ROYAL CARIBBEAN CRUISES LTD
For the period ended Jun 30, 2026. Filed Jul 28, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 28, 2026
RCL$327.16+1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0000884887-26-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-28.
0000884887-26-000038
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 115 previous paragraphs and 130 current paragraphs.
80 unchanged; 27 reworded; 21 added; 8 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 8 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. for the six months ended June 30, 2026 was $2.1 billion, respectively, compared to Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. of $1.9 billion, respectively, for the six months ended June 30, 2025.
Current report
•In June 2026, TUI Cruises, our 50% joint venture, took delivery of Mein Schiff Flow.
Current report
(4)For 2025, represents gain on sale of noncontrolling interest of Floating Docks and Grand Bahama Shipyard. These amounts are included in Other income within our consolidated statements of comprehensive income (loss).
Current report
Passenger ticket revenues comprised 69% of our 2026 total revenues. Passenger ticket revenues increased by $145 million, or 4.5% to $3.3 billion in 2026 from $3.2 billion in 2025. The increase was primarily driven by a 4.9% capacity growth as a result of the addition of Star of the Seasand Celebrity Xcel compared to the same period in 2025.
Current report
•$65 million driven by 4.9% capacity growth as a result of the addition of Star of the Seasand Celebrity Xcel compared to the same period in 2025; and
Current report
•a $111 million increase due to the 4.9% increase in capacity compared to the same period in 2025;
Current report
•a $76 million increase in crew payroll and related expenses primarily driven by addition of new ships compared to the same period in 2025; and
Current report
•a $76 million increase in fuel expenses related to higher rates per metric ton compared to the same period in 2025.
Current report
Other comprehensive (loss) incomefor 2026 decreased by $307 million, or 174.4%, to a loss of $(131) million in 2026 from a gain of$176 million in 2025. The decrease was primarily due to a (loss)on cash flow derivative hedges of$(137) million in 2026 compared to a gain of$181 million in 2025, mostly as a result of a significant decrease in the fair value of our FX forward swaps and fuel swaps in 2026 compared to 2025.
Current report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Current report
Total revenues for 2026 increased $0.7 billion to $9.3 billion from $8.5 billion in 2025.
Current report
The remaining 31% of 2026 total revenues was comprised of Onboard and other revenues, which increased $324 million, or 12.5% to $2.9 billion in 2026 from $2.6 billion in 2025. The increase was primarily due to:
Current report
•a $170 million increase driven by a 6.5% capacity growth as a result of the additions of new ships noted above compared to the same period in 2025; and
Current report
•a $155 million increase driven by higher pricing on both existing ships and new ships in 2026 compared to the same period in 2025.
Current report
Total Cruise operating expenses for 2026 increased $433 million to $4.8 billion from $4.4 billion in 2025. The increase was primarily due to:
Current report
•a $285 million increase due to the 6.5% increase in capacity noted above; and
Current report
•a $137 million increase in crew payroll and related expenses primarily driven by addition of new ships compared to the same period in 2025.
Current report
Depreciation and Amortization Expenses
Current report
Depreciation and amortization expenses for 2026 increased $96 million, or 11.6%, to $925 million from $829 million in 2025. The increase was primarily due to the addition of new ships noted above compared to the same period in 2025.
Current report
Other comprehensive income (loss)
Current report
(1)We are obligated under noncancelable operating leases primarily for preferred berthing arrangements, real estate and shipboard equipment. Amounts represent contractual obligations with initial terms in excess of one year.
Removed paragraphs (8)
Previous report
Revenues
Previous report
Cruise Operating Expenses
Previous report
Revenues
Previous report
•$226 million driven by 8.3% capacity growth as a result of the addition of Star of the Seasand Celebrity Xcelas well as existing hardware compared to the same period in 2025; and
Previous report
•$51 million driven by yield growth as a result of higher pricing compared to the same period in 2025.
Previous report
•$104 million driven by 8.3% capacity growth as a result of the addition of Star of the Seasand Celebrity Xcel compared to the same period in 2025; and
Previous report
Cruise Operating Expenses
Previous report
Refer to Note 7. Leasesto our consolidated financial statements under Item 1. Financial Statements for maturities related to lease liabilities.
Reworded paragraphs (27)
Previous wording
•a discussion of our results of operations for the quarter ended March 31, 2026, compared to the same period in 2025; and
Current wording
•a discussion of our results of operations for the quarter and six months ended June 30, 2026, compared to the same period in 2025; and
Previous wording
Adjusted EBITDA is a non-GAAP measure that represents EBITDA (as defined below) excluding certain items that we believe adjusting for is meaningful when assessing our profitability on a comparative basis. For the periods presented, these items included (i) other income; and (ii) restructuring charges and other initiative expenses. A reconciliation of Net Income attributable to Royal Caribbean Cruises Ltd. to Adjusted EBITDA is provided below under Results of Operations.
Current wording
Adjusted EBITDA is a non-GAAP measure that represents EBITDA (as defined below) excluding certain items that we believe adjusting for is meaningful when assessing our profitability on a comparative basis. For the periods presented, these items included (i) other income; (ii) restructuring charges and other initiative expenses; and (iii) equity investment impairment, (recovery) of losses and other. A reconciliation of Net Income attributable to Royal Caribbean Cruises Ltd. to Adjusted EBITDA is provided below under Results of Operations.
Previous wording
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is a non-GAAP measure that represents Net Income attributable to Royal Caribbean Cruises Ltd., excluding certain items that we believe adjusting for is meaningful when assessing our performance on a comparative basis. For the periods presented, these items included (i) loss on extinguishment of debt and inducement expense; (ii) restructuring charges and other initiatives expenses; and (iii) the amortization of the Silversea intangible assets resulting from the Silversea acquisition. A reconciliation of Net Income attributable to Royal Caribbean Cruises Ltd. to Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is provided below under Results of Operations.
Current wording
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is a non-GAAP measure that represents Net Income attributable to Royal Caribbean Cruises Ltd., excluding certain items that we believe adjusting for is meaningful when assessing our performance on a comparative basis. For the periods presented, these items included (i) loss on extinguishment of debt and inducement expense; (ii) restructuring charges and other initiative expenses; (iii) the amortization of the Silversea intangible assets resulting from the Silversea acquisition; (iv) gain on sale of noncontrolling interest; and (v) equity investment impairment, recovery of losses, and other. A reconciliation of Net Income attributable to Royal Caribbean Cruises Ltd. to Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is provided below under Results of Operations.
Previous wording
Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. for the first quarter of 2026 was $941 million and $975 million, respectively, compared to Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. of $730 million and $744 million, respectively, for the first quarter of 2025.
Current wording
Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. for the second quarter of 2026 was $1.1 billion, respectively, compared to Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. of $1.2 billion, respectively, for the second quarter of 2025.
Previous wording
Significant items for the quarter ended March 31, 2026 include:
Current wording
Significant items for the quarter and six months ended June 30, 2026 include:
Previous wording
•Total revenues increased $453 million for the quarter ended March 31, 2026 as compared to the same period in 2025. The increase was primarily due to an increase in capacity and yield growth as a result of higher pricing in 2026 compared to the same period in 2025.
Current wording
•Total revenues increased $294 million and $747 million for the quarter and six months ended June 30, 2026 as compared to the same period in 2025. The increase was primarily due to an increase in capacity and higher pricing in 2026 compared to the same period in 2025.
Previous wording
•Total cruise operating expenses increased $168 million for the quarter ended March 31, 2026 as compared to the same period in 2025. The increase was primarily due to an increase in capacity in 2026 compared to the same period in 2025.
Current wording
•Total cruise operating expenses increased $264 million and $433 million for the quarter and six months ended June 30, 2026 as compared to the same period in 2025. The increase was primarily due to an increase in capacity in 2026 compared to the same period in 2025.
Previous wording
Operating results for the quarter ended March 31, 2026 compared to the same period in 2025 are shown in the following table (in millions, except per share data):
Current wording
Operating results for the quarters and six months ended June 30, 2026 compared to the same period in 2025 are shown in the following tables (in millions, except per share data):
Previous wording
(1)For 2026, includes the loss on extinguishment of debt associated with redemptions of the senior notes maturing in 2026. Refer to Note 6. Debt to our consolidated financial statements under Item 1. Financial Statements for further information. For 2025, includes $10 million of inducement expense related to the settlements of the 2025 6.00% convertible notes. These amounts are included in Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss).
Current wording
(1)For 2026, includes the loss on extinguishment of debt associated with redemptions of the senior notes maturing in 2026. For 2025, includes $10 million of inducement expense related to the settlements of the 2025 6.00% convertible notes. These amounts are included in Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss).
Previous wording
(4)For 2025, Diluted EPS includes the add-back of dilutive inducement and interest expense related to our convertible notes of $15 million for the quarter ended March 31, 2025. Refer to Note 4. Earnings Per Share to our consolidated financial statements under Item 1. Financial Statements for further information.
Current wording
(5)For 2025, diluted EPS includes the add-back of dilutive inducement and interest expense related to our convertible notes of $1 million and $16 million for the quarter and for the six months ended June 30, 2025, respectively. Refer to Note 4. Earnings Per Share to our consolidated financial statements under Item 1. Financial Statements for further information.
Previous wording
(5)For 2025, Adjusted Diluted EPS includes the add-back of dilutive interest expense related to our convertible notes of $5 million for the quarter ended March 31, 2025.
Current wording
(6)For 2025, Adjusted Diluted EPS includes the add-back of dilutive interest expense related to our convertible notes of $1 million and $6 million for the quarter and six months ended June 30, 2025, respectively.
Previous wording
Total revenues increased $0.5 billion, or 11.3%, to $4.5 billion in 2026 from $4 billion in 2025.
Current wording
Total revenues increased $294 million, or 6.5%, to $4.8 billion in 2026 from $4.5 billion in 2025.
Previous wording
The remaining 32% of 2026 total revenues was comprised of Onboard and other revenues, which increased $176 million, or 14% to $1.4 billion in 2026 from $1.3 billion in 2025. The increase was primarily due to:
Current wording
The remaining 31% of 2026 total revenues was comprised of Onboard and other revenues, which increased $149 million, or 11% to $1.5 billion in 2026 from $1.3 billion in 2025. The increase was primarily due to:
Previous wording
•$72 million driven by yield growth as a result of higher onboard spending on a per passenger basis in 2026 compared to the same period in 2025.
Current wording
•$83 million driven by higher onboard spending on a per passenger basis in 2026 compared to the same period in 2025.
Previous wording
Total Cruise operating expenses increased by $168 million, or 8.1%, to $2.2 billion in 2026 from $2.1 billion in 2025. The increase was primarily due to the capacity growth which increased cruise operating expenses in 2026 compared to the same period in 2025.
Current wording
Total Cruise operating expenses increased by $264 million, or 11.6%, to $2.5 billion in 2026 from $2.3 billion in 2025. The increase was primarily due to:
Previous wording
Passenger ticket revenues comprised 68% of our 2026 total revenues. Passenger ticket revenues increased by $277 million, or 10.1% to $3 billion in 2026 from $2.7 billion in 2025. The increase was primarily due to:
Current wording
Passenger ticket revenues comprised 69% of our 2026 total revenues. Passenger ticket revenuesfor 2026 increased by $423 million, or 7.1% to $6.4 billion from $5.9 billion in 2025. The increase was primarily due to a 6.5% capacity growth as a result of the addition of Star of the Seasand Celebrity Xcel, compared to the same period in 2025.
Previous wording
Other comprehensive incomefor 2026 increased by $113 million, or 105.6%, to $220 million in 2026 from$106.8 million in 2025. The increase was primarily due to Gain on cash flow derivative hedges of$221 million in 2026 compared to$128 million in 2025, mostly as a result of a significant increase in the fair value of our fuel swaps in 2026 compared to 2025, partially offset by a significant decrease in the fair value of our FX forward swaps in 2026 compared to 2025.
Current wording
Other comprehensive incomewas$88 million in 2026 compared to$283 million for the same period in 2025. The decrease of$195 million in income was primarily due to a gain on cash flow derivative hedges of$84 million in 2026 compared to a gain of$309 million in 2025, mostly as a result of a significant decrease in the fair value of our FX forward swaps in 2026 compared to 2025, partially offset by a significant increase in the fair value of our fuel swaps in 2026 compared to 2025.
Previous wording
Cash flow generated from operations provides us with a significant source of liquidity. Net cash provided by operating activitieswas $1.8 billion for the three months ended March 31, 2026, compared to $1.6 billion in 2025.
Current wording
Cash flow generated from operations provides us with a significant source of liquidity. Net cash provided by operating activitieswas $3.7 billion for the six months ended June 30, 2026, compared to $3.4 billion in 2025.
Previous wording
Net cash used in investing activities increased by $89 million to $0.5 billion for the three months ended March 31, 2026, compared to $0.4 billion in 2025. The change of $89 million was primarily attributable to increased capital expenditures in 2026 compared to 2025.
Current wording
Net cash used in investing activities increased by $2.1 billion to $3.2 billion for the six months ended June 30, 2026, compared to $1.1 billion in 2025. The change of $2.1 billion was primarily attributable to increased capital expenditures in 2026 compared to 2025.
Previous wording
Net cash used in financing activities increased by $0.4 billion to $1.6 billion for three months ended March 31, 2026, compared to $1.2 billion in 2025. The change of $0.4 billion was primarily attributable to an increase in debt proceeds of $2.3 billion related to the issuance of senior notes, offset by repayment of debt of $1.9 billion in 2026 compared to the same period in 2025. Additionally, an increase of $0.6 billion in repurchase of common stock in 2026 part of the previously authorized share repurchase program compared to the same period in 2025, an increase of $0.1 billion on dividend payments, and an increase of $0.1 billion related to payments of withholding tax on stock awards in 2026 compared to the same period in 2025.
Current wording
Net cash used in financing activities decreased by $1.4 billion to $0.4 billion for the six months ended June 30, 2026, compared to $1.9 billion in 2025. The change of $1.4 billion was primarily attributable to an increase in debt proceeds of $5 billion related to the issuance of senior notes and the loan to finance Legend of the Seas, offset by repayment of debt of $2.2 billion in 2026 compared to the same period in 2025. Additionally, an increase of $0.8 billion in repurchases of common stock in 2026 part of the previously authorized share repurchase program compared to the same period in 2025, an increase of $326 million on dividend payments, and an increase of $129 million related to payments of withholding tax on stock awards in 2026 compared to the same period in 2025.
Previous wording
Our future capital commitments consist primarily of new ship orders. As of March 31, 2026, the aggregate expected cost of our ships on order presented in the table above, excluding any ships on order by our Partner Brands, was approximately $16.2 billion, of which we had deposited $1.3 billion. Approximately 52.9% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at March 31, 2026. Refer to Note 8. Commitments and Contingenciesand Note 11. Fair Value Measurements and Derivative Instrumentsto our consolidated financial statements under Item 1. Financial Statements for further information.
Current wording
Our future capital commitments consist primarily of new ship orders. As of June 30, 2026, the aggregate expected cost of our ships on order presented in the table above, excluding any ships on order by our Partner Brands, was approximately $16.5 billion, of which we had deposited $1.3 billion. Approximately 52.6% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at June 30, 2026. Refer to Note 8. Commitments and Contingenciesand Note 11. Fair Value Measurements and Derivative Instrumentsto our consolidated financial statements under Item 1. Financial Statements for further information.
Previous wording
As of March 31, 2026, we anticipate overall full year capital expenditures, based on our existing ships on order, will be approximately $5 billion for 2026 . This amount does not include any ships on order by our Partner Brands.
Current wording
As of June 30, 2026, we anticipate overall full year capital expenditures, based on our existing ships on order, will be approximately $4.7 billion for 2026 . This amount does not include any ships on order by our Partner Brands.
Previous wording
(1)Long-term debt obligations mature at various dates through fiscal year 2042 and bear interest at fixed and variable rates. Interest on variable-rate debt is calculated based on forecasted debt balances, including the impact of interest rate swap agreements, using the applicable rate at March 31, 2026. Debt denominated in other currencies is calculated based on the applicable exchange rate at March 31, 2026.
Current wording
(2)Long-term debt obligations mature at various dates through fiscal year 2042 and bear interest at fixed and variable rates. Interest on variable-rate debt is calculated based on forecasted debt balances, including the impact of interest rate swap agreements, using the applicable rate at June 30, 2026. Debt denominated in other currencies is calculated based on the applicable exchange rate at June 30, 2026.
Previous wording
(2)Amounts primarily represent future commitments with remaining terms in excess of one year to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts.
Current wording
(3)Amounts primarily represent future commitments with remaining terms in excess of one year to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts.
Previous wording
(3)Amounts are based on contractual installment and delivery dates for our ships on order. Included in these figures are $10.8 billion in final contractual installments, which have committed financing covering approximately 80% of the cost of the ships on order for our Global Brands, all of which include sovereign financing guarantees, excluding ships on order for Celebrity River Cruises. Amounts do not include potential obligations which remain subject to cancellation at our sole discretion or any agreements entered for ships on order that remain contingent upon completion of conditions precedent.
Current wording
(4)Amounts are based on contractual installment and delivery dates for our ships on order. Included in these figures are $11.1 billion in final contractual installments, which have committed financing covering approximately 80% of the cost of the ships on order for our Global Brands, all of which include sovereign financing guarantees, excluding ships on order for Celebrity River Cruises. Amounts do not include potential obligations which remain subject to cancellation at our sole discretion or any agreements entered for ships on order that remain contingent upon completion of conditions precedent.
Previous wording
We have significant contractual obligations of which our debt service obligations and the capital expenditures associated with our ship purchases represent our largest funding needs. As of March 31, 2026, we had approximately $14.0 billion of committed financing for our ships on order, which excludes ships on order for Celebrity River Cruises. As of March 31, 2026, our obligations due through March 31, 2027 primarily consisted of$1.4 billion related to debt maturities,$1.0 billion related to interest on debt and$2.4 billion related to progress payments on our ship orders, including the final installments payable due upon the delivery of Legend of the Seas given the expected delivery date in 2026. We have historically relied on a combination of cash flows provided by operations, draw-downs under our available credit facilities, the incurrence of additional debt and/or the refinancing of our existing debt and the issuance of additional shares of equity securities to fund our obligations.
Current wording
We have significant contractual obligations of which our debt service obligations and the capital expenditures associated with our ship purchases represent our largest funding needs. As of June 30, 2026, we had approximately $14.3 billion of committed financing for our ships on order, which excludes ships on order for Celebrity River Cruises. As of June 30, 2026, our obligations due through June 30, 2027 primarily consisted of$1.6 billion related to debt maturities,$1.1 billion related to interest on debt and$0.8 billion related to progress payments on our ship orders. We have historically relied on a combination of cash flows provided by operations, draw-downs under our available credit facilities, the incurrence of additional debt and/or the refinancing of our existing debt and the issuance of additional shares of equity securities to fund our obligations.
Previous wording
As of March 31, 2026, we had liquidity of $6.9 billion, including cash and cash equivalents of $0.5 billion, and $6.4 billion of undrawn revolving credit facility capacity.
Current wording
As of June 30, 2026, we had liquidity of $6.9 billion, including cash and cash equivalents of $0.9 billion, and $6 billion of undrawn revolving credit facility capacity.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
•In June 2026, we took delivery of Legend of the Seas.
Current report — wording carried from elsewhere
In this section, references to 2026 refer to the six months ended June 30, 2026 and references to 2025 refer to the six months ended June 30, 2025.