| Schedule of reconciliation between basic and diluted EPS |
A reconciliation between basic and diluted EPS was as follows (in thousands, except share and per share data): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Net income (loss) | | $ | 222,553 | | $ | 29,992 | | $ | 327,219 | | $ | (10,303) | Effect of dilutive securities - exchangeable notes | | | 624 | | | — | | | 1,576 | | | — | Net income (loss) and assumed conversion of exchangeable notes - Diluted EPS | | $ | 223,177 | | $ | 29,992 | | $ | 328,795 | | $ | (10,303) | Basic weighted-average shares outstanding | | | 459,133,954 | | | 446,586,784 | | | 457,901,116 | | | 443,882,011 | Dilutive effect of share awards | | | 719,333 | | | 1,446,354 | | | 2,254,619 | | | — | Dilutive effect of exchangeable notes | | | 4,079,154 | | | — | | | 5,233,192 | | | — | Diluted weighted-average shares outstanding | | | 463,932,441 | | | 448,033,138 | | | 465,388,927 | | | 443,882,011 | Basic EPS | | $ | 0.48 | | $ | 0.07 | | $ | 0.71 | | $ | (0.02) | Diluted EPS | | $ | 0.48 | | $ | 0.07 | | $ | 0.71 | | $ | (0.02) |
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| Schedule of reconciliation of adjusted operating income to net income before income taxes |
The below table includes our calculation of adjusted operating income, our significant segment expenses therein, and a reconciliation of adjusted operating income to net income (loss) before income taxes (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Total revenue | | $ | 2,640,544 | | $ | 2,517,497 | | $ | 4,971,765 | | $ | 4,645,050 | Cruise operating expense | | | | | | | | | | | | | Commissions, transportation and other | | | 484,668 | | | 487,835 | | | 882,273 | | | 883,178 | Onboard and other | | | 191,446 | | | 187,684 | | | 343,314 | | | 326,542 | Adjusted payroll and related (1) | | | 388,374 | | | 340,173 | | | 762,753 | | | 669,300 | Fuel | | | 219,384 | | | 157,377 | | | 388,310 | | | 332,391 | Food | | | 87,322 | | | 81,323 | | | 168,004 | | | 156,911 | Other | | | 209,415 | | | 196,495 | | | 407,999 | | | 381,126 | Adjusted total cruise operating expense | | | 1,580,609 | | | 1,450,887 | | | 2,952,653 | | | 2,749,448 | Other operating expense | | | | | | | | | | | | | Adjusted marketing, general and administrative (2) | | | 394,420 | | | 372,563 | | | 820,700 | | | 748,482 | Depreciation and amortization | | | 271,205 | | | 243,760 | | | 531,921 | | | 475,057 | Adjusted total other operating expense | | | 665,625 | | | 616,323 | | | 1,352,621 | | | 1,223,539 | Adjusted operating income | | $ | 394,310 | | $ | 450,287 | | $ | 666,491 | | $ | 672,063 | | | | | | | | | | | | | | Adjusted operating income | | $ | 394,310 | | $ | 450,287 | | $ | 666,491 | | $ | 672,063 | Non-cash compensation, severance and professional advisory fees (3) | | | (30,983) | | | (26,451) | | | (70,221) | | | (47,285) | Interest expense, net | | | (170,887) | | | (236,782) | | | (336,874) | | | (454,654) | Other income (expense), net | | | 33,517 | | | (156,425) | | | 74,220 | | | (180,930) | Net income (loss) before income taxes | | $ | 225,957 | | $ | 30,629 | | $ | 333,616 | | $ | (10,806) |
| (1) | Excludes non-cash share-based compensation expenses related to equity awards for shipboard officers (see Note 9 – “Employee Benefits and Share-Based Compensation”) and non-cash deferred compensation expenses related to the Shipboard Retirement Plan as follows (in thousands): |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Service cost | | $ | 614 | | $ | 552 | | $ | 1,228 | | $ | 1,105 |
| (2) | Excludes non-cash share-based compensation expenses related to equity awards for corporate employees (see Note 9 – “Employee Benefits and Share-Based Compensation”), professional advisory fees incurred related to activist investors and the cash portion of our restructuring costs related to certain employee terminations as follows (in thousands): |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Professional advisory fees | | $ | 175 | | $ | — | | $ | 5,242 | | $ | — | Severance costs and other fees | | | 7,460 | | | — | | | 17,652 | | | — |
| (3) | Includes, in aggregate, the adjustments noted above. |
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| Schedule of revenues by destination |
Revenue and cash flows are affected by economic factors in various geographical regions. Revenues by destination were as follows (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | North America | | $ | 1,552,908 | | $ | 1,290,919 | | $ | 3,319,159 | | $ | 2,737,647 | Europe | | | 815,032 | | | 963,830 | | | 846,973 | | | 1,037,080 | Asia-Pacific | | | 209,056 | | | 232,944 | | | 575,793 | | | 638,733 | Other | | | 63,548 | | | 29,804 | | | 229,840 | | | 231,590 | Total revenue | | $ | 2,640,544 | | $ | 2,517,497 | | $ | 4,971,765 | | $ | 4,645,050 |
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