the last year. Vertical has shed about half its market value after plummeting nearly 58% in 2025.

Eve has lost about 13% of its market capitalization this year, while Beta Technologies, which went public in November, is down more than 50% from its first close. Joby's stock has lost nearly 7% in 2026 following a 60% run up last year.

Meanwhile, certification timelines have been perpetually pushed back as the buildout for flying cars, which promise to curb emissions and traffic, takes longer to pan out in the U.S.

President Donald Trump's plans to accelerate development through an eVTOL Integration Pilot Program are giving the sector much-needed validation, but heated battles unfolding in the courtroom threaten to sidetrack those dreams and further sour investor appetite.

"If the industry continues to sue each other, then it's going to drag out certification timelines and increase costs," warned Mike Hirschberg, principal at aviation advisory firm H2 Advisors.

The Trump pushLast summer, President Donald Trump handed a major win to the air taxi industry when he signed an executive order to create a testing program.

The announcement coincided with a new drone dominance program and "assert U.S. leadership in emerging aviation sectors" as his administration pushes to reindustrialize the military and scale innovation.

Air taxi makers, which have long worked with defense contractors, took the news in stride, reading the announcement as a way to fast-track approval and accelerate adoption for tech that's taken years to come to fruition.

"This is kind of like our Waymo moment," said Archer CEO Adam Goldstein. "This is our chance to showcase all this stuff."

The administration got to work quickly.

By September, the Department of Transportation launched a program and in March named 26 states participating in the first phase. Testing is expected to start this summer.

"The INNOVATION we are seeing in America's skies is going to change everything," Transportation Secretary Sean Duffy wrote on social media platform X shortly after the department unveiled pilot program participants.

While electric aircraft players have hit the skies, none have successfully flown commercial passengers in the U.S. The biggest hurdle is achieving Federal Aviation Administration certification.

Before they can legally fly passengers, the governing aviation body requires air taxi makers to pass a "rigorous, multi-phase aircraft certification process that starts with a familiarization briefing and ends with the FAA issuing type and production certificates," a spokesperson from the FAA wrote in an email statement.

The spokesperson referred CNBC to the agency's certification page, which includes steps for assessing designs and verifying aircraft quality.

One major hurdle for eVTOLs is what's known as Type Certification, or the official approval of an aircraft's design and parts.

Most recently, Archer said it finished Phase 3 of this process and is concurrently working on Phase 4. Joby is most of the way through Phase 4 and has begun flight testing its first FAA-conforming aircraft for Type Certification. Vertical's certification is through the European Union Aviation Safety Agency and Eve is working with Brazil's National Civil Aviation Agency. 

The FAA said it's working closely with four other regulators on advanced air mobility.

As certification edges closer, some investors are getting impatient.

But Angelo Collins, executive director of the Vertical Flight Society, said betting on the first to market isn't necessarily the best strategy.

"At the end of the day, the quality of the product should matter more than the date of the certification," he said. "That's what I think all us engineers know, but at the end of the day, investors are kind of clueless."

Building out the infrastructure, like charging equipment and vertiports for takeoff and landing, is another barrier to mass U.S. adoption, and one air taxi makers hope to kickstart through Trump's pilot.

Progress and fundingLast year, Joby became the first air taxi maker to complete a piloted full flight transition from vertical to cruise flight, a significant step in the process toward FAA certification.

"If you can demonstrate this shift, you're well on your way to certification," said Austin Moeller, a tech and defense analyst at Canaccord.

Founded in 2009 by JoeBen Bevirt, Joby, alongside Archer, has captured the attention of retail investors. That's also made shares susceptible to wide swings, and the ire of investors.

Earlier this month, Joby launched a massive campaign in New York City that included the city's first-ever point-to-point eVTOL flight and offered onlookers on Manhattan's West Side a close-up.

Over the last decade and a half, the company has also accrued a growing list of partners that includes ridesharing giant Uber. Japanese automaker Toyota has given $894 million to the eVTOL maker and announced a $500 million investment in 2024.

Archer and Joby are establishing significant footprints already with bets in the Middle East, where regulators and governments have readily embraced the new tech. Joby's deals include an exclusive six-year partnership to operate air taxi services in Dubai

Like many of its eVTOL peers, Joby went public through a special purpose acquisition merger at the height of the craze in 2021. Bevirt told CNBC at the Farnborough International Airshow in 2022 that Joby planned to operate air taxis in 2024. In recent years, the company hasn't provided an official update.

"We aren't projecting dates, because it's not entirely within our control," Eric Allison, Joby's chief product officer, told CNBC in an interview. "This is a regulated process, and so we have to do the steps and the FAA has to respond."

Earlier this year, the company was approved for five of the eight Trump pilot testing programs. Joby expects to start flying passengers in demonstrations as soon as this year, which will build more confidence in the aircraft as it works toward certification, Allison said.

In April, Vertical became the second eVTOL maker to successfully transition from helicopter to airplane mode. The company, which is vying for certification under the European Union Aviation Safety Agency, wants to get certified for passenger flights by 2028 — and executives have fiercely stood by that goal.

"Everyone looked at us like we were a complete outlier," said CEO Stuart Simpson. "It's stretching, it's challenging, but we believe we can get there."

Archer, the second-largest player by market value, was founded in 2018 by entrepreneurs Goldstein and Brett Adcock, who previously founded hiring marketplace startup Vettery.

The company unveiled its first aircraft, known as Maker, in 2021 and its flagship product, Midnight, the following year.

Former co-CEO Adcock, who now leads Nvidia-backed robotics startup Figure AI, told CNBC in 2021 that the company was working with the FAA toward certification by 2024. Two years later, Goldstein said Archer plans to "start commercialization in 2025."

Those dates have passed, but the company now faces a 2028 deadline as it seeks to jet passengers across Los Angeles as an official partner of the Olympics.

Archer is scaling for the mega sporting event and attempting to build an operational hub for the area's impending air taxi network. The company recently paid $126 million for Hawthorne Airport, within close range of bustling Los Angeles International Airport.

Last year, the company also bought around 300 battery, flight control and propeller patents from now-defunct air taxi maker Lilium.

Eve Mobility is one of the companies betting on a slow but steady crawl to flying passengers. The upstart from Brazilian jet maker Embraer has signed deals with United Airlines and previously said it plans to enter service by 2027.

"We don't want to be the first one," said CEO Johann Bordais. "We want to be the right one."

Beta's Clark said he's undertaking a "stepwise approach" to certification that starts with defense, logistics, and medical services before tackling passengers. He said Beta's simpler aircraft relative to competitors will simplify the certification process.

"We're going up these steps in a thoughtful, methodical way, instead of trying to jump to the second floor in one leap," he said.

In March, Beta was selected for seven of the eight eVTOL Integration Pilot Program spots — the most out of any aircraft maker. The company is also known for its parts business, which includes motors and charging, and has struck deals with competitors including Eve Air and Archer.

Beta makes two aircrafts, including an eVTOL, and is aiming to get certified in 2028. It's also working on an electric conventional takeoff and landing craft slated for 2027, which operates like a fixed-wing plane.

A history of lawsuits and failuresThe road to flying cars has been riddled with setbacks — and some bankruptcies.

One of the most recent certification hurdles came in 2024. Germany-based Volocopter scrapped plans to bring air taxis to the Paris Olympics after failing to obtain certification for its engines.

Other air taxi makers have faced worse fates.

German electric jet maker Lilium shut down operations last year after a last-minute emergency package collapsed. At its height, the company raised over a billion, going public through a SPAC merger during the 2021 frenzy.

Andrew Beebe, a partner at Obvious Ventures and investor in Lilium, said the capital-intensive nature of the business makes it difficult for eVTOL companies to succeed without the right expertise.

Vertical was once on the brink of collapse. Now, the company is in the middle of a massive turnaround.

In 2021, as Vertical's cash reserves dwindled, hedge fund manager Jason Mudrick swooped in with a funding package. By 2024, his firm, Mudrick Capital, became the majority stakeholder in the air taxi maker through a debt restructuring deal and later forced out its founder.

Since then, Vertical revamped, stepped-up marketing, and changed its management team. This April, the company secured a funding package worth up to $850 million.

Lawsuits — like the ones unfolding between Vertical, Archer and Joby — also aren't new for the industry.

In 2023, Archer settled intellectual property disputes with Boeing and its air taxi unit Wisk, and signed an agreement to collaborate on autonomous tech, and invested in the air taxi maker.

Above all, eVTOL makers and experts alike have one major message for investors riding out the lawsuits and certification: prepare for a bumpy ride.

"This is certainly a long-term play," said Archer's Goldstein. "I let the investors pick the stock prices when they think it's good or bad, and we'll make sure we bring a safe airplane to market."

Year-to-date stock chart for Joby, Archer, Beta, Vertical and Eve.

Key Takeaways Archer spent about $171.7 million on R&D in first-quarter 2026 to support aircraft development.R&D investments focus on engineering, flight testing, software and certification-related activities.Archer is advancing its Midnight aircraft platform to support future deliveries and commercial operations. Archer Aviation Inc. (ACHR - Free Report) continues to invest heavily in research and development (R&D) as it works toward commercializing its electric vertical takeoff and landing aircraft platform. For a company operating in an emerging aviation market, technology development remains critical to achieving certification, improving aircraft performance and preparing for future production. Archer’s ongoing R&D efforts reflect its focus on building capabilities that can support long-term growth across advanced air mobility markets.

A significant portion of the company’s spending is directed toward aircraft engineering, flight testing, software development and certification-related activities. These investments help Archer refine its Midnight aircraft platform while advancing technologies needed for safe and scalable operations. Continued development is also important for meeting regulatory requirements and supporting future commercial deployment plans.

The company remains committed to advancing its technology despite operating in the pre-revenue growth stage. During the first quarter of 2026, Archer reported research and development expenses of nearly $171.7 million, reflecting continued investment in product development and engineering programs. These efforts are helping strengthen the technical foundation needed to support future aircraft deliveries and operational expansion.

Another benefit of sustained R&D spending is the ability to create intellectual property and technological expertise that can support future competitive advantages. While commercialization remains dependent on execution and regulatory milestones, Archer’s continued investment in research and development highlights its focus on building a long-term growth platform within the evolving aviation industry.

Companies Investing in Aviation R&DAs advanced aviation technologies continue evolving, companies are increasing R&D investments to advance aircraft capabilities, support certification efforts and strengthen future growth opportunities. Companies like Joby Aviation, Inc. (JOBY - Free Report) and Textron Inc. (TXT - Free Report) are also actively investing in innovation and technology development.

Joby Aviation reported R&D expenses of nearly $177.5 million in the first quarter of 2026, reflecting continued investments in electric aircraft development, flight testing and certification activities.

Textron incurred $120 million in R&D expenses in the first quarter of 2026, supporting innovation across aircraft development, unmanned products and other next-generation aerospace technologies.

Earnings Estimates for ACHR StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests a year-over-year decline of 61.90% and growth of 7.51%, respectively.

Image Source: Zacks Investment Research

ACHR Stock Trading at a DiscountArcher Aviation is trading at a discount relative to the industry, with a trailing 12-month price-to-book of 2.46X compared with the industry average of 5.69X.

Image Source: Zacks Investment Research

ACHR Stock Price PerformanceOver the past month, ACHR shares have risen 16.8% compared with the industry’s 3.6% growth.

Image Source: Zacks Investment Research

ACHR’s Zacks RankArcher Aviation currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Archer Aviation (ACHR +5.05%) is an aviation company trying to turn a sci-fi idea into reality: flying cars -- or, rather, flying taxis. Think of it as the ridehailing company of the skies. If it succeeds, you might one day call a giant drone-looking craft from your phone to taxi you through the air to and from the airport.

That day might come sooner than originally expected. Thanks to the White House-backed eVTOL Integration Pilot Program, Archer is preparing for early Midnight operations through partners in Florida, Texas, and New York as soon as the second half of 2026. True, that's not the same as full commercial service under FAA type certification, which Archer currently lacks. But successful flights in this program could give regulators a closer look at its aircraft in flight, not to mention offer investors a glimpse into how its air taxi service could work in real-world conditions.

Despite the good news, Archer Aviation stock is trading well below its former highs. Before you buy the dip, however, there's one thing to consider.

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Archer still has one big technical milestone to showcase Archer is a frontrunner in the development of electric vertical takeoff and landing (eVTOL) aircraft. These aircraft can lift and land vertically like a helicopter, but fly forward like a small airplane.

The physics of these eVTOLs is quite impressive. The rotors allow them to take off and land vertically, which means they do not need a runway. Once the aircraft transitions into forward flight, its wings generate lift, much like an airplane. This reduces the burden on the rotors, which allows the eVTOL to fly more efficiently.

In theory, the eVTOL's physics could solve one of the biggest economic problems with helicopters: They're useful, but expensive to maintain and operate. If a company like Archer can scale its eVTOL craft, a fleet of these flying taxis could operate like urban transportation, putting time-crunched travelers above congested streets on a short urban hop.

Image source: Archer Aviation.

That's the promise of physics. The problem, however, is that eVTOL technology has not been proven as a commercial transportation system. It's one thing to show that an eVTOL aircraft can work in a controlled test environment. It is quite another to prove that it can operate safely and reliably in urban airspaces. That's why the Federal Aviation Administration (FAA) hasn't punched Archer's certification ticket with undue haste, as it has to be confident the technology will work before letting customers hop on board.

Which brings me here: Unlike Joby Aviation, Archer has not yet publicly demonstrated a piloted transition flight. By that, I mean a flight in which a pilot manually shifts from vertical takeoff to forward flight. It has, to be sure, demonstrated that its Midnight aircraft can make the transition; it has also showcased a conventional takeoff and landing using a runway. But it has not showcased a pilot physically in the cockpit, manually commanding the aircraft to transition from liftoff to forward motion.

That's a pretty big gap in this prospective eVTOL maker's timeline, and it is one investors should watch closely. Until Archer publicly demonstrates a piloted transition, Joby Aviation seems like the "safer" eVTOL stock right now -- at least from a technical standpoint.

Key Takeaways ACHR shares gained 11% in a month, outperforming the industry's 3.2% rise.Archer benefits from FAA certification progress, UAE expansion and a multibillion-dollar order pipeline.ACHR is scaling production, pursuing defense opportunities and ended Q1 with nearly $1.8 billion in liquidity. Archer Aviation Inc. (ACHR - Free Report) shares have risen 11% over the past month, outperforming the Zacks Aerospace-Defense industry’s growth of 1.7%. The company is gaining from steady certification progress, international launch opportunities and expanding commercial partnerships. Its defense initiatives and partnerships further support long-term growth visibility.

Image Source: Zacks Investment Research

In contrast, some stocks from the same industry, such as RTX Corporation (RTX - Free Report) and Northrop Grumman Corporation (NOC - Free Report) , have underperformed the industry. Over the past month, RTX and NOC have declined 0.1% and 5.8%, respectively.

With ACHR shares rising over the past month, investors may have positive views. Let’s examine the factors and assess the stock’s investment prospects to make an informed decision.

Growth Drivers for ACHR StockArcher Aviation continues to make steady progress toward commercializing its Midnight eVTOL aircraft. In April 2026, the company became the first eVTOL developer to complete Phase 3 of the FAA’s four-phase type certification process, marking an important regulatory milestone. It is now advancing through Phase 4 certification activities while also preparing for potential participation in the White House’s eVTOL Integration Pilot Program, which could enable limited U.S. operations later in 2026. The company is additionally positioning itself for high-visibility deployments linked to the LA28 Olympic Games, which would help build early operational experience and public awareness ahead of broader commercialization.

International expansion remains a key growth driver, led by the Launch Edition program. The United Arab Emirates is emerging as a leading early-market opportunity, where Archer is working with the General Civil Aviation Authority under a Restricted Type Certification pathway aimed at enabling initial passenger services. The company is also expanding partnerships with governments, airlines and infrastructure providers across multiple regions, supported by a multibillion-dollar order pipeline. These initiatives are intended to establish early operating networks and diversify commercialization beyond the United States.

Archer Aviation is also scaling manufacturing and strengthening long-term capabilities through strategic partnerships. Production is ramping up at its Georgia facility alongside increased flight testing to support certification and deployment readiness. The company is also pursuing defense opportunities with Anduril and enhancing its AI and connectivity stack through collaborations with Palantir, NVIDIA and Starlink. Archer Aviation ended first-quarter 2026 with nearly $1.8 billion in liquidity, supporting ongoing development and commercialization efforts.

Earnings Estimates for ACHR StockThe Zacks Consensus Estimate for ACHR’s 2026 earnings per share (EPS) indicates an increase of 0.97% over the past 60 days.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RTX’s 2026 EPS calls for a rise of 1.47% in the past 60 days. The estimate for Northrop Grumman’s 2026 EPS implies a decline of 0.46% over the same period.

Debt Position of ACHRCurrently, Archer Aviation’s total debt to capital is 3.65%, lower than the industry’s average of 47.16%. It indicates that the company can run its business efficiently with much lower debt levels than its industry peers.

Image Source: Zacks Investment Research

ACHR’s Liquidity PositionArcher Aviation has a current ratio of 18.06 compared with its industry’s average of 1.12. The ratio, being more than one, indicates that ACHR possesses sufficient capital to pay off its short-term debt obligations.

Image Source: Zacks Investment Research

RTX and Northrop Grumman also maintain current ratios above one. RTX has a current ratio of 1.02, while NOC holds 1.15.

ACHR Stock Trades at a DiscountArcher Aviation is currently trading at 2.38X, a discount compared to its industry’s 5.6X on a trailing 12-month Price/Book basis.

Image Source: Zacks Investment Research

What Should Investors Do Now?Archer Aviation is benefiting from steady certification progress, expanding international opportunities and growing commercial partnerships, which are strengthening its path toward eVTOL commercialization. The company’s manufacturing expansion, defense initiatives and strategic technology collaborations are expected to support long-term growth, while its strong liquidity position provides financial flexibility to execute its plans.

Given ACHR's recent share price outperformance, earnings growth projection, discounted valuation and lower debt levels, investors may consider including this Zacks Rank #2 (Buy) stock in their portfolios at current levels. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways ACHR held nearly $1.78 billion in cash, cash equivalents and short-term investments as of March 31, 2026.ACHR's liquidity supports aircraft engineering, certification and manufacturing readiness.ACHR's financial flexibility provides runway to pursue strategic initiatives and future operational expansion. Archer Aviation Inc. (ACHR - Free Report) continues to maintain a strong financial position as it advances toward the commercialization of its Midnight aircraft. For companies developing next-generation aviation technologies, access to capital remains critical because significant investments are required across aircraft development, certification, manufacturing preparation and operational infrastructure. Archer Aviation’s substantial liquidity provides the flexibility needed to support these initiatives while pursuing long-term growth objectives.

A key advantage of the company’s financial strength is its ability to fund ongoing development activities without relying heavily on near-term operating revenues. Archer Aviation continues investing in aircraft engineering, certification efforts, manufacturing readiness and technology advancement as it prepares for future commercial operations. A healthy cash position allows the company to execute these priorities while maintaining the flexibility to respond to changing market requirements.

As of March 31, 2026, Archer Aviation held nearly $1.78 billion in cash, cash equivalents and short-term investments. This sizeable liquidity position provides a meaningful financial runway to support strategic initiatives and operational expansion. It also strengthens Archer Aviation’s ability to invest in future opportunities while advancing important milestones across its business.

Financial flexibility can be particularly important in emerging industries where commercialization timelines often extend over multiple years. Archer Aviation’s strong balance sheet helps support continued investment in its growth strategy while providing resources to advance aircraft development, certification activities and future operational plans.

Companies Maintaining Strong Liquidity for Future GrowthAs aerospace companies continue investing in technology development and future growth initiatives, maintaining a strong liquidity position remains important for funding operations and strategic programs. Companies like Textron, Inc. (TXT - Free Report) and RTX Corporation (RTX - Free Report) also maintain substantial financial resources to support long-term expansion.

Textron reported nearly $1.51 billion in cash and cash equivalents as of April 4, 2026, providing financial flexibility to support aircraft development, manufacturing initiatives and other long-term aerospace investments.

RTX held nearly $6.82 billion in cash and cash equivalents as of March 31, 2026, supporting investments across its commercial aerospace and defense businesses while maintaining operational and strategic flexibility.

Earnings Estimates for ACHR StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests a year-over-year decline of 61.90% and growth of 7.51%, respectively.

Image Source: Zacks Investment Research

ACHR Stock Trading at a DiscountArcher Aviation is trading at a discount relative to the industry, with a trailing 12-month price-to-book of 2.02X compared with the industry average of 5.75X.

Image Source: Zacks Investment Research

ACHR Stock Price PerformanceOver the past three months, ACHR shares have fallen 15% compared with the industry’s 12.4% decline.

Image Source: Zacks Investment Research

ACHR’s Zacks RankArcher Aviation currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It has been about a month since the last earnings report for Archer Aviation Inc. (ACHR - Free Report) . Shares have lost about 16.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Archer Aviation due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Archer Aviation Inc. before we dive into how investors and analysts have reacted as of late.

Archer Reports First-Quarter Loss, Revenues Lag Estimates 

Archer Aviation Inc. posted a first-quarter 2026 loss of 21 cents per share compared with the Zacks Consensus Estimate of a loss of 25 cents.

ACHR’s RevenuesRevenues were $1.6 million versus the consensus estimate of $2.0 million, representing an 11.9% miss, as the company remained in the pre-commercial stage.

Even so, Archer highlighted record FAA certification progress, becoming the first eVTOL developer to close Phase 3 of the FAA’s four-phase type certification process while expanding its piloted flight-test program to support commercial readiness.

Highlights of the ReleaseDuring the quarter, ACHR emphasized progress on the regulatory pathway needed to bring its Midnight electric vertical takeoff and landing aircraft to market. Management said Phase 4 work has been advancing in parallel, a key step toward demonstrating compliance and progressing toward certification.

The company also expanded its piloted flight-test activities, calling the period its most expensive quarter for the flight-test program. Those efforts are intended to mature aircraft performance, flight controls and operating procedures ahead of initial commercial deployments.

Archer is also positioning its U.S. readiness around major-event demand, pointing to preparations for the LA28 Olympic Games. Management highlighted operational development tied to Hawthorne Airport in Los Angeles as it works through infrastructure and flight-operations requirements for future urban air mobility services.

ACHR Spending Rises as R&D and G&A ClimbCosts rose sharply as Archer Aviation leaned into certification, engineering and commercialization efforts. Research and development expenses increased to $171.7 million from $103.7 million a year earlier, reflecting higher program activity and personnel-related costs tied to aircraft development and testing.

General and administrative expenses more than doubled to $83.2 million from $40.3 million, driven by higher headcount and stock-based compensation. Total operating expenses climbed to $256.2 million, and the operating loss widened accordingly as the company continued building capabilities ahead of revenue scale.

Archer Keeps Liquidity Strong Despite Cash BurnLiquidity remained a central investor focus, given Archer’s heavy development spend. The company finished the quarter with $951.1 million in cash and cash equivalents and $824.8 million in short-term investments, providing a sizable cushion to fund ongoing certification and manufacturing ramp efforts.

Cash used in operating activities was $149.1 million in the quarter, up from $94.6 million a year ago, reflecting the higher cost base. Archer also invested $32.6 million in property and equipment, underscoring continued build-out of facilities and tooling needed to support production and test operations.

ACHR Guides for Another Heavy EBITDA Loss in Q2ACHR expects an adjusted EBITDA loss of $170 million to $200 million in the second quarter of 2026. Management tied the outlook to continued investment in flight testing, certification workstreams and broader commercial readiness initiatives.

How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM ScoresAt this time, Archer Aviation has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook Archer Aviation has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerArcher Aviation belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, Textron (TXT - Free Report) , has gained 2.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Textron reported revenues of $3.7 billion in the last reported quarter, representing a year-over-year change of +11.8%. EPS of $1.45 for the same period compares with $1.28 a year ago.

Textron is expected to post earnings of $1.52 per share for the current quarter, representing a year-over-year change of -1.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Textron. Also, the stock has a VGM Score of B.

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Based in Pasadena, East West Bancorp (EWBC - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 3.86%. Currently paying a dividend of $0.80 per share, the company has a dividend yield of 2.74%. In comparison, the Banks - West industry's yield is 2.95%, while the S&P 500's yield is 1.4%.

Looking at dividend growth, the company's current annualized dividend of $3.20 is up 33.3% from last year. Over the last 5 years, East West Bancorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.17%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. East West Bancorp's current payout ratio is 25%, meaning it paid out 25% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for EWBC for this fiscal year. The Zacks Consensus Estimate for 2026 is $10.25 per share, which represents a year-over-year growth rate of 8.01%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, EWBC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

East West Bancorp (EWBC - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on April 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis bank holding company is expected to post quarterly earnings of $2.46 per share in its upcoming report, which represents a year-over-year change of +17.7%.

Revenues are expected to be $754.58 million, up 9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.31% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for East West Bancorp?For East West Bancorp, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.44%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that East West Bancorp will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that East West Bancorp would post earnings of $2.48 per share when it actually produced earnings of $2.52, delivering a surprise of +1.61%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

East West Bancorp appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Banks - West industry, Bank of Hawaii (BOH - Free Report) , is soon expected to post earnings of $1.33 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +37.1%. This quarter's revenue is expected to be $192.33 million, up 13.2% from the year-ago quarter.

The consensus EPS estimate for Bank of Hawaii has remained unchanged over the last 30 days. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Bank of Hawaii will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Posted by Defense World Staff on Apr 16th, 2026

Malaga Financial (OTCMKTS:MLGF – Get Free Report) and East West Bancorp (NASDAQ:EWBC – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Dividends Malaga Financial pays an annual dividend of $1.00 per share and has a dividend yield of 4.7%. East West Bancorp pays an annual dividend of $3.20 per share and has a dividend yield of 2.7%. Malaga Financial pays out 45.9% of its earnings in the form of a dividend. East West Bancorp pays out 33.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. East West Bancorp has raised its dividend for 8 consecutive years.

Volatility and Risk Malaga Financial has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, East West Bancorp has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Profitability This table compares Malaga Financial and East West Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Malaga Financial N/A N/A N/A East West Bancorp 28.36% 15.72% 1.68% Analyst Recommendations This is a summary of current recommendations for Malaga Financial and East West Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Malaga Financial 0 0 0 0 0.00 East West Bancorp 0 5 11 0 2.69 East West Bancorp has a consensus price target of $127.36, indicating a potential upside of 8.54%. Given East West Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe East West Bancorp is more favorable than Malaga Financial.

Insider and Institutional Ownership 1.2% of Malaga Financial shares are held by institutional investors. Comparatively, 89.5% of East West Bancorp shares are held by institutional investors. 1.0% of East West Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings This table compares Malaga Financial and East West Bancorp”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Malaga Financial N/A N/A $21.55 million $2.18 9.84 East West Bancorp $4.67 billion 3.44 $1.33 billion $9.52 12.33 East West Bancorp has higher revenue and earnings than Malaga Financial. Malaga Financial is trading at a lower price-to-earnings ratio than East West Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary East West Bancorp beats Malaga Financial on 15 of the 16 factors compared between the two stocks.

About Malaga Financial (Get Free Report)

Malaga Financial Corporation operates as the holding company for Malaga Bank that provides various community banking products and services to personal and business customers. It offers checking, savings, NOW, and money market accounts, certificates of deposits, business banking, consumer, and demand deposits. The company also provides commercial real estate, single and multi-family residential mortgage, consumer, 14-unit investment property, construction, personal, and business loans; home equity lines of credit; and certificates of deposit. In addition, it offers coupon redemption, direct deposit, overdraft lines of credit, telephone transfers, U.S. savings bond redemption, and wire transfer services; and ATM and VISA debit cards, bank by mail, medallion signature guarantee, night depository, notary, safe deposit boxes, and trust deed note collection services. Further, the company provides online banking services, including bill payer, e-statements, and mobile banking services. The company was incorporated in 2002 and is headquartered in Palos Verdes Estates, California.

About East West Bancorp (Get Free Report)

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States. The company operates through three segments: Consumer and Business Banking, Commercial Banking, and Other. It accepts various deposit products, such as personal and business checking and savings accounts, money market, and time deposits. The company’s loan products include mortgage and home equity, commercial and residential real estate, working capital lines of credit, construction finance, trade finance, letters of credit, commercial business, affordable housing loans, asset-based lending, asset-backed finance, project finance, loan syndication, and equipment financing, as well as financing services for clients to facilitate their business transactions between the United States and Asia. It also provides various wealth management, treasury management, foreign exchange, and interest rate and commodity risk hedging services; and mobile and online banking services. The company was founded in 1973 and is headquartered in Pasadena, California.

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PASADENA, Calif.--(BUSINESS WIRE)--East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, reported first quarter 2026 net income of $358 million, or $2.57 per diluted share. Total loans and deposits both reached new records as of March 31, 2026, at $58.1 billion and $68.9 billion, respectively. Return on average assets was 1.79%, return on average common equity was 16.0%, and book value per share grew 14% year-over-year. “East West reported reco.

For the quarter ended March 2026, East West Bancorp (EWBC - Free Report) reported revenue of $773.75 million, up 11.8% over the same period last year. EPS came in at $2.57, compared to $2.09 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $754.58 million, representing a surprise of +2.54%. The company delivered an EPS surprise of +4.55%, with the consensus EPS estimate being $2.46.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how East West Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net interest margin: 3.5% versus 3.4% estimated by four analysts on average.Efficiency ratio: 36.2% compared to the 35.7% average estimate based on four analysts.Average Balance - Total interest-earning assets: $77.97 billion versus $78.03 billion estimated by three analysts on average.Annualized quarterly net charge-offs to average loans HFI: 0.1% versus the three-analyst average estimate of 0.2%.Total nonperforming assets: $216.32 million versus $218.42 million estimated by two analysts on average.Leverage ratio: 11% compared to the 11% average estimate based on two analysts.Tier 1 capital ratio: 15.1% compared to the 15.2% average estimate based on two analysts.Total capital ratio: 16.5% compared to the 16.5% average estimate based on two analysts.Total nonaccrual loans: $180.65 million versus the two-analyst average estimate of $176.26 million.Total Noninterest Income: $102.56 million compared to the $96.8 million average estimate based on four analysts.Net Interest Income: $671.19 million versus the four-analyst average estimate of $657.73 million.Commercial and consumer deposit-related fees: $30.62 million versus $29.23 million estimated by three analysts on average.View all Key Company Metrics for East West Bancorp here>>>

Shares of East West Bancorp have returned +13.5% over the past month versus the Zacks S&P 500 composite's +9.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways EWBC Q1 EPS of $2.57 beat estimates and rose 22.9% YoY on higher NII, fee income, and lower provisions.EWBC's revenues grew 11.7% as NII climbed 11.8% and margin expanded, with non-interest income also rising.EWBC witnessed loan and deposit growth, but higher expenses and mixed asset quality trends remained concerns. East West Bancorp, Inc.’s (EWBC - Free Report)  first-quarter 2026 earnings per share (EPS) of $2.57 beat the Zacks Consensus Estimate of $2.46. Moreover, the bottom line increased 22.9% from the prior-year quarter’s level.

The results were primarily aided by an increase in net interest income (NII) and non-interest income alongside lower provisions. Also, loan and deposit balances increased sequentially in the quarter. However, higher non-interest expenses acted as a spoilsport.

Net income available to common shareholders was $357.8 million, up from $290.2 million in the prior-year quarter.

EWBC’s Revenues & Expenses IncreaseQuarterly net revenues were $773.7 million, up 11.7% year over year. Moreover, the top line beat the Zacks Consensus Estimate of $754.5 million.

Quarterly NII amounted to $671.2 million, which increased 11.8% year over year. Further, net interest margin (NIM) expanded 14 basis points (bps) to 3.49%. We expected NII and NIM to be $661 million and 3.39%, respectively.

Total non-interest income was $102.5 million, up 11.4% year over year. An increase in all components, except lending and loan servicing fees income, foreign exchange income and customer derivative income, drove the improvement. We estimated non-interest income to be $89.6 million.

Non-interest expenses totaled $280.3 million, up 11.2% from the prior-year quarter’s level. The rise was due to an increase in all components except deposit account expense and deposit insurance premiums and regulatory assessment charges. Our estimate for the same was $268.6 million.

The efficiency ratio was 36.23%, down from 36.42% in the prior-year quarter. A fall in the efficiency ratio indicates an improvement in profitability.

As of March 31, 2026, net loans held for investment (HFI) were $57.3 billion, reflecting a 2.1% rise sequentially. Further, total deposits rose 2.7% to $68.9 billion.

East West Bancorp’s Credit Quality: A Mixed BagAnnualized quarterly net charge-offs were 0.09% of average loans HFI, down 3 bps from the prior-year quarter’s level.

The provision for credit losses was $36 million, down from $49 million in the prior-year quarter. Our estimate for the same was $45.4 million.

Non-performing assets totaled $216.3 million, up from $182.2 million in the prior-year quarter.

EWBC’s Capital & Profitability Ratios ImproveAs of March 31, 2026, the common equity Tier 1 (CET1) capital ratio was 15.13%, up from 14.32% as of March 31, 2025. The total risk-based capital ratio was 16.45%, up from 15.63% a year ago.

Return on average assets was 1.79%, up from 1.56% in the prior-year quarter. Return on average tangible equity was 16.92%, up from 15.92%.

East West Bancorp’s Share Repurchase UpdateIn the reported quarter, East West Bancorp repurchased approximately 938,000 shares for $98 million. As of March 31, 2026, $117 million of authorization remained available for repurchase.

Our View on EWBCEast West Bancorp is well-poised for organic growth with decent loan improvement, solid deposit balances and diversified fee income streams. However, a rise in expenses and a weak asset quality amid a tough operating backdrop are likely to hurt the bottom line.

Currently, EWBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other BanksBOK Financial Corporation's (BOKF - Free Report) first-quarter 2026 earnings of $2.58 per share surpassed the Zacks Consensus Estimate of $2.30. The bottom line jumped 38.7% from the prior-year quarter.

BOKF’s results benefited from higher net interest income and total fees and commissions. An increase in loans was another positive. However, the rise in operating expenses was a major undermining factor.

WaFd, Inc.’s (WAFD - Free Report) second-quarter fiscal 2026 (ended March 31) adjusted earnings of 83 cents per share beat the Zacks Consensus Estimate of 74 cents. The bottom line also jumped 27.7% year over year.

WAFD’s results reflected higher net interest income and non-interest income. However, elevated expenses and provisions were the undermining factors. A decline in loans and deposits was another headwind.

East West Bancorp demonstrates strong profitability, disciplined risk control, and sector-leading efficiency, confirmed by robust 2026 Q1 results. EWBC's niche as a US–Greater China financial bridge drives revenue growth but exposes it to geopolitical and macroeconomic risks. Valuation is rich, with a P/E of 12.5x and P/B of 1.9x, reflecting premium pricing and minimal safety margin.